implementation of pmjdy with special reference to village aakhar, district ballia,up
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1 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
DISSERTATION PROJECT
IMPLEMENTATION OF PRADHAN MANTRI JAN DHAN YOJNA WITH
SPECIAL REFERECE TO VILLAGE AAKHAR, DISTRICT BALLIA, UP
A PROJECT SUBMITTED AS A PART OF THE REQUIREMENT
FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
2013-2015
AMITY SCHOOL OF INSURANE, BANKING &
ACTUARIAL SCIENCE
Submitted By:
Rani Singh
A2828413014
MBA- Insurance & Banking
Under the Guidance of:
Prof. R C Bhatnagar
(Former D.G.M. Bank of India)
Amity School of Insurance
Banking & Actuarial Science
2 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
DECLARATION
I hereby declare that the research paper Implementation of Pradhan Mantri Jan Dhan Yojna with
special reference to village Aakhar, District Ballia, Uttar Pradesh, submitted to Amity University,
Noida, by me is based on actual and original work carried out by me under the guidance of Prof.
R.C. Bhatnagar. Any reference to work done by any other person or institution or any material
obtained from other sources have been duly cited and referenced. I further certify that the research
paper has not been published.
Deponent
3 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
ANTI PLAGIARISM DECLARATION
I hereby declare that my project Submitted to Amity University, Noida is a record of original work,
the plagiarism was checked by using ‘www.plagiarism-detect .com’, and the results of the same
test are as followed-
Data Scanned- From Research Methodology to conclusion i.e. from Page- 7 to 39 .
Data Excluded- Introduction and Review of Literature
Plagiarism detected- 1%
The above said result was generated after two consecutive tests, it is at best of my knowledge, the
certificate of said is with me and can be produced on demand.
Deponent
4 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
ACKNOWLEDGMENT
One looks back with appreciation to the brilliant teachers, but with gratitude to those who
touches our human feelings. The curriculum is so much necessary raw material, but warmth is
the vital element for the growing plant and for soul of the child.
-Carl Jung
I would like to express my deep gratitude to Professor Mr. R.C. Bhatnagar, my mentor, for his
patient guidance enthusiastic encouragement and useful critiques of this research work. His
guidance and constant support as well as sharing with me four decade long experience as a
seasonal banker regarding the project and also for his support for successful completion of
project. My thanks and appreciation also goes to people who have willingly helped me out with
their ability.
I would also like to thank Mr. Rajesh Verma sir who with his new ideas and knowledge of the
subject has helped me continuously to finish my report.
I’m also thankful to my parents for their values, teachings and motivation.
5 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
CONTENT
TOPIC PAGE NO.
Introduction 7-31
Review of Literature 32-39
Need, Objective and Scope 40-41
Research Methodology 42-44
Data Collection 45-49
Data Analysis and Findings 50-68
Limitation and Scope of further research 69-71
Suggestions 72-74
Road Ahead 75-77
Achievement 78-81
Conclusion 82-83
Bibliography 84-85
6 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
ANNEXURE
TOPIC PAGE NO.
State-wise number of unbanked villages 87-88
with Population of over 2000, provided
with banking facilities under 'Swabhimaan'
Campaign 2010-13.
Phase wise target for coverage of Bank Mitr. 89-90
Bank wise Detail of Villages/ SSAs/ Households 91-92
Allotted and Covered as on 31.05.2014.
List of 26 central sector/ centrally sponsored schemes. 93-94
Scheme for Financing Business Correspondent. 95-96
Account opening form (HINDI). 97
Poster- PMJDY. 98
Poster- RSBY. 99
7 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
INTRODUCTION
Objective of “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” is ensuring access to
various financial services like availability of basic saving bank account, access to need
based credit, remittances facility, insurance and pension to the excluded section i.e.
weaker section and low income groups. This deep penetration at affordable cost is
possible only with effective use of technology.
8 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
“A good job is the best form of inclusion. Rather than assuming the poor need an increasing
array of hand-outs, they should be empowered to equip themselves and their children to become
effective contributors to the economy.”
- Raghuram Rajan
Hon'ble Prime Minister, Sh. Narendra Modi on 15 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 emphasized 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 launched on 28 August, 2014, across the nation
simultaneously. It will be 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 will be covered by insurance and pension products. There is 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 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
9 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
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
banking 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 / 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
neighborhoods, 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 top priority.
India has several strategic assets providing favorable initial conditions for transformational change
towards digital financial inclusion:
10 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
• 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 Dept. 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.
11 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
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 per 2001 census), with
banking facilities. State-
wise number of villages
covered under the
campaign may be seen in
Annexure-1. Learnings
from the campaign suggest that
• The efforts need to be converged so as to cover the various aspects of PMJDY, like availing of
Micro Credit, Insurance & Pension.
• The campaign focused only on the supply side by providing banking outlets in villages of
population greater than 2000, but the entire geography could not be covered.
• The target was for coverage of villages and not of the households.
• The remuneration of the Bank Mitr (Business Correspondent) was very poor.
• Dependability and trust factor with a mobile BC was not high. Most of the BCs operated off-line
which locked a customer with a particular BC thereby constraining the utility.
• Some technology issues hampered further scalability of the campaign.
• The deposit accounts so opened under the campaign had very limited number of, or no
transactions.
12 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
• The task of credit counselling and Financial Literacy did not go hand in hand with the campaign.
Consequently the desired benefits were not visible. Learning from the past, the present proposal
is, therefore, an integrated approach to bring about comprehensive financial inclusion.
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
utilized to deepen Financial Inclusion.
13 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
FINANCIAL INCLUSION: CURRENT STATUS - INDIA
• 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
1/3 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 115,082 and an ATM network of 160,055. Of these, 43,962 branches (38.2%) and
23,334 1ATMs (14.58%) are in rural areas.
Census 2001
Census 2011
0
10
20
30
40
50
60
70
Rural Urban Total
Census 2001 30.1 49.5 35.5
Census 2011 54.5 67.8 58.7
Availability of Banking Services
14 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Banking outlets in villages have increased to nearly 2,68,000 from 67,694 outlets in
March 2010.
About 7,400 rural branches have been opened during this 3-year period compared with a
reduction of about 1300 rural branches during the last two decades.
Nearly 109 million Basic Savings Bank Deposit Accounts (BSBDAs) have been added,
taking the total number of BSBDA to 182 million. The share of ICT-based accounts has
increased substantially. The percentage of ICT accounts to total BSBDAs increased from
25 per cent in March 2010 to 45 per cent in March 2013.
142 595 3146 6276
34174
80802
141136
221341
33378 34811 37471 40837
10-Mar 11-Mar 12-Mar 13-Mar
No
. of
Ban
kin
g O
utl
ets
Axis Title
Banking Outlets-Villages-Mode wise
Banking Outlets in Villages- Other Modes Banking outlets in Villages- BC's
Banking Outlets in Villages- Branches
15 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
With the addition of nearly 9.48 million farm sector households during this period, 33.8
million households have been provided with small entrepreneurial credit as at the end of
March 2013.
With the addition of nearly 2.24 million nonfarm sector households during this period, 3.6
million households have been provided with small entrepreneurial credit as at the end of
March 2013.
About 490 million transactions have been carried out in ICT-based accounts through BCs
during the three-year period.
0
200
400
600
800
1000
1200
1400
1600
1800
2000
10-Mar 11-Mar 12-Mar 13-Mar
132.65316.3
573.01812.68601.88
731.29
812.03
1007.95
No
. of
BSB
DA
Axis Title
BSBDA - No. In Lakh
Basic Savings Bank Deposit a/c through branches (No. in Lakhs)
Basic Savings Bank Deposit a/c through BCs (No. in Lakhs)
16 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Financial Inclusion- Summary progress of all Banks including Regional Rural Banks
(RRBs), during five years period are as under:-
Particulars Year
Ended
2010
Year Ended
2011
Year Ended
2012
Year Ended
2013
Year Ended
2014
Banking outlets in Villages
1. Branches
2. Villages covered by
BCs
3. Other Models
4. Total
33,378
34,174
142
67,674
34,811
80,802
595
1,16,200
37,471
1,41,136
3,146
1,81,783
40,837
2,21,341
6,276
2,68,454
46,126
3,37,678
-
3,83,804
Urban location through BCs 447 3,771 5,891 27,143 60,730
Basic Saving Bank Deposit A/c- branches
1. No. in millions
2. Amount in billions
60.19
44.33
73.12
57.89
81.20
109.87
100.80
164.69
126.00
273.30
Basic Saving Bank Deposit A/c- BCs
1. No. in millions
2. Amount in billions
13.27
10.69
31.63
18.23
57.30
10.54
81.27
18.22
116.90
39.00
OD facility availed in BSBDA’s accounts
1. No. in millions 0.18 0.61 2.71 3.92 5.90
2. No. in billions 0.10 0.26 1.08 1.55 16.00
KCCs (No. in
millions)
24.31 27.11 30.24 33.79 39.90
265.15
841.64
1558.67
2504.55
0
500
1000
1500
2000
2500
3000
10-Mar 11-Mar 12-Mar 13-Mar
Tran
sact
ion
s
Transactions in ICT Accounts
17 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
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) (http://www-wds.worldbank.org/
external/default/WDSContentServer/IW3P/IB/2013/04/19/000158349_20120419083611/Render
ed/PDF/WPS6025.pdf), 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 kilometers 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.
• 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 to participate as
BCs, and this category included kirana store, gas stations,
PCOs etc. Further, BCs were allowed to operate up to 30
kilometers 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.
18 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
• 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.
• 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 centralized 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.
19 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
MISSION MODE OBJECTIVES (6 PILLARS)
PMJDY to be 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:-
a. 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 the 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)
b. 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.
c. Financial Literacy Programme: Financial literacy would be an integral part of the Mission in
order to let the beneficiaries make best use of the financial services being made available to them.
d. Creation of Credit Guarantee Fund: Creation of a Credit Guarantee Fund would be to cover
the defaults in overdraft accounts.
e. Micro-Insurance: To provide micro- insurance to all willing and eligible the persons by 14
August, 2018, and then on an ongoing basis.
f. Unorganized sector Pension schemes like Swavalamban: By 14 August, 2018 and then on an
ongoing basis. Under the mission, the first three pillars would be given thrust in the first year.
20 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
21 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
TIMELINE FOR FINANCIAL INCLUSION PLAN
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 difficult areas would be carried out. Moreover, this
phase would focus on coverage of remaining adults in the households and students.
STRATEGY FOR ACHIEVEMENT OF OBJECTIVES
• In order to achieve the above objectives, a broad collaborative strategy with all stake holders is
proposed. It is proposed to encourage Public-Private partnerships. Moreover, inter-department
convergence and synergies will be gainfully utilized. The existing rural infrastructure of post
offices having Gramin Dak Sewaks would be optimally utilized to become Bank Mitr (Business
Correspondent) of the Banks. One of the key strategies will be deployment of online fixed point
Bank Mitr (Business Correspondent) to deliver basic banking services near to the customer
22 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
doorstep. There are 1.26 lakh Common Service Centres, out of which only 12,000 are BCs of the
Banks.
• The strategy is to take forward the Bank Mitr (Business Correspondent) model for expansion of
banking services by modifying it to ensure both operational flexibility and viability of the Bank
Mitr (Business Correspondent). Technological innovations like RuPay card and mobile banking
would be made use of. Banks will use the RBI's scheme for subsidy on rural ATMs and UIDAI's
scheme for subsidy on micro ATMs to augment their resources at the village level.
• Convergence with the National Rural Livelihood Mission (NRLM) in rural areas and National
Urban Livelihood Mission (NULM) in urban areas would be sought for in covering each household
with bank accounts. The expansion plans of the Department of Telecom to provide telecom
connectivity in difficult areas would be effectively utilized for the provision of banking facilities
in these areas. Department of Telecom has been requested to ensure that problems of poor and no
connectivity are resolved on priority.
ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION
1. Technology and financial inclusion are the popular coinage in banking parlance in the country.
Main hurdle in financial inclusion so far has been large numbers and low volumes, translating into
unaffordable costs. The only way to bring down the cost to an affordable level and to improve the
reach to the farthest / remotest corner of the country is by effectively leveraging the Technology.
2. In order to make available the banking facilities across the length and breadth of the country,
latest technological products like e-KYC, IMPS, AEPS, mobile banking etc. have the potential to
emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of
banks, telecom operators and other stakeholders need to converge.
3. Under the guidance of RBI various organizations like National Payments Corporation of India
(NPCI), Institute for Development & Research in Banking Technology (IDRBT) etc. are
contributing significantly in bringing new technology based products.
4. Reserve Bank has, thus, been actively involved in harnessing technology for the development
of the Indian banking sector over the years. A major technological development in banking sector
is the adoption of the Core Banking Solutions (CBS). CBS is a step towards enhancing, customer
23 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
convenience through, Anywhere, Anytime Banking. It is important to
leverage this technological advancement to look at areas beyond CBS
that can help in not just delivering quality and efficient services to
customers but also generating and managing information effectively.
The adoption of CBS led to various technological products like NEFT,
RTGS, mobile banking, Internet Banking, ATMs, etc. Some of the Technological based products
have made significant changes in the banking outreach to the masses are appended below:
Adopting core banking solution (CBS) by the Banks, including all Regional Rural
Banks (RRBs).
Next, a multi-channel branchless approach using handheld devices, mobiles, cards,
micro-ATMs and kiosks can be used.
Transactions put through such front-end devices are seamlessly integrated with the
banks' CBS.
Implementation of the electronic payment system such as RTGS (Real Time Gross
Settlement),
Electronic Clearing Service (ECS),
Electronic Funds Transfer (NEFT),
Cheque Truncation System (CTS),
Banking transaction by using Mobile phones etc.
5. The present plan of the PMJDY under National Mission on Financial Inclusion proposed to use
the Technology in a big way to achieve the goal in a time bound manner. Some of the major
products are appended hereunder:
(i) Electronically Know Your Customer (e-KYC) In the year 2013, RBI permitted e-KYC as a
valid process for KYC verification under Prevention of Money Laundering (Maintenance of
Records) Rules, 2005. In order to reduce the risk of identity fraud, documentary forgery and have
paperless KYC verification, UIDAI has launched its e- KYC services. Under the e-KYC process
under the explicit consent of the customer and after his or her biometric authentication from UIDAI
data base individual basic data comprising name, age, gender and photograph can be shared
electronically with Authorized Users like Banks, which is a valid process for KYC. The aforesaid
process is paperless and has made the account opening of customers having Aadhaar number much
24 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
easier. Almost all the banks have either adopted this process or in the advance stage of putting the
system live. The e-KYC process would be used in large scale for opening accounts in future.
(ii) Transaction through Mobile Banking: The mobile-phone revolution that is transforming the
country could also turn into a banking revolution in terms of reach and transaction. Today, the
number of mobiles in India is 886 million. The reach of mobile to the remote village and its usage
by the common man has become order of the day and it is estimated that around 1/4 of mobile
users are residing in villages/small towns. The coverage of mobile phones and the use of such
instruments by all section of the population can be exploited for extending financial services to the
excluded populations. It enables the subscribers to manage their financial transactions (funds
transfer) independent of place and time. The subscriber can approach a retailer of mobile network
for withdrawal/deposit of money and the transaction takes
place using SMS messages. The Mobile Banking services
are generally available through a java application on
Blackberry, Android, iPhones and Windows mobile
phones. Various banking services like Funds Transfer,
Immediate Payment Services, Enquiry Services (Balance
enquiry/ Mini statement), Demat Account Services,
Requests for Cheque Book, Bill Payments, etc. may be
carried out through mobile banking. There are transaction
limits for mobile banking and these services are free of
charge. The mobile banking services are also available
over SMS. The basic financial transactions from the Bank accounts can be executed through a
mobile based PIN system using "Mobile Banking". Mobile banking through mobile wallet was
also launched in 2012. Mobile telephony and prepaid wallets would also be utilized for coverage
of households under the Financial Inclusion campaign.
(iii)Immediate Payment System (IMPS): Immediate Payment Service (IMPS) was launched by
NPCI on 22 November, 2010. It offers an instant, 24X7, interbank electronic fund transfer service
through mobile phones as well as internet banking & ATMs. In the process of remittances across
the bank there are four stakeholder i.e. (i) Remitter (Sender), (ii) Beneficiary (Receiver), (iii) Banks
& (iv) National Financial Switch - NPCI.
25 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
In order to remit fund through IMPS, the sender should use mobile banking to send money, the
receiver mobile number should be registered with his bank and the money is credited to receivers
account instantly. For registration the Remitter must register for mobile banking and get Mobile
Money Identifier (MMID) & Mobile Banking PIN (MPIN) for initiation of a transaction. MMID
is a 7 digit number, to be issued by the bank to the customer upon registration and the Beneficiary
must Register his/her mobile number with the bank account and get MMID. A remitter can initiate
an IMPS transaction by sending an SMS to his bank typing the Beneficiary Mobile Number,
Beneficiary MMID and Amount. The receiver will get an SMS confirmation for the credit of his
account. Payments Corporation of India (NPCI), is facilitating the Interbank Mobile Payment
Service (IMPS).
(iv) Micro-ATMs: Micro-ATMs are biometric authentication enabled hand-held device. In order
to make the ATMs viable at rural / semi-urban centers, low cost Micro-ATMs would be deployed
at each of the Bank Mitra location. This would enable a person to instantly deposit or withdraw
funds regardless of the bank associated with a particular Bank
Mitra / Business Correspondent. This device will be based on a
mobile phone connection and would be made available to every
Bank Mitra / Business Correspondent. Customers would have to
get their identity authenticated and withdraw or put money into
their bank accounts. This money will come from the cash drawer
of the Bank Mitra / Business Correspondent. Essentially, Bank
Mitras will act as bank for the customers and all they need to do
is verify the authenticity of customer using customer's UID. The
basic transaction types to be supported by micro ATM are
Deposit, Withdrawal, Fund transfer and Balance enquiry. Micro-
ATM offers one of the most promising options for providing
financial services to the unbanked population. Micro-ATMs
would have various options of authentication like biometric, PIN
based etc. and it would also be used as mobile ATMs to enable
transactions near the door step of the customers.
26 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
The Micro-ATMs offer an online interoperable, low-cost payments platform to everyone in the
country.
(v) National Unified USSD Platform (NUUP): Mobile banking is one of the most potent mode
for increasing reach of banking facilities to the masses. Today, mobile phones have become a
household device in India, with almost 900 mn mobile phones connection.
Mobile banking service can be initiated using SMS - an unencrypted service, considered unsafe -
or using mobile banking app. Though very interactive, the major problem with mobile banking
apps is that these need to be downloaded and installed on the mobile phone. Less than 40% of
Indian users have compatible J2ME handsets and GPRS connection on their mobile phone, as
required by this system.
To resolve aforesaid issues, an alternative solution on USSD platform is available. Customers can
avail USSD solution through any mobile phone on GSM network, irrespective of make and model
of the phone. This does not require any application to be downloaded on customer's mobile phone
and need for GPRS connectivity. USSD is user- friendly so it is easy to communicate and educate
customers as well. USSD alleviates the need for application download and is more secure than
SMS channel.
Banking customers can use this service by dialing *99#, a "Common number across all
Telecom Service Providers, (TSPs)" , on their mobile and transact through an interactive menu
displayed on the mobile screen.
Using *99#, a customer will be able to access both financial like fund transfer as well as non-
financial services like balance enquiry and mini statement of bank account, at his/her own
convenience. Key services that NUUP will offer include, interbank account to account fund
transfer, balance enquiry, mini statement besides host of other services. A notable inclusion in the
NUUP service is a new addition in the form of Query Service on Aadhaar Mapper (QSAM).
Under this feature a user can come to know about his/her AADHAAR seeding status with the
banks, a service that will find tremendous utility for the governments direct subsidy disbursals
programme. This product this scheduled to be launched on 28 August, 2014.
27 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
(vi) RuPay Debit cards: RuPay is a new card payment scheme launched by the National Payments
Corporation of India (NPCI), to offer a domestic, open-loop, multilateral system which will allow
all Indian banks and financial institutions in India to participate in electronic payments. "RuPay",
the word itself has a sense of nationality in it. "RuPay" is the coinage of two terms Rupee and
Payment. RuPay Cards address the needs of Indian consumers, merchants and banks. The benefits
of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the
strength of the RuPay brand-all of which will contribute to an increased product experience. The
main features are as under:
• Lower cost and affordability
• Customized product offering
• Protection of information related to Indian
consumers
• Provides electronic product options to
untapped/unexplored consumer segment
(vii) Aadhaar Enabled Payment System
(AEPS): AEPS is a banking product which
allows online interoperable financial inclusion transaction at PoS (Micro-ATM) or Kiosk Banking
through the Business Correspondent of any bank using the Aadhaar authentication. Presently, four
Aadhaar enabled basic types of banking transactions are available i.e. (i) Balance Enquiry, (ii)
Cash Withdrawal, (iii) Cash Deposit & (iv) Aadhaar to Aadhaar Funds Transfer. For undertaking
AEPS transaction by customer, two inputs i.e. IIN (Identifying the Bank to which the customer is
associated) & Aadhaar Number are required.
(viii) Aadhaar Payments Bridge System (APBS): The Aadhaar Payments Bridge System
enables the transfer of payments from Government and Government Institutions to Aadhaar-
enabled accounts of beneficiaries at banks and post offices. Every Government Department or
Institution that sends EBT and DBT/DBTL payments to individuals simply needs to prepare a file
containing the Aadhaar number and amount and submit it to their accredited bank. The accredited
bank then processes the file through an interoperable Aadhaar Payments bridge and funds are
credited into the accounts of beneficiaries. Upon receiving incoming funds, the beneficiary's bank
28 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
will notify him or her through an SMS or any other communication channel that is established
between the bank and the customer.
CHALLENGES IDENTIFIED IN THE IMPLEMENTATION OF THE
MISSION
1. 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.
Financial services through mobile
telephony
Micro mobile and Biometric ATMs
Internet enabled models and PCs and Ultra small
branches
Biometric handled devices
Smart cards and POs terminals Technologies
enabling
Financial
Inclusion
29 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
2. 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. The list of DBT schemes
at present may be seen in Annexure 6.
3. Brand awareness and sensitization: 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.
4. 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.
5. 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.
6. Infrastructural limitations: Especially in rural/remote areas power supply and network
connectivity are still issue in most part of the country. Because of poor connectivity of
internet and frequent power failure in some areas, it is not possible to do banking
30 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
transaction. This problem is being seen mostly in North Eastern State and to overcome this
problem RBI came up with Satellite Connectivity Scheme to provide 100% subsidy to bank
branches in the NER subject to maximum 12,000 per month or the actual expenditure
incurred by the bank, whichever is less, subject to the condition that the branches would
offer services of electronic funds transfer free of charge to their customers. 43.3% of the
total 1756 branches in the North-East region had taken satellite connectivity after the
launch of the scheme. The scheme has since been extended by another year and Sikkim has
also been brought under the ambit of the Scheme.
7. Robust Payment and Settlement system: Money transfers, payments including with
Rupay etc under financial inclusion are going to add large volumes specially in number of
transactions is another challenge which needs to be tackled by NPC and RBI. Differentiated
Banks seem to be a possible solution.
31 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
TIMELINE FOR IMPLEMENTATION
S.No Activities Timeline
1. Launch 28/08/2014
2. Coverage of SSAs (opening of 50,000 Bank Mitr
(Business Correspondent) outlet in rural areas and
additional ones as necessary in Urban areas)
10,000 15/08/2014
15,000 (Aggregate 25,000) 30/11/2014
15,000 (Aggregate 25,000) 31/03/2015
10,000 (Aggregate 50,000) 30/06/2015
3. Opening of accounts (estimated at 7.5 crore)
25% 30/11/2014
50% 31/03/2015
75% 30/06/2015
100% 14/08/2015
32 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
REVIEW OF LITERATURE
33 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
REVIEW OF LITERATURE
Many researchers have conducted the study on Financial Inclusion from different
perspectives. To conduct the research, I have gone through the following past studies:
1. (Ms Apurva A. Chauhan,2012) concluded in her study that India is at moderate level
regarding financial inclusion as compared to other countries regarding number of
branches, ATMs, bank credit and bank deposits. RBI have adopted various strategies
such as no-frill account, use of regional languages, simple KYC norms etc. to
strengthen financial inclusion. To cope up with the challenges to spread financial
inclusion, there is a need of viable and sustainable business models with focus on
accessible and affordable products and processes, synergistic partnerships with
technology service providers for efficient handling of low value, large volume
transactions and appropriate regulatory and risk management policies that ensure
financial inclusion.
2. (Dr.R.Krishnakumar ) The study concluded that though the banks are complying
with RBI norms in terms of opening branches within areas of at least 2000 population,
offering no frills account, kisan credit card, General card, simplifying KYC norms, but
still is lot of effort to be put in for financial inclusion progress. Biometric cards should
be introduced for security in transactions as well as saving time. Business
correspondents should be employed in villages and trained in advance for promoting
financial inclusion program. Banks need to open its more branches within rural and
remote areas and creating more awareness about banking services among rural people
by telling them about the benefits of the banking services. Financial inclusion requires
efforts on the parts of three parties- RBI, all the banks as well as general public for its
better progress.
1. http://www.theglobaljournals.com/ijar/file.php?val=December_2013_138598654
2_62b5c_108.pdf
2. http://www.iracst.org/ijcbm/papers/vol2no62013/21vol2no6.pdf
34 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
3. (Shabna Mol TP, 2014) conclude that most of the BPL household are included in the
financial inclusion system in terms of access of bank account .It is only for the enjoying
the government benefits and schemes. It must be noted that access to a bank account
does not necessarily mean usage of the account. The level of awareness about the
features and benefits of bank account and banking services are comparatively low.
Bank must take step to increase the awareness among people about all sachems and
services provided by them. To induce saving habit among BPL households it will lead
to continuous usage of bank account. All this will lead to achieving financial inclusion
system in effectively for the growth of our economy.
4. (Financial Inclusion in India – a Review of Initiatives and Achievements, By Sonu
Garg, Dr. Parul Agarwal, 2014) concluded that Even though enough efforts are being
made by all stake holders viz Regulator, Government, Financial Institutions and others,
the efforts are not yielding the kind of result expected. The regulator has to create a
suitable regulatory environment that would keep the interest of all the stakeholders.
The concern of banks about profitability is to be addressed by the regulator as the entire
process of financial inclusion would be a kind of social work in the first few years. The
concerns of the government about the reach, feasibility and implementation of
government policies to the last mile needs to be addressed. The easy availability of
financial services to the last mile user, the people in tier 3 to tier 6 in entirety needs to
be addressed. The bank’s concerns can be addressed by leveraging ICT, designing
innovative products and service models. A structured expansion and appropriate
regulatory norms addressing the bank’s concern and inclusion of NBFCs, MFI and
SHG in the last mile connectivity of people to financial services could resolve the
people’s concern. Also bank use intensive mobile banking services to deliver banking
and financial services to the people. For achieve targets of FIP, it’s needs to
empowering MSMEs through provide timely and adequate finance because MSME‟s
are the best medium for achieving inclusive growth which generate local demand and
3 http://www.gifre.org/admin/papers/gjcmp/201-204-AWARENESS%20-vol-3-4-gjcmp.pdf
4 http://iosrjournals.org/iosr-jbm/papers/Vol16-issue6/Version-1/H016615261.pdf
35 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
consumption, provide employment to millions of fresher’s. The aadhar card could be
the answer to the government’s concern as the bank accounts can be linked to the
holder’s aadhar number; however the sheer scale makes it difficult. Alternate to the
same could be use of the vast postal office network at the disposal of the government.
The post offices can easily reach the end user and vice-versa as the infrastructure is
already in place. Regulatory bodies, banks and Government should intensively work
on create awareness by educating people about finance. Thus, Innovative products, out
of the box service models, effective regulatory norms and leveraging technology
together could change the landscape of the current progress of the much needed and
wanted, Financial Inclusion Program.
5. (Revving up the Growth Engine through Financial Inclusion, Address by Dr. K.
C. Chakrabarty, Deputy Governor, Reserve Bank of India at the 32nd SKOCH
Summit held at Mumbai on June 6, 2013) concluded that, the task of financial
inclusion in a country like ours with large population and geographical spread is,
indeed, challenging. The data released from the recent census of India indicates that
only 58.7% of households in India avail of banking services with the figure being
54.4% for rural areas and 67.8% for urban areas. While there is greater awareness
among policy makers and financial sector participants about the importance of
prioritising the goal of universal financial access, there is a need to ensure that progress
on the ground is in line with these expectations. The opening of bank accounts is only
the first stage and the focus now is not just on improving access but also on better use
of the financial infrastructure. In this regard, the collaborative approach combining
financial inclusion with financial literacy, along with closer monitoring of progress in
transactions, is expected to boost operations in FI accounts.
Considering the enormity of the task, the combined will power of the society is
required to ensure success in this challenging objective. All stakeholders, including
policy makers, regulators, state and district administration, IT solution providers,
software and hardware vendors, civic society, media and public at large have to come
5 http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=813
36 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
together and pool their collective might if we have to ensure that the goal of
meaningful financial inclusion and leveraging financial access as a means for
economic empowerment of the excluded masses, is successfully achieved.
6. (Dr. Tushar Kanti Das) concluded that Building inclusive financial sectors improves
people’s lives, in particular those of the poor. A small loan, a saving account or an
insurance policy can make a great difference to a low income family. They enable
people to invest in better nutrition, housing, health and education for their children.
They ease the strain of coping with difficult times caused by crop failures, illness or
death. They help people plan for the future.
Empirical evidence indicates that countries with large proportion of population
excluded from the formal financial system also show higher poverty ratios and higher
inequality. If we are talking of financial stability, economic stability and inclusive
growth with stability, it is not possible without achieving Financial Inclusion. Thus
financial inclusion is no longer a policy choice but is a policy compulsion today and
banking is a key driver for inclusive growth. However, we must bear in mind that apart
from the supply side factors, demand side factors, such as lower income and /or asset
holdings also have a significant bearing on inclusive growth. Owing to difficulties in
accessing formal sources of credit, poor individuals and small and macro enterprises
usually rely on their personal savings or internal sources to invest in health, education,
housing, and entrepreneurial activities to make use of growth opportunities. Inclusive
financial sectors can break the vicious circle of poverty if implemented properly. This
can empower the poor and can ensure that poor people have access to a wider range of
financial services. For this unremitting effort from all the stakeholders are required.
With more opportunities to build the poor will lead the way out of poverty with dignity.
6 http://www.eldis.org/vfile/upload/1/Document/1306/FIRI2.pdf
37 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
7. (Taking Banking Services to the Common Man – Financial Inclusion,
Commemorative Lecture by Shri V.Leeladhar, Deputy Governor, Reserve bank
of India at the Fedbank Hormis Memorial Foundation at Ernakulam on
December 2, 2005) concluded that It is becoming increasingly apparent that addressing
financial inclusion will require a holistic approach on the part of the banks in creating
awareness about financial products, education, and advice on money management, debt
counseling, savings and affordable credit. The banks would have to evolve specific
strategies to expand the outreach of their services in order to promote financial
inclusion. One of the ways in which this can be achieved in a cost-effective manner is
through forging linkages with microfinance institutions and local communities. Banks
should give wide publicity to the facility of no frills account. Technology can be a very
valuable tool in providing access to banking products in remote areas. ATMs cash
dispensing machines can be modified suitably to make them user friendly for people
who are illiterate, less educated or do not know English.
To sum up, banks need to redesign their business strategies to incorporate specific
plans to promote financial inclusion of low income group treating it both a business
opportunity as well as a corporate social responsibility. They have to make use of all
available resources including technology and expertise available with them as well as
the MFIs and NGOs. It may appear in the first instance that taking banking to the
sections constituting "the bottom of the pyramid", may not be profitable but it should
always be remembered that even the relatively low margins on high volumes can be a
very profitable proposition. Financial inclusion can emerge as commercial profitable
business. Only the banks should be prepared to think outside the box!
8. (Speech on Financial Inclusion delivered by Dr. (Smt) Deepali Pant Joshi, Executive Director,
Reserve Bank of India at the Vth Dun and Bradstreet Conclave on Financial Inclusion –
Kolkata on October 28, 2013) concluded that RBI has adopted a Bank led model but one which
is essentially Model Neutral. We have tried to create an enabling environment that facilitates
competition and fosters innovation.
7 http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=218
8 http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=853
38 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Once the financial Inclusion plans are implemented customers will be able to transact
electronically with each other as well as with individuals and firms outside the village. This
will in days to come reduce dependence on Cash and High volumes will lower the costs of
transactions.
International experience reflects that digitizing social transfers is an effective way of
bringing the excluded within the financial system the Business Case for Banks in this segment,
as of now, depends on government payments. Going forward we hope that Banks will
introduce new products and services crafted to the needs and income streams of poor
borrowers which will enable self-sustaining financial inclusion. As Banking is a public good this
is essential in the interests of Public Policy
9. (P. Arulmurugan, 2013) conclude that Access to financial services such as savings,
insurance and remittances are extremely importance for poverty alleviation and
development. In order to achieve the goal of total financial inclusion, policy makers,
MFIs, NGOs, and regulator have to work together. The issue of FI has received large
importance in India during the recent years. India had invested considerable amount of
resources in expanding its banking network with the objective of reacting it to the
people. During the last 40 years huge infrastructure has been created in banking sector.
However, this large infrastructure that has penetrated even in remote rural area has been
able to serve only a small part of potential customers. While India is on very high
growth path, almost at the two digit level, majority of the people are out of growth
process. This is neither desirable nor sustainable for the nation. We also know that one
of the most important diving forces of growth is financial institution. Therefore, it is
now realised that unless all the people of the society are bought under the ambit of
institutional finance, the benefit of high growth will not percolate down and by that
process majority of the population will be deprived of the benefits of high growth.
Thus, financial inclusion is not only the socio- political imperative but also an
economic ones.
9 http://www.theglobaljournals.com/ijar/file.php?val=March_2013_1362145449_5
3166_71.pdf
39 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
10. K C Chakrabarty: Financial inclusion – issues in measurement and analysis
(Kuala Lumpur, 5 November 2012.) concluded that issue of expanding the
geographical and demographic reach poses challenges from the viability perspectives.
Appropriate business models are still evolving and various delivery mechanisms are
being experimented with. Financial literacy and level of awareness continue to remain
an issue and the ICT Based BC Model is also taking time to stabilize. It calls for
coordination of all the stakeholders like sectoral regulators, banks, governments, civil
societies, NGOs, etc. to achieve the objective of financial inclusion. Challenges of
financial exclusion are faced by most countries globally and each country has to
develop its own customized solutions drawing upon its own experiences and those of
its peers across the globe. On the measurement challenges, first, it needs to be reckoned
that financial inclusion concepts, policies, delivery models and implementation
processes are still evolving. It is, therefore, essential that the policy for achieving total
financial inclusion also keeps changing to adapt to the needs of the environment. This
poses challenges for measurement of various financial inclusion initiatives as also their
aggregation across activities, institutions, regions and so on. Statistical analysis of
performance of financial inclusion initiatives and development of benchmarking
standards can be quite complex. Second, while existing initiatives in measuring
financial inclusion are commendable, there is a need for greater focus on the micro and
distributional dimensions. Third, we should explore the need to change the focus of
present information systems of banking business from traditional accounting model to
customer centric business model. This would call for expanding the scope of the
currently used measures of financial inclusion.
10 http://www.bis.org/review/r121112a.pdf
40 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
NEED, OBJECTIVE And SCOPE
41 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
NEED, OBJECTIVE And SCOPE
NEED OF THE STUDY
1. Whether all eligible and desirous have been able to established banking relationship with
bank in the village.
2. Whether those who could not get banking facility earlier have got it now after
announcement of PMJDY
3. Having opened the accounts, whether all of them have met the criteria of getting life
Insurance, Personnel Accident cover and Rupay card.
OBJECTIVE OF THE STUDY
1. To identify level of awareness on PMJDY among resident of village Aakhar, District
Ballia, Uttar Pradesh.
2. To identify the level of usage of benefits arising out of PMJDY.
SCOPE OF THE STUDY
1. The target group include unemployed people, house wife, agriculturalists, and people
engaged in small business in village.
2. The target group are people residing in Aakhar Village, District Ballia, Uttar Pradesh.
3. Banking habits and awareness about financial products and services come within the
purview of the study.
42 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
RESEARCH DESIGN
43 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
RESEARCH METHODOLOGY
The project aims at understand the level of awareness and achievement of RBI and GOIs efforts
in achieving the dream target financial inclusion. The survey was conducted among 200 residents
of Aakhar Village, District Ballia, Uttar Pradesh. This research work started with exploratory
research design, in due course of time it was converted to causal research design.
SAMPLE DESIGN
TARGET POPULATION- The target audience includes the residents of Aakhar Village, District
Ballia, Uttar Pradesh.
SAMPLE FRAME-The sample frame had a total of 200 residents.
SAMPLE SIZE- The sample size for this research is around 200.
SAMPLE METHOD- The sample method included conducting a survey with residents either
through personal interaction or through telephonic interaction. Convenience sampling technique
was adopted.
METHOD OF DATA COLLECTION
The method included preparing a questionnaire with questions mainly related to awareness related
to basic banking. The process included visiting the village and generating information about their
banking facilities they are using.
Shortlisting an area
Meeting people
Analyzing information
Convincing them to share information related to Banking habits
Spreading awareness
44 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
The meeting was done as per the preference of the resident it was done in the following two ways-
1. Either through personal interaction- This method was most preferred as it results in increase
in knowledge of both the parties and adds a personal touch, which is not present in telephonic
interaction.
2. Or through telephonic interaction- This method was less preferred, as it didn’t gave an idea
as who is responding to the questions, it was like blindly trusting the respondent about his identity.
CONDUCTING SURVEY
The survey was conducted with the help of questionnaire. It was either filled by me or by the
respondents. In around 95% cases the respondent was reluctant to fill the questionnaire in his
writing.
KNOWLEDGE SHARING
A person learns throughout his life, so keeping this in mind, knowledge was shared both ways. I
learnt the problems of the respondents, the way they work and I created awareness about PMJDY.
45 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
DATA COLLECTION
46 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
GATHERING INFORMATION & INFORMATION PROVIDER
METHOD OF GATHERING INFORMATION
Tools for data collection: The tool for data collection is questionnaire consisting of set of
questions related to Implementation of PMJDY .
Personal Interaction98%
Telephonic Interaction
2%
47 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
QUESTIONNAIRE
Q1. For how long have you been staying in this village?
Less than a year
1-5 year
More than 5 year
Q2. Who all are there in your family?
Joint Family
Nuclear Family
Q3. Does any one of you have bank account?
Yes
No
Name: ____________________________________ Age: __________
Gender: Male Female Occupation: ____________________
Address: ___________________________________________________________________
____________________________________________________________________
Mobile No. : ________________________________________________________________
If yes, Kindly answer following questions otherwise go to Q.4
Q3.1 No. of account in your household
1
2
3
4
More than 4
48 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q4. Reasons for not having even a single bank a/c in your family
Very little money to put in
No banking facilities in area
Lengthy procedures
Many charges are there
Tried to open but was refused
Other (Please specify) ___________________________________
Q3.2 Which type of account do you have?
Saving a/c
Current a/c
Fixed Deposit a/c
Recurring Deposit a/c
Q3.3 What were the reasons that your household opened the account?
To receive Govt. payments from NREGA
To receive Govt. payments from schemes other than NREGA
For receiving remittance
For saving
To request a loan
If other, please specify ______________________________
Q3.4 Who helped you while opening the a/c?
Village Panchayat Official
Bank Official
Neighbors/Friends/Relatives/Employer
Business Correspondent/Post Office
49 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q5. Reasons for being refused a bank a/c
No Id
No address proof
Unemployment
Had to maintain minimum balance
Don’t know
Other (Please Specify) ___________________________________
Q6. Awareness about Basic Banking Saving A/c which was announced on 15th August
2014
Good
Medium
Poor
Q7. Reasons for not having awareness about Basic Banking Saving A/c.
No promotion by Banks, government or village panchayat in village.
Not in a habit of reading newspaper.
Lack of Media Advertisement via TV/Radio
Q8. Are you availing any of the following services?
NREGA.
Gas Subsidy
Food Subsidy
Direct Benefit Transfer
Q9. Awareness about various facilities covered under PMJDY like:
Overdraft facility of 5,000.
Life insurance cover.
Personal Accident cover.
Rupay card
50 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
DATA ANALYSIS AND FINDINGS
DATA ANALYSIS AND FINDINGS
51 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q1. For how long have you been staying in this village?
Less than a year
1-5 year
More than 5 year
Q2. Who all are there in your family?
Joint Family
Nuclear Family
Q3. Does any one of you have bank account?
Yes
No
Each face represents 20 people. Green represent person with account and red without account.
The basic criteria of judging the achievement of financial of financial inclusion is to judge the
whether the respondents have a bank account or not. While doing the survey it was revealed that
out of 200 respondent 7 were not having bank account in their household.
52 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
If yes, Kindly answer following questions otherwise go to Q.4
Q3.1 No. of account in your household
1
2
3
4
More than 4
While survey it has been found that majority of respondent have 2 bank account in their
household. 13 respondents have 1 bank account in their household, while majority of
respondent i.e. 77 respondent have 2 bank accounts in their household, 61 respondent have 3
bank accounts in their household whereas 29 and 13 respondents have 4 and more than 4 bank
accounts in their households respectively.
53 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q3.2 Which type of account do you have?
Saving a/c
Current a/c
Fixed Deposit a/c
Recurring
Through survey it was found that out of 193 respondents 173 were having
saving account whereas 8 were having current account and rest i.e. 14 and 13 were having
deposits like FD and RD respectively.
54 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q3.3 What were the reasons that your household opened the account?
To receive Govt. payments from NREGA
To receive Govt. payments from schemes other than NREGA
For receiving remittance
For saving
To request a loan
If other, please specify ______________________________
During survey it was found that out of 193 respondents, 59 and 43 respondents opened
an bank a/c in order to receive government payments under NREGA and schemes other than
NREGA respectively whereas 19, 67, 4 opened bank a/c for receiving remittances, for
purpose of savings and request a loan respectively and only 8 respondents opens the bank a/c
for other reasons.
55 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q3.4 Who helped you while opening the a/c?
Village Panchayat Official
Bank Official
Neighbors/Friends/Relatives/Employer
Business Correspondent/Post Office
It’s necessary to know the source from where our consumer comes to know about our product.
In case of financial inclusion it’s necessary for RBI, commercial banks that which is the best
source of spreading awareness. In Aakhar village majority of the respondents those who
possess bank accounts, came to know about services with the help of Bank officials. Banks
from time to time conduct awareness programs, drama, Nataks etc. the theme of all is spreading
knowledge. To some extent banks have been able to spread awareness. More need to done not
only at board level but also at ground level. Out of 200 respondent 39 respondents open a/c
with the help of Gram panchayat and majority of respondent have opened a/c via bank officials
whereas 20 and 26 respondent open bank a/c with the help of Bank Correspondent and
Friends/Relatives respectively.
56 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q4. Reasons for not having even a single bank a/c in your family
Very little money to put in
No banking facilities in area
Lengthy procedures
Many charges are there
Tried to open but was refused
Other (Please specify) ___________________________________
Out of 200 respondents only 7 respondent don’t have bank a/c. The main reasons they
don’t have account are either they don’t have much money to keep in their bank a/c or
they think opening an bank a/c may charge some money or they found opening an bank
a/c have lengthy procedures but there are few people who tried to open an bank a/c but
due to some reasons has been refused by banks.
0
0.5
1
1.5
2
2.5
3
3.5
Very littlemoney to put in
Lengthyprocedures
Many chargesare there
Tried to openbut was refused
No
. of
Re
spo
nd
en
ts
Reasons
Reasons for not having bank a/c
Series1
57 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q5. Reasons for being refused a bank a/c
No Id
No address proof
Unemployment
Had to maintain minimum balance
Don’t know
Other (Please Specify) ___________________________________
Out of 7 unbanked respondent 3 tried to open a bank account, but where refused
by bank to open the bank a/c. The main reasons were either bank don’t have a/c
opening form or they have asked individuals to open the bank a/c with minimum
Rs 500.
1
2
Reasons for being refused by bank
Had to maintain minimum balance Other (Please Specify) ___________
58 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q6. Awareness about Basic Banking Saving A/c which was announced on 15th August
2014
Yes
No
While doing survey it has been found that majority of people are aware about
PMJDY while only 2 were not aware about it.
Awareness of respondent on PMJDY.
198 2
59 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q7. Reasons for not having awareness about Basic Banking Saving A/c.
No promotion by Banks, government or village panchayat in village.
Not in a habit of reading newspaper.
Lack of Media Advertisement via TV/Radio
Those who are not aware the main reason for their lack of awareness was they are
not in a habit of reading newspaper. These were very illiterate respondents who
are not interested in what is happening around themselves.
Reasons for not having awareness about PMJDY.
Not in a habit of reading newspaper
60 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q8. Are you availing any of the following services?
NREGA.
Gas Subsidy
Food Subsidy
Direct Benefit Transfer
Out of 200, 7 respondent don’t have any bank account in their household. Though
through survey it was found that these 3 respondents were enjoying government
benefits. Through survey it has been found that 2 people were getting food
subsidy whereas 1 is getting DBT via some source.
Food Subsidy Direct Benefit Transfer
Series1 2 1
0
0.5
1
1.5
2
2.5
NO
. OF
RES
PO
NEN
TS
Availing government services while don't have bank a/c
61 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Q9. Awareness about various facilities covered under PMJDY like:
Overdraft facility of 5,000.
Life insurance cover.
Personal Accident cover.
Rupay card
Out of 200 respondents, 73 were having good knowledge about Over Draft Facility,
majority i.e. around 97 were having medium knowledge and 30 were having poor
knowledge. Through this survey I was able to clear respondent’s concepts that what exactly
the concept of Over Draft facility of 5,000 is about and for whom this facility is there. And
when one can avail this Over Draft facility.
73
97
30
Awareness about Over Draft Facility
Good Neutral Poor
62 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Out of 200 respondents, 117 were having good knowledge about Life Insurance cover,
whereas 34 and 49 were having medium and poor knowledge about Life Insurance Cover.
With this survey I was able to explain the individual about the importance of Life Insurance
cover in individual life. And when and to whom it is payable.
Awareness about Life Insurance Cover
117 34 49
63 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Out of 200 respondents, 76 were having good knowledge about Personal Accident cover,
majority i.e. around 83 were having medium knowledge and 41 were having poor
knowledge. Through this survey I was able to clear respondents doubts like what exactly
Personal Accident cover is all about. Who will pay the premium of that? And if both
husband and wife have opened the bank account under PMJDY are eligible for Personal
Accident cover separately or not.
83 41
Awareness about Personal Accident
Cover
76
64 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas 21
respondents don’t have very clear knowledge about card and 6 respondents were having
poor knowledge. Through survey I was able to clear doubts of respondents like what
exactly Rupay Debit card is. What are the advantage of having Rupay Debit card and how
one can keep debit card operational?
173
21
6
Awareness About Rupay Card
Good Neural Poor
65 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
HYPOTHESIS TESTING
In this study we will apply chi-square test at 95% confidence level and 5% significance level.
GENERATED HYPOTHESIS
NULL: People are not aware about PMJDY.
ALTERNATIVE: People are aware about PMJDY.
People are Aware People Are not Aware Total
Have bank account 193 0 193
Don’t have bank account 5 2 7
Total 198 2 200/200
OBSERVED EXPECTED O-E (O-E)^2/E
193 193*198/200= 191.07 1.93 0.0194
5 198*7/200= 6.93 -1.93 0.537
0 193*2/200= 1.93 -1.93 1.93
2 7*2/200= 0.07 1.93 53.212
The Chi-square statistic is 55.6999. The P value is 0. This result is significant at p < 0.05.
We will accept our Alternative Hypothesis. It means respondents of Aakhar Village, District
Ballia, Uttar Pradesh are aware about of PMJDY.
66 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
FINDINGS
Through survey following things have been found out:-
1. In village Aakhar, District Ballia, Uttar Pradesh there were around 314 Dalit families.
So I targeted those Dalits family only.
2. Out of 200 respondents only 7 were not having bank a/c in their household.
3. Majority of the people open bank a/c in order to save money i.e. 67 whereas 59
respondents opened a/c in order to receive government payment under NREGA.
4. Majority of the accounts in the village has been opened by Bank official i.e. 108, 39 by
village panchayat, 20 by business correspondent and 18 with the help of friends and
relatives.
5. Through survey it has been found that 2 respondents are not interested in opening of
bank account because they have very little money to put whereas 1 respondent thinks
there is a lengthy procedure to open bank account and 1 think there are many hidden
charges. It has also been found that 3 respondents were tried to open the bank account
but were refused by the banks to open bank account.
6. Those respondents who tried to open bank account but refused by bank because bank
has asked them to open bank account with minimum Rs. 500 or banks are not having
account opening form.
7. Through survey it has been found that majority of people are aware about PMJDY
while out of 200 only 2 were not aware about that.
8. And those who are aware about PMJDY are not having crystal like understanding on
various aspects of PMJDY.
9. Out of 200 respondents, 73 were having good knowledge about Over Draft Facility,
majority i.e. around 97 were having medium knowledge and 30 were having poor
knowledge. Through this survey I was able to clear respondent’s concepts that what
exactly the concept of Over Draft facility of 5,000 is about and for whom this facility
is there. And when one can avail this Over Draft facility.
10. Out of 200 respondents, 117 were having good knowledge about Life Insurance cover,
whereas 34 and 49 were having medium and poor knowledge about Life Insurance
67 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Cover. With this survey I was able to explain the individual about the importance of
Life Insurance cover in individual life. And when and to whom it is payable.
11. Out of 200 respondents, 76 were having good knowledge about Personal Accident
cover, majority i.e. around 83 were having medium knowledge and 41 were having
poor knowledge. Through this survey I was able to clear respondents doubts like what
exactly Personal Accident cover is all about. Who will pay the premium of that? And
if both husband and wife have opened the bank account under PMJDY are eligible for
Personal Accident cover separately or not.
12. Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas
21 respondents don’t have very clear knowledge about card and 6 respondents were
having poor knowledge. Through survey I was able to clear doubts of respondents like
what exactly Rupay Debit card is. What are the advantage of having Rupay Debit card
and how one can keep debit card operational?
68 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
QUESTIONS ASKED BY RESPONDENTS
3. Whether overdraft facility can be availed in more than one account?
4. What is accidental insurance cover? And who will pay premium for that?
5. Does a person already having a bank account in any bank needs to open another
account under PMJDY to get accidental and life insurance cover?
10. What is meant by Insurance cover of Rs 30,000 announced by Prime Minister in
his speech on 26th August 2014?
7. I have no official documents for opening an account. Can I still open an
account with bank?
8. Can a minor can open an account under PMJDY?
1. What is RuPay debit card?
9. Do I have to pay some fees to open a bank account under PMJDY?
2. How to keep RuPay card safe?
69 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
LIMITATION OF THE STUDY
FUTURE SCOPE & LIMITATION
70 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
SCOPE OF FURTHER RESEARCH
1. Chairman of IRDA Mr. T.S Vijayan said, that the government should launch scheme Jan
Bima Yojana in line of similar programmed launched in banking sector.
2. The scheme can be linked to Swachta Bharat Abhiyan. For construction of toilets in rural
area the finance can be done under PMJDY.
3. This can be help to boost previous schemes under financial inclusion such as Micro
Finance, SHG for working towards positive development.
4. It could help to build small business in rural area. And creating job opportunities in banking
sector.
71 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
LIMITATION OF THE STUDY
1. There is shortage of time to conduct the study. Due to the shortage of the time, smaller
sample size has been taken which may not be the true representative of the whole universe.
2. Due to time constraint, it was not possible to observe every aspect of Financial Inclusion
Program.
3. Due to conservative nature, it may be possible some respondents may not have given their
responses in the questionnaire in fully true manner.
4. Since the respondents may be busy with their hectic schedule, so many people may be
reluctant to answer.
5. The study is limited to only specific rural areas and therefore, several other potential
samples outside these areas have been neglected.
72 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
73 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
SUGGESTIONS
We must promote the financial Inclusion aggressively to serve our own low income families
but also to show ways to improve the life of poor people around the world. Suggestion are as
follow:
1. Develop low cost bank branch model: India needs to develop a low cost bank branch
model, possibly attached to village post office.
2. Promote financial product and services: Reserve Bank and Government should give
the suggestion to commercial banks to promote the financial product and services of
banking through all the educational institution (primary, secondary, and higher
secondary)
3. Develop financial literacy: The government of India
should help develop financial literacy among the
population, particularly in low income families. That
can be done by teaching it in primary school, high
schools and colleges.
4. Telecom companies: should be allowed to provide
payments and money transfer services.
5. Add extra incentives to lend in rural area: The RBI
should mandate that commercial banks have a certain
percentage of their portfolio in small loans. In addition, important social considerations
should be factored into loan decisions. The children have to be attending a school before
they are eligible for a loan. Similar conditions should be imposed for eligibility of loan in
India. The government could also add extra incentives to lend in rural areas.
6. Financial system need to revised and strengthened: The community based financial
systems like the chit funds need to be revived and strengthened. They serve as a very
useful savings and credit function and result in local growth and employment.
7. Encourage people to access banking services: The bank should step up to over whelm
all these problems and to disseminate its service to remote area. The bank should
encourage the people to access banking services by ways of no frill account, financial
74 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
inclusion campaign and business correspondent. The government should encourage the
banks to adopt financial inclusion by means of financial assistance, advertisement and
awareness programme etc. to achieve the Inclusive growth. We must promote the
financial.
8. Inclusion aggressively to serve our own low income families but also to show ways to
improve the life of poor people around the world.
9. Directing government benefits through service area banks: Any government or social
security payments or payments under all the government schemes should be strictly
routed through the service area bank account. This will make people in rural areas to
compulsorily have an account in their service area branch to avail the government
benefits.
10. Strengthening of BC Model:
To ensure both operational flexibility and viability of the BC agents with proper
training about basic banking and insurance products, provide them good
infrastructure in terms of good quality computers and other peripherals like micro
ATM, bio-metric scanners, and internet connectivity.
Banks may be advised to adopt a scheme for financing to the BC’s to set up office
and buy a laptop, a two wheeler vehicle and some working capital funds. These
credit facilities can also be covered under Credit Guarantee Fund.
75 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
WAY FORWARD
WAY FORWARD
76 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
WAY FORWARD
One of the major challenges under Financial Inclusion has been addressing the last-mile
connectivity problem. For addressing this issue and for achieving the goals set, experts have
recommended the Business Correspondent/Facilitator (BC/BF) model. Though the BC model at
the initial stage may not be commercially viable due to high transaction costs for banks and
customers, the appropriate use of technology can help in reducing this. The need is to develop and
implement scalable, platform-independent technology solutions which, if implemented on a large
scale, will bring down the high cost of operation. Appropriate and effective technology, thus, holds
the key for financial inclusion to take place on an accelerated scale.
Banks need to perfect their delivery and business model. A number of different models involving
handheld devices with smart cards, mobiles, mini ATMs, etc. are being tried out and it is necessary
that they are integrated with the back-end CBS system for scaling up. A good delivery model is
also needed and, perhaps, even more so if there is a glitch and customer grievances needs to be
resolved expeditiously. Thus, the time is approaching when these various experiments with
different models are taken to their logical conclusion and banks start scaling up their
implementation. At the same time, banks must also have an integrated business model. These hold
the key to the success and failure of the financial inclusion efforts.
In addition to this, RBI has advised banks to focus more towards opening of Brick-and-Mortar
branches in unbanked villages. These branches can be low cost intermediary simple structure
comprising of minimum infrastructure for operating small customer transactions and supporting
upto 8-10 BCs at a reasonable distance of 2-3kms. This will lead to efficiency in cash management,
documentation and redressal of customer grievances. Such an approach will also act as an effective
supervisory mechanism for BC operations. Another very important thing is that banks have to
realize that for BCs model to succeed, the BCs, who are the first level of contact for customers,
have to be compensated adequately so that they too see this as a business opportunity
As mentioned earlier, banks should strive to provide a minimum of four basic products and, in
addition, design new products tailored to income streams of poor borrowers and according to their
needs and interests. Banks must be able to offer the entire suite of financial products and services
77 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
to the poor clients at an attractive pricing. Though the cost of administering small ticket personal
transactions is high, these can be brought down if banks effectively leverage ICT solutions. This
can be supplemented through product innovation with superior cost efficiency. Mobile banking
has tremendous potential and the benefits of m-commerce need to be exploited.
It is important that adequate infrastructure such as digital and physical connectivity, uninterrupted
power supply, etc. are available. All stakeholders will have to work together through sound and
purposeful collaborations to ensure appropriate ecosystem development. This would include
government, both Central and State, Regulators, Financial Institutions, Industry Associations,
Technology Players, Corporates, NGOs, SHGs, Civic Society, etc. Local and national level
organizations have to ensure that these partnerships look at both commercial and social aspects to
help achieve scale, sustainability and desired impact. This collaborative model will have to tackle
exclusion by stimulating demand for appropriate financial products, services and advice with
appropriate delivery mechanism and by ensuring that there is a supply of appropriate and
affordable services available to those that need them.
Mindset, cultural and attitudinal changes at grass roots and cutting-edge technology levels of
branches of banks are needed to impart organizational resilience and flexibility. Banks should
institute systems of reward and recognition for personnel initiating, ideating, innovating and
successfully executing new products and services in the rural areas.
78 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
ACHIEVEMENT
79 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
GOVERNMENT ACHIEVEMENT
PRADHAN MANTRI JAN-DHAN YOJNA as on 31st March,2015
S.No Rural Urban Total No. of
Rupay
Debit
Cards(in
lac)
Balance in
Account(in
lac)
No. of
Accounts
with zero
balance
(in lac)
1 Public
Sector
Bank
625.35 529.09 1154.44 1081.10 1218505.25 661.82
2 Regional
Bank
217.11 390.08 256.11 178.22 257711.10 156.16
3 Private
Bank
359.87 250.79 61.06 55.49 90813.06 34.13
Grand
Total
878.44 593.18 1471.63 13144.18 1567029.41 825.13
80 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
81 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
MY ACHIEVEMENT
1. Have helped 5 individuals to open bank account under PMJDY.
2. Was able to clear doubts of individuals related to Insurance cover, RuPay debit card,
Overdaft facility etc.
3. Convince people to apply for Aadhar Card.
4. Have distributed the pamphlet related to PMJDY and RSBY.
5. There was a shortage of Application form for opening account. Thus, I provided account
opening forms in village post office. And give few copies to volunteers who helped me in
doing the surveys.
6. With the help of RBI diary have make it clear to people who are not interested in opening
the bank account about importance of bank and facilities they can avail.
7. Create awareness among people about RSBY.
82 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
CONCLUSION
83 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
CONCLUSION
This project has been undertaken to study the PMJDY program in Aakhar Village, District
Ballia, U.P and to find out the steps taken by the banks in the area of Financial Inclusion. The
main objectives of the research were to identify the approaches adopted by different banks and
to know about the customer response towards the banking approaches under financial inclusion
program. It also aims at finding out how the schemes of RBI
on Financial Inclusion are taken into account and the
banker’s perception on Financial Inclusion. The study
concluded that though the banks are complying with RBI
norms in terms of opening branches, offering no frills
account, kisan credit card, simplifying KYC norms, but still
is lot of effort to be put in for financial inclusion progress. Biometric cards should be introduced
for security in transactions as well as saving time. Business correspondents should be employed
in villages and trained in advance for promoting financial inclusion program. Banks need to
open its more branches within rural areas and creating more awareness about banking services
among rural people by telling them about the benefits of the banking services. Financial
inclusion requires efforts on the parts of three parties- RBI, all the banks as well as general
public for its better progress.
84 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
BIBLIOGRAPHY
1. Asli Demirguc-Kunt ,Leora Klapper ,Douglas Randall FINDEX NOTES The Global
Findex Database Financial Inclusion in India , Retrieved from
http://siteresources.worldbank.org/EXTGLOBALFIN/Resources/8519638133225934399
1/N8india6pg3.pdf , accessed on 27th May 2014
2. Branches and ATMs of Scheduled Commercial Banks, Retrieved from
http://www.rbi.org.in/scripts/PublicationsView.aspx?id=15449 ,accessed on 28th May
2014
3. Financial Inclusion in India: Journey So Far And Way Forward (Keynote address
delivered by Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India at the
Finance Inclusion Conclave organized by CNBC TV 18 at New Delhi on September 6,
2013) Retrieved from http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=836
4. http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=2670 ,accessed on 27th May
2014
5. http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CRB5100512KC.pdf , accessed on 27th
May 2014
6. http://www.preservearticles.com/2012033129398/12-main-reasons-for-nationalisation-of-
banks.html , accessed on 24th May 2014
7. Anand Sinha (2012), “Financial Inclusion and Urban Cooperative Banks”, edited
transcript at the launch of the financial inclusion program of COSMOS Bank at Pune.
Retrieved from http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=654
8. Chakrabarty K.C (2011), “Financial Inclusion and Banks: Issues and Perspectives”, RBI
Bulletin, November, 2011. Retrieved from
http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/02SEPC1111FL.pdf
9. Chakrabarty K.C (2011), “Financial Inclusion: A Road India Needs to Travel”, RBI
Bulletin, November, 2011. Retrieved from
http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/01BLAR111111F.pdf
85 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
10. Chakrabarty K.C (2013), “Revving up the Growth Engine through Financial Inclusion”,
address at the 32th SKOCH Summit held at Mumbai. Retrieved from
http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=813
11. Leeladhar V (2005), “Taking Banking Services to the Common Man – Financial
Inclusion”, Commemorative Lecture at the Fedbank Hormis Memorial Foundation at
Ernakulam. Retrieved from http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=218
12. Mira Mendoza (2009), “Addressing Financial Exclusion through Microfinance: Lessons
from the State of Madhya Pradesh, India”, The journal of International Policy Solutions,
Vol 11, pp 25-35.
13. Radhika Dixit and M. Ghosh (2013) “Financial Inclusion for Inclusive Growth of India –
A Study”, International Journal of Business Management & Research, Vol.3, Issue 1, pp.
147-156.
86 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure
87 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-1
State-wise number of unbanked villages with population of over 2000, provided with
banking facilities under 'Swabhimaan' Campaign 2010-13.
S.N. Name of State No. of Villages provided with banking
facilities
1 Andaman & Nicobar Islands 9
2 Andhra Pradesh 6640
3 Arunachal Pradesh 11
4 Assam 2319
5 Bihar 9206
6 Chandigarh 0
7 Chhattisgarh 1050
8 Dadra & Nagar Haveli 30
9 Daman & Diu 6
10 Delhi 110
11 Goa 41
12 Gujarat 3502
13 Haryana 1838
14 Himachal Pradesh 48
15 Jammu & Kashmir 789
16 Jharkhand 1541
17 Karnataka 3395
18 Kerala 120
19 Lakshadweep 0
20 Madhya Pradesh 2736
21 Maharashtra 4292
22 Manipur 186
23 Meghalaya 39
24 Mizoram 14
25 Nagaland 196
26 Odisha 1877
27 Puducherry 42
28 Punjab 1576
29 Rajasthan 3883
30 Sikkim 43
88 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
31 Tamil Nadu 4445
32 Tripura 419
33 Uttar Pradesh 16270
34 Uttarakhand 226
35 West Bengal 7452
Grand Total 74351
89 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-2
Phase wise target for coverage of Business Correspondents
State Phase 1 ( upto
14.08.2014)
Phase 2 (15.08.2014
to 30.11.2014)
Phase 3 ( 01.12.2014
to
31.03.2015)
Phase 4 ( 01.04.2015 to
30.06.2015)
Arunachal Pradesh 25 25 25 25
Andhra Pradesh
400 600 600
Any additional left over
SSAs
Assam 25 50 100 144
Bihar 1000 1500 1500 101
Chhattisgarh 150 225 225 86
Goa
20 20 18
Any additional left over
SSAs
Gujarat 500 750 750 117
Haryana
500 500 120
Any additional left over
SSAs
HP 200 300 300 78
JK
100 150 120
Any additional left over
SSAs
Jharkhand 150 225 225 91
Karnataka 500 750 750 129
Kerala 300 350 350 55
MP 1000 1500 1500 1332
Maharashtra 1000 1500 1500 1172
Manipur 25 25 25 25
Meghalaya 25 25 25 25
Mizoram 25 25 25 25
Nagaland 25 25 25 25
Orissa 500 750 750 198
Punjab 400 500 500 3
Rajasthan 1000 1500 1500 643
Sikkim 25 25 25 25
Tamil Nadu 50 70 70 4
Telangana
100 150 150
Any additional left over
SSAs
Tripura 25 25 25 25
90 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
UP 2000 3000 3000 3055
Uttarakhand
50 50 65
Any additional left over
SSAs
West Bengal 400 700 700 72
Total 10520 15290 14943 7430 and any
additional left SSAs
91 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-3
Bank wise Detail of Villages/ SSAs/ Households Allotted and Covered as on 31.05.2014
S.
No. Name of Bank
Villages (Nos.) SSAs ( Nos.) Households ( Nos.)
Allotted Covered Allotted Covered Allotted Covered
[1] [2] [3] [4] [5] [6] [7]
1 Allahabad Bank 17689 4787 5093 2880 46,24,622 26,63,739
2 Andhra Bank 4856 3688 1954 1851 24,12,380 23,53,325
3 Bank of Baroda 21526 14729 6811 5034 56,21,924 46,28,182
4 Bank of India 18533 10866 5283 3691 45,78,361 35,37,927
5 Bank of Maharashtra 10235 7106 3048 2128 27,06,761 20,75,228
6 Canara Bank 10122 5404 3547 2938 32,19,401 22,77,980
7 Central Bank of India 30382 12788 8946 4119 89,67,061 52,82,702
8 Corporation bank 1880 1402 1143 1143 2,91,804 1,02,397
9 Dena Bank 4309 3033 2644 1882 14,96,366 10,08,947
10 IDBI Bank Ltd. 998 974 497 491 2,47,555 1,72,513
11 Indian Bank 5902 5079 159 159 23,71,454 17,31,684
12 Indian Overseas Bank 5672 3659 538 538 21,52,273 15,54,284
13 Oriental Bank of
Commerce 4603 2608 1494 1029 18,53,027 12,94,864
14 Punjab & Sind Bank 2716 1027 1070 560 14,93,021 6,19,560
15 Punjab National bank 38970 25147 8490 5171 92,01,800 47,15,921
16 SBBJ 7590 2989 1880 1350 8,08,360 2,26,012
17 State Bank of Hyderabad 3941 3872 1504 1487 18,78,884 25,47,393
18 State Bank of India 47622 18201 16691 9643 2,24,14,193 50,00,240
19 State Bank of Mysore 3556 1980 697 438 8,41,910 6,27,633
20 State Bank of Patiala 3612 1762 1030 630 5,04,700 3,99,837
21 State Bank of Travancore 49 42 426 365 6,39,000 4,30,000
92 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
22 Syndicate Bank 6380 3547 3358 2152 24,55,945 15,23,140
23 UCO Bank 17102 10198 5636 3881 34,07,505 23,03,399
24 Union Bank of India 18667 7494 7650 4398 47,80,816 33,15,536
25 United Bank of India 12671 9949 2065 2065 22,55,159 20,13,092
26 Vijaya Bank 3170 2627 1013 798 5,36,071 3,47,329
Total
302753 164958 92667 60821 9,17,60,353 5,27,52,864
93 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-4
LIST OF 26 CENTRAL SECTOR/ CENTRALLY SPONSORED SCHEMES
Sl. Ministry/ Department No. of Name of the Scheme
No Schemes
1
M/o Social Justice &
Empowerment
7
1 Post Matric Scholarship for SC Students.
2 Pre-Matric Scholarship for SC Students.
3 Pre-Matric Scholarship for Children of those engaged
in unclean occupations.
4 Upgradation of merit of SC Students.
5 Post Matric Scholarship for OBCs.
6 Top Class Education Scheme.
7 Rajiv Gandhi National Fellowship.
2
M/o Human Resources
Development, D/o
Higher Education
3
1 Scholarship to Universities/College Students.
2 Fellowship Schemes of UGC.
3 Fellowship Schemes of AICTE.
3
M/o Human Resources
Development, D/o
2
1 National Means cum Merit Scholarship.
2 National Scheme for Incentive for the girl child
School Education &
Literacy
,
for secondary education.
4
M/o Tribal Affairs
3
1 Post Matric Scholarship Scheme.
2 Top Class Education System.
3 Rajiv Gandhi National Fellowship.
5
M/o Minority Affairs
3
1 Matric Scholarship Scheme.
2 Maulana Azad National Fellowship.
3 Merit cum Means Scholarship Scheme.
6
M/o Women and Child
Development
2
1
Indira Gandhi Matritva Sahyog Yojana (IGMSY).
2 Dhanalakshmi Scheme.
7
M/o Health & Family
Welfare
1
1
Janani Suraksha Yojana.
1 Scholarship to the Children of beedi workers.
94 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
8
M/o Labour and
Employment
5
2 Housing subsidy to beedi workers.
3
Stipend to children in the special schools under
the Child Labour Project.
4
Stipend to trainees- Welfare of SC/ST through
Coaching cum Guidance & Vocational Training
5 Stipend to trainees in LWE districts
Total 26
95 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-5
Scheme for Financing Business Correspondents
Nature of Facility
Demand/Term Loan/Working Capital Facilities
Purpose
Fixtures etc for setting up or renovation of office.
Limit
Minimum Rs.25000 /-
Maximum Rs. 250000/-
Area Demand Overdraft Term Total
Loan (Working Loan(veh
capital) icle loan)
Rural
and semi
urban
75000/-
25000/-
50000/-
150000/-
Urban
115000/-
35000/-
50000/-
200000/-
Metro
150000/-
50000/-
50000/-
250000/-
Eligibility
The Product is specifically designed for Business
Correspondents (BCs) and Kiosk Operators who have valid agreement
with service providers engaged by the Bank for
the purpose of providing banking services under Financial
inclusion.
Age: 18 to 60 years
Margin
10%
Rate of Interest
Micro Enterprises
Small
Enterprises
Up to Rs. Base Rate, i.e. Base Rate +
50000/-
10.25% p.a.
0.50%, i.e.
10.75% p.a.
96 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Above Rs. Base Rate + 0.50%, Base Rate + 1%,
50000/-to
2.00 lacs
i.e. 10.75% p.a.
i.e. 11.25% p.a.
Above Base Rate + 1.00% Base Rate +
Rs.2.00 Lacs i.e. 11.25% p.a. 1.25%, i.e.
to Rs.10.00
Lacs
11.50% p.a.
Tenor premium as per circular No.BCC/BR/105/213 dated
29.05.2013 as under.
Less than 3 years—Nil
97 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-6
98 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-7
15 अगस्त 2014 को माननीय प्रधानमंत्री ने "प्रधानमंत्री जन धन योजना 'की घोषणा की। इस योजना के
तहत आप बैंक खाता खोलने के ललए और ननम्न सुविधाओं का लाभ उठा सकते हैं
अपने नजदीकी बैंक में अधधक जानकारी के ललए संपकक करें।
---- रानी लसहं
जमा पर ब्याज
1 लाख का दघुकटना बीमा किर
30,000 का जीिन बीमा किर / -
दघुकटना बीमा किर, रुप ेडबेबट काडक 45 ददन में कम से कम एक
बार इस्तेमाल ककया जाना चादहए। 5000 / तक ओिरड्राफ्ट सुविधा - घर के प्रनत केिल एक खाते,
घर के अधधमानतः मदहला में उपलब्ध है। 6 महीने के ललए खाते के संतोषजनक आपरेशन के बाद, एक
ओिरड्राफ्ट सुविधा की अनुमनत दी जाएगी भारत भर में पैस ेके आसान हस्तांतरण
सरकारी योजनाओं के लाभाधथकयों इन खातों में प्रत्यक्ष लाभ
स्थानांतरण लमल जाएगा
सुविधाएं
99 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
Annexure-8
कुल बीमा रालश 30,000 /
लाभाथी दजक की फीस के रूप में 30 रुपये
का भुगतान करने की जरूरत है
आयु सीमा 3 साल - 65 साल
पूिक मौजूदा बीमाररयों को किर ककया जाना
सभी पात्र स्िास््य सेिाओ ंके कैशलेस
किरेज
यात्रा के प्रनत पररिहन भत्ता Rs100
स्माटक काडक के प्रािधान
लाभाथी रुपये प्रनत 60 का स्माटक काडक अनतररक्त रालश की लागत से इस उद्देश्य
के ललए उपलब्ध हो जाएगा योजना एक साल के ललए ही है
सुविधाएं
100 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)
101 Implementation of PMJDY with special reference to village Aakhar, District Ballia (U.P)