Implementation of PMJDY with special reference to village Aakhar, District Ballia,UP

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


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


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


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.


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


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


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.


“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

http://www.business-standard.com/article/economy-policy/good-job-is-the-best-form-of-inclusion-says-rajan-113040100382_1.html


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:


• 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.


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.


• 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.


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


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


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


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)


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


Tran

sact

ion

s

Transactions in ICT Accounts


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.


• 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.


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.



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


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


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


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.


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.


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.


(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


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


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


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.


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


REVIEW OF LITERATURE


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

http://www.theglobaljournals.com/ijar/file.php?val=December_2013_1385986542_62b5c_108.pdf

http://www.theglobaljournals.com/ijar/file.php?val=December_2013_1385986542_62b5c_108.pdf

http://www.iracst.org/ijcbm/papers/vol2no62013/21vol2no6.pdf


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

http://www.gifre.org/admin/papers/gjcmp/201-204-AWARENESS%20-vol-3-4-gjcmp.pdf

http://www.gifre.org/admin/papers/gjcmp/201-204-AWARENESS%20-vol-3-4-gjcmp.pdf

http://iosrjournals.org/iosr-jbm/papers/Vol16-issue6/Version-1/H016615261.pdf


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

http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=813


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

http://www.eldis.org/vfile/upload/1/Document/1306/FIRI2.pdf


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.






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

http://www.theglobaljournals.com/ijar/file.php?val=March_2013_1362145449_53166_71.pdf

http://www.theglobaljournals.com/ijar/file.php?val=March_2013_1362145449_53166_71.pdf


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

http://www.bis.org/review/r121112a.pdf


NEED, OBJECTIVE And SCOPE


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.


RESEARCH DESIGN


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


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.


DATA COLLECTION


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%


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


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


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


DATA ANALYSIS AND FINDINGS

DATA ANALYSIS AND FINDINGS


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.


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.


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.


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.


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.


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


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) ___________


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


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


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


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


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


Out of 200 respondents, 76 were having good knowledge about Personal Accident cover,


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


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


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.


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,


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


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?


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?


LIMITATION OF THE STUDY

FUTURE SCOPE & LIMITATION


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.


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.



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


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.


WAY FORWARD

WAY FORWARD


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


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.


ACHIEVEMENT


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



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.


CONCLUSION


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.


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

http://siteresources.worldbank.org/EXTGLOBALFIN/Resources/85196381332259343991/N8india6pg3.pdf

http://siteresources.worldbank.org/EXTGLOBALFIN/Resources/85196381332259343991/N8india6pg3.pdf

http://www.rbi.org.in/scripts/PublicationsView.aspx?id=15449


http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=2670

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CRB5100512KC.pdf

http://www.preservearticles.com/2012033129398/12-main-reasons-for-nationalisation-of-banks.html

http://www.preservearticles.com/2012033129398/12-main-reasons-for-nationalisation-of-banks.html

http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=654

http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/02SEPC1111FL.pdf

http://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/01BLAR111111F.pdf


10. Chakrabarty K.C (2013), “Revving up the Growth Engine through Financial Inclusion”,

address at the 32th SKOCH Summit held at Mumbai. Retrieved from


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.

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A Study”, International Journal of Business Management & Research, Vol.3, Issue 1, pp.

147-156.




Annexure


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


31 Tamil Nadu 4445

32 Tripura 419

33 Uttar Pradesh 16270

34 Uttarakhand 226

35 West Bengal 7452

Grand Total 74351


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


SSAs

Gujarat 500 750 750 117

Haryana

500 500 120


SSAs

HP 200 300 300 78

JK

100 150 120


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


SSAs

Tripura 25 25 25 25


UP 2000 3000 3000 3055

Uttarakhand

50 50 65


SSAs

West Bengal 400 700 700 72

Total 10520 15290 14943 7430 and any

additional left SSAs


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


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


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.


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


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.


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


Annexure-6


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


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



Documents

Implementation of PMJDY with special reference to village Aakhar, District Ballia,UP