Jan Dhan accounts slip on credit score

After demonetisation was announced last Nov, Jan Dhan deposits increased to more than Rs 74,000 cr

Making Jan Dhan accounts eligible for credit has become a key concern for banks to keep the scheme viable, after having achieved its broader objective of financial inclusion.

At present, less than 15 per cent of the accounts are credit-linked, according to informal estimates from banks. The lenders are now pushing for the overdraft facility of Rs 5,000, which comes with the accounts, to customers. 

However, with a large number of account-holders deemed non-creditworthy, credit linkage is turning out to be a difficult task, bankers say. 

Meanwhile, the huge pool of low-cost deposits, which banks had accumulated on account of