Jan Dhan A/C holders to soon get flexi RD facility

Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders may soon get facility of flexi recurring deposit facility, a senior Finance Ministry official said. Also, there is a plan to increase the coverage of micro insurance among PMJDY account holders.

These are the plans as part of the ‘Road Ahead’ for PMJDY, which is set to complete nine years of its existence. Highlighting the achievement of financial inclusion initiative, Financial Services Secretary Vivek Joshi said, “Average deposit under PMJDY has reached over Rs. 4,000. This gives an opportunity to provide instruments such as flexi recurring deposit.” Further, banks need to design such new products.

Flexi recurring deposit is like any RD in term of interest rate. Only, there is no need to set aside a fixed sum every month.