Rural women across India are expected to benefit from the central government’s ‘Disclosure on Rural Financial Inclusion’ programme that offers approved loans worth Rs 5,000 per beneficiary. The programme was launched by the Ministry of Rural Development on December 18 and six self-help group members were provided with cheques worth Rs 5,000 each.
The initiative promises an overdraft facility of Rs 5,000 to self-help group members under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), a flagship programme of the rural development ministry that aims at eliminating rural poverty.
As per the government data, more than 80.4 million rural women are mobilised into 7.35 million self-help groups. And at least 50 million women self-help group members are expected to benefit from the overdraft facility.
What’s an overdraft facility?
The overdraft facility provides short term approved loans. In this, a credit agreement is made with a bank that allows an account holder to use or withdraw more money than what they have in their account up to the approved limit as and when required. The interest has to be paid only on the amount borrowed and only for time it was borrowed.
Women self-help group members from the rural areas can visit the branches of the banks where they have their savings bank account under the Pradhan Mantri Jan Dhan Yojana to avail the overdraft facility.
This decision is in line with the announcement made by the Union Finance Minister Nirmala Sitharaman during her Budget speech of 2019-20.
As per the government statement issued last week on December 17, the Mumbai-based Indian Banks Association has advised all banks on November 26 to implement this scheme.
