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Deposits in bank accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY), launched about five years ago, have crossed the ₹1-lakh crore mark.
According to government data, the total balance in PMJDY accounts stood at ₹1,00,495.95 crore as on July 3.
The total number of beneficiaries is 36.06 crore in basic bank accounts under the scheme launched in August 2014.
The number of zero balance accounts under PMJDY declined from 16 per cent of the total accounts in March 2018 to 14.37 per cent in March 2019. The average balance is upwards of ₹2,000 in most banks.
Rural tilt
Over 50 per cent of the account holders are women (19.19 crore) and the number of rural and semi-urban beneficiaries go beyond 60 per cent. Public sector banks (PSBs) contributed significantly with 28.65 crore beneficiaries followed by 6.17 crore in Regional Rural Banks (RRBs). National Payments Corporation of India has issued RuPay debits cards to 28.45 crore accounts so far.
“We have enough data and research to suggest that savings of rural women drove the balance in Jan Dhan accounts upwards. It has become the main avenue for women to save money safely,” Prasanna Tantri, Executive Director, Centre For Analytical Finance, Indian School of Business, told BusinessLine.
The centre, which has long been conducting research on Jan Dhan data, has witnessed ‘regular’ use of these accounts by women beneficiaries.
Banks gain
Though concerns were expressed by a few bankers and even the RBI when the scheme was introduced about the viability of the accounts, banks now have every reason to smile. “They are able to increase their CASA deposits, thanks to the scheme, at a lower cost of funds,” Tantri said.
Volatility
The PMJDY’s journey to ₹1-lakh crore balance, however, has been marked by noteworthy volatility in the trajectory of the total balance. There has been indisputable data to show a rise in total balance of these accounts before the polls and dip after the elections in the last two years.
For instance, on April 17, 2019, the total balance almost reached ₹1-lakh crore at ₹99,751 crore but fell to ₹98,434 crore on May 22 after completion of general elections. A similar scenario was seen in 2018 too before elections to some state legislatures.
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