Social Satish Final

Social project on
FINANCIAL INCLUSION THROUGH THE PRADHAN

MANTRI JANDHAN YOJANA
Submitted in partial fulfillment for the award of the degree of
Master of Management Studies (MMS)
(under University of Mumbai)
Submitted By
YADAV SATISH PRAMOD
ROLL NO. 95
Under The Guidance of
Dr. Lalit Patil
Batch - 2021-2023
Vishnu Waman Charitable Trust

VIVA INSTITUTE OF MANAGEMENT AND RESEARCH
(Affiliated to the University of Mumbai & Approved by AICTE & DTE)
1
CERTIFICATE
This is to certify that the project titled

“_________________________________________________
”
is successfully completed by Mr. / Ms.

_________________________________________________
during the IV Semester, in partial fulfillment of the Master's Degree in Management Studies
recognized by the University of Mumbai for the academic year_________________
This project work is original and not submitted earlier for the award of any degree / diploma
or associateship of any other University / Institution.
Date:---------- (Signature of Director)

Dr. Hiresh Luhar
Director
VIVA Institute of Management &Research
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Guide’s Certificate
This is to certify that the Dissertation entitled “FINANCIAL INCLUSION THROUGH

PRADHAN MANTRI JANDHAN YOJANA” is a bonafide record of independent research
work done by Mr. Satish Yadav (Roll. No. 95 ) under my supervision during Academic year
2022-2023, submitted to the University of Mumbai in partial fulfillment for the award of the
Degree of MASTER OF MANAGEMENT STUDIES FINANCE.
Date_________________ (Dr. Lalit Patil)
Signature of Guide
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DECLARATION
I hereby declare that this project Report submitted by me to the VIVA

INSTITUTE OF MANAGEMENT AND RESEARCH is a bonafide work undertaken by me
and it is not submitted to any other University or Institution for the award of any degree diploma /
certificate or published any time before.
Name of the student: MR. YADAV SATISH PRAMOD
Roll No: 95
Signature of the
student
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FORMAT FOR EVALUATION OF DISSERTION
Max Marks
Marks Allotted
Project Report
Choice of Project 05
Definition of objectives of the study, scope of the study 10
Methodology including literature review, primary data and secondary 10

data search, questionnaire design
Fieldwork 10
Analysis of the data, report writing, language 10
Recommendations, suggestions, bibliography 10
Applicability of the study 05
Total (A) 60
Viva Voce Exam
Ability to discuss the key challenge taken up, objective and scope of the 10
study
Ability to discuss the report, methodology and literature 10
Ability to discuss data analysis, interpretation of results and 15

recommendations
Overall communication and language 05
Total (B) 40
Total (A + B) 100
5
ACKNOWLEDGEMENT
It is a moment of pleasure to present this project report undertaken by me as the partial fulfillment
of our course of Master of Management Studies (MMS). Having completed this project, I realized
the importance of the people who have been a great support to me.
Every study requires a guidance of someone. I am extremely thankful to my guide Prof. Lalit
Patil, to lead me and solving my problems throughout the Project Report and also to all the
faculties of MMS Department.
I am also very thankful to my parents, dear friends, readers and all those who have helped,
supported and motivated me to work hard and gave me an opportunity to prove myself throughout
the Project Report.
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INDEX
SR NO. PAGE
Name of the Chapter NO
1 INTRODUCTION 7 - 19
2 OBJECTIVES OF THE STUDY 20
3 IMPORTANCE AND SCOPE OF THE STUDY 21 - 23
4 DATA 24 - 28
5 MISSIONS AND CHALLENGES 29 - 58
6 CONCLUSION AND SUGGESTIONS 59
7 LEARNING 60
8 BIBLIOGRAPHY 61
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CHAPTER : 1
INTRODUCTION TO FINANCIAL INCLUSION
This project is concerned with PM’s Jan Dhan Yojana, but before we go towards
the detailed introduction about the PM’s Jan Dhan Yojana (PMJDY) launched 28th August 2014
all over in india by PMoI shree. Narendra Modi, we should have a look at - Why it is implimented?
The PMJDY’s Objective is ensuring access to various financial services like availability of basic
savings bank account, access to need based credit, remittances facility, insurance and pension to
the excluded sections i.e. weaker sections & low income groups. This deep penetration at
affordable cost is possible only with effective use of technology. And that is all about financial
inclusion in all states and at rural-urban inclusivelly.
In simple words, “ financial inclusion is to providing all finacial and banking services
to the all citizen of india, while he is in urban or rural areas, to bring all in the excluded people
towords the inclusive growth of whole indian economy”.
Financial inclusion should be there to impliment formal financial system in the
country. It helps all to be under updating and dynamically changing financial system of the
country. Since the indipendace our government is trying to include all in the financial system, first
such effort was taken by our central monetory authority i. e., by Reserve Bank of India (RBI) with
the help of finance ministry in year 2005 under the governmentalship of Shree. D. Subbarao. And
furtheron Government of India (GoI) in the phase of UPA-1 government, it has initialised ‘the
Swalamban’ to help RBI in financial inclusion in the year 2011 and after that in 2013 NDA
government came in power, it announced to impliment PMJDY on 15th August 2014 and
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implimented it for the purpose of covering all households in the country with banking facilities
and having a bank account for each household. It mainly aims at ensuring access to various
financial services like availability of basic savings bank account, access to need based credit,
remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low
income groups. This deep penetration at affordable cost is possible only with effective use of
technology.
So before we go to PMJDY we should have regards at financial inclusion and its
current status in the country as on next page:
➢ Current status of financial inclusion in the country:
• In order to ensure financial inclusion various initiatives were taken up by RBI/ GoI like
Nationalization of Banks, Expansion of Banks branch network, Establishment & expansion of
Cooperative and RRBs, Introduction of PS lending, Lead Bank Scheme, Formation of SHGs and
State specific approach for Govt. sponsored schemes to be evolved by SLBC etc.
• RBI vide Mid-term Review of Annual Policy Statement for the year 2005-2006, advised Banks
to align their policies with the objective of financial inclusion. Banks were advised to make
available a basic banking 'No frills' account either with 'nil' or very minimum balances as well as
charges that would make such accounts accessible to vast sections of population. Besides, it has
been emphasized upon by the RBI for deepening and widening the reach of Financial Services so
as to cover a large segment of the rural & poor sections of population.
• RBI in the year 2006, with the objective of ensuring greater financial inclusion and increasing
the outreach of the bankingenable the banks to use the services of NGOs/SHGs, MFIs and other
Civil Society Organizations as intermediaries in providing financial and banking services through
use of "Business Facilitator and Business Correspondent Model".
• Census 2011 estimated that out of 24.67 crore households in the country, 14.48 crore (58.7%)
households had access to banking services. Of the 16.78 crore rural households, 9.14 crore
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(54.46%) were availing banking services. Of the 7.89 crore urban households, 5.34 crore (67.68%)
households were availing banking services.
• In the year 2011, Banks covered 74,351 villages, with population more than 2,000 (as per 2001
census), with banking facilities under the "Swabhimaan" campaign with Business Correspondents
as explained later. However the programme had a very limited reach and impact.
• The present banking network of the country (as on 31.03.2014) comprises of a bank branch
network of 1,15,082 and an ATM network of 1,60,055. Of these, 43,962 branches (38.2%) and
23,334 ATMs (14.58%) are in rural areas. Moreover, there are more than 1.4 lakh Business
Correspondents (BCs) of Public Sector Banks and Regional Rural Banks in the rural areas. BCs
are representatives of bank to provide basic banking services i.e. opening of basic Bank accounts,
Cash deposits, Cash withdrawals, transfer of funds, balance enquiries, mini statements etc.
However actual field level experience suggests that many of theseBCs are not actually functional.
• Public Sector Banks (PSBs) including RRBs have estimated that by 31.05.2014, out of the 13.14
crore rural households which were allocated to them for coverage, about 7.22 crore households
have been covered (5.94 crore uncovered). It is estimated that 6 Crore households in rural and 1.5
Crore in urban area needs to be covered.
➢ The task at hand:
• To provide Bank Account to every household in the country and make available the basic banking
services facilities i.e. (i) Opening of Bank Account with RuPay Debit Card & Mobile Banking
facility, (ii) Cash Withdrawal & Deposits, (iii) Transfer, (iv) Balance Enquiry & (v) Mini
Statement. Other services are also to be provided in due course in a time bound manner apart from
financial literacy which is to be disseminated side by side to make citizens capable to use optimum
utilization of available financial services. To provide these banking services banking outlets to be
provided within 5 KM distance of every village. Necessary infrastructure also needs to be placed
to enable e-KYC for account opening and AEPS for withdrawal of cash based biometric
authentication from UIDAI data base.
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• Putting the PSBs and RRBs numbers together implies that about 5.92 crore rural households are
yet to be covered. Considering field level data mismatches in some instances, it is estimated that
there are about 6 crore uncovered households which would need to be covered in the rural areas.
• Assuming a minimum of one account per family, this translates into opening of 6 crore accounts
in villages.
• In addition account opening of uncovered households in urban areas would also be required.
These households are estimated at 2.55 crore as per Census, 2011. However, the exact number of
households without bank accounts are not available but estimated to be 1.5 crore implying opening
of about 1.5 crore accounts in urban areas.
➢ Present plan:
Comprehensive FI based on six pillars is proposed to be achieved as under:
Phase I
• Universal access to banking facilities

• Providing Basic Banking Accounts for saving & remittance and RuPay Debit card with inbuilt
accident insurance cover of 1 lakh and RuPay Card.
• Financial Literacy Programme
Phase II
• Overdraft facility of upto 5000/- after six months of satisfactory performance of saving /credit
history.
• Creation of Credit Guarantee Fund for coverage of defaults in overdraft A/Cs.

• Micro-Insurance.
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• Unorganized sector Pension schemes like Swavalamban In addition, in this phase, coverage of
households in hilly, tribal and difficult areas would be carried out. Moreover, this phase would
focus on coverage of remaining adults in the households and students.
• All the rural & semi-urban areas of the country are proposed to be mapped into Sub Service Area
(SSAs) comprising 1000-1500 households with an average 3-4 villages with relaxation in NE/Hilly
states.
• It is also proposed that looking to the viability of each center around 74000 villages with
population more than 2000 which were covered by Business Correspondents under Swabhimaan
Campaign will be considered for conversion into full fledged Brick & Mortar branches with staff
strength of 1+1 / 1+2 in the next three to five years.
• All the 6 lakh villages across the entire country are to be mapped according to the Service Area
of each Bank to have at least one fixed point Banking outlet catering to 1000 to 1500 households,
called as Sub Service Area (SSA). It is proposed that SSAs shall be covered through a combination
of banking outlets i.e. branch banking and branch less banking. Branch banking means traditional
Brick & Mortar branches. Branchless banking comprises of fixed point Business Correspondents
agents, who act as representative of Bank to provide basic banking services.
• The implementation strategy of the plan is to utilize the existing banking infrastructure as well
as expand the same to cover all households. While the existing banking network would be fully
geared up to open bank accounts of the uncovered households in both rural and urban areas, the
banking sector would also be expanding itself to set up an additional 50,000 Business
Correspondents (BCs), more than 7,000 branches and more than 20,000 new ATMs in the first
phase .
• The comprehensive plan is necessary considering the learnings from the past where a large
number of accounts opened remained dormant, resulting in costs incurred for banks and no benefits
to the beneficiaries.
• The plan therefore proposes to channel all governments benefits (from Centre/State/Local body)
to thebeneficiaries to such accounts and pushing the Direct Benefits Transfer (DBT) scheme of the
Union Government including restarting the DBT in LPG scheme. MGNREGS sponsored by
Ministry of Rural Development (MoRD, GoI) is also likely to be included in Direct Benefit
Transfer scheme.
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• Keeping the stiff targets in mind, in the first phase, the plan would focus on first three pillars in
the first year starting from
15 August, 2014.
• The target for setting up additional 50,000 BCs is quite challenging given the constraints of
telecom connectivity.
• In order to achieve this plan, phase wise and state wise targets for Banks have been set up for
Banks for the period 15 August, 2014 to 14 August, 2015.
• In order to achieve a "demand" side pull effect, it would be essential that there is Branding and
awareness of Business Correspondent model for providing basic banking services, Banking
Products available at BC outlets and RuPay Cards. A media plan for the same is being worked out
in consultation with banks.
• A Project Management Consultant/Group would be engaged to help the Department implement
the plan.
• It is proposed to launch the programme simultaneously at National level in Delhi, at every State
capital and all district headquarters.
• A web-portal would be created for reporting/monitoring of progress.
• Roles of various stakeholders like other Departments of the Central Government, State
Governments, RBI, NABARD, NPCI, UIDAI and others have been indicated.
• Gram Dak Sewaks in rural areas are proposed as Business Correspondent of Banks.
• Department of Telecom has been requested to ensure that problems of poor and no connectivity
are resolved. They have informed that out of the 5.93 lakh inhabited villages in the country (2011
census) about 50,000 villages are not covered with Telecom connectivity.
• In the recent past there is substantial improvement on Technological front after adoption of CBS
by Banks like electronic payment, NEFT, RTGS, mobile banking, internet, IMPS etc. After arrival
of Aadhaar, Aadhaar enabled products like e-KYC for opening of accounts, Aadhaar Enabled
Payment System (AEPS), Micro-ATMs, ABPS for Aadhaar based centralised credit based on
biometric authentication of customer from UIDAI data base. Similarly, NPCI has launched new
products like USSD based mobile banking, IMPS etc. which have potential to change the entire
landscape of Financial Inclusion. There would be focus to use these products in a large way to
ensure coverage of hitherto excluded section in a time bound manner.
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• In the present plan, based on the learning of the past, a holistic approach is proposed to provide
all the citizens of the country with a basket of financial products to enable them financially secure.
An illustration showing shift in approach is appended hereunder:
Iii
➢ Learning from the past Campaign and Shift in approach:
Sr. No Earlier Approach (Swabhimaan) New Approach (PMJDY)

1 Villages with population greater than Focus on household; Sub Service Area
2000 covered; thus limited geographical (SSA) for coverage of the whole country.
coverage
2 Only rural Both rural and urban
3 Bank Mitr (Business Correspondent) was Fixed point Bank Mitr (Business
visiting on fixed days only Correspondent) 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 Only online accounts in CBS of the Bank
lock-in with the vendor
5 Focus on account opening and large Account opening to be integrated with
number of accounts remained dormant DBT, 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 Minimum remuneration of the Bank Mitr
Bank Mitr (Business Correspondent). (Business Correspondent) to be ` 5000/-(
Banks went generally with Corporate Fixed + Variable)
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BCs who used to be least expensive to
them
10 A recent RBI survey finds that 47% of Viability and sustainability of Bank Mitr
Bank Mitr are untraceable (Business 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 & Brand visibility for the programme &
Bank Mitr (Business Correspondent) Bank Mitr (Business Correspondent)
proposed
15 Providing credit facilities was not OD limit after satisfactory operations /
encouraged credit history of 6 months
16 No grievance redressal mechanism Grievance redressal at SLBC level in
respective States
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CHAPTER NO. 2
INTRODUCTION TO PRADHAN MANTRI JAN DHAN
YOJANA
Hon'ble Prime Minister, Sh. Narendra Modi on 15th August, 2014 announced
"Pradhan Mantri Jan-Dhan Yojana (PMJDY)" which is a National Mission for Financial
Inclusion.The task is gigantic and is a National Priority. This National Mission on Financial
Inclusion has an ambitious objective of covering all households in the country with banking
facilities and having a bank account for each household. It has been emphasised by the Hon'ble
PM that this is important for including people left-out into the mainstream of the financial system.
The Pradhan Mantri Jan-Dhan Yojana has launched on 28th August, 2014, across
the nation simultaneously. It has launched formally in Delhi with parallel functions at the state
level and also at district and sub-district levels. Camps are also to be organized at the branch level.
The Pradhan Mantri Jan-Dhan Yojana lies at the core of development philosophy of "Sab Ka Sath
Sab Ka Vikas". With a bank account, every household would gain access to banking and credit
facilities. This will enable them to come out of the grip of moneylenders, manage to keep away
from financial crises caused by emergent needs, and most importantly, benefit from a range of
financial products. As a first step, every account holder gets a RuPay debit card with a ` 1,00,000/-
accident cover. Further, they cover by insurance and pension products. There was need to enroll
over 7.5 crore households and open their accounts. Earlier efforts by the Government of India
includes setting up a committee on financial inclusion under the chairmanship of Dr. C.
Rangarajan. The committee finalized its report in early 2008. As is evident from the preamble of
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the report, the committee interpreted financial inclusion as an instrumentality for social
transformation. "Access to finance by the poor and vulnerable groups is a prerequisite for inclusive
growth. In fact, providing access to finance is a form of empowerment of the vulnerable groups.
Financial Inclusion denotes delivery of financial services at an affordable cost to the vast sections
of the disadvantaged and low-income groups. The various financial services included credit,
savings, insurance and payments and remittance facilities. The objective of financial inclusion is
to extend the scope of activities of the organized financial system to include within its ambit people
with low incomes. Through graduated credit, the attempt must be to lift the poor from one level to
another so that they come out of poverty."
It is a known fact that in India, while one segment of the population has access
to assortment of baking services encompassing regular banking facilities & portfolio counselling,
the other segment of underprivileged and lower income group is totally deprived of even basic
financial services. Exclusion of large segments of the society from financial services affects the
overall economic growth of a country. It is for this reason that Financial Inclusion is a global
concern. In Sweden and France, banks are legally bound to open an account for anybody who
approaches them. In Canada, law requires Banks to provide accounts without minimum balance to
all Canadians regardless of employment or credit history. In the United States, the Community
Reinvestment Act (1977) is intended to encourage depository institutions to help meet the credit
needs of the communities in which they operate, including low and moderate income neighbor-
hoods, consistent with safe and sound operations. In India, the Banking industry has grown both
horizontally and vertically but the branch penetration in rural areas has not kept pace with the
rising demand and the need for accessible financial services. Even after decades of bank
nationalization, whose rationale was to shift the focus from class banking to mass banking, we still
find usurious money lenders in rural areas and urban slums continuing to exploit the poor. After
economic reforms of 1991, the country can ill-afford not to include the poor in the growth
paradigm. Financial Inclusion of the poor will help in bringing them to the mainstream of growth
and would also provide the Financial Institutions an opportunity to be partners in inclusive growth.
Experiences in India and abroad has shown 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
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top priority. India has several strategic assets providing favourable initial conditions for
transformational change towards digital financial inclusion:
• A strong banking network (1,15,000 branches) linked to eKuber (RBI's Core Banking Solution),
now spreading into unbanked rural areas.
• A significant outreach of India Post (1,55,000 outlets), PoS and ATM terminals which can
facilitate a vibrant cash-in/cash-out network across the country.
• A nation-wide telecom network with 886 million mobile connections and 72% mobile
penetration.
• Strong Network of computer based service providers in the form of Common Service Centres
(CSC) promoted by Department of IT.
• A strong national payments infrastructure that includes an Inter- Mobile Payments

Service/Immediate Payment System (IMPS) to transfer funds over mobile phones.
• A world class national ID system covering the largest (650M) headcount and expanding by 30M
citizens per month.
➢ Official mission:
Objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" is ensuring access to various

financial services like availability of basic savings bank account, access to need based credit,
remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low
income groups. This deep penetration at affordable cost is possible only with effective use of
technology.
PMJDY is a National Mission on Financial Inclusion encompassing an integrated 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
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beneficiaries would get RuPay Debit card having inbuilt accident insurance cover of र 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.
➢ Scheme Details:
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure
access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. PMJDY
accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque
book, he/she will have to fulfill minimum balance criteria.
➢ Documents required to open an account under Pradhan Mantri Jan-

Dhan Yojana:
1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If

address has changed, then a self certification of current address is sufficient.
2. If Aadhaar Card is not available, then any one of the following Officially Valid Documents
(OVD) is required: Voter ID Card, Driving License, PAN Card, Passport & NREGA Card.
If these documents also contain your address, it can serve both as “Proof of Identity and
Address”.
3. If a person does not have any of the “officially valid documents” mentioned above, but it
is categorized as ‘low risk' by the banks, then he/she can open a bank account by submitting
any one of the following documents:
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a. Identity Card with applicant's photograph issued by Central/State Government
Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,
Scheduled Commercial Banks and Public Financial Institutions;
b. Letter issued by a gazette officer, with a duly attested photograph of the person.
➢ Special Benefits under PMJDY Scheme:
a. Accidental insurance cover of Rs.1.00 lac

b. No minimum balance required.
c. Life insurance cover of Rs.30,000/-
d. Easy Transfer of money across India
e. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
f. After satisfactory operation of the account for 6 months, an overdraft facility will be
permitted
g. Access to Pension, insurance products.
h. Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
i. Overdraft facility upto Rs.5000/- is available in only one account per household, preferably
lady of the household.
j. Iterest on deposit.
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CHAPTER NO. 3
OBJECTIVES OF THE STUDY
I. To studuy various aspects of the PMJDY.

II. To study the benefits of from the PMJDY.
III. To know, how it will help to financial inclusion.
IV. To observe the implimentation of the scheme.
V. To explore the latest changes in the financial inclusion.
VI. To have knowlege about its inclusiveness in rural as well as urban areas.
VII. To have knowledge about all concepts of financial inclusion and the PMJDY.
VIII. To find out how much attention it has given towards financial inclusion.
IX. To know that is it helpfull to all individuals and its focus toward establishig formal financial
system all over in the country.
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CHAPTER NO. 4
IMPORTANCE AND SCOPE OF THE STUDY
A big trend has been witnessed in efforts towards all over financial inclusion time
by time by various governmental authorities in central and even by central monetory atuthority of
India i. e., Reserve Bank of India. Even PMJDY launched recently by the NDA government on
28th August 2014 has achieved tremendous growth in financial inclusion by opening Basic Saving
Bank Deposits Accounts in each poor family.
The analysis and report writing is done through the information available on
various official governmental websites with the help of secondary data.
I have read various reports published by RBI and other governmental institutions.
The project comprehends the following topics:
I. Introduction to financial inclusion.

II. Introduction to Pradhan Mantri Jan Dhan Yojana.
III. Objectives of study.
IV. Importance of financial inclusion and PMJDY.
V. Implementation process of the scheme – PMJDY.
VI. Current stasus of financial inclusion in the country.
VII. Barriers in implementation of PMJDY.
VIII. Conclusion and suggestions for perfect attainment of financial inclusion in the
country.
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CHAPTER NO. 5
FINANCIAL INCLUSION - BACKGROUND
The efforts to include the financially excluded segments of the society into
formal financial system in India are not new. The concept was first mooted by the Reserve Bank
of India in 2005 and Branchless Banking through Banking Agents called Bank Mitr (Business
Correspondent) was started in the year 2006. In the year 2011, the Government of India gave a
serious push to the programme by undertaking the " Swabhimaan "campaign to cover over 74,000
villages, with population more than 2,000 (as per2001 census), with banking facilities.
➢ Learnings suggest that :
• The efforts need to be converged so asto cover the various aspects of PMJDY, like availing of
Micro Credit, Insurance& Pension.
• The campaign focussed only on thesupply 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.
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• 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.
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CHAPTER NO. 6
FINANCIAL INCLUSION: CURRENT STATUS – INDIA
Consequently the desired benefits werenot visible. Learning from the past, the present
proposal is, therefore, an integrated approach to bring about comprehensive financial inclusion.
The learnings from the previous campaign and proposed approach under the comprehensive FI
plan in mission mode is appended with Executive Summary.
At present only 0.46 lakh villages out of the 5.92 lakh villages in the country have
bank branches. In order to cover the remaining areas with the banking outlets, a composite
approach is proposed through branch and branchless banking. Strategy for branchless banking is
through online fixed points Bank Mitr (Business Correspondent) who act as representatives of
Banks to provide basic banking services. Mobile banking facility with USSD based technology is
also proposed to be provided to every account holders with low end mobile phones. Mobile wallets
would also be effectively utilised to deepen Financial Inclusion.
• Despite various measures for financial inclusion, poverty and exclusion continue to dominate
socio-economic and political discourse in India even after six decades of post economic
independence era. Though economy has shown impressive growth during post liberalization era
of 1991, impact is yet to percolate to all sections of the society and therefore, India is still home
of 1/3rd of world's poor.
• Census, 2011 estimates that only 58.7% of the households have access to banking services
• The present banking network of the country (as on 31.03.2014) comprises of a bank branch
network of 1,15,082 and an ATM network of 1,60,055. Of these, 43,962 branches (38.2%) and
23,334 ATMs (14.58%) are in rural areas.
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➢ Financial Inclusion - Summary progress of all Banks including Regional
Rural Banks (RRBs), during five years period are as under:
Particulars Year ended Year ended Year ended Year ended Year
2010 2011 2012 2013 ended
2014
Banking Outlets in
Villages:
1.Branches 33378 34811 37471 40837 46126
2.Villages covered
by BCs 34174 80802 141136 221341 337678
3.Other modes 142 595 3146 6276 --------
4.Total 67674 116208 181753 268454 337678
Urban Locations
through BCs 447 3771 5891 27143 60730
➢ Basic Saving Bank Deposits A/C – Branches :
Particulars Y.E.2010 Y.E.2011 Y.E.2012 Y.E.2013 Y.E.2014

No. in million 60.19 73.13 81.20 100.80 126.00
Amt. in billions 44.33 57.89 109.87 164.69 273.30
➢ Basic Saving Bank Deposits A/C - BCs :

No in millions 13.27 31.63 57.30 81.27 116.90
25
Amt. in billions 10.69 18.23 10.54 18.22 39.00
➢ OD Facilities availed in BSBDA’s accounts:

No. in millions 0.18 0.61 2.71 3.92 5.90
Amt. in billions 0.10 0.26 1.08 1.55 16.00
KCC(no. in 24.31 27.11 30.24 33.79 39.90
millions)
• The statistics show that there is substantial progress towards opening of accounts,
providing basic banking services during the recent years as indicated above. However, it is
essential that all the sections be financially included in order to have financial stability and
sustainability of the economic and social order.
• According to World Bank Findex Survey (2012) only 35% of Indian adults had access to
a formal bank account and 8% borrowed from a formal financial institution in last 12
months. The miniscule number suggests an urgent need to further push the financial
inclusion agenda to ensure that people at the bottom of the pyramid join the mainstream of
the formal financial system.
➢ Recent Important Guidelines on Financial Inclusion:
• 2006: In January, banks were allowed to enlist non-profit Bank Mitr (Business Correspondent)
as agents for delivery of financial services, acting in the capacity of 'last-mile infrastructure'.
• 2008: In April, it was determined that BCs should be located not more than 15 kilometres from
the nearest bank branch, so as to ensure their adequate supervision. This was a very restrictive rule
that severely limited the expansion of this model.
26
• 2008: The RBI issued operative guidelines for mobile banking and amended the same
in December 2009 to ease the various transaction limits and security norms.
• 2009: Individual for profits were allowed toparticipate as BCs, and this category included kirana
store , gas stations, PCOs etc. Further, BCs were allowed to operate up to 30 kilometres from the
nearest bank branches.
• 2009: Banks were allowed to apply 'reasonable' service charges from customers to ensure
viability of the BC model, and to pay a 'reasonable' commission/fee to the BCs to incentivize them.
• 2010: In June the RBI and TRAI were able to reach an initial agreement regarding the rollout of
mobile banking, whereby TRAI would deal with all interconnection issues and RBI would handle
the banking aspects such as KYC checks, transaction limits etc.
• 2010: In September, all companies listed under the Companies Act (1956) were allowed to act
as BCs, with the exception of non-bank financial companies.
• 2010: The same directive determined that the distance rule was open to and optional relaxation
in certain cases, based on the decision of the State Level Bankers' Committees.
• However, document verification falls under the domain of the banks, to ensure adherence to KYC
norms. This does slow down the account opening process.
• 2011: In January, TRAI announced its intent to fix mobile tariffs for financial services as against
their current market pricing, with a view to ensuring affordability.
• 2011: RBI issued guidelines for opening Aadhaar Enabled Bank Accounts to facilitate routing of
MGNREGA wages and other social benefits in to the accounts using EBT.
27
• 2012: RBI permitted Aadhaar letter as a proof of both Identity & Address for the purpose of
opening of bank Accounts.
• 2012: GoI introduced Sub Service Area (SSA) approach for opening of banking outlet and for
Direct Cash Transfer.
• 2012: Aadhaar Payment Bridge System (APBS) was introduced for centralised credit of Social
Benefits.
• Guidelines on Direct Benefit Transfer issued by GoI.
• 2013: To ease the account opening process RBI permitted to use e-KYC.
• TRAI issued guidelines on USSD based mobile banking services for FI.
• 2014: RBI issues guidelines for scaling up of Business Correspondent model.
28
CHAPTER NO. 7
MISSION MODE OBJECTIVES - 6 PILLARS
PMJDY has executed in the Mission Mode, envisages provision of affordable financial
services to all citizens within a reasonable distance. It comprises of the following six pillars:-
➢ 1.Universal access to banking facilities:
Mapping of each district into Sub Service Area (SSA) catering to 1000-1500 households in a
manner that every habitation has access to banking services within a reasonable distance say 5 km
by 14 August, 2015. Coverage of parts of J&K, Himachal Pradesh, Uttarakhand, North East and
the Left Wing Extremism affected districts which have telecom connectivity and infrastructure
constraints would spill over to the Phase II of the program (15 August, 2015 to 15 August, 2018)
➢ 2.Providing Basic Banking Accounts with overdraft facility and RuPay

Debit card to all households:
The effort would be to first cover all uncovered households with banking facilities by August,
2015, by opening basic bank accounts. Account holder would be provided a RuPay Debit Card.
Facility of an overdraft to every basic banking account holder would be considered after
satisfactory operation / credit history of six months.
➢ 3. Financial Literacy Programme:
Financial literacy would be an integral part of theMission in order to let the beneficiaries make
best use of the financial services being made available to them.
➢ 4. Creation of Credit Guarantee Fund:
29
Creation of a Credit Guarantee Fund would be to cover the defaults in overdraft accounts.
➢ 5.Micro - Insurance :
To provide micro- insurance to all willing and eligible persons by 14 August, 2018, and then on
an ongoing basis.
➢ 6. Unorganized sector Pension schemes like Swavalamban:
By 14 August, 2018 and then on an ongoing basis.

Under the mission, the first three pillars have given thrust in the first year.
30
CHAPTER NO. 8
TIMELINE FOR FINANCIAL INCLUSION PLAN
AND PMJDY
Comprehensive Financial Inclusion of the excluded sections is proposed to be

achieved by 14 August, 2018 in two phases as under:
➢ Phase I (15 Aug, 2014 - 14 Aug, 2015)
• Universal access to banking facilities in all areas except areas with infrastructure and connectivity
constrains like parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing
Extremism (LWE) districts.
• Providing Basic Banking Accounts and RuPay Debit card which has inbuilt accident insurance
cover of ` 1 lakh. Aadhaar number will be seeded to make account ready for DBT payment.
• Financial Literacy Programme
➢ Phase II (15 Aug, 2015 - 14 Aug, 2018)
• Overdraft facility up to ` 5000/- after six months of satisfactory operation / history
• Creation of Credit Guarantee Fund for coverage of defaults in A/Cs with overdraft limit up to `
5,000/-.
• Micro Insurance.
• Unorganized sector Pension schemes like Swavalamban Some of the Phase II activities would
also be carried out in Phase I. In addition, in this phase, coverage of households in hilly, tribal and
31
difficult areas would be carried out. Moreover, this phase would focus on coverage of remaining
adults in the households and students.
32
CHAPTER NO. 9
IMPLEMENTATION OF PRADHAN MANTRI JAN
DHAN YOJANA (PMJDY) IN MISSION MODE
➢ Reaching out - Network expansion and geographical coverage of the

banks:
The first and basic pillar of PMJDY is the expansion of banking network of the country to reach
out to the financially excluded segments of the population.
✓ Bank Branches & ATMs:
In the year 2013-14, the Public Sector Banks (PSBs) set up 7840 branches across the country of
which about 25% were in rural areas. More than 40,000 ATMs were also set up pursuant to the
Budget announcement of 2013-14 of providing an ATM at every branch. The present banking
network of the country (as on 31.03.2014) comprises of a bank branch network of 1,15,082 and an
ATM network of 1,60,055. Of these, 43,962 branches (38.2%) and 23,334 ATMs (14.58%) are in
rural areas and the remaining in semi-urban and metropolitan areas. In the year 2014-15, the Public
Sector Banks propose to set up 7332 branches and 20,130 new ATMs. However, given the staff
constraints of banks and the viability of opening full fledged branches in rural areas, the demands
for branch expansion far exceed the supply. The efficient and cost effective method to cover rural
33
areas is by way of mapping the entire country through Sub Service Area (SSA) approach and
deploying fully enabled online fixed point Bank Mitr (Business Correspondent) outlets. Public
Private Partnerships in this area shall facilitate the process and promote efficiency and pace of
coverage.
✓ Swabhiman Villages:
In the year 2011-12, Banks covered more than 74,000 villages, with population more than 2,000
(as per 2001 census), with banking facilities under the "Swabhimaan" campaign. Looking to
viability of each centre, banks would strive to set up a brick and mortar branch with minimum staff
strength of 1+1 or 1+2 in 74,351 villages having population of 2000 or more which were covered
by BCs in the earlier campaign. This can be done in a phase manner in a period of 3-5 years.
✓ Mapping Sub Service Areas (SSAs):
Under the present plan, all the 6 lakh villages across the entire country are to be mapped according
to the Service Area of each Bank to have at least one fixed point Banking outlet catering to 1000
to 1500 households, called as Sub Service Area (SSA). Villages with Panchayat offices can be
made the nodal point. This approach was tried in 121 DBT districts and the entire mapping resulted
in creation of 30,855 SSAs. Of these, 30,751 SSAs were saturated with banking facilities. It is
estimated that across the country there would be about 1.3 lakh SSAs of which under the present
campaign, about 0.8 lakh would already be covered by banking facilities and about 50,000 new
SSAs would need to be covered. Moreover, there are more than 1.40 lakh BCs of Public Sector
Banks and Regional Rural Banks in the rural areas. Public Sector Banks have estimated to set up
about 31,846 SSAs in order to cover the entire geography of the country. In addition the Regional
Rural Banks have estimated to set up another 14,216 SSAs to complete the SSA coverage. This
translates to a target of coverage of 46,162 SSAs. Considering the possibility of some field level
data mismatches, a conservative estimate of coverage of 50,000 SSAs is being planned for, under
the present campaign. However, actual field experience suggests that many of these are not
functional. It is estimated that 75,000 replacements of non functional BCs would be required.
There are around 1.26 lakh network of Common Service Centres (CSC) in the country, out of
34
which 12,284 centres are working as banking BC outlets. All the remaining CSCs are proposed to
be enabled as BC outlets, for banks.
✓ Coverage of SSAs:
It is proposed that SSAs shall be covered through a combination of banking outlets i.e. branch
banking and branch less banking. Branch banking means traditional Brick & Mortar branches.
These branches are manned by Bank staff and offer complete banking services including third
party payments and processing of loan applications. Branchless banking comprises of fixed point
Bank Mitr (Business Correspondent), who act as representatives of Bank to provide basic banking
services i.e. opening of bank accounts, cash deposit, cash withdrawal, transfer of funds, balance
enquiries and mini statement facility. Besides, they also provide value added additional services
to bank. Villages without Brick and Mortar branches of banks would be covered by fixed location
Bank Mitr (Business Correspondent) outlets preferably at the panchayat office/bus station/local
market. The Bank Mitr (Business Correspondent) may cater to the neighbouring villages in his
area on pre defined time and days. The working and visit timing would be prominently displayed
at his place of working. Every habitation will have access to banking services within 5 km by
August, 2015, except parts of J&K, Himachal Pradesh, Uttarakhand, North East and the 82 Left
Wing extremism affected districts which have telecom connectivity and infrastructure constraints.
RBI had directed Banks to cover all villages by March, 2016. This task would now need to be
preponed to August, 2015, except the hilly, tribal, desert and difficult areas having challenge of
Telecom connectivity.
✓ Urban Financial Inclusion:
As per Census 2011, there were 7.89 crore Urban households out of which 5.34 crore households
were availing banking services. As on 31 March, 2014, the Banking network has 71,120 branches
and 1,36,721 ATMs in urban, semi-urban and metropolitan areas. In Urban areas too, the Banks
would engage Bank Mitr (Business Correspondent) wherever required. The exact number of
uncovered households at present is not available with Banks but is estimated to be about 1.5 crore.
In the Urban centres of the district, the Lead District Managers (LDMs) would be responsible to
35
coordinate with all available banks in the centre to cover all households. The Urban centre
saturation would be measured by opening at least 150% accounts of the Urban households in that
centre as per Census 2011
.
✓ Working of Bank Mitr (Business Correspondents):
The Bank Mitr (Business Correspondent) outlets (in both rural and urban areas) would be fully
equipped with the required infrastructure including the computers and other peripherals like Micro
ATM, Bio-metric scanners, Printer, Web cam and internet connectivity. Bank Mitr (Business
Correspondent) need to carry out online transactions for which internet connectivity is essential.
However, as per the present status there may be certain connectivity related issues particularly in
hilly and tribal areas of the country which need to be addressed immediately. Hence, there would
be a committee consisting of various stakeholders including BSNL to sort out technology related
issues. Each Bank Mitr (Business Correspondent) would be given proper training about basic
banking, insurance and pension products and also on customer handling . Adequate compensation
to the Bank Mitr (Business Correspondent) would be ensured for enabling him to provide
uninterrupted services particularly in the difficult rural and remote areas. The suggested
remuneration to reach the last mile Bank Mitr (Business Correspondent) would be at least ` 5,000/-
pm comprising of fixed amount and additional transaction/ activity based variable component.
While deciding upon the remuneration structure it would be ensured that the costs on rent,
electricity, internet, travelling etc. are also accounted for.
✓ Eligibility for Bank Mitr (Business Correspondent):
Individuals like unemployed youth & entities like retired bank employee, retired teachers, retired
Government / Military personnel, etc., kirana shops, PDS, PCOs, CSCs, NGOs/MFIs and section
25 companies, Self Help Groups (SHG), Civil Society Organisations, agents of small saving
schemes of GoI, individual petrol pump owner, authorized functionaries of SHG, non deposit
taking NBFCs, Post Offices/Postman/Gramin Dak Sewak, cooperative societies or other eligible
individuals/entities allowed by RBI from time to time etc may be engaged as Bank Mitr (Business
36
Correspondent). Unemployed youth in villages should be encouraged to work as Bank Mitr
(Business Correspondent), subject to fulfilling other eligibility conditions. There would be a dress
code with a specified colour for the Bank Mitr (Business Correspondent). The dress of Bank Mitr
(Business Correspondent) will constitute Jacket, Cap & Bag. The dresses would carry the Mission
logo as well as the logo of the bank. Regular and timely payment to the Bank Mitr (Business
Correspondent) for the services rendered by them would be the key factor in ensuring their
continuance at the village level. 7.1.8 All Banks to put in place scheme of finance to the Bank Mitr
(Business Correspondent) with a minimum amount of ` 50,000/- for equipment, ` 25,000/- for
working capital and ` 50,000/- for vehicle loan.
Suggested variants of the Bank Mitr (Business Correspondent) structure could be :

1 Individual Bank Mitr (Business Correspondent) deployed directly by the Bank.
2 Utilising the network of Common Service Centres (CSC).
3 Through Corporate BC Companies i.e. through private participation. While this system has
advantages of administration and centralised control for the Banks and also insulates them against
several threats, but many times these players turn up in exploitation of the last mile delivery agents
(Bank Mitr).
4 While engaging the Corporate BC Companies the remuneration structure for the agents deployed
by them and time line for their payment would be ensured by the respective banks.
✓ Mobile Banking:
The Inter-Ministerial group on delivery of basic financial services through a comprehensive frame
work envisaged the creation of "Mobile and Aadhaar linked Accounts" by Banks. The basic
financial transactions on these accounts can be executed through a mobile based PIN system using
"Mobile Banking PoS". Mobile banking through mobile wallet was launched in 2012. Under this
service, RBI has authorized 3 telcos and 5 non-telcos to launch this service. Three Telcos, Airtel
under brand name Airtel Money, Vodafone under Brand name Vodafone m-pesa and Idea vide
Idea Money are active in the space. They control over 80,000, 70,000 & 8,000 agents respectively.
Around 60% of these Bank Mitr (Business Correspondent) are in rural areas. Mobile wallet service
provided by commercial banks e.g., ICICI in case of m-pesa service used for money transfer, bill
37
payment and cash withdrawals. The customer base of customers availing such services is around
70 lakhs. Mobile telephony and prepaid wallets would also be utilized for coverage of households
under the Financial Inclusion campaign.
✓ National Unified USSD Platform (NUUP):
USSD based mobile banking can work on all GSM handsets (93% of current 900 mn). Through
USSD mobile banking services like Balance Inquiry, Mini Statement and Fund transfer will be
provided. NPCI to provide Gateway for all the banks with single short code - *99#. Currently, all
smart cell phone already enabled to use mobile banking application and basic cell phones are being
enabled now under this platform. USSD based mobile banking services is th proposed to be
launched on 28 August, 2014. The services will be provided by 40 banks initially and will be
joined by 100 banks. Agreement has already been done with 11 telecom service providers.
❖ Summary of Action Points:
o Map the entire country with SSAs: Identification of SSAs at the district level through the District
Level Coordination Committees (DLCCs) has already been completed.
o Allocation of SSAs to different banks has also been done.
o Looking to viability of each centre, banks would strive to set up a brick and mortar branch with
minimum staff strength of 1+1 or 1+2 in 74,351 villages having population of 2000 or more which
were covered by BCs in the earlier campaign. This can be done in a phase-wise manner over a
period of 3-5 years.
o Monitoring and follow up through a portal of the Department of Financial Services (DFS), which
would capture the progress made in setting up these SSAs.
➢ Opening of Basic Saving Bank Account of every adult citizen:
38
The second pillar of this plan envisages providing basic bank accounts (Basic Saving
Bank Deposit Account - BSBDA with zero balance) to all adult citizens starting with coverage of
all households. The Financial Inclusion campaign in the past has targeted opening of basic savings
accounts. As per RBI estimates, by March 2014, 242 million basic savings accounts were opened
• Census 2011 estimated that out of 24.67 crore households in the country, 14.48
crore households had access to banking services. Public Sector Banks (PSBs) have estimated that
by 31.05.2014, out of the 9.17 crore rural households which were allocated to them, about 5.23
crore households have been covered (Bank wise details are in Annex 5). This leaves about 3.94
crore rural households to be covered by PSBs. In addition, the Regional Rural Banks (RRBs) have
also covered about 1.99 crore households out of the 3.97 crore households allocated to them, which
leaves 1.98 crore households to be covered by them.
• Putting the PSBs and RRBs numbers together implies that about 5.92 crore rural households are
yet to be covered. Considering field level data mismatches in some instances, it is estimated that
there are about 6 crore uncovered households which would need to be covered in the rural areas.
• In addition, account opening of uncovered households in urban areas would also be required. At
a conservative estimate, about 1.5 crore uncovered households, would need to be covered in urban
areas. As per Nandan Nilekani Report of the Task Force on Aadhaar Enabled Unified Payment
Infrastructure, Feb 2014: "Another class of customer (largely rural, low-income, uneducated) have
been issued smart cards that are operated through Bank Mitr (Business Correspondent). This
innovation through the use of technology made it possible to bring banking services to un-served
areas and un-served population for the very first time. However, this innovation has also created
proprietary technology islands, where consumers cannot access their bank account through other
channels. The inconvenience of the channel often leads customer to withdraw all the money in
their account." In order to ensure that this does not happen in the present mission, inter operability
of the payments will be ensured both through the debit card and through Aadhaar Enabled
Payments at the Bank Mitr (Business Correspondent) Outlet as and when the reach of Aadhaar
extends to a substantial part of the country. In the past, it was seen, that many of the accounts
39
opened did not have sufficient number of transactions for banks to find them viable. This was
because these accounts were being opened in isolation without proper linkages. Under the present
plan, this anomaly is proposed to be removed by its six pillar approach.
Moreover, the accounts will also be ATM enabled to get the benefits of flexibility. The approach
under this pillar of the campaign would be as follows:
1 Opening of SB account with zero balance (BSBDA). For ease of opening of accounts Banks
would be advised to take benefit of e-KYC approach. Those banks
who have not activated the e-KYC facilities would need to incorporate the same upto the BC level.
2 In order to cut down time on account opening, under the campaign, a one page
account opening form has been designed which may be seen at Annexure 8. All Banks will make
suitable amendments in their account opening forms immediately
3 Each SB account holder would be given ATM/Debit (RuPay) card. In the country there are
estimated 13.8 crore agriculture land holders, out of which KCC have been provided to 10.2 crore
land owners/agriculturist. In the present campaign endeavour shall be made to provide all KCC
holder with RuPay KCC card and non agriculturist may be provided with RuPay debit card. The
card will have inbuilt accident insurance of ` 1 lakh. 7.2.4 It has been ascertained from National
Payments Corporation of India (NPCI) that the RuPay cards to be issued do not have a
production/operationalization constraint and the manufacturing capacity is estimated to be about
18 lakh per day. The personalization capacity available is also 7.75 lakh per day.
5 The network of Cooperative/Urban Cooperative Banks which are on CBS would also be used
for account opening, of uncovered households.
6 This account would be linked with the Aadhaar number of the account holder and would become
the single point for receipt of all Direct Benefit Transfers (DBT) from the Central Government /
State Government / Local Bodies. Presently the Direct Benefits Transfer scheme under LPG/Gas
delivery has been stopped and the Dhande committee appointed to study the scheme has submitted
its report. The other Government schemes under DBT are continuing but the Government
40
Departments are yet to pay the commission due to Banks. No commission has been agreed to in
the DBT for LPG by the Department of Expenditure (DoE) on the argument that these are normal
operations for the Banks while the 2% commission in other schemes is to compensate banks for
the Bank Mitr (Business Correspondent). Department of Financial Services (DFS) has taken up
the matter with DoE arguing that Banks have to do substantial other works in operationalizing the
scheme including dealing with customer grievances but there has been no result of these efforts.
This anomaly would need to be corrected in order to ensure complete buy-in of the banks for the
DBT schemes. The DBT in LPG which was the largest of all DBT schemes would need to be re-
started.
7 There would be a convergence with the efforts of UIDAI to enroll beneficiaries for Aadhaar
number during account opening. The eID numbers so generated during this campaign will be
captured in the bank accounts opened. As and when the UID numbers get generated, the eID will
be replaced by the UID number.
8 It is proposed that DBT including DBT in LPG should be pursued to make the programme of
financial inclusion a success.
9 A McKinsey (2011) study estimated that connecting every Indian household to a digital payment
system and automating government payment flows can save $22 billion a year, 80% of it from
reduced leakages.
10 Each account holder would be provided financial literacy sessions on how to manage his/her
money and credit facilities.
11 The Accounts would be opened in camp mode to ensure that account may be opened for all
eligible residents in time bound manner and there after account opening process to take place in
ongoing basis. The dates / day of the camp to be announced in advance through adequate and
effective publicity locally available. The camps would be organised in coordination with the
Government & Bank officials. In each of the camp Bank Mitr ( Business Correspondent) & Bank
official/s to ensure availability of sufficient AOFs and other stationary for opening of account.
41
12 Bank may be required to hold more than one camp in each village till 100% saturation level is
achieved in that village.
13 Convergence with the efforts of the National Rural Livelihoods Mission (NRLM) would be
sought in order to open bank accounts for the Self Help Group (SHG) members.
14 The Central Provident Fund Commissioner (CPFC) has been directed to get bank accounts
opened for all members of the EPFO as part of Universal Account Number (UAN) exercise and
financial inclusion policy of the Govt. of India for flow of funds through the accounts. The CPFC
shall be launching special campaign for opening of bank accounts of all its members during the
months of August and September, 2014, till March, 2015. For opening of bank accounts under
Pradhan Mantri Jan- Dhan Yojana of all uncovered households, it has been decided that for better
coordination with the Employee Provident Fund Organisation (EPFO), the SLBCs may co-opt
Additional Provident Fund Commissioner (PFC)/RPFC Gr.I as its members. LDMs would also
co-opt a representative of EPFO as members of the District Level Bankers' Committee and
organise camps at the Provident Fund establishments.
15 Overdraft (OD) up to ` 5,000/- would be provided to the customers after six months of
satisfactory performance of saving/credit history. This OD facility would be covered by the Credit
Guarantee Fund proposed to be created by the Government which is further described in section
7.4 of this document. The Rate of Interest on these accounts is proposed @ base rate + 2% or 12%
whichever is lower (Including the fees to be paid to Credit Guarantee fund). All Government
benefits to flow into this account - facilitating servicing of interest & reducing the chances of
account becoming dormant .
16 Banks will carry out a ground survey within three months of the start of the
campaign for exact report on coverage of households with banking facilities.
42
17 Whenever all the households of a district is provided with bank account, the District Magistrate
will issue a certificate to this effect and District will be declared 100% covered. Similarly, in states
where all the districts are covered will be declared as 100% covered state.
o About 6 crore bank accounts will be required to be opened in rural areas.
o In addition, about 1.5 crore bankaccounts for the urban people not having bank accounts would
need to be opened.
o Identification of people without any bank account
o Re-activation of dormant accounts
o Opening of bank accounts at village level in camp mode
o Opening of bank accounts in urban areas in camp mode
o RuPay debit card will be provided to all non KCC account holders. For KCC beneficiaries,
manual pass book based system would be replaced by RuPay ATM enabled cards. Focus will be
to provide Personalised Cards with Name of the Customer & Aadhaar number.
o Using mobile banking for low end phones to facilitate withdrawal, payments and transfer of
money through Banks.
o In addition, the mobile wallet would be used to deepen financial inclusion.

➢ Financial Literacy and Credit Counselling (FLCC) – Establishing
adequate number of Financial Literacy Centres (FLC) & Mechanism to
increase financial literacy among the financially excluded sections:
43
This important pillar focuses on preparing the people for financial planning and
availing credit. It has been seen from the experience of microfinance firms as well as Self Help
Groups (SHGs) that before availing credit, people need to be made aware of the advantages of
access to formal financial system, savings, credit, importance of timely repayments and building
up a good credit history. One of the major mode for disseminating financial literacy is the
establishment of Financial Literacy Centres (FLCCs) which provides free financial
literacy/education and credit counselling. As per RBI, 718 Financial Literacy Centres (FLCs) have
been set up as at end of March, 2013. A total of 2.2 million people were made aware through
awareness camps / choupals, seminars and lectures during 2012-13. However, most of these FLCs
have not been set up in rural areas. The present plan aims to expand the FLCCs to the block level.
The focus would be on availing credit and coming out of the exploitation by informal financial
system:-
1 Financial literacy is a prerequisite for effective financial inclusion, which will ensure that
financial services reach the unreached and under-reached sections of the society. Financial markets
now offer complex choices to consumers, but literacy is essential for consumers to make informed
choices. Informed choices will help in demand generation of the financial services.
2 In countries with diverse social and economic profile like India, financial literacy is particularly
relevant for people who are resource-poor, who operate at the margins and are vulnerable to
persistent downward financial pressures. With no established financial awareness, the un-banked
poor are pushed towards expensive alternatives.
3 India is among the world's most efficient financial markets in terms of technology, regulation
and systems. Financial literacyis most important for India as it is a developing country with
problem of poverty in addition to illiteracy and population. Financial literacy is considered an
important adjunct for promoting financial inclusion and ultimately financial stability of the global
economy. In India, the need for financial literacy is even greater considering the low levels of
literacy and the large section of the population, remaining out of the formal financial set-up.
44
4 While savings as a percentage of GDP in India is fairly good, where the savings are invested is
a cause for concern. Further, only a minority of Indians are covered by mandated, and/or
government financed social security schemes and social safety nets. We need to convert a country
of savers into a nation of investors. Everyone saves money for future needs but the approach most
of the time is to save surplus money without preparing household budgets & without prioritizing
personal needs.
5 Impact of financial illiteracy: Recent experiences in the microfinance arena have shown that poor
people take loans that they have no capacity to service. Farmers have also taken loans that they
have not been able to repay. Many have been driven to suicide because of debt problems. Unless
financial literacy goes hand in hand with financial inclusion, instead of helping the poor, they may
be put into more trouble.
6 National Institute of Securities Market (NISM) has set up National Centre for Financial
Education (NCFE) with the support of all the financial sector regulators in India: RBI, SEBI,
IRDA, PFRDA and FMC, to further the cause of financial literacy and inclusion in India in a
collaborative manner. Role and functionality of NCFE would be strengthened.
7 RBI has a scheme of "Depositor Education & Awareness Fund Scheme 2014", which is created
out of unclaimed money of the depositors, 10 years and above. Part of this fund may be utilised to
increase financial literacy awareness. RBI would be consulted for utilizing the amount.
8 A convergence with the National Rural Livelihood Mission (NRLM) of Ministry of Rural
Development and National Urban Livelihood Mission (NULM) of the Ministry of Housing and
Urban Poverty Alleviation (HUPA) would be sought to achieve the objective of Financial Literacy.
NGOs working with NRLM and NULM may be utilized for this purpose.
9 It is proposed to provide basic financial literacy including operating an ATM card and benefits
of the repayment of the overdraft due during the camps to be conducted for account opening.
10 It is proposed to set up Financial Literacy cells in rural branches.
45
11 The Financial Literacy literature would be standardised by Indian bank Association (IBA). This
would then need to be converted to vernacular language for dissemination.
12 JLGs & SHGs will assist in financial literacy dissemination. It will be responsibility of District
Development Manager (DDM) of NABARD to monitor financial literacy campaign by
JLGs/SHGs. The Chief General Manager of NABARD will be responsible for such monitoring at
State level.
o Revamping and expansion of FLCCs upto the block level to increase its scope
o Finalizing the course material in consultation with all stake holders
o Effective use of technology for training through Video Conferencing
o Monitoring and follow-up
➢ Credit Guarantee Fund:
The fourth pillar of this plan is the creation of a Credit Guarantee Fund. It is
proposed to be housed in National Credit Guarantee Corporation (NCGC). As per RBI estimates,
up to March 2014, 5.90 million Basic banking accounts availed Over Draft facility of `16 billion
(These figures respectively, were 3.92 million and 1.55 billion in March, 2013). However,
considering that 242 million such accounts were opened by March, 2014, the Over Draft facility
has been availed in a very small fraction of these accounts. Reasons for this can be:
• Cap of ` 2,500/- for each account that too on select basis
46
• Perceived defaults in such accounts by Banks made them shy of lending
1 Provision of overdraft up to ` 5,000/- as is projected to have multi dimensional benefits like:

1.1 This exigency fund shall be a great support for poor borrower in meeting out their basic needs
like health, farming etc. The idea is to bring out people from the clutches from the money lender
in both rural and urban areas.
1.2 Learning to manage this account shall be the first step to larger dosage of credit by creating
their credit history. It shall help the banks also in credit appraisal for his future needs.
1.3 Provision of up to ` 5,000/- as overdraft is provided after 6 months of satisfactory operation /
saving / credit history (it is a credit and not grant).
1.4 Banks can consider customers having good credit history for more than one
year eligible for higher credit limits.
2 The present plan proposes to create a credit guarantee fund with a corpus of `1,000 crores to start
with, to provide guarantee against defaults in over drafts in basic banking accounts. As per 2013
estimates there are 18.2 crore basic banking accounts and it is estimated that by the end of the
campaign another 7.5 crore accounts would get added. Out of about 25 crore households, 12 crore
are KCC holders. Therefore, for remaining 13 crore households, an overdraft of up to ` 5000 in
each of these translates to a rd total of ` 65,000 crore. Assuming 2/3 of the households avail
overdraft, amount will be ` 43,000 crore. Using a 1:10 leverage ratio we would need ` 4300 crore
over a period of time. Hence to begin with, it is proposed to start with a corpus of ` 1000 crore.
This corpus would be budget neutral for the Government of India and would be funded by the
Financial Inclusion Fund (FIF) being maintained by NABARD.
o Setting up the Credit Guarantee Fund
➢ Micro-Insurance:
47
The fifth pillar of this plan is to provide microinsurance to the people. Insurance
Regulatory and Development Authority (IRDA) has created a special category of insurance
policies called micro-insurance policies to promote insurance coverage among economically
vulnerable sections of society. The IRDA Micro-insurance Regulations, 2005 defines and enables
micro-insurance. A micro-insurance policy can be a general or life insurance policy with a sum
assured of ` 50,000 or less. A general micro-insurance product could be
• Health insurance contract

• Any contract covering belongings such as
1. Hut
2. Livestock
3. Tools or instruments or
4. Any personal accident contract
These can be on an individual or group basis. A life micro-insurance product is:

• A term insurance contract with or without return of premium
• Any endowment insurance contract or
• A health insurance contract
These can be with or without an accident benefit rider and Either on an individual or group basis
1 There is flexibility in the regulations for insurers to offer composite coverage or package
products that include life and general insurance covers together. Micro-insurance business is done
through the following intermediaries:
• Non-Governmental Organisations
• Self-Help Groups
• Micro-Finance Institutions
2 Most of the entities appointed as BCAs, including companies registered under Companies Act,
have also been permitted by IRDA for appointment as Micro Insurance Agents to sell
Microinsurance.
48
3 The micro-insurance portfolio has made steady progress. More and more life insurers have
commenced their microinsurance operations and many new products are being launched every
year. The distribution network has also been considerably strengthened and the new business has
shown a decent growth, although the volume is still small. Microinsurance business is procured
largely under the group portfolio. Life Insurance Corporation of India (LIC) contributes the most,
both in terms of policies sold and number of micro-insurance agents.
4 With the notification of the IRDA (Micro-insurance) Regulations 2005, by the Authority, there
has been a steady growth in the design of products catering to the needs of the poor. The
flexibilities provided in the Regulations allow the insurers to offer composite coverage or package
products.
5 Bank Mitr (Business Correspondent) mechanism would be enabled to offer micro-insurance

products and full coverage of schemes like Aam Admi Bima Yojana.
o Enabling the extension/distribution machinery to offer micro-insurance products and full

coverage of scheme like Aam Admi Bima Yojana (Estimated target of 12 cr. families, 4.6 cr.
Covered).
o Aadhaar Enabled Micro Insurance can be printed from CSC location.
➢ Unorganized Sector Pension Scheme - Swavalamban:
The sixth and final pillar of this plan relates to old age income security. Almost 400 million people
(more than 85% of the working population in India) work in the unorganized sector. Of these, at
least 120 million are women and the majority had no access to any formal old age income security
scheme. Tenuous labour market attachment, intermittent incomes, poor access to social security
renders the unorganized workers highly vulnerable to economic shocks during their working lives.
The Swavalamban scheme is a historic initiative launched by the Government of India in October
49
2010 to address the old age income protection need of the hitherto unaddressed
unorganized/informal sector workers. The objective of the scheme is to encourage the informal
sector workers to save small amounts during their working years to enable them to draw a pension
in their old age. The Swavalamban scheme uses cocontributions from the Government of India to
incentivize and mobilize savings.
✓ Benefits under the Swavalamban Scheme :
• The scheme is open to any citizen of India in the unorganized sector, aged between 18 to 60
years. A person is deemed to be in the unorganized sector if he/she is not in regular employment
of the central/state government or an autonomous body / CPSU having employer assisted
retirement scheme, or is not covered by any social security scheme.
• The Government of India contributes ` 1000 p.a for a stipulated period to all eligible NPS
Swavalamban accounts where the subscriber deposits a minimum of ` 1000 to maximum of ` 12000
p.a. The benefit of the Government of India co contribution is presently available up to 2016-17
• Subscribers can exit at the specified age, at which point the built up corpus is given to the
subscriber partly as a lump sum and partly as an annuity.
• The Scheme is regulated and managed by the PFRDA (Pension Fund Regulatory and
Development Authority) which is a statutory Body set up by an Act of Parliament.
• Swavalamban is a low cost, feature optimized model which works on the sophisticated
architecture of the National Pension System and is completely IT enabled, has Professional Fund
Managers for investment of funds and follows prudential investment guidelines to safeguard the
interests of subscribers.
• A number of State government entities in states like Andhra Pradesh, Karnataka,
50
Jharkhand, Haryana, Chhattisgarh, Government of NCT of Delhi, Assam, Bihar and Rajasthan
have adopted the scheme for different subscriber groups and some of these are also making
additional co-contributions to the beneficiaries of Swavalamban accounts.
✓ How to join Swavalamban:
• NPS/Swavalamban is operated through grass root level intermediaries called 'Aggregators' who
provide the interface between the subscriber and the NPS architecture. They are responsible for
providing services to the subscribers on the ground as per PFRDA regulations. The 79 aggregators
include interalia all Public Sector Banks, several State governments entities, MFIs etc with over
80000 registered points of contact called NLCCs.
• PFRDA registers these Aggregators after a stringent due diligence procedure.
• The incentive for providing services under NPS/Swavalamban is borne by the Government of
India.
✓ Performance of the NPS Swavalamban scheme:
• The scheme has met with an overwhelming response, showing a CAGR of 75 per cent in the four
years of operation.
• Aanganwadi workers, ASHA workers, Construction workers, Women's SHGs etc. have joined
the scheme in large numbers.
• The total number of unique subscribers to the scheme has crossed 2.7 million .
• Almost 1.6 million subscribers have received Swavalamban co-contribution during FY 2013-14.
51
• More than 50 per cent of the eligible subscribers are below the age of 40, and over 70 per cent
are women, hence the scheme has managed to target the appropriate subscriber base for a long
term defined contribution pension scheme.
• As against a total government cocontribution of ` 363 crores till March 2014, subscribers' own
contribution has been ` 564 crores i.e. the scheme has managed a multiple of 1.6 times the
government investment in aggregating the small savings of the unorganized sector and directing it
to old age income security.
• A total of 3,01,980 subscribers during 2010-11, 6,43,979 subscribers during 2011-12 and
11,01,079 subscribers during 2012-13 have been benefitted. Till the financial year 2013-14,
15,94,790 subscribers could be benefitted.
• The Bank Mitr (Business Correspondent) would be used to expand the coverage.
o Use the extension/distribution mechanism for full coverage under pension scheme like
Swavalamban
o Estimated 35 cr. unorganised labour in the country. 15.94 lakhs subscribers enrolled till
31.03.2014
52
CHAPTER NO. 10
SUCCESS OF PRADHAN MANTRI JAN DHAN YOJANA
The Indian government has made a big piece of financial history after it was
confirmed, that its financial inclusion campaign has set a new record for the most bank accounts
opened in one week.
A total of 18,096,130 confirmed new bank accounts were opened across the country between 23
to 29 August last year through the Pradhan Mantri Jan-Dhan Yojana campaign.
The financial inclusion scheme was first announced by Indian Prime Minister Narendra Modi in
his Independence Day speech last year, with the aim of enabling universal access to banking
facilities throughout the nation.
Its initial target was for 75,000,000 underprivileged Indian households to open a bank account by
January 26, 2015, however this was later increased to 100,000,000 accounts.
Indian Finance Minister Arun Jaitley, was that day presented with an official Guinness World
Records certificate recognising the feat.
Jaitley said the government would use these bank accounts to pass on benefits to individuals under
its various social security schemes.
53
"Most of India that day is included in the banking system," he said, adding that more than ninety
billion rupees had been deposited in the new accounts.
Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on 31.01.2015)
Disclaimer: Information is based upon the data as submitted by different banks/SLBCs
No Of Accounts No Of No Of
(In Lacs) Rupay Balance In Accounts
S.No Debit Accounts With Zero
Rural Urban Total Cards (In Lacs) Balance
(In Lacs) (In Lacs)
1 Public Sector Banks 533 451.47 984.48 912.32 817463.04 655.41
2 Regional Rural Banks 184.89 32.98 217.87 149.68 159948.08 159.35
3 Private Banks 32.26 20.12 52.38 45.93 72551.5 29.97
Total 750.15 504.57 1254.73 1107.93 1049962.62 844.73
Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on 31.03.2015)
Disclaimer: Information is based upon the data as submitted by different banks/SLBCs
No Of Accounts No Of No Of
(In Lacs) Rupay Balance In Accounts
S.No Debit Accounts With Zero
Rural Urban Total Cards (In Lacs) Balance
(In Lacs) (In Lacs)
1 Public Sector Banks 625.35 529.09 1154.44 1081.10 1218505.25 661.82
2 Regional Rural Banks 217.11 390.08 256.11 178.22 257711.10 156.16
3 Private Banks 359.87 250.79 61.06 55.49 90813.06 34.13
Grand Total 878.44 593.18 1471.63 1314.82 1567029.41 852.13
54
55
56
CHAPTER NO. 11
CHALLENGES IDENTIFIED IN THE
IMPLEMENTATION OF THE MISSION
➢ Telecom connectivity:
The feedback from the Banks is that in tribal and hilly areas of the country, the telecom network
is not reliable and therefore setting up Bank Mitr (Business Correspondent) in these areas and
ensuring opening of bank accounts is going to be difficult. A meeting was held with representatives
of the Department of Telecom (DoT) and BSNL in this regard and it was assured that the ongoing
telecom connectivity problems would be resolved by mutual consultation. It was also informed
that DoT is separately seeking the Government approval to cover all villages in the North East and
difficult areas with telecom connectivity. Banks would also work to utilize the National Optical
Fibre Network (NOFN) when it reaches the Panchayat level.
➢ Keeping the accounts "Live":
It is essential that all Government benefits - Central, State or local should flow to these accounts
as it has been observed that a lot of duplicacy exists in this area and sometimes States have not
followed the service area approach and allocated areas to some banks other than service area banks
creating avoidable confusion. The DBT schemes especially MNREGA need to be pushed and DBT
in LPG needs to be restarted.
➢ Brand awareness and sensitization:
57
In order to achieve a "demand" side pull effect, it would be essential that there is Branding and
awareness on Bank Mitr (Business Correspondent) model for providing basic banking services,
Banking Products available at Bank Mitr (Business Correspondent) outlets and RuPay Cards.
Customers to be made aware that overdraft of up to ` 5,000/- to be provided in their account is a
credit facility which needs to be repaid in order to get fresh limits and is not a grant.
➢ Commission to Bank on Direct Benefit Transfer (DBT):
A task force on Aadhaar Enabled Unified Payment infrastructure headed by Sh. Nandan Nilekani
in its report Feb , 2012 recommended that last mile transaction cost of 3.14 % with a cap of ` 20/-
per transaction be budgeted for various EBT, DTS and last mile payments through Micro-ATMs
and ATMs. The commission applicable for DBT should also cover DBTL (DBT of LPG).
MGNREGA may also be included in Direct Benefit Transfer.
➢ Coverage of difficult areas:
Parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing Extremism (LWE)
districts face challenges of infrastructure besides Telecom connectivity. All households in such
areas may not be fully covered under the campaign. Coverage of some of the areas might,
therefore, spill over to Phase-II
58
CHAPTER NO. 12
CONCLUSION AND SUGGESTIONS
Finally, when it comes to implimenting the universal financial inclusion plan like,
Pradhan Mantri Jan Dhan Yojana, thre srise myriad institutional, infratructural and behavioural
hinderances or bottlenecks which can be resolvesd only with great preservance and coordination
amogst multiple agencies involved in the development process.
In the first place, banks have to set up a huge number of branches in and around unbanked villages
and they have to recruit large numbers of rural cadre to serve those branches.
The next institutional link is the BCs and the requirements are a mindboggling number, an
additional coverage of about 2 lakh villages – almost doubling the existing coverage of 2.21 lakh
villages through BCs. Both bank branches and BC outlets should have an integrated link.
An another requirement is the use of information and communication technology (ICT) for
banking transactions. The RBI has reported that while the banks themselves are facilitating ICT-
based basic saving bank deposit accounts- the proportion of ICT accounts to total accounts
increasing from 25% to 45% in the three year period i. e., 2012-15.
In order to make the financial inclusion scheme- PMJDY, an attractive proposition for banks, thr
RBI and the government have been emphasising the importance of Aadhar-enabled Direct Benefit
Transfer (DBT) of social welfare benefits by directly crediting benificieries’ bank accounts.
The spread of ATMs, which is essential for the proper implimentation of pradhan mantri jan dhan
yojana in rural and semi-urban areas.
59
MY LEARNINGS
This project gave me great opportunity to learn about the all aspects of financial
inclusion trough Pradhan Mantri Jan Dhan Yojana. And helped me to know about current situation
of financial inclusion in the country.
In last few years financial inclusion has emerged as the biggest question before the government
and also an effective tool to bring whole country into one formal financial system. It has not only
contributed to the growth of financial system of the country, but also to helped families tap in to
the success of financial and economic growth of the country. As the information and awareness is
rising more and more people are enjoying the benefits of financial inclusion in India. The main
reason of most of failure of financial systeme is large part of our economy is out of reach of basic
financial services. But once people aware of financial system and if they came in formal financial
system, it will help country to improve financially and their will be growth of our economy.
This project gave me a great learning experience and at the same time it gave me enough scope to
impliment my educational ability. The information advice presented in this project is based on
secondary information.
- Thank You.
60
BIBLIOGRAPHY
➢ www.rbi.org.in
➢ www.pmjdy.gov.in
➢ www.finmin.nic.in
➢ Economic & Political Weekly
➢ Times of Economics
➢ www.wikipedia.com
➢ www.thehindu.com
Contact: Call Center - 1800 110 708vvccccfcaf

b
PS and SMS it to 56677
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FINANCIAL INCLUSION THROUGH THE PRADHAN

Submitted in partial fulfillment for the award of the degree of

Master of Management Studies (MMS)

(under University of Mumbai)

YADAV SATISH PRAMOD

Under The Guidance of

Dr. Lalit Patil

Vishnu Waman Charitable Trust

(Affiliated to the University of Mumbai & Approved by AICTE & DTE)

This is to certify that the project titled

is successfully completed by Mr. / Ms.

recognized by the University of Mumbai for the academic year_________________

or associateship of any other University / Institution.

Date:---------- (Signature of Director)

This is to certify that the Dissertation entitled “FINANCIAL INCLUSION THROUGH

Date_________________ (Dr. Lalit Patil)

I hereby declare that this project Report submitted by me to the VIVA

Name of the student: MR. YADAV SATISH PRAMOD

Definition of objectives of the study, scope of the study 10

Methodology including literature review, primary data and secondary 10

Analysis of the data, report writing, language 10

Recommendations, suggestions, bibliography 10

Applicability of the study 05

Viva Voce Exam

Ability to discuss the report, methodology and literature 10

Ability to discuss data analysis, interpretation of results and 15

Overall communication and language 05

2 OBJECTIVES OF THE STUDY 20

3 IMPORTANCE AND SCOPE OF THE STUDY 21 - 23

5 MISSIONS AND CHALLENGES 29 - 58

6 CONCLUSION AND SUGGESTIONS 59

➢ Current status of financial inclusion in the country:

➢ The task at hand:

• Universal access to banking facilities

• Creation of Credit Guarantee Fund for coverage of defaults in overdraft A/Cs.

Sr. No Earlier Approach (Swabhimaan) New Approach (PMJDY)

• A strong national payments infrastructure that includes an Inter- Mobile Payments

Objective of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" is ensuring access to various

PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to

➢ Documents required to open an account under Pradhan Mantri Jan-

1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If

➢ Special Benefits under PMJDY Scheme:

a. Accidental insurance cover of Rs.1.00 lac

I. To studuy various aspects of the PMJDY.

The project comprehends the following topics:

I. Introduction to financial inclusion.

➢ Learnings suggest that :

• Some technology issues hampered further scalability of the campaign.

➢ Basic Saving Bank Deposits A/C – Branches :

Particulars Y.E.2010 Y.E.2011 Y.E.2012 Y.E.2013 Y.E.2014

➢ Basic Saving Bank Deposits A/C - BCs :

Particulars Y.E.2010 Y.E.2011 Y.E.2012 Y.E.2013 Y.E.2014

➢ OD Facilities availed in BSBDA’s accounts:

Particulars Y.E.2010 Y.E.2011 Y.E.2012 Y.E.2013 Y.E.2014

➢ Recent Important Guidelines on Financial Inclusion:

• Guidelines on Direct Benefit Transfer issued by GoI.

• 2014: RBI issues guidelines for scaling up of Business Correspondent model.

➢ 1.Universal access to banking facilities: