PMJDY Update

Posted on September 22, 2015 by Sumita Kale

The success of PMJDY lies not so much in its entry into the Guinness Book of Records as it does in the processes put in place by the Department of Financial Services in monitoring the correct parameters for inclusionThe weekly meetings with bankers ensured a collaborative approach to getting the approach right towards sustainable inclusionEven though the initial target of household coverage was accomplished in record time, PMJDY shows no signs of flagging as the focus has moved to reducing zero balance accounts and monitoring activity at the business correspondent levelThe website is regularly updated, showing a high level of transparencyLatest data shows that 18.34 crore accounts have been opened till 16.09.2015, with INR 24071.38 crores balance.  Zero balance accounts have plummeted from the initial 76.02% in September 2014 to 42.09% in September 2015.

Bank remuneration payouts to agents are also being monitored to ensure viability at the last mile. A recent press release noted:

Banks have engaged Business Correspondent Agents/Bank Mitras (BCAs/BMs) for providing the banking services. These Business Correspondent Agents /Bank Mitras represent the concerned banks and offer banking servicesThey work on online real time mode using various types of telecom connectivity. 123308 BCAs/BMs have been deployed by the Banks for attaining the goal under PMJDY Financial Inclusion program.

 The outlets of Business Correspondent Agents /Bank Mitras in both rural and urban areas are fully equipped with the infrastructure required for delivery of banking services like account opening, cash deposit ,withdrawal, fund transfer (Remittances).They also provide the insurance and pension related servicesThese services are delivered through biometric authentication and using Rupay ATM/ Debit cards swiping with PINs.

Monitoring of the BCAs/BMs deployment, availability & transactions is reviewed in Video Conference (VC) meetings with top management of the Banks, at weekly intervals by Department of Financial Services (DFS) officials. In review meetings, guidance/directions are given to resolve issues, if any, for successful implementation of PMJDY It has yielded good results.

 During the week ended on 9th September 2015, 79305 BCAs/BMs did cash (Receipt +Payments) transactions, 34205BCAs/BMs did Remittances and total 1.20 Crore transactions were done by the BCAs/BMs.

During the last quarter ended on 30th June 2015, total number of transactions done by BCAs/BMs were 6.78 crores out of which 5.32 Crores were cash (Receipt +Payments) transactions and  1.45 crores were remittance transactions.

The Department of Financial Services has come up with an excellent move to allow customers easier access to the overdraft facility - states have been asked to examine modalities is to link the OD automatically to customers' transaction records so that customers can use online or ATM mode to avail the facilityThis will improve uptake of the OD facility in states which are lagging behindOf the 18 crore accounts opened, just 1.64 lakh have availed OD facility so farThis puts paid to the initial criticism of the scheme of overburdening the banks.


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