Jaitley to review Jan Dhan scheme on Wednesday

It’s stock taking time at the highest level for Prime Minister Narendra Modi’s pet project on financial inclusion – the Pradhan Mantri Jan Dhan Yojana (PMJDY).

Finance Minister Arun Jaitley will chair the first quarterly meeting of the Mission of PMJDY on Wednesday to review, among others, the progress of account opening and deposits, duplication and multiplicity of accounts, lack of telecom connectivity, and challenges being faced by the Yojana.

Ever since the scheme was launched on August 28, banks, especially public sector and regional rural banks, have gone all out in opening Basic Savings Bank Deposit Accounts. So far, the total number of accounts under the scheme have crossed 7.91 crore. .

However, issues relating to duplication and multiplicity of accounts need to be resolved and the same will be taken up at the meeting.

The Ministry is banking on a survey to figure out duplication and multiplicity of accounts. Based on the results of the survey, some accounts could get weeded out, requiring banks to make one last final push to achieve the target.

The Ministry is of the view that there is a need to ensure transactions in the zero balance accounts.

Hence, State Governments will be encouraged to use these accounts for benefit transfers.

Further, banks will need to make efforts to raise the deposit level through financial literacy programme.

Though 1.15 lakh sub-service areas (comprising about 1,000-1,500 households so that banking facilities are available within a reasonable distance of, say, 5 km) have been covered through branches and bank mitras (business correspondents), 14,077 still remain uncovered.

Out of the uncovered sub-service areas, 3,007 are uncovered due telecom connectivity constraints. Major connectivity issues are in Uttarakhand, North-Eastern States and Andaman & Nicobar Islands.

So, the Department of Telecommunications will be asked to provide telecom connectivity to the identified areas on priority.

The meeting, which will be attended, among others by the Ministers for Communication & Information Technology and Rural Development, Reserve Bank of India Governor and Financial Services Secretary, is also expected to go into the reasons for the low percentage of accounts opened using Unique Identification Authority of India’s e-KYC (electronic know-your-customer) process.

The other issues that will be taken up at the meeting pertain to commission for banks for transfer of subsidy on LPG (liquefied petroleum gas); integration of PMJDY with the National Rural Livelihood Mission through convergence with self-help groups; and integration of the Mahatma Gandhi National Rural Employment Guarantee Scheme with direct benefit transfer.

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