Money & Banking

PMJDY may be replicated in insurance, pension sector

Our Bureau Mumbai | Updated on December 29, 2014 Published on December 29, 2014

Prime Minister’s Jan Dhan Yojna (PMJDY) is likely to be replicated in the insurance and pension sector to extend the financial services to the hinterland.

“Given the low levels of penetration of insurance and pension, there is a case for subsequently extending or replicating a project on the lines of PMJDY, to include the provision of insurance and pension services for the common man,” RBI said in the Financial Stability Report released on Monday.

At present, penetration of the insurance and pension in India is very low. Insurance penetration (premiums measured as percentage of GDP) is just about 4 per cent.

Under the Financial Inclusion Plan, banks will have to revise their targets so as to match with the targets allocated to them by the government under PMJDY, the central bank said.

With revised targets for opening of basic bank accounts in place, banks will have to ensure opening of at least one bank account in each household by January 26, 2015. As on December 24 2014, banks have achieved the 10 crore account opening mark under Pradhan Mantri Jan Dhan Yojana (PMJDY) and have issued 7.75 crore RuPay Cards.

RBI also said, “The timeline for providing banking services in villages with populations below 2,000 under the roadmap may be advanced from March 2016 to August 2015.”

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Published on December 29, 2014
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