Disturbing numbers

Lack of financial
inclusion in India
Only 59% Of Indian households have bank accounts (Census 2011)
50%
Of the bank accounts are not operated at all. Most probably those
accounts opened part of MNREGA and other campaigns.
~46,000 Villages have bank branches. (total villages are above 6 lakhs.)
3.3 lakh
Villages have Banking Correspondent Agents (BCA) . But this
model is epicfail, well see it further in this article.
34% is the average loan interest charged by local money lenders.
55%
Of Rural Dalit families have to borrow money from local
moneylenders / Shroffs.
24%
Is the average loan-interest rate charged by Private
microfinance institutions (MFIs).
by 2010, Microfinance agents even started goondagiri to
recover loan money, and this model began to decline.
It doesnt mean Government and RBI havent done anything. Since independence, they have
launched many initiatives for financial inclusion- Bank Nationalization, Regional Rural banks,
cooperative banks, Banking correspondence agent, Swabhiman, Swavlamban, Microfinance, No-
frills account, 25% rural branch rule, Bharatiya Mahila Bank and so on.
You can read more details about them under Mrunal.org/economy particularly under the
[Nachiket Mor] Committee article series. Anyways, moving on:
PMJDY: Salient Features:
Who
Department of Financial Services under Finance
ministry
When 15th August 2015
Purpose
se
Financial inclusion
Target Open bank accounts for 7.5 crore families in one year.
motto
Meraa Khaataa Bhagya Vidhata

PMJDY SCHEME HAS 6 PILLARS IN TWO PHASES

Phase 1: Three pillars (2014 to
2015, 15
th
August)
1.Service area
Country will be divided into sub-service areas (SSA)
Each SSA will cover 1000-1500 households
Each household will have a banking outlet within 5 km
distance.
2.Account
Each household will have atleast one bank account.
Even minors of 10 years and above age, can open.
With a Rupay debit card
Rs. 1 lakh accident cover per account. Conditions:
1 individual and multiple bank accounts = still
maximum 1 lakh cover
1 family, husband-wife separate accounts= each gets
1 lakh cover.
If you open account before 26th January 2015, youll get
additional Rs.30,000 life insurance cover.
If your good credit history for first 6 months=>Rs.5,000
overdraft facility. If same family has multiple accounts
then only 1 account gets this benefit- first preference to
womans account.
3.Literacy
Financial literacy programmes to make juntaa aware of
benefits of saving and investing money properly.

Phase 2: Next Three pillars
(2015 to 2018)
4.CGF
Credit guarantee fund- to cover losses in overdrafts. (Because
some villagers might use overdraft for desi liquor and then
default in repayment)
5.Insurance
If JDY account holder is interested, he can buy micro insurance
product.
6.DBT
Earlier Government launched Swavalamban Yojana to
make unorgnized sector workers join NPS scheme.
Those people will get NPS-pension directly in these Jan-
Dhan accounts.
Government will also try for direct benefit transfer (DBT)
i.e. sending scheme-subsidy money directly to
beneficiaries jan-dhan accounts.