Pradhan Mantri Jan-Dhan Yojana - A National Mission on Financial Inclusion - pmjdy
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Pradhan Mantri
Jan-Dhan Yojana
A National Mission on Financial Inclusion
Department of Financial Services Department of Financial Services
Ministry of Finance Ministry of Finance
Government of India Government of India
www.financialservices.gov.in www.financialservices.gov.in
" Economic resources of the country should be
utilised for the well-being of the poor.
The change will commence from this point."
Shri Narendra Modi
Hon’ble Prime Minister of India
Message Message
I am happy to launch this booklet on the I am glad that we have undertaken the
Pradhan Mantri Jan-Dhan Yojana. Pradhan Mantri Jan-Dhan Yojana as a National
Inclusive Growth – “Sab Ka Sath Sab Ka Vikas” Mission on Financial Inclusion to provide all
is central to our development philosophy. This households in the country with financial services,
Mission would enable all households, urban and with particular focus to empower the weaker
rural to gain easy and universal access to financial sections of society, including women, small
services. Exclusion from the banking system and marginal farmers and labourers, both rural
excludes people from all benefits that come from a and urban.
modern financial system. In this Mission, households The necessity of launching such a mission was felt in
will not only have bank accounts with indigenous view of the fact that less than two-thirds of the
RuPay Debit cards but will also gain access to credit households in the country have access to banking
for economic activity and to insurance and pension facilities even after 67 years of independence.
services for their social security. I am happy to note The Mission seeks to provide all households in the
that the Mission has a strong focus on the use of country, both rural and urban, with access to the
technology and incorporates lessons learnt from financial services, like bank account with RuPay
earlier efforts. Debit card, access to credit, remittance, Insurance
I congratulate the Finance Minister and his team & Pension. Thus, the Mission not only brings the
for their excellent effort in undertaking this excluded sections into the financial mainstream but
ambitious task. makes the transfer of benefits of various subsidy
schemes of the government more efficient.
I wish them all the success.
To achieve the objectives of the Mission we would
require full support from Banking and other Financial
Institutions, private service providers and above all,
citizens. I am sure together we shall succeed in
22 August, 2014 Shri Narendra Modi
improving the financial status of the downtrodden
Hon’ble Prime Minister of India
and poor of our country.
Shri Arun Jaitley
Minister of Finance, Corporate Affairs and Defence
Message Foreword
It gives me immense pleasure to be an active part of Financial Inclusion is a national priority of the Government as it is an enabler
the Government's initiative of the Pradhan Mantri for inclusive growth. Financial Inclusion is important as it provides an avenue
Jan-Dhan Yojana which is a National Mission on to the poor for bringing their savings into the formal financial system, an
Financial inclusion by the Hon'ble Prime Minister. avenue to remit money to their families in villages besides taking them out of
the clutches of the usurious money lenders. The efforts to include the
Financial Inclusion is an important priority of the
financially excluded segments of the society in India are not new. In the
Government as it is an enabler for inclusive growth.
campaign launched in the year 2011 by Government of India, about 74,000
The main objective of the Yojana is to ensure villages with population more than 2,000 (as per 2001 census) were covered
universal access to banking facilities with at least one with banking facilities.
basic banking account for every household.
The earlier campaign however was limited in its approach in terms of reach
It is my firm belief that inclusive growth is crucial for and coverage. Convergence of various aspects of comprehensive Financial
achieving sustainable economic development. I am Inclusion like opening of bank accounts, access to digital money, availing of
sure the Pradhan Mantri Jan-Dhan Yojana will go a micro credit, insurance and pension was lacking. The campaign focused only
long way in achieving the goal of complete financial on the supply side by providing banking facility in villages of population
inclusion across the country. greater than 2000 but the entire geography was not targeted. There was
I am confident that we shall succeed in this no focus on the households. Also some technology issues hampered further
endeavour. scalability of the campaign. Consequently the desired benefits could not be
achieved and a large number of bank accounts remained dormant.
A comprehensive plan is necessary to keep the accounts active and use them
as an instrument of some economic activity leading to livelihoods.
In order to provide the much needed thrust a flagship programme called the
'Pradhan Mantri Jan-Dhan Yojana' was announced by Hon'ble Prime
Smt. Nirmala Sitharaman, Minister in his Independence Day address on 15th August, 2014. This is a
MoS (IC) for Commerce & Industry National Mission on Financial Inclusion encompassing an integrated
and MoS for Finance & Corporate Affairs approach to bring about comprehensive financial inclusion of all the
households in the country. The plan envisages universal access to banking
facilities with at least one basic banking account for every household,
financial literacy, access to credit, insurance and pension facility. In addition,
the beneficiaries would get RuPay Debit card having inbuilt accident
insurance cover of `1 lakh. The plan also envisages channeling all
Government benefits (from Centre / State / Local Body) to the beneficiaries
accounts and pushing the Direct Benefits Transfer (DBT) scheme of the
Union Government. The technological issues like poor connectivity, on-line
transactions will be addressed. Mobile transactions through telecom
operators and their established centres as Cash Out Points are also planned
to be used for Financial Inclusion under the Scheme. Also an effort is being
made to reach out to the youth of this country to participate in this Mission
Mode Programme.
We are extremely grateful to Hon'ble Prime Minister who not only provided
his strong support to the scheme but guided us extensively in re-framing it
and making it more meaningful and all inclusive. I am also thankful to Hon'ble
Finance Minister for his continued guidance and support in drafting of the
scheme. Our thanks are due to Hon'ble Minister of State for Finance who
took an active interest in the finalization of the scheme and helped us on
several issues particularly in soliciting support of the States. I would like to
express our appreciation to the Ministry of Rural Development, Ministry of
Communications and Information Technology, Ministry of Information and
Broadcasting, Department of Posts, Ministry of Labour and other Ministries
and Organizations for providing their active support in this initiative. I must
place on record my deep appreciation to Reserve Bank of India, Indian Banks'
Association (IBA) and various Banks / State Level Bankers Committees and
the Insurance Companies for their whole-hearted contribution in the
formulation of the scheme. Our thanks are due to the States and Union
Territories for committing their full support in the implementation of the
scheme. Last but not the least I must thank all concerned officers
of Department of Financial Services who worked tirelessly to put in place a
new programme meeting the expectations of the new Government. An
important feature of the present plan is that it will be implemented in Mission
Mode. A web based monitoring tool for the Mission has been developed.
I would also like to express my thanks to all members of the public and
various organizations bodies who provided their valuable inputs and
suggestions. The name of the Scheme, the logo design and the tagline are
based on suggestions received through crowd sourcing. With the support of
all stakeholders, I am sure we will make the scheme a grand success fulfilling
the national aspirations for an economically strong and vibrant country.
Dr. Gurdial Singh Sandhu
Secretary
Department of Financial Services
Ministry of Finance
Government of India
CONTENTS
S.No Content Pages S.No Content Pages
Executive Summary (i) to (v) 8. Role of Technology in Financial Inclusion 28
1. Introduction 1 9. Administrative Structure for Monitoring 34
2. Financial Inclusion – Background 4 10. Monitoring Mechanism/MIS 36
3. Financial Inclusion: Current Status – India 6 11. Media and Publicity 38
4. Mission Mode Objectives (6 Pillars) 10 12. Challenges identified in the implementation of the Mission 40
5. Timeline for Financial Inclusion Plan 12 13. Roles of major stakeholders 42
6. Strategy for achievement of Objectives 14 14. Launch Function 46
7. Implementation of PMJDY in Mission Mode 15. Timelines for Implementation 47
7.1 Reaching out – Network expansion and
geographical coverage of the banks 17
7.2 Opening of Basic Saving Bank Account of
every adult citizen 20
7.3 Financial Literacy and Credit Counselling (FLCC) -
Establishing adequate number of Financial Literacy
Centres (FLC) & Mechanism to increase financial
literacy among the financially excluded sections 23
7.4 Credit Guarantee Fund 24
7.5 Micro-Insurance 25
7.6 Unorganized sector Pension scheme
- Swavalamban 26
BCs are not actually functional. estimated at 2.55 crore as per Census,
• Public Sector Banks (PSBs) including 2011. However, the exact number of
EXECUTIVE SUMMARY RRBs have estimated that by 31.05.2014,
out of the 13.14 crore rural households
households without bank accounts are
not available but estimated to be 1.5 crore
which were allocated to them for implying opening of about 1.5 crore
coverage, about 7.22 crore households accounts in urban areas.
have been covered (5.94 crore 3. Present plan:
1. Current status of financial sector, decided in public interest to uncovered). It is estimated that 6 Crore
inclusion in the country: enable the banks to use the services of Comprehensive FI based on six pillars is
households in rural and 1.5 Crore in proposed to be achieved as under:
NGOs/SHGs, MFIs and other Civil urban area needs to be covered.
• In order to ensure financial inclusion Society Organizations as intermediaries
various initiatives were taken up by RBI/ GoI Phase I (15th Aug, 2014 - 14th Aug, 2015)
in providing financial and banking services 2. The task at hand:
like Nationalization of Banks, Expansion through use of "Business Facilitator and • Universal access to banking facilities
of Banks branch network, Establishment • To provide Bank Account to every
Business Correspondent Model". household in the country and make • Providing Basic Banking Accounts for
& expansion of Cooperative and RRBs,
• Census 2011 estimated that out of 24.67 available the basic banking services saving & remittance and RuPay Debit card
Introduction of PS lending, Lead Bank
crore households in the country, 14.48 facilities i.e. (i) Opening of Bank Account with inbuilt accident insurance cover of
Scheme, Formation of SHGs and State
crore (58.7%) households had access to with RuPay Debit Card & Mobile Banking ` 1 lakh and RuPay Card
specific approach for Govt. sponsored
schemes to be evolved by SLBC etc. banking services. Of the 16.78 crore rural facility, (ii) Cash Withdrawal & Deposits, • Financial Literacy Programme
households, 9.14 crore (54.46%) were (iii) Transfer, (iv) Balance Enquiry & (v)
• RBI vide Mid-term Review of Annual Mini Statement. Other services are also Phase II (15th Aug, 2015 - 15th Aug, 2018)
availing banking services. Of the 7.89
Policy Statement for the year 2005-2006, crore urban households, 5.34 crore to be provided in due course in a time • Overdraft facility of upto ` 5000/- after
advised Banks to align their policies with (67.68%) households were availing bound manner apart from financial six months of satisfactory performance of
the objective of financial inclusion. Banks banking services. literacy which is to be disseminated side saving / credit history.
were advised to make available a basic by side to make citizens capable to use
banking 'No frills' account either with 'nil' • In the year 2011, Banks covered 74,351 • Creation of Credit Guarantee Fund for
optimum utilization of available financial
or very minimum balances as well as villages, with population more than 2,000 coverage of defaults in overdraft A/Cs
services. To provide these banking
charges that would make such accounts (as per 2001 census), with banking services banking outlets to be provided • Micro-Insurance
accessible to vast sections of population. facilities under the "Swabhimaan" within 5 KM distance of every village.
campaign with Business Correspondents • Unorganized sector Pension schemes like
Besides, it has been emphasized upon by Necessary infrastructure also needs to be
as explained later. However the Swavalamban
the RBI for deepening and widening the placed to enable e-KYC for account
reach of Financial Services so as to cover a programme had a very limited reach opening and AEPS for withdrawal of cash In addition, in this phase, coverage of
large segment of the rural & poor sections and impact. based biometric authentication from households in hilly, tribal and difficult
of population. • The present banking network of the UIDAI data base. areas would be carried out. Moreover,
country (as on 31.03.2014) comprises of this phase would focus on coverage of
• RBI in the year 2006, with the objective of • Putting the PSBs and RRBs numbers
a bank branch network of 1,15,082 and an remaining adults in the households and
ensuring greater financial inclusion and together implies that about 5.92 crore
ATM network of 1,60,055. Of these, students.
increasing the outreach of the banking rural households are yet to be covered.
43,962 branches (38.2%) and 23,334 Considering field level data mismatches in • All the rural & semi-urban areas of the
ATMs (14.58%) are in rural areas. some instances, it is estimated that there country are proposed to be mapped into
Moreover, there are more than 1.4 lakh are about 6 crore uncovered households Sub Service Area (SSAs) comprising
Business Correspondents (BCs) of Public which would need to be covered in the 1000-1500 households with an average
Sector Banks and Regional Rural Banks in rural areas. 3-4 villages with relaxation in NE/Hilly
the rural areas. BCs are representatives states.
of bank to provide basic banking services • Assuming a minimum of one account per
family, this translates into opening of 6 • It is also proposed that looking to the
i.e. opening of basic Bank accounts, Cash
crore accounts in villages. viability of each center around 74000
deposits, Cash withdrawals, transfer of
villages with population more than 2000
funds, balance enquiries, mini statements • In addition account opening of uncovered which were covered by Business
etc. However actual field level households in urban areas would also be Correspondents under Swabhimaan
experience suggests that many of these required. These households are Campaign will be considered for
i ii
conversion into full fledged Brick & infrastructure as well as expand the same beneficiaries to such accounts and other Departments of the Central
Mortar branches with staff strength of to cover all households. While the pushing the Direct Benefits Transfer Government, State Governments, RBI,
1+1 / 1+2 in the next three to five years. existing banking network would be fully (DBT) scheme of the Union Government NABARD, NPCI, UIDAI and others have
• All the 6 lakh villages across the entire geared up to open bank accounts of the including restarting the DBT in LPG been indicated.
country are to be mapped according to uncovered households in both rural and scheme. MGNREGS sponsored by • Gram Dak Sewaks in rural areas are
the Service Area of each Bank to have at urban areas, the banking sector would Ministry of Rural Development (MoRD, proposed as Business Correspondent of
least one fixed point Banking outlet also be expanding itself to set up an GoI) is also likely to be included in Direct Banks.
catering to 1000 to 1500 households, additional 50,000 Business Correspondents Benefit Transfer scheme.
(BCs), more than 7,000 branches and • Department of Telecom has been
called as Sub Service Area (SSA). It is • Keeping the stiff targets in mind, in the requested to ensure that problems of
proposed that SSAs shall be covered more than 20,000 new ATMs in the first first phase, the plan would focus on first
phase . poor and no connectivity are resolved.
through a combination of banking outlets three pillars in the first year starting from They have informed that out of the 5.93
i.e. branch banking and branch less • The comprehensive plan is necessary 15th August, 2014. lakh inhabited villages in the country
banking. Branch banking means considering the learnings from the past • The target for setting up additional (2011 census) about 50,000 villages are
traditional Brick & Mortar branches. where a large number of accounts 50,000 BCs is quite challenging given the not covered with Telecom connectivity.
Branchless banking comprises of fixed opened remained dormant, resulting in constraints of telecom connectivity.
point Business Correspondents agents, costs incurred for banks and no benefits • In the recent past there is substantial
who act as representative of Bank to to the beneficiaries. • In order to achieve this plan, phase wise improvement on Technological front
provide basic banking services. and state wise targets for Banks have after adoption of CBS by Banks like
• The plan therefore proposes to channel been set up for Banks for the period electronic payment, NEFT, RTGS, mobile
• The implementation strategy of the plan all Government benefits (from
15th August, 2014 to 14th August, 2015. banking, internet, IMPS etc. After arrival
is to utilize the existing banking Centre/State/Local body) to the of Aadhaar, Aadhaar enabled products
• In order to achieve a "demand" side pull
like e-KYC for opening of accounts,
effect, it would be essential that there is
Aadhaar Enabled Payment System
Branding and awareness of Business
(AEPS), Micro-ATMs, ABPS for Aadhaar
Correspondent model for providing basic
based centralised credit based on
banking services, Banking Products
biometric authentication of customer
available at BC outlets and RuPay Cards. A
from UIDAI data base. Similarly, NPCI has
media plan for the same is being worked
launched new products like USSD based
out in consultation with banks.
mobile banking, IMPS etc. which have
• A Project Management Consultant / potential to change the entire landscape
Group would be engaged to help the of Financial Inclusion. There would be
Department implement the plan. focus to use these products in a large way
• It is proposed to launch the programme to ensure coverage of hitherto excluded
simultaneously at National level in Delhi, section in a time bound manner.
at every State capital and all district • In the present plan, based on the learning
headquarters. of the past, a holistic approach is
• A web-portal would be created for proposed to provide all the citizens of the
reporting/monitoring of progress. country with a basket of financial
products to enable them financially
• Roles of various stakeholders like secure. An illustration showing shift in
approach is appended hereunder:
iii iv
Learning from the past Campaign and Shift in approach
S.No. Earlier Approach (Swabhimaan) New Approach (PMJDY)
1. Villages with population greater than 2000 Focus on household; Sub Service Area (SSA) for
covered; thus limited geographical coverage coverage of the whole country.
2. Only rural Both rural and urban
3. Bank Mitr (Business Correspondent) was visiting Fixed point Bank Mitr (Business Correspondent)
on fixed days only in each SSA comprising of 1000-1500 households
(3 to 4 villages on an average) to visit other
villages in the SSA on fixed days
4. Offline accounts opening - Technology lock-in Only online accounts in CBS of the Bank
with the vendor
5. Focus on account opening and large number of Account opening to be integrated with DBT,
accounts remained dormant credit, insurance and pension
6. Inter-operability of accounts was not there Inter-operability through RuPay Debit Card, AEPS etc.
7. No use of Mobile Banking Mobile wallet and USSD based mobile banking to
be utilized
8. Cumbersome KYC formalities Simplified KYC/e-KYC in place as per RBI
guidelines
9. No guidelines on the remuneration of the Bank Minimum remuneration of the Bank Mitr
Mitr (Business Correspondent). Banks went (Business Correspondent) to be ` 5000/-( Fixed
generally with Corporate BCs who used to be + Variable)
least expensive to them
10. A recent RBI survey finds that 47% of Bank Mitr Viability and sustainability of Bank Mitr (Business
are untraceable Correspondent) is identified as a critical
component
11. Monitoring left to banks Financial Inclusion campaign in Mission Mode
with structured monitoring mechanism at
Centre, State and District level
12. Financial literacy had no focus The rural branches of banks to have a dedicated
Financial Literacy Cell
13. No active involvement of states / districts State level & District level monitoring
committees to be set up
14. No brand visibility of the Programme & Bank Brand visibility for the programme & Bank Mitr
Mitr (Business Correspondent) (Business Correspondent) proposed
15. Providing credit facilities was not encouraged OD limit after satisfactory operations / credit
history of 6 months
16. No grievance redressal mechanism Grievance redressal at SLBC level in respective
states
v
Hon'ble Prime Minister, Sh. Narendra Modi inclusion under the chairmanship of
on 15th August, 2014 announced "Pradhan Dr. C. Rangarajan. The committee finalized
Mantri Jan-Dhan Yojana (PMJDY)" which its report in early 2008. As is evident from
is a National Mission for Financial the preamble of the report, the committee
Inclusion.The task is gigantic and is a National interpreted financial inclusion as an
Priority. instrumentality for social transformation.
"Access to finance by the poor and
This National Mission on Financial Inclusion
vulnerable groups is a prerequisite for
has an ambitious objective of covering all
inclusive growth. In fact, providing access
households in the country with banking
to finance is a form of empowerment of the
facilities and having a bank account for each
vulnerable groups. Financial Inclusion
household. It has been emphasised by the
denotes delivery of financial services at an
Hon'ble PM that this is important for including
affordable cost to the vast sections of the
people left-out into the mainstream of the
disadvantaged and low-income groups.
financial system.
The various financial services included
The Pradhan Mantri Jan-Dhan Yojana will be credit, savings, insurance and payments
launched on 28th August, 2014, across the and remittance facilities. The objective of
INTRODUCTION nation simultaneously. It will be launched financial inclusion is to extend the scope of
formally in Delhi with parallel functions at the activities of the organized financial system
state level and also at district and sub-district to include within its ambit people with low
Objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" levels. Camps are also to be organized at the incomes. Through graduated credit, the
is ensuring access to various financial services like availability branch level. The Pradhan Mantri Jan-Dhan attempt must be to lift the poor from one
Yojana lies at the core of development level to another so that they come out of
of basic savings bank account, access to need based credit,
philosophy of "Sab Ka Sath Sab Ka Vikas". poverty."
remittances facility, insurance and pension to the excluded
sections i.e. weaker sections & low income groups. With a bank account, every household would It is a known fact that in India, while one
segment of the population has access to
This deep penetration at affordable cost is possible only with gain access to banking and credit facilities.
This will enable them to come out of the grip assortment of banking services
effective use of technology.
of moneylenders, manage to keep away from encompassing regular banking facilities &
financial crises caused by emergent needs, portfolio counselling, the other segment of
and most importantly, benefit from a range of underprivileged and lower income group is
financial products. As a first step, every totally deprived of even basic financial
account holder gets a RuPay debit card with a services. Exclusion of large segments of the
` 1,00,000/- accident cover. Further, they will society from financial services affects the
be covered by insurance and pension overall economic growth of a country. It is
products. There is need to enroll over 7.5 for this reason that Financial Inclusion is a
crore households and open their accounts. global concern. In Sweden and France,
banks are legally bound to open an account
Earlier efforts by the Government of India
for anybody who approaches them. In
includes setting up a committee on financial
Canada, law requires Banks to provide
1 2accounts without minimum balance to all India has several strategic assets providing
Canadians regardless of employment / favourable initial conditions for transformational
credit history. In the United States, the change towards digital financial inclusion:
Community Reinvestment Act (1977) is
• A strong banking network (1,15,000
intended to encourage depository
branches) linked to eKuber (RBI's Core
institutions to help meet the credit needs
Banking Solution), now spreading into
of the communities in which they operate,
unbanked rural areas.
including low and moderate income
neighbourhoods, consistent with safe and • A significant outreach of India Post
sound operations. (1,55,000 outlets), PoS and ATM
terminals which can facilitate a vibrant
In India, the Banking industry has grown
cash-in/cash-out network across the
both horizontally and vertically but the
country.
branch penetration in rural areas has not
kept pace with the rising demand and the
need for accessible financial services. Even
• A nation-wide telecom network with
886 million mobile connections and
FINANCIAL INCLUSION
after decades of bank nationalization,
whose rationale was to shift the focus from
72% mobile penetration.
BACKGROUND
• Strong Network of computer
class banking to mass banking, we still find
based service providers in the form
usurious money lenders in rural areas and
of Common Service Centres (CSC)
urban slums continuing to exploit the poor.
promoted by Deptt of IT.
After economic reforms of 1991, the
country can ill-afford not to include the • A strong national payments infrastructure
poor in the growth paradigm. Financial that includes an Inter- Mobile Payments
Inclusion of the poor will help in bringing Service / Immediate Payment System
them to the mainstream of growth and (IMPS) to transfer funds over mobile
would also provide the Financial phones.
Institutions an opportunity to be partners
in inclusive growth. • A world class national ID system
covering the largest (650M) headcount
Experiences in India and abroad has shown and expanding by 30M citizens per month.
that traditional Banks have struggled to
reach the poor with financial services.
Recognizing this fact, many countries such
as Brazil, Indonesia, Malaysia, Mexico etc.
have allowed non-banks to offer payments,
deposits and cash-in/cash-out services.
Similarly, in India, enabling an inclusive
competitive landscape should be a top
priority.
32. Financial Inclusion - Background: Consequently the desired benefits were
not visible. Learning from the past, the
The efforts to include the financially present proposal is, therefore, an
excluded segments of the society into integrated approach to bring about
formal financial system in India are not new. comprehensive financial inclusion.
The concept was first mooted by the
Reserve Bank of India in 2005 and The learnings from the previous campaign
Branchless Banking through Banking and proposed approach under the
Agents called Bank Mitr (Business comprehensive FI plan in mission mode is
Correspondent) was started in the year appended with Executive Summary.
2006. In the year 2011, the Government of At present only 0.46 lakh villages out of the
India gave a serious push to the programme 5.92 lakh villages in the country have bank
by undertaking the "Swabhimaan" branches. In order to cover the remaining
campaign to cover over 74,000 villages, areas with the banking outlets, a composite
with population more than 2,000 (as per approach is proposed through branch and
2001 census), with banking facilities. State- branchless banking. Strategy for branchless
wise number of villages covered under the banking is through online fixed points Bank
campaign may be seen in Annexure-1. Mitr (Business Correspondent) who act as
Learnings from the campaign suggest
that
representatives of Banks to provide basic
banking services. Mobile banking facility
FINANCIAL INCLUSION
• The efforts need to be converged so as
to cover the various aspects of PMJDY,
with USSD based technology is also
proposed to be provided to every account CURRENT STATUS - INDIA
holders with low end mobile phones.
like availing of Micro Credit, Insurance Mobile wallets would also be effectively
& Pension. utilised to deepen Financial Inclusion.
• The campaign focussed only on the
supply side by providing banking outlets
in villages of population greater than
2000, but the entire geography could
not be covered.
• The target was for coverage of villages
and not of the households.
• The remuneration of the Bank Mitr
(Business Correspondent) was very
poor.
• Dependability and trust factor with a
mobile BC was not high. Most of the
BCs operated off-line which locked a
customer with a particular BC thereby
constraining the utility.
• Some technology issues hampered
further scalability of the campaign.
• The deposit accounts so opened under
the campaign had very limited number
of, or no transactions.
• The task of credit counselling and
Financial Literacy did not go hand in
hand with the campaign.
53. Financial Inclusion: Current Status - India India is still home of 1/3rd of world's poor. b. The statistics show that there is substantial BCs to incentivize them.
• Despite various measures for financial • Census, 2011 estimates that only 58.7% progress towards opening of accounts, • 2010: In June the RBI and TRAI were able
inclusion, poverty and exclusion continue of the households have access to banking providing basic banking services during the to reach an initial agreement regarding the
to dominate socio-economic and political services recent years as indicated above. However, rollout of mobile banking, whereby TRAI
discourse in India even after six decades it is essential that all the sections be would deal with all interconnection issues
• The present banking network of the financially included in order to have
of post economic independence era. country (as on 31.03.2014) comprises of and RBI would handle the banking aspects
Though economy has shown impressive financial stability and sustainability of the such as KYC checks, transaction limits etc.
a bank branch network of 1,15,082 and an economic and social order.
growth during post liberalization era of ATM network of 1,60,055. Of these, • 2010: In September, all companies listed
1991, impact is yet to percolate to all 43,962 branches (38.2%) and 23,334 c. According to World Bank Findex Survey under the Companies Act (1956) were
sections of the society and therefore, (2012) (http://www-wds.worldbank.org/
ATMs (14.58%) are in rural areas1 . allowed to act as BCs, with the exception
external/default/WDSContentServer/IW3 of non-bank financial companies.
Availability of Banking Services
P/IB/2012/04/19/000158349_201204190
83611/Rendered/PDF/WPS6025.pdf), • 2010: The same directive determined that the
Census 2001 Census 2011
80 only 35% of Indian adults had access to a distance rule was open to and optional
67.8 formal bank account and 8% borrowed relaxation in certain cases, based on the
70
58.7 from a formal financial institution in last 12 decision of the State Level Bankers'
60 54.4 Committees.
49.5
months. The miniscule number suggests an
50 urgent need to further push the financial • However, document verification falls
PERCENT
40 35.5 inclusion agenda to ensure that people at under the domain of the banks, to ensure
30.1 the bottom of the pyramid join the adherence to KYC norms. This does slow
30
mainstream of the formal financial system. down the account opening process.
20
• Recent Important Guidelines on • 2011: In January, TRAI announced its intent
10 Financial Inclusion: to fix mobile tariffs for financial services as
0 • 2006: In January, banks were allowed to against their current market pricing, with a
Rural Urban Total
enlist non-profit Bank Mitr (Business view to ensuring affordability.
Correspondent) as agents for delivery of • 2011: RBI issued guidelines for opening
a. Financial Inclusion - Summary progress of all Banks including Regional Rural financial services, acting in the capacity of Aadhaar Enabled Bank Accounts to
Banks (RRBs), during five years period are as under: 'last-mile infrastructure'. facilitate routing of MGNREGA wages and
• 2008: In April, it was determined that BCs other social benefits in to the accounts
should be located not more than 15 using EBT.
kilometres from the nearest bank branch, • 2012: RBI permitted Aadhaar letter as a
so as to ensure their adequate supervision. proof of both Identity & Address for the
This was a very restrictive rule that purpose of opening of bank Accounts
severely limited the expansion of this
model. • 2012: GoI introduced Sub Service Area
(SSA) approach for opening of banking
• 2008: The RBI issued operative guidelines outlet and for Direct Cash Transfer.
for mobile banking and amended the same
in December 2009 to ease the various • 2012: Aadhaar Payment Bridge System
transaction limits and security norms. (APBS) was introduced for centralised
credit of Social Benefits.
• 2009: Individual for profits were allowed to
participate as BCs, and this category included • Guidelines on Direct Benefit Transfer
kirana store , gas stations, PCOs etc. Further, issued by GoI.
BCs were allowed to operate up to 30 • 2013: To ease the account opening process
kilometres from the nearest bank branches. RBI permitted to use e-KYC.
• 2009: Banks were allowed to apply • TRAI issued guidelines on USSD based
'reasonable' service charges from customers mobile banking services for FI.
to ensure viability of the BC model, and to • 2014: RBI issues guidelines for scaling up of
1
Source RBI. "Rural" areas are defined as those centres which have population of less than 10,000.
USSD- Unstructured Supplementary Service Data proposed to be launched by NPCI pay a 'reasonable' commission/fee to the Business Correspondent model.
2
One BC can cover more than one village
7 8MISSION
MODE OBJECTIVES
(6 PILLARS)
94. Mission Mode Objectives opening basic bank accounts. Account holder
would be provided a RuPay Debit Card.
(6 Pillars): Facility of an overdraft to every basic banking
account holder would be considered after
PMJDY to be executed in the Mission Mode,
satisfactory operation / credit history of six
envisages provision of affordable financial
months.
services to all citizens within a reasonable
distance. It comprises of the following six pillars:- c. Financial Literacy Programme: Financial
literacy would be an integral part of the
a. Universal access to banking facilities:
Mission in order to let the beneficiaries make
Mapping of each district into Sub Service
best use of the financial services being made
Area (SSA) catering to 1000-1500
available to them.
households in a manner that every habitation
has access to banking services within a d. Creation of Credit Guarantee Fund:
reasonable distance say 5 km by 14th August, Creation of a Credit Guarantee Fund would
2015. Coverage of parts of J&K, Himachal be to cover the defaults in overdraft
Pradesh, Uttarakhand, North East and the accounts.
Left Wing Extremism affected districts e. M i c r o - I n s u r a n c e : To p r o v i d e
which have telecom connectivity and
infrastructure constraints would spill over to
the Phase II of the program (15th August,
micro- insurance to all willing and eligible
persons by 14th August, 2018, and then on an TIMELINE FOR
ongoing basis.
2015 to 15th August, 2018)
b. Providing Basic Banking Accounts with
f. Unorganized sector Pension schemes
like Swavalamban: By 14th August, 2018
FINANCIAL INCLUSION PLAN
overdraft facility and RuPay Debit card and then on an ongoing basis.
to all households: The effort would be to
first cover all uncovered households with Under the mission, the first three pillars
banking facilities by August, 2015, by would be given thrust in the first year.
115. Timeline for Financial Inclusion Phase II (15th Aug, 2015 - 14th Aug, 2018)
Plan : • Overdraft facility up to ` 5000/- after six
Comprehensive Financial Inclusion of the months of satisfactory operation / history
excluded sections is proposed to be achieved • Creation of Credit Guarantee Fund for
by 14th August, 2018 in two phases as under: coverage of defaults in A/Cs with
Phase I (15th Aug, 2014 - 14th Aug, 2015) overdraft limit up to ` 5,000/-.
• Universal access to banking facilities in all • Micro Insurance
areas except areas with infrastructure • Unorganized sector Pension schemes like
and connectivity constrains like parts of Swavalamban
North East, Himachal Pradesh, Some of the Phase II activities would also be
Uttarakhand, J&K and 82 Left Wing carried out in Phase I. In addition, in this
Extremism (LWE) districts. phase, coverage of households in hilly, tribal
• Providing Basic Banking Accounts and and difficult areas would be carried out.
RuPay Debit card which has inbuilt Moreover, this phase would focus on
accident insurance cover of ` 1 lakh. coverage of remaining adults in the
Aadhaar number will be seeded to make
account ready for DBT payment.
households and students.
STRATEGY FOR
• Financial Literacy Programme
ACHIEVEMENT OF OBJECTIVES
136. Strategy for achievement of modifying it to ensure both operational
objectives : flexibility and viability of the Bank Mitr
(Business Correspondent). Technological
• In order to achieve the above objectives, innovations like RuPay card and mobile
a broad collaborative strategy with all banking would be made use of. Banks will
stake holders is proposed. It is proposed use the RBI's scheme for subsidy on rural
to encourage Public-Private partnerships. ATMs and UIDAI's scheme for subsidy on
Moreover, inter-department convergence micro ATMs to augment their resources
and synergies will be gainfully utilised. The at the village level.
existing rural infrastructure of post offices
having Gramin Dak Sewaks would be • Convergence with the National Rural
optimally utilized to become Bank Mitr Livelihood Mission (NRLM) in rural areas
(Business Correspondent) of the Banks. and National Urban Livelihood Mission
One of the key strategies will be (NULM) in urban areas would be sought
deployment of online fixed point Bank for in covering each household with bank
Mitr (Business Correspondent) to deliver accounts. The expansion plans of the
basic banking services near to the
customer doorstep. There are 1.26 lakh
Department of Telecom to provide
telecom connectivity in difficult areas
IMPLEMENTATION OF
Common Service Centres, out of which
only 12,000 are BCs of the Banks.
would be effectively utilized for the
provision of banking facilities in these PRADHAN MANTRI JAN-DHAN YOJANA
areas. Department of Telecom has been
• The strategy is to take forward the Bank
Mitr (Business Correspondent) model for
requested to ensure that problems of (PMJDY) IN MISSION MODE
poor and no connectivity are resolved
expansion of banking services by on priority.
157. Implementation of Pradhan staff strength of 1+1 or 1+2 in 74,351 7.1.4 Coverage of SSAs: It is proposed that (Business Correspondent) wherever
Mantri Jan-Dhan Yojana (PMJDY) villages having population of 2000 or SSAs shall be covered through a required. The exact number of
in Mission Mode : more which were covered by BCs in the combination of banking outlets i.e. uncovered households at present is not
earlier campaign. This can be done in a branch banking and branch less banking. available with Banks but is estimated to be
7.1 Reaching out - Network expansion
phase manner in a period of 3-5 years. Branch banking means traditional Brick & about 1.5 crore. In the Urban centres of
and geographical coverage of the
7.1.3 Mapping Sub Service Areas (SSAs): Mortar branches. These branches are the district, the Lead District Managers
banks:
Under the present plan, all the 6 lakh manned by Bank staff and offer complete (LDMs) would be responsible to
The first and basic pillar of PMJDY is the banking services including third party coordinate with all available banks in the
villages across the entire country are to
expansion of banking network of the country payments and processing of loan centre to cover all households. The
be mapped according to the Service Area
to reach out to the financially excluded applications. Branchless banking Urban centre saturation would be
of each Bank to have at least one fixed
segments of the population. comprises of fixed point Bank Mitr measured by opening at least 150%
point Banking outlet catering to 1000 to
7.1.1 Bank Branches & ATMs: In the year 1500 households, called as Sub Service (Business Correspondent), who act as accounts of the Urban households in that
2013-14, the Public Sector Banks (PSBs) Area (SSA). Villages with Panchayat representatives of Bank to provide basic centre as per Census 2011.
set up 7840 branches across the country offices can be made the nodal point. This banking services i.e. opening of bank 7.1.6 Working of Bank Mitr (Business
of which about 25% were in rural areas. approach was tried in 121 DBT districts accounts, cash deposit, cash withdrawal, Correspondents): The Bank Mitr
More than 40,000 ATMs were also set up and the entire mapping resulted in transfer of funds, balance enquiries and (Business Correspondent) outlets (in
pursuant to the Budget announcement creation of 30,855 SSAs. Of these, 30,751 mini statement facility. Besides, they also both rural and urban areas) would be fully
of 2013-14 of providing an ATM at SSAs were saturated with banking provide value added additional services to equipped with the required
every branch. facilities. It is estimated that across the the bank. Villages without Brick and infrastructure including the computers
The present banking network of the country country there would be about 1.3 lakh Mortar branches of banks would be and other peripherals like Micro ATM,
(as on 31.03.2014) comprises of a bank SSAs of which under the present covered by fixed location Bank Mitr Bio-metric scanners, Printer, Web cam
branch network of 1,15,082 and an ATM campaign, about 0.8 lakh would already (Business Correspondent) outlets and internet connectivity. Bank Mitr
network of 1,60,055. Of these, 43,962 be covered by banking facilities and about preferably at the panchayat office/bus (Business Correspondent) need to carry
branches (38.2%) and 23,334 ATMs 50,000 new SSAs would need to be station/local market. The Bank Mitr out online transactions for which internet
(14.58%) are in rural areas and the remaining covered. Moreover, there are more than (Business Correspondent) may cater to connectivity is essential. However, as per
in semi-urban and metropolitan areas. In the 1.40 lakh BCs of Public Sector Banks and the neighbouring villages in his area on the present status there may be certain
year 2014-15, the Public Sector Banks Regional Rural Banks in the rural areas. pre defined time and days. The working connectivity related issues particularly in
propose to set up 7332 branches and 20,130 Public Sector Banks have estimated to set and visit timing would be prominently hilly and tribal areas of the country which
new ATMs. However, given the staff up about 31,846 SSAs in order to cover displayed at his place of working. Every need to be addressed immediately.
constraints of banks and the viability of the entire geography of the country. In habitation will have access to banking Hence, there would be a committee
opening full fledged branches in rural areas, addition the Regional Rural Banks have services within 5 km by August, 2015, consisting of various stakeholders
the demands for branch expansion far exceed estimated to set up another 14,216 SSAs except parts of J&K, Himachal Pradesh, including BSNL to sort out technology
the supply. The efficient and cost effective to complete the SSA coverage. This Uttarakhand, North East and the 82 Left related issues. Each Bank Mitr (Business
method to cover rural areas is by way of translates to a target of coverage of Wing extremism affected districts which Correspondent) would be given proper
mapping the entire country through Sub 46,162 SSAs. Considering the possibility have telecom connectivity and training about basic banking, insurance
Service Area (SSA) approach and deploying of some field level data mismatches, a infrastructure constraints. RBI had and pension products and also on
fully enabled online fixed point Bank Mitr conservative estimate of coverage of directed Banks to cover all villages by customer handling. Adequate
(Business Correspondent) outlets. Public 50,000 SSAs is being planned for, under March, 2016. This task would now need compensation to the Bank Mitr (Business
Private Partnerships in this area shall facilitate the present campaign. However, actual to be preponed to August, 2015, except Correspondent) would be ensured for
the process and promote efficiency and pace field experience suggests that many of the hilly, tribal, desert and difficult areas enabling him to provide uninterrupted
of coverage. these are not functional. It is estimated having challenge of Telecom connectivity. services particularly in the difficult rural
7.1.2 Swabhiman Villages: In the year that 75,000 replacements of non 7.1.5 Urban Financial Inclusion: As per and remote areas. The suggested
2011-12, Banks covered more than functional BCs would be required. Census 2011, there were 7.89 crore remuneration to reach the last mile Bank
74,000 villages, with population more There are around 1.26 lakh network of Urban households out of which 5.34 Mitr (Business Correspondent) would be
than 2,000 (as per 2001 census), with Common Service Centres (CSC) in the crore households were availing banking at least ` 5,000/- pm comprising of fixed
banking facilities under the "Swabhimaan" country, out of which 12,284 centres are services. As on 31st March, 2014, the amount and additional transaction/
campaign. Looking to viability of each working as banking BC outlets. All the Banking network has 71,120 branches activity based variable component. While
centre, banks would strive to set up a remaining CSCs are proposed to be and 1,36,721 ATMs in urban, semi-urban deciding upon the remuneration
brick and mortar branch with minimum enabled as BC outlets, for banks. and metropolitan areas. In Urban areas structure it would be ensured that the
too, the Banks would engage Bank Mitr costs on rent, electricity, internet,
travelling etc. are also accounted for.
17 187.1.7 Eligibility for Bank Mitr (Business 7.1.9.3 Through Corporate BC Companies be utilized for coverage of households opening of basic savings accounts. As per RBI
Correspondent): Individuals like i.e. through private participation. While under the Financial Inclusion campaign. estimates, by March 2014, 242 million basic
unemployed youth & entities like retired this system has advantages of 7.1.11 National Unified USSD Platform savings accounts were opened
bank employee, retired teachers, retired administration and centralised control for (NUUP): USSD based mobile banking (http://www.rbi.org.in/scripts/BS_SpeechesV
Government / Military personnel, etc., the Banks and also insulates them against can work on all GSM handsets (93% of iew.aspx?Id=862).
kirana shops, PDS, PCOs, CSCs, several threats, but many times these current 900 mn). Through USSD mobile • Census 2011 estimated that out of 24.67
NGOs/MFIs and section 25 companies, players turn up in exploitation of the last banking services like Balance Inquiry, Mini crore households in the country, 14.48
Self Help Groups (SHG), Civil Society mile delivery agents (Bank Mitr). Statement and Fund transfer will be crore households had access to banking
Organisations, agents of small saving 7.1.9.4 While engaging the Corporate BC provided. NPCI to provide Gateway for services. Public Sector Banks (PSBs) have
schemes of GoI, individual petrol pump Companies the remuneration structure all the banks with single short code - estimated that by 31.05.2014, out of the
owner, authorized functionaries of SHG, for the agents deployed by them and time *99#. Currently, all smart cell phone 9.17 crore rural households which were
non deposit taking NBFCs, Post line for their payment would be ensured already enabled to use mobile banking allocated to them, about 5.23 crore
Offices/Postman/Gramin Dak Sewak, by the respective banks. application and basic cell phones are households have been covered (Bank
cooperative societies or other eligible being enabled now under this platform. wise details are in Annex 5). This leaves
7.1.10 Mobile Banking: The Inter-Ministerial
individuals/entities allowed by RBI from USSD based mobile banking services is about 3.94 crore rural households to be
group on delivery of basic financial services
time to time etc may be engaged as Bank proposed to be launched on 28th August, covered by PSBs. In addition, the Regional
through a comprehensive frame work
Mitr (Business Correspondent). 2014. The services will be provided by 40 Rural Banks (RRBs) have also covered
envisaged the creation of "Mobile and
Unemployed youth in villages should be banks initially and will be joined by 100 about 1.99 crore households out of the
Aadhaar linked Accounts" by Banks. The
encouraged to work as Bank Mitr banks. Agreement has already been done 3.97 crore households allocated to them,
basic financial transactions on these
(Business Correspondent), subject to with 11 telecom service providers. which leaves 1.98 crore households to be
accounts can be executed through a
fulfilling other eligibility conditions. There covered by them.
mobile based PIN system using "Mobile • Summary of Action Points:
would be a dress code with a specified
Banking PoS". Mobile banking through o Map the entire country with SSAs: • Putting the PSBs and RRBs numbers
colour for the Bank Mitr (Business
mobile wallet was launched in 2012. Under Identification of SSAs at the district level together implies that about 5.92 crore
Correspondent). The dress of Bank Mitr
this service, RBI has authorized 3 telcos and through the District Level Coordination rural households are yet to be covered.
(Business Correspondent) will constitute
5 non-telcos to launch this service. Three Committees (DLCCs) has already been Considering field level data mismatches in
Jacket, Cap & Bag. The dresses would
Telcos, Airtel under brand name Airtel completed. some instances, it is estimated that there
carry the Mission logo as well as the
Money, Vodafone under Brand name are about 6 crore uncovered households
logo of the bank. Regular and timely o Allocation of SSAs to different banks has
Vodafone m-pesa and Idea vide Idea which would need to be covered in the
payment to the Bank Mitr (Business also been done.
Money are active in the space. They rural areas.
Correspondent) for the services
control over 80,000, 70,000 & 8,000 o Looking to viability of each centre, banks • In addition, account opening of uncovered
rendered by them would be the key
agents respectively. Around 60% of these would strive to set up a brick and mortar households in urban areas would also be
factor in ensuring their continuance at the
Bank Mitr (Business Correspondent) are in branch with minimum staff strength of required. At a conservative estimate,
village level.
rural areas. Mobile wallet service provided 1+1 or 1+2 in 74,351 villages having about 1.5 crore uncovered households,
7.1.8 All Banks to put in place scheme of by commercial banks e.g., ICICI in case of population of 2000 or more which were would need to be covered in urban areas.
finance to the Bank Mitr (Business m-pesa service used for money transfer, covered by BCs in the earlier campaign.
Correspondent) with a minimum amount This can be done in a phase-wise manner As per Nandan Nilekani Report of the Task
bill payment and cash withdrawals. The
of ` 50,000/- for equipment, ` 25,000/- over a period of 3-5 years. Force on Aadhaar Enabled Unified Payment
customer base of customers availing such
for working capital and ` 50,000/- for Infrastructure, Feb 2014: "Another class of
services is around 70 lakhs. Mobile o Monitoring and follow up through a portal
vehicle loan. A scheme is suggested in customer (largely rural, low-income,
telephony and prepaid wallets would also of the Department of Financial Services
Annexure 7. uneducated) have been issued smart cards
(DFS), which would capture the progress that are operated through Bank Mitr
7.1.9 Suggested variants of the Bank Mitr made in setting up these SSAs. (Business Correspondent). This innovation
(Business Correspondent) structure
could be : 7.2 Opening of Basic Saving Bank through the use of technology made it
Account of every adult citizen: possible to bring banking services to
7.1.9.1 Individual Bank Mitr (Business un-served areas and un-served population for
Correspondent) deployed directly by the The second pillar of this plan envisages
the very first time. However, this innovation
Bank. providing basic bank accounts (Basic Saving
has also created proprietary technology
Bank Deposit Account - BSBDA with zero
7.1.9.2 Utilising the network of Common islands, where consumers cannot access their
balance) to all adult citizens starting with
Service Centres (CSC). bank account through other channels. The
coverage of all households. The Financial
inconvenience of the channel often leads
Inclusion campaign in the past has targeted
19 20customer to withdraw all the money in their have a production/operationalization numbers get generated, the eID will be launching special campaign for opening of
account." In order to ensure that this does not constraint and the manufacturing capacity replaced by the UID number. bank accounts of all its members during
happen in the present mission, inter is estimated to be about 18 lakh per day. 7.2.8 It is proposed that DBT including DBT in the months of August and September,
operability of the payments will be ensured The personalization capacity available is LPG should be pursued to make the 2014, till March, 2015. For opening of
both through the debit card and through also 7.75 lakh per day. programme of financial inclusion a bank accounts under Pradhan Mantri Jan-
Aadhaar Enabled Payments at the Bank Mitr 7.2.5 The network of Cooperative/Urban success. The list of DBT schemes is given Dhan Yojana of all uncovered households,
(Business Correspondent) Outlet as and Cooperative Banks which are on CBS in Annexure - 6. it has been decided that for better
when the reach of Aadhaar extends to a would also be used for account opening, coordination with the Employee
7.2.9 A McKinsey (2011) study estimated that
substantial part of the country. of uncovered households. Provident Fund Organisation (EPFO), the
connecting every Indian household to a
In the past, it was seen, that many of the SLBCs may co-opt Additional Provident
7.2.6 This account would be linked with digital payment system and automating
accounts opened did not have sufficient Fund Commissioner (PFC)/RPFC Gr.I as
the Aadhaar number of the account government payment flows can save $22
number of transactions for banks to find them its members. LDMs would also co-opt a
holder and would become the single billion a year, 80% of it from reduced
viable. This was because these accounts were representative of EPFO as members of
point for receipt of all Direct Benefit leakages.
being opened in isolation without proper the District Level Bankers' Committee
Transfers (DBT) from the Central 7.2.10 Each account holder would be
linkages. Under the present plan, this anomaly and organise camps at the Provident Fund
Government / State Government / Local provided financial literacy sessions on
is proposed to be removed by its six pillar establishments.
Bodies. Presently the Direct Benefits how to manage his/her money and credit
approach. Moreover, the accounts will also be Transfer scheme under LPG/Gas delivery facilities.
ATM enabled to get the benefits of flexibility. has been stopped and the Dhande 7.2.15 Overdraft (OD) up to ` 5,000/- would
The approach under this pillar of the 7.2.11 The Accounts would be opened in
committee appointed to study the be provided to the customers after six
campaign would be as follows: camp mode to ensure that account may
scheme has submitted its report. The months of satisfactory performance of
be opened for all eligible residents in time
7.2.1 Opening of SB account with zero other Government schemes under DBT saving/credit history. This OD facility
bound manner and there after account
balance (BSBDA). For ease of opening of are continuing but the Government would be covered by the Credit
opening process to take place in ongoing
accounts Banks would be advised to take Departments are yet to pay the Guarantee Fund proposed to be created
basis. The dates / day of the camp to be
benefit of e-KYC approach. Those banks commission due to Banks. No by the Government which is further
announced in advance through adequate
who have not activated the e-KYC commission has been agreed to in the described in section 7.4 of this document.
and effective publicity locally available.
facilities would need to incorporate the DBT for LPG by the Department of The Rate of Interest on these accounts is
The camps would be organised in
same upto the BC level. Expenditure (DoE) on the argument that proposed @ base rate + 2% or 12%
coordination with the Government &
7.2.2 In order to cut down time on account these are normal operations for the whichever is lower (Including the fees to
Bank officials. In each of the camp Bank
opening, under the campaign, a one page Banks while the 2% commission in other be paid to Credit Guarantee fund).
Mitr ( Business Correspondent) & Bank
account opening form has been designed schemes is to compensate banks for the All Government benefits to flow into this
official/s to ensure availability of sufficient
which may be seen at Annexure 8. All Banks Bank Mitr (Business Correspondent). account - facilitating servicing of interest
AOFs and other stationary for opening of
will make suitable amendments in their Department of Financial Services (DFS) & reducing the chances of account
account.
account opening forms immediately. has taken up the matter with DoE arguing becoming dormant .
that Banks have to do substantial other 7.2.12 Bank may be required to hold more
7.2.3 Each SB account holder would be given 7.2.16 Banks will carry out a ground survey
works in operationalizing the scheme than one camp in each village till 100%
ATM/Debit (RuPay) card. In the country within three months of the start of the
including dealing with customer saturation level is achieved in that village.
there are estimated 13.8 crore campaign for exact report on coverage of
grievances but there has been no result of 7.2.13 Convergence with the efforts of the households with banking facilities.
agriculture land holders, out of which
these efforts. This anomaly would need National Rural Livelihoods Mission
KCC have been provided to 10.2 crore 7.2.17 Whenever all the households of a
to be corrected in order to ensure (NRLM) would be sought in order to
land owners/agriculturist. In the present district is provided with bank account, the
complete buy-in of the banks for the DBT open bank accounts for the Self Help
campaign endeavour shall be made to District Magistrate will issue a certificate
schemes. The DBT in LPG which was the Group (SHG) members.
provide all KCC holder with RuPay KCC to this effect and District will be declared
largest of all DBT schemes would need to 7.2.14 The Central Provident Fund
card and non agriculturist may be 100% covered. Similarly, in states where
be re-started. Commissioner (CPFC) has been directed
provided with RuPay debit card. The card all the districts are covered will be
will have inbuilt accident insurance of 7.2.7 There would be a convergence with the to get bank accounts opened for all declared as 100% covered state.
` 1 lakh. efforts of UIDAI to enroll beneficiaries for members of the EPFO as part of
• Summary of Action Points:
Aadhaar number during account opening. Universal Account Number (UAN)
7.2.4 It has been ascertained from National o About 6 crore bank accounts will be
The eID numbers so generated during exercise and financial inclusion policy of
Payments Corporation of India (NPCI) required to be opened in rural areas.
this campaign will be captured in the bank the Govt. of India for flow of funds
that the RuPay cards to be issued do not
accounts opened. As and when the UID through the accounts. The CPFC shall be o In addition, about 1.5 crore bank
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