Policy

PMJDY focuses on Cash-Out facilities at short distance

Success of PMJDY has prompted the banks to move from account opening to the provision of Cash-Out Facilities at an approachable distance
PMJDY focuses on Cash-Out facilities at short distance

With nearly 18 crore accounts and mobilisation of over Rs 22,000 crore in these accounts, the Pradhan Mantri Jan Dhan Yojana (PMJDY) is heading towards a grand success just in a year of its launch. The Yojna was announced by Prime Minister Narendra Modi in his Independence Day address on 15th August, 2014 and launched across the country on 28th August, 2014.

According to a statement issued by the Financial Services Department of Union Finance Ministry, the banks will now focus on an approachable Cash-Out facilities to reap the real benefits of PMJDY.

The Department said that the PMJDY is heading towards saturation. Initial demand for bank accounts was expected to be around 7.5 crores (75 million). However, so far close to 18 Crore (180 Million) accounts have been opened. Over 15 crore Rupay Debit cards have been issued. There has been mobilization of more than Rs 22,000 crores (Rs 220 Billion) in these bank accounts.

Now banks have been directed to disburse overdraft facility upto Rs.5,000 under PMJDY. As per guidelines, Aadhaar is not mandatory for availing this facility. In this regard, Indian Banks Association (IBA) has been asked to issue revised guidelines to all banks. Overdraft facility has been availed by 1,64,962 account holders so far.

To facilitate cash out facility, the banking network across the country is being strengthened. On March 31, 2015, there are 1,25,857 branches of Scheduled Commercial Banks , out of which 48557 (38.58 percent) are in rural areas. Over 1.25 lakh Bank Mitras ( Business Correspondent) have been deployed. Limit for cash withdrawal at PoS (for debit cards and open system prepaid cards issued by banks in India) has been enhanced from Rs.1,000 to Rs.2,000 per day in Tier III to Tier VI centres.

Mission Director, PMJDY Rajesh Agrawal said that one of the basic objectives of Financial Inclusion is the delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low income groups. “To achieve this objective banks are not levying any SMS/Message charges on Prime Minister Jan-Dhan Yojana (PMJDY) accounts and Basic Savings Bank Deposits (BSBD) Accounts,” he added.

The network of bank branches, ATMs, Bank Mitras (Business Correspondents) equipped with micro ATMs, availability of merchant PoS, issuance of Debit Card, and enhancement of limit of cash withdrawal at PoS will help the customers in meeting their cash withdrawal facility at an approachable distance, the Mission Director said.

- Advertisement -
The Changing Face of Rural India