₹33,000-cr seen flowing into Jan Dhan accounts

The Government is confident that a majority of the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts will become active with funds over ₹33,000 crore expected to flow in within a year.

Against the target of 10 crore accounts by January 26, a total of 11.5 crore accounts have been opened till January 17. However, out of these only 3.23 crore (nearly 28 per cent) are operational — accounts having some balance.

“The challenge lies in making these dormant accounts operational,” Finance Minister Arun Jaitley said while addressing a press conference on the scheme. PMJDY is new financial inclusion programme which aims to provide at least one bank account to every household in the country.

He, however, felt that with the use of direct benefit transfer for 27 old schemes (scholarship and pension) along with payment of wages under Mahatma Gandhi Rural Employment Scheme through bank accounts will help in fund flow.

Jaitley also said that use of direct benefit transfer for LPG will be another instrument in this regard, though mainly in urban and semi-urban areas. For 15.34 crore LPG customers, the Government has initiated transfer of subsidy through bank accounts across the nation from January 1. In first 20 days, over ₹620 crore was transferred through seeded bank accounts.

“We hope that ₹25-30 crore worth of subsidy will be distributed annually through bank accounts”, he said. Jaitely further said that RuPay cards have been issued to more than 10 crore beneficiaries who will get a benefit of personal accidental insurance of ₹1 lakh under the Yojana. In addition there is a life insurance cover of ₹30, 000 for eligible beneficiaries. However, life insurance cover will be available only for accounts opened between August 25, 2014 and January 26, 2015, and that too will come with some riders.

Though accident insurance cover will be available for every account holder, life insurance is restricted. The exclusion list includes serving and retired Central/State Governments’ employees and their families, Public Sector Undertakings, Public Sector Banks & Central/State Government owned entities’ employees and their families, persons filing income tax return or TDS (Tax deducted at Source) deductee person and persons covered under Aam Aadmi Bima Yojana.

Head or earning member of family aged between 18 and 59 years will be covered. Benefit will be only for one person and available with in force RuPay card. Life cover initially for a period of 5 years means up to March 31, 2020. In force card means swipe even for balance enquiry within a certain period from date of opening of accounts.

Financial Services Secretary Hasmukh Adhia admitted that initially there was some problem in claims settlement, but now with the issuance of detailed guidelines, this won’t happen. Adhia also received a certificate from Guinness Book of World Records for most bank accounts opened in one week as part of the Financial Inclusion Campaign is 18,096,130 during August 23-29.

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