A Study On Financial Inclusion Under

Pradhan Mantri Jan Dhan Yojna

INTRODUCTIONBanking is the soul of development process of a country like India which is still developing. But Poverty and Financial Exclusion is the biggest hindrance in the path of development as it affects banking services also. It is supported by census report 211 that:

59% of people are having their accounts in bank, out of which 50% are inoperative.

Out of 6,00,000 villages, approx 46000 villages only are having bank branches.

55% of Rural dalits take loans from money lenders @ 34%, and if they choose Micro Finance Institution they have to pay interest @ 24% which is still very high.

To overcome such problems Pradhan Mantri Jan Dhan Yojna is launched.

Financial Inclusion Or Inclusion Financing is the delivery of financial servicesat affordable Costs to disadvantagedand low Incomesegments of society.

With a bank account , every household gains accessto banking and credit facilities.

Pradhan Mantri Jan Dhan Yojna aims at Financial Inclusion by Opening more and more bank accounts of Indian Citizens.

PRADHANMANTRI

JANDHANYOJNA

FINANCIAL INCLUSION

Under the scheme, any person who is an Indian Citizen above the age of ten years, and does not have a bank account can open an account with zero balance.

PRADHAN MANTRI JAN DHAN YOJNA

Financial Inclusion Under Pradhan Mantri Jan Dhan Yojna

In the first week of launch of campaign i.e., 23rd to 29th august 2014,most bank accounts were opened as part of Financial Inclusion which is 18,096,130 bank accounts.

It made a world record and is recorded in Guinness Book of World Record.

LAUNCHING OF PRADHAN MANTRI JAN DHAN YOJNA

On 15th August 2014 our Honourable Prime Minister Shree Narendra Damodar Das Modi has announced the scheme of “Pradhan Mantri Jan Dhan Yojna” or “Prime Minister’s Peoples’ Money Scheme” or “Prime Ministers’ Financial Inclusion Scheme”. It has been launched on 28th August 2014.

DOCUMENTS FOR OPENING A BANK ACCOUNT

If address has changed, then a self certification of

current address is sufficient.

Otherwise any one of the following Officially Valid Documents (OVD) is

required:

PAN Card,

NAREGA card

Driving Liscence,

Voter ID Card,

Passport

Pillar1 •Banking services in every 5 km

Pillar2 •Account for each family

Pillar3 •Financial Literacy

Pillar4

•Micro Insurance

Pillar5

•Credit gaurantee fund

Pillar6

•Pension Transfer

SIX PILLARS OF THE SCHEMEPhase 1 (From 15th August 2014 to 15th August 2015)

Phase 2 (From 15th August 2015 to 15th August 2018)

Interest on Deposits. Accidental Insurance Cover of Rs. 1, 00,000 . Zero Balance Accounts.

Direct Benefit Transfer. Access to Pension Facilities. Overdraft and Loan. RuPay Debit Card.

BENEFITS UNDER THE SCHEME

BENEFITS AND CONDITIONS

Loan benefit of Rs. 5,000 from bank

After six month from opening of the account

FINDINGS OF THE RESEARCH (Random sampling Method)

YES 71%

NO 29%

1. AWARENESS ABOUT PRADHAN MANTRI JAN

DHAN YOJNA

TOTAL NO. OF RESPONDENTS

105

RESPONSES IN YES

75

RESPONSES IN NO

30

28%

35%

37%

2.)Awareness on basis of dif -ferent Income level

Income<Rs. 1,50,000 p.a.Rs. 1,50,000 p.a.<Income>Rs. 3,00,000 p.a.Income>Rs. 3,00,000 p.a.

45% NO

55% YES

3.) PEOPLE HAVING BANK ACCOUNTS

BEFORE LAUNCH OF THE SCHEME

TOTAL NO. OF RESPONDENTS

105

RESPONSES IN YES

47

RESPONSES IN NO 58

23%

32%

45%

4.)Accounts opened before the scheme on basis of Income

level

Income<Rs. 1,50,000 p.a.Rs. 1,50,000 p.a.<Income>Rs. 3,00,000 p.a.Income>Rs. 3,00,000 p.a.

35%NO

65%YES

5.) Accounts opened under Pradhan Mantri Jan Dhan

Yojna

TOTAL NO. OF RESPONDENTS

105

RESPONSES IN YES 68

RESPONSES IN NO 37

48%

29%

23%

6.)Comparision of accounts opened under the scheme on

the basis of income

Income<Rs. 1,50,000 p.a.Rs. 1,50,000 p.a.<Income>Rs. 3,00,000 p.a.Income>Rs. 3,00,000 p.a.

38%

62%

7.) Zero Balance Accounts

TOTAL NO. OF RESPONDENTS

52

ACCOUNTS WITH ZERO BALANCE

49

ACCOUNTS WITH SOME BALANCE

19

51%37%

12%

8.)Comparision of zero balance accounts on the basis of in-

come

Income<Rs. 1,50,000 p.a.Rs. 1,50,000 p.a.<Income>Rs. 3,00,000 p.a.Income>Rs. 3,00,000 p.a.

DETAILS COLLECTED FROM STATE BANK OF INDIA, PATEL NAGAR BRANCH, PATNA

a)1800 bank accounts were opened in first week of campaign.b) Till September 2015, 11223 accounts had been opened under this scheme. c) Out of the above accounts opened, 610 accounts opened were of minors.

d) 2500 zero balance bank accounts were opened.

448911223

Accounts opened before and after the scheme

1.

60% rise in no. of Accounts opened

5%

95%

Comparative Study Of Accounts Opened under Pradhan Mantri Jan Dhan

Yojna on basis of Age.

Minors(below 18 yrs age)Majors(above 18 yrs age)

2.

Out of the total 11223 accounts opened in State Bank of India ,Patel Nagar Branch, Patna , 5 % accounts ( i.e. 610 accounts) are of mi-nors i.e. people below 18 years of age and 95% (i.e. 10613 accounts) accounts are of majors i.e. people above the age of 18 years.

CONCLUSIONThe scheme has potential of eradication of financial exclusion.

The scheme has increased

access to financial services.

Higher level of

awareness has lead to

financial inclusion.

Account for every

household through

easy document

ation.

benefits of Bank accounts :•Encourages savings•Life long financial security•Economic independency

SUGGESTIONSPrivate Banks Participation.

Customized products.

Need for composite financial services.Setting of Biometric ATMs in rural areas for

catering to illiterate customers.

Technology Enhancement.

Simplification of documentation.Removing usage fee on ATMs for use of

other Bank ATMs.