PERFORMANCE OF PRADHAN MANTRI JAN–DHAN YOJANA

Mr. Shiddaramappa I. Malligar; Mr. Bangarappa Bankapur

Volume : VI, Issue : I, January - 2016

PERFORMANCE OF PRADHAN MANTRI JAN–DHAN YOJANA

Mr. Shiddaramappa I. Malligar, Mr. Bangarappa Bankapur

Abstract :

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 anch or Business Correspondent 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. Financial inclusion is an innovative concept which enables the alternative techniques to promote the banking habits and acts as enabler in reducing the poverty and the launch of Pradhan Mantri Jan Dhan Yojana (PMJDY) by Government of India is in that direction. India’s prime minister Narendra Modi announced the launch of this scheme at the historic Red Fort on the occasion of India’s Independence Day. The scheme is not only limited to opening of a bank account but has other benefits with it viz. zero balance bank account with RuPay debit card, in addition to accidental insurance cover of ? 1 lakh, those who open accounts by January 26, 2015 over and above the ? 1 lakh accident, they will be given life insurance cover of ? 30,000, etc. This paper is an attempt to discuss the overview of PMJDY, main features and pillar of PMJDY, analyze the performance and progress PMJDY Scheme till November 25, 2015. It is found that 19.34 crores bank accounts were opened out of which 35 per cent accounts were zero balance. The performance of Public Sector Banks (PSBs) is at the top with 78.26 contribution in PMJDY followed by Regional Rural Banks (RRBs) and Private Banks (PBs) with 17.97 per cent and 3.77 per cent respectively towards financial inclusion. It is also found that the highest and lowest accounts opened, deposits collected, zero balance accounts opened and RuPay debit card issued in Uttar Pradesh state and Lakshadweep state respectively.