On July 26, 2021, HDFC Bank, the largest private lender of India, in collaboration with Common Services Centres (CSC) e-Governance India Ltd, Special Purpose Vehicle (CSC SPV), launched an OverDraft (OD) scheme named ‘Dukandar Overdraft Scheme’ to provide financial assistance up to Rs 10 lakh to small retailers.
Features of Dukandar Overdraft Scheme:
i.Eligibility:
- Small retailers who are operating for a minimum of 3 years are eligible under the scheme.
- The retailers also need to provide a 6-month bank statement from any bank and they should have been a customer of that bank for at least 15 months.
ii.OD limit: The overall limit of OD was from Rs 50,000 toRs 10 lakhs. For shops that are operational forless than 6 years, the upper limit will be Rs 7.5 lakhs and for those who are in business for more than 6 years,the limit is Rs 10 lakhs.
iii.The collateral security, business financials, and income tax returns are not required to obtain the facility.
iv.0.40 percent to 0.80 percent commission will be provided by the bank for loan amounts of Rs 5 Lakhs and above for village-level entrepreneurs (VLE).
Note – As of December 31, 2020, HDFC Bank had disbursed ~Rs 23,000 crore as part of the Emergency Credit Line Guarantee Scheme (ECLGS).
What is OverDraft(OD)?
i.It is a credit facility that will be provided by banks to allow customers to use or withdraw money from their savings or current account even when there is no balance or minimum balance up to the approved limit.
ii.OD will work like an approved loan but the banks will charge interest only on the utilized amount for the time when it is used.
Recent Related News:
In May 2021, the CSC E-Governance India Ltd unveiled a unique Agri Services Portal ‘www.cscagri.in’, a one-stop destination and marketplace for small farmers.
About HDFC Bank:
Establishment – 1994
Headquarters– Mumbai, Maharashtra
MD & CEO – SashidharJagdishan
Tagline – We understand your world
About CSC Special Purpose Vehicle (CSC SPV):
CSC SPV, the government’s e-governance services delivery arm was set up by the Ministry of Electronics & IT under the Companies Act, 1956 to oversee the implementation of the CSC scheme.
MD – Dinesh Kumar Tyagi
