Financial Inclusion- News and Views - January 2016
The Pradhan Mantri Jan Dhan Yojana (PMJDY) account network has grown to 19.84 crore accounts by 30th December 2015 with deposits of INR 29225.56 crores. Zero balance accounts have dropped to 31.81% of the total and RuPay has now crossed a third of the market share in the card payments. Progress of the PMJDY is also being tracked through a regular survey designed by the Department of Financial Services, MicroSave and Bill and Melinda Gates Foundation with two aims : 1) To understand the coverage and quality of Bank Mitras across a sample of Sub Service Areas; and 2) To understand customers’ experience with PMJDY. The survey’s first round was conducted over the period November-December 2014 (MicroSave India Focus Note #114 An early dip-stick assessment of Bank Mitr’s under Pradhan Mantri Jan Dhan Yojana) and the second round over the period April-May 2015 (MicroSave India Focus Note #125 PMJDY Assessment Round 2: Well Begun is Job Half Done). The results shows that while many parameters such as transaction readiness, dormancy rate, and earnings have improved, training and monitoring of Bank Mitras remain unsatisfactory.
The Reserve Bank of India Report of the Committee on Medium-term Path on Financial Inclusion was released on 28th December 2015, making a comprehensive listing of recommendations towards a measurable and monitorable action plan for financial inclusion that encompasses both households and small businesses. The goal has been set for 2021, when over 90 per cent of the hitherto underserved sections of society become active stakeholders in economic progress empowered by formal finance. The recommendations cover the gamut of issues under financial inclusion, including agricultural credit, MSME finance, interest-free banking, credit infrastructure, payments system, Government-to-Person payments, financial literacy and governance principles.
The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space, to provide a knowledge base that will help build understanding around how to accelerate the poor’s access to high-quality financial services. Editor: Sumita Kale can be contacted at firstname.lastname@example.org. The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. The Centre is supported by the Bill & Melinda Gates Foundation. http://www.indicus.net/icfi