CHAPTER: 1

ABOUT PMJDY
Hon'ble Prime Minister, Sh. Narendra Modi on fifteenth August, 2014 declared "Pradhan Mantri Jan-
Dhan Yojana (PMJDY)" which is a National Mission for Financial Inclusion. The assignment is tremendous
and is a National Priority. This National Mission on Financial Inclusion has an aspiring target of covering
all family units in the nation with saving money offices and having a ledger for every family. It has been
stressed by the Hon'ble PM this is imperative for including individuals forgotten into the standard of the
money related framework.

The Pradhan Mantri Jan-Dhan Yojana has propelled on 28th August, 2014, the country over at the same
time. It has propelled formally in Delhi with parallel capacities at the state level and furthermore at region
and sub-locale levels. Camps are likewise to be composed at the branch level. The Pradhan Mantri Jan-
Dhan Yojana lies at the center of improvement theory of "Sab Ka Sath Sab Ka Vikas". With a financial
balance, each family unit would access managing an account and credit offices. This will empower them
to leave the hold of moneylenders, figure out how to avoid budgetary emergencies caused by developing
needs, and in particular, advantage from a scope of monetary items. As an initial step, each record holder
gets a RuPay platinum card with a ' 1, 00,000 / - mishap cover. Further, they cover by protection and
benefits items. There was have to enlist over 7.5 crore families and open their records. Prior endeavors
by the Government of India incorporates setting up a council on money related consideration under the
chairmanship of Dr. C. Rangarajan. The board of trustees concluded its report in mid-2008. As is clear from
the preface of the report, the board of trustees translated money related consideration as an
instrumentality for social change. "Access to fund by poor people and powerless gatherings is an essential
for comprehensive development. Truth be told, giving access to fund is a type of strengthening of the
defenseless gatherings. Money related Inclusion signifies conveyance of budgetary administrations at a
reasonable expense to the immense segments of the impeded and low-pay gatherings. The different
monetary administrations included credit, investment funds, protection and installments and settlement
offices. The goal of budgetary incorporation is to expand the extent of exercises of the sorted out
monetary framework to incorporate inside its ambit individuals with low salaries. Through graduated
credit, the endeavor must be to lift the poor starting with one dimension then onto the next so they leave
destitution."

In India, while one Section of the populace approaches variety of preparing administrations enveloping
standard saving money offices and portfolio directing, the other fragment of underprivileged and lower
salary amass is completely denied of even essential monetary administrations. Prohibition of substantial
sections of the general public from money related administrations influences the by and large financial
development of a nation. It is therefore that Financial Inclusion is a worldwide concern. In Sweden and
France, banks are will undoubtedly open a record for anyone who approaches them. In Canada, law
expects Banks to give accounts without least parity to all Canadians paying little mind to work or record
of loan repayment. In the United States, the Community Reinvestment Act (1977) is expected to urge
storehouse establishments to help meet the credit needs of the networks in which they work, including
low and moderate pay neighbor-hoods, predictable with sheltered and sound activities. In India, the
Banking business has become both on a level plane and vertically however the branch infiltration in rustic
regions has not kept pace with the rising interest and the requirement for open money related
administrations. Indeed, even following quite a while of bank nationalization, whose justification was to
move the concentration from class managing an account to mass keeping money, regardless we find
usurious cash loan specialists in country regions and urban ghettos proceeding to abuse poor people.
After financial changes of 1991, the nation can sick bear the cost of not to incorporate the poor in the
development worldview. Monetary Inclusion of the poor will help in conveying them to the standard of
development and would likewise give the Financial Institutions a chance to be accomplices in
comprehensive development.

Encounters in India and abroad has demonstrated that conventional Banks have attempted to achieve the
poor with money related administrations. Perceiving this reality, numerous nations, for example, Brazil,
Indonesia, Malaysia, Mexico and so forth have permitted non-banks to offer installments, stores and
money/in real money out administrations. So also, in India, empowering a comprehensive aggressive
scene ought to be a best need. India has a few vital resources giving good introductory conditions to
transformational change towards computerized money related consideration:

• A solid managing an account arrange (1,15,000 branches) connected to eKuber (RBI's Core Banking
Solution), now spreading into unbanked rustic territories.

• A critical effort of India Post (1,55,000 outlets), PoS and ATM terminals which can encourage a lively
money/in real money out system the nation over.

• An across the Nation telecom coordinate with 886 million versatile associations and 72% portable
entrance.

• Strong Network of PC based specialist organizations as Common Service Centers (CSC) advanced by
Department of IT.
• A solid national installments foundation that incorporates an Inter-Mobile Payments Service/Immediate
Payment System (IMPS) to exchange assets over cell phones.

• A world class national ID framework covering the biggest (650M) headcount and extending by 30M
residents every month.

Official mission:

Goal of "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" is guaranteeing access to different money related
administrations like accessibility of essential funds financial balance, access to require based credit,
settlements office, protection and annuity to the rejected segments i.e. flimsier segments and low pay
gatherings. This profound infiltration at moderate expense is conceivable just with powerful utilization of
innovation.

PMJDY is a National Mission on Financial Inclusion Enveloping a coordinated way to deal with realize
thorough money related incorporation of the considerable number of families in the nation. The
arrangement conceives all-inclusive access to keeping money offices with no less than one fundamental
managing an account represent each family, budgetary education, access to credit, protection and annuity
office. What's more, the recipients would get RuPay Debit card having inbuilt mishap protection front of
र 1 lakh. The arrangement additionally imagines diverting all Government benefits (from
Center/State/Local Body) to the Recipient’s records and pushing the Direct Benefits Transfer (DBT) plan
of the Union Government. The mechanical issues like poor network, on-line exchanges will be tended to.
Versatile exchanges through telecom administrators and their built up focuses as Cash Out Points are
likewise wanted to be utilized for Financial Inclusion under the Scheme. Additionally an exertion is being
made to connect with the young of this nation to take part in this Mission Mode Program.

Scheme Details:

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to guarantee access
to money related administrations, to be specific, Banking/Savings and Deposit Accounts, Remittance,
Credit, Insurance, Pension in a reasonable way.
Record can be opened in any bank office or Business Correspondent (Bank Mitr) outlet. PMJDY accounts
are being opened with Zero equalization. Be that as it may, if the record holder wishes to get check book,
he/she should satisfy least equalization criteria.

Documents required to open a record under Pradhan Mantri Jan-Dhan Yojana:

1.If Aadhaar Card/Aadhaar Number is accessible then no different archives is required. On the off chance
that address has changed, a self-confirmation of current location is adequate.

2. If Aadhaar Card isn't accessible, at that point any of the accompanying Officially Valid Documents (OVD)
is required: Voter ID Card, Driving License, PAN Card, Passport and NREGA Card. On the off chance that
these reports additionally contain your location, it can serve both as "Confirmation of Identity and
Address".

3. If an individual does not have any of the "formally legitimate archives" referenced above, however it is
ordered as 'okay' by the banks, at that point he/she can open a financial balance by presenting any of the
accompanying records:

a. Identity Card with candidate's photo issued by Central/State Government Departments,

Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public
Financial Institutions;

b. Letter issued by a journal officer, with a properly validated photo of the individual.
 Special Benefits under PMJDY Scheme:

a. Accidental protection front of Rs.2.00 lac

b. No least parity required.

c. Life protection front of Rs.30,000/ -

d. Easy Transfer of cash crosswise over India

e. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these records.

f. After tasteful activity of the record for a half year, an overdraft office will be allowed
g. Access to Pension, protection items.

h. Accidental Insurance Cover, RuPay Debit Card must be utilized at any rate once in 45 days.

i. Overdraft office up to Rs.10000/ - is accessible in just a single record for every family unit, ideally
woman of the family unit.

j. Interest on store.

Financial Inclusion - Background:

The endeavors to incorporate the financially excluded fragments of the general public into formal
budgetary framework in India are not new.

The idea was first mooted by the Reserve Bank of India in 2005 and Branchless Banking through Banking
Agents called Bank Mitr (Business Correspondent) was begun in the year2006. In the year 2011, the
Government of India gave a genuine push to the program by u n d e r t a k I n g t h e " S w a b h I m an a n
"crusade to cover more than 74,000 villages, with populace more than 2,000 (according to 2001
evaluation), with saving money offices. State wise number of towns secured under the campaign might
be seen in Annexure-1.Learnings from the battle recommend that

• The endeavors should be combined so as to cover the different parts of PMJDY , like benefiting of Micro
Credit, Insurance and Pension.

• The battle focused just on the supply side by giving managing an account outlets in towns of populace
more prominent than2000, however the whole topography couldn't be secured.

• The Objective was for inclusion of towns and not of the families.
• The Compensation of the Bank Mitr (Business Correspondent) was extremely poor.

• Dependability and trust factor with a versatile BC was not high. A large portion of the

BCs worked disconnected which bolted a client with a specific BC along these lines obliging the utility.

• Some innovation issues Hampered further versatility of the crusade.

• The store accounts so opened under the crusade had extremely predetermined number of, or no
exchanges.

• The assignment of credit guiding a Financial Literacy did not go deliver hand with the campaign.
Consequently the ideal advantages were not unmistakable. Gaining from the past, the present proposition
is, in this manner, an incorporated way to deal with bring about comprehensive monetary consideration.

The learnings from the past battle and Proposed approach under the thorough FI plan in mission mode is
annexed with Executive Summary.

At present just 0.46 lakh towns out of the 5.92 lakh towns in the nation have bank offices. So as to cover
the rest of the zones with the managing an account outlets, a composite methodology is proposed through
branch and branchless saving money.

Procedure for branchless Saving money is through online settled focuses Bank Mitr (Business
Correspondent) who go about as agents of Banks to give essential keeping money administrations.
Portable saving money office with USSD based innovation is too Proposed to be given to each
accountholders low end cell phones.

Versatile wallets would likewise be effectively utilized to develop Financial Inclusion.

 Monetary Inclusion: Current Status - India

• Despite different measures for monetary incorporation, neediness and avoidance keep on
overwhelming financial and political talk in India even following six many years of post-monetary
autonomy time.

Despite the fact that economy has indicated great development amid post advancement period of

1991, affect is yet to permeate to all segments of the general public and consequently,

rd India is as yet home of 1/3 of world's poor.

• Census, 2011 assessments that just 58.7%of the family units approach keeping money administrations

• The present managing an account system of the nation (as on 31.03.2014) involves a bank office system
of 1, 15,082 and an ATM system of 1,60,055. Of these, 43,962 branches (38.2%) and 23,334 ATMs (14.58%)
are in provincial zone .
b. The insights demonstrate that There is considerable advancement towards opening of accounts,
providing fundamental saving money administrations amid the ongoing years as showed previously.
However, it is basic that every one of the segments be monetarily incorporated into request to have
money related strength and manageability of the financial and social request.

c. As per World Bank Findex Survey (2012) (http://www-wds.worldbank.org/outside/default/WDS

Content Server/IW3P/IB/2012/04/19/000158349_20120419083611/Rendered/PDF/WPS6025.pdf),only
35% of Indian grown-ups approached a formal ledger and 8% obtained from a formal budgetary
establishment in most recent a year. The miniscule number proposes a critical need to additionally drive
the money related consideration plan to guarantee that individuals at the base of the pyramid join the
standard of the formal monetary framework.

• Recent Important Guidelines on Financial Inclusion:

• 2006: In January, banks were permitted to enroll non-benefit Bank Mitr (Business Reporter) as specialists
for conveyance of monetary administrations, acting in the limit of 'last-mile foundation'.

• 2008: In April, it was resolved that BCs ought to be found not in excess of 15 kilometers from the closest
bank office, in order to guarantee their satisfactory supervision. This was an extremely prohibitive
guideline that seriously restricted the development of this model.

• 2008: The RBI Issued agent rules for portable managing an account and changed the equivalent in
December 2009 to facilitate the different exchange breaking points and security standards.

• 2009: Individual for benefits were permitted to take an interest as BCs, and this class included kirana
store , service stations, PCOs and so forth. Further, BCs were permitted to work up to 30 kilometers from
the closest bank offices.

• 2009: Banks were Permitted to apply 'sensible' benefit charges from clients to guarantee suitability of
the BC display, and to pay a 'sensible' commission/expense to the BCs to boost them.
• 2010: In June the RBI and TRAI had the capacity to achieve an underlying understanding in regards to
the rollout of portable saving money, whereby TRAI would manage all interconnection issues and RBI
would deal with the saving money perspectives, for example, KYC checks, exchange limits and so on.

• 2010: In September, all organizations recorded under the Companies Act (1956) were permitted to go
about as BCs, except for non-bank money related organizations.

• 2010: a similar order confirmed that the separation rule was available to and discretionary unwinding
in specific cases, in view of the choice of the State Level Bankers' Committees.

• However, report Check fall sunder the area of the banks, to guarantee adherence to KYC standards. This
does back off the record opening procedure.

• 2011: In January, TRAI declared its plan to settle versatile taxes for budgetary administrations as against
their present market estimating, with a view to guaranteeing moderateness.

• 2011: RBI issued rules for opening Aadhaar Enabled Bank Accounts to encourage steering of MGNREGA
compensation and other social advantages in to the records utilizing EBT.

• 2012: RBI allowed Aadhaar Letter as a proof of both Identity and Address to open of financial balances

• 2012: GoI presented Sub Service Area (SSA) approach for opening of managing an account outlet and
for Direct Cash Transfer.

• 2012: Aadhaar Payment Bridge System (APBS) was presented for concentrated credit of Social Benefits.

• Guidelines on Direct Benefit Transfer issued by GoI.

• 2013: To facilitate the record opening procedure RBI allowed to utilize e-KYC.

• TRAI issued rules on USSD based versatile saving money administrations for FI.

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

The Guidelines And Features of Life Cover under Pradhan Mantri Jan Dhan Yojana
(PMJDY)

The Hon'ble Prime Minister in His Independence Day Speech on fifteenth August, 2014 reported a
complete program of Financial Inclusion focusing on the vast number of individuals who are right now
denied of even simple monetary administrations. The Pradhan Mantri Jan Dhan Yojana (PMJDY) embarks
to give an essential Bank record to each family who till now had no record. The ledger accompanies a
RuPay plastic with an implicit coincidental front of Rs 1 lakh.

Amid the dispatch of the PMJDY plot on 28.08.14 in New Delhi, Hon'ble Prime Minister declared a real
existence front of Rs. 30,000/ - with the RuPay Card for every one of the individuals who buy in to a
financial balance out of the blue amid the period fifteenth August, 2014 to 26th January, 2015.

This Rs. 30,000/ - life coverage cover under Pradhan Mantri Jan Dhan Yojana, will give a disaster protection
cover on death of the existence guaranteed, because of any reason, to the expired's family. The plan
means to give security to those families who can't bear the cost of direct protection, to be specific the
urban poor and country poor who are not secured under any government managed savings plot.

Advantages
The plan accommodates life Front of Rs. 30,000/ - payable on death of the recipient because of any reason,
subject to satisfaction of the accompanying qualification conditions:

Fundamental Eligibility Conditions

I. Individual opening Bank represent the first run through, with RuPay Card moreover, amid the period
from 15-08-14 to 26-01-15, or any extra period as might be broadened further by Government of India.

ii. The individual ought to ordinarily be leader of the family or an acquiring individual from the family and
ought to be in the age gathering of 18 to 59 (i.e. individual ought to be something like 18 years of age, and
ought not have turned 60). On the off Chance that the head of family is 60 years or a greater amount of
age, the second winning individual of the family in the previously mentioned age gathering will be secured,
subject to qualification.

iii. Individual must have a RuPay Card and Bio – Metric Card connected to financial balance or in procedure
of being connected to ledger if not as of now there.

iv. The record can be any financial balance including a little record.

v. For the inclusion to be successful the above RuPay Card ought to be legitimate and in power.

vi. Just a single individual in the family will be canvassed in the Bima Scheme and if there should arise an
occurrence of the individual having numerous cards/accounts the advantage will be permitted just under
one card i.e. one individual for each family will get a solitary front of Rs.30,000/ - , subject to the
qualification conditions.

vii. The existence front of Rs 30,000/ - under the plan will be at first for a time of 5 years, i.e. till the end
of money related year 2019-20. From there on, the plan will be checked on and terms and state of its
continuation, including the issue of future installment of premium by the safeguarded from there on,
would be reasonably decided.

Ineligible Categories

I. Focal Government and State Government representatives (in administration or resigned) and their
families.

ii. Representatives (in administration or resigned) of Public Sector Undertakings, Public Sector Banks, any
element claimed by Central Government, any element possessed by a State Government or any element
mutually possessed by the Central Government and any State Government, and their families.

iii. People whose pay is assessable under I.T. Act 1961 or are documenting the yearly Income Tax return
or for whose situation TDS is being deducted from the salary, and their families.

iv. People who are incorporated into the Aam Aadmi Bima Yojana covering 48 occupations characterized
under the Scheme, and their families.

v. Generally qualified record holders, who have life cover because of some other plan of the Bank against
the record, will need to pick between the two plans and get advantage from just a single.

vi. All people who don't satisfy the essential qualification states of the plan.

Passing advantage qualification

The chosen one of the accountholder will be qualified for get demise advantage of Rs.30,000/ - if there
should be an occurrence of the awful passing of the accountholder because of any reason.
Exit from Scheme: The individual will leave the plan on achieving age 60 i.e. on the day the individual turns
60.

Guarantee Settlement

a) The Claim measure of Rs.30,000/ - is payable to the nominee(s) of the accountholder. The Risk cover
will be given to the individual from his age of 18 (Completed) till he achieves the age of 60 years finished
i.e. qualification will stop on turning 60 years and he will leave the plan on the day the individual turn 60.

b) The case settlement process will be decentralized to the Offices of LIC. The Process pursued will be as
per the following:

I. Guarantee papers will be gathered by the District Branch/Nodal Branch of the concerned Bank and
submitted to the Pension and Group Scheme Units of LIC for handling of Claims.

ii. The Claim will be paid to the candidate who is the chosen one in the Bank Account.

iii. The Claim sum will be credited to Bank record of the candidate through APBS/NEFT.

14/12/2018

Claim received Claims paid Rejected claims Clams in proses

5912 5189 722 1

CHAPTER: 2

OBJECTIVS OF THE STUDY

 To study various aspects of the Pradhan mantra jan dhan yojana

 To study the benefits of from the PMJDY.\

 To evaluate the jan dhan scheme towards financial inclusion of India

 To have knowledge about all concepts of financial inclusion and the PMJDY.

 To understand the banker’s perception towards effectiveness of Jan Dhan scheme

 MISSION MODE OBJECTIVES - 6 PILLARS

PMJDY has executed in the Mission Mode, conceives arrangement of moderate budgetary
administrations to all subjects inside a sensible separation. It includes the accompanying six
columns:-

1. Universal access to managing an account offices:

Mapping of each region into Sub Service Area (SSA) taking into account 1000-1500 families in a
way that each residence approaches managing an account benefits inside a sensible separation
state 5 km by 14 August, 2015. Inclusion of parts of J&K, Himachal Pradesh, Uttarakhand, North
East and the Left Wing Extremism Influenced areas which have telecom availability and
foundation limitations would overflow to the Phase II of the program (15 August, 2015 to 15
August, 2018)

2. Providing Basic Banking Accounts with overdraft office and RuPay

Debit card to all family units:

The exertion would be to initially cover every single revealed family unit with saving money
offices by August, 2015, by opening fundamental ledgers. Record holder would be given a RuPay
Debit Card. Office of an overdraft to each essential managing an account holder would be
considered after tasteful activity/record of loan repayment of a half year.
3. Monetary Literacy Program:

Monetary proficiency would be a basic piece of theMission so as to give the recipients a chance
to make best utilization of the money related administrations being made accessible to them.

4. Making of Credit Guarantee Fund:

Making of a Credit Guarantee Fund is cover the defaults in overdraft accounts.

5. Micro - Insurance :

To give smaller scale protection to all eager and qualified people by 14 August, 2018, and
afterward on a continuous premise.

6. Chaotic part Pension plans like Swavalamban:

By 14 August, 2018 and after that on a continuous premise.

Under the mission, the initial three columns have given pushed in the principal year.
 Perception of Bankers towards JANDHAN

1. Table showing Rupay debit card issued to account holders

19 GIVEN RUPAY CARD 19

0 0

NO.OF BANKS

Agree Neither agree nor disagree Disagree TOTAL

Most of the all banks given rupay card to all account holders

2. Table showing free life and accidental insurance coverage is provided to account holders
 INSURANCE
Agree Neither agree nor disagree disagree

10
9
9
8
7
7
6
5
4
3
2
2
1
0
NO.of banks

3. Table showing Zero balance facility is given to account holders

No.of Banks

Agree Neithre agree nor diagree Disagree

4. Table showing The Direct Benefit Transfer (DBT) of benefits from Govt to Jandhan accounts is
implemented.
 16 15
14
12
10
8
6
4
2
2 1
0
No.of banks

Agree Neither agree nor disagree Disagree

5. Table showing The OD facility of Rs 5000 is provided to account holders

14

12

10

0
Perception

Agree Neither agree nor disagree Disagree

6. Table showing PMJDY account holder deposit and withdraw money frequently.

The Accounts are active

 Chart Title
14

12

10

6 12

4
5
2
1
0
Bankers perception

Agree Neither agree nor Disagree Disagree

7. Table showing Jandhan scheme helped in achieving the goal of Financial inclusion of underprivileged

Bankers perception

3
5

10

Agree Neither agree nor disagree Disagree

Financiers talk with answers

1. Features of the plan

>zero balance

>insurance benefits

>free rupay card

>OD office

>Joint account

2.advantages as indicated by financiers

>easy to open the record

>helps to money related consideration

>helps to under benefit society

3.Main escape clauses of PMJDY

>Withdraw limits

>So many phony record opened

>Some roomers MOdi ji will put 15 lakh

4.Challenges confronted while actualizing the plan

>Lakh of supporting foundation

>lakh of legitimate administration

>cannot ready to educate underprivilege individuals

5. proposal from financiers If govt need to reexamine the plan

> greater ad

> With great innovation

Principally account holders working the records oftentimes

Progress-Report
Pradhan Mantri Jan - Dhan Yojana
(All figures in Crore)
Beneficiaries as on 12/12/2018
Disclaimer: Information is based upon the data as submitted by different banks
Table no: - 1

No of Jandhan accounts opend in rural area as on 12/12/2018

( All figures in crores)

 NO.OF ACCOUNTS
25

20

15

10 19.86
14.6
5

4.64
0.62
0
NO.of accounts

Public sector bank Regional rural banks Private banks Grand total

2. NO.OF Accounts opened in metropolitan cities & urban areas

ACCOUNTS OPENED IN URBAN AREAS

public sector banks Regional rural banks Private banks Total
13.68
12.39

0.87

0.42

NO.OF ACCOUNTS IN CRORES

3. NO. Of Rural – Urban Female beneficiaries

 NO.OF ACCOUNTS (FEMALE)
Public sector Banks CO oparative banks Private banks Total

17.78
14.2

3.03

0.55
NO.OF ACCOUNTS

4. No.of Total beneficiaries

Total beneficiaries

40

35

30 33.55

25 26.99
20

15

10

5
5.52 1.04
0
no.of account holders

Public sector banks Rural development bank Private banks Total

5. Table showing total amount deposited in jandhan accounts

 90000

80000 85494.69

70000
68538.24
60000

50000

40000

30000

20000

10000 14553.91
2402.54
0
Depopsits in Account (in crore)

Public Sector banks Rural Development banks Private Sector banks Total

6. Table showing number of RUPAY CARD issued to Beneficiaries

25

20 21.89

15

10

3.75

0
no of rupay card issued

Public sector Banks Rural Development banks Private Sectore bank

Course of events FOR FINANCIAL INCLUSION PLAN AND PMJDY

Far reaching Financial Inclusion of the Rejected segments is proposed to be accomplished by 14 August,
2018 out of two stages as under:

- Phase I (15 Aug, 2014 - 14 Aug, 2015)

• Universal access to managing an account Offices in all zones aside from zones with framework and
network compels like parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing
Extremism (LWE) areas.

• Providing Basic Banking Accounts and RuPay Debit card which has inbuilt mishap protection front of ' 1
lakh. Aadhaar number will be seeded to make account prepared for DBT installment.

• Financial Literacy Program

>Phase II (15 Aug, 2015 - 14 Aug, 2018)

• Overdraft office up to '10000/-following a half year of tasteful activity/history

• Creation of Credit Guarantee Fund for inclusion of defaults in A/Cs with overdraft limit up to ' 5,000/ - .

• Accidental insurancr cover of 2 lakh

• Unorganized division Pension plans like Swavalamban Some of the Phase II exercises would likewise be
done in Phase I. What's more, in this stage, inclusion of family units in sloping, ancestral and
troublesome regions would be completed. Besides, this stage would concentrate on inclusion of
outstanding grown-ups in the families and understudies.
Execution OF PRADHAN MANTRI JAN DHAN YOJANA (PMJDY) IN
MISSION MODE

Reaching out - Network extension and topographical inclusion of the banks:

The first and essential mainstay of PMJDY is the extension of saving money system of the nation to
connect with the monetarily barred portions of the populace.

Bank Branches and ATMs:

In the year 2013-14, the Public Sector Banks (PSBs) set up 7840 branches the nation over of which about
25% were in country zones. In excess of 40,000 ATMs were additionally set up as per the Budget
declaration of 2013-14 of giving an ATM at each branch. The present managing an account system of the
nation (as on 31.03.2014) contains a bank office system of 1,15,082 and an ATM system of 1,60,055. Of
these, 43,962 branches (38.2%) and 23,334 ATMs (14.58%) are in rustic territories and the staying in
semi-urban and metropolitan zones. In the year 2014-15, the Public Sector Banks propose to set up 7332
branches and 20,130 new ATMs. Notwithstanding, given the staff limitations of banks and the feasibility
of opening undeniable branches in Rustic zones, the requests for branch extension far surpass the
supply. The proficient and practical strategy to cover provincial territories is by method for mapping the
whole nation through Sub Service Area (SSA) approach and sending completely empowered online
settled point Bank Mitr (Business Correspondent) outlets. Open Private Partnerships here will encourage
the procedure and advance effectiveness and pace of inclusion.

Swabhiman Villages:

In the year 2011-12, Banks secured in excess of 74,000 towns, with populace more than 2,000
(according to 2001 evaluation), with keeping money offices under the "Swabhimaan" battle. Looking to
feasibility of each inside, banks would endeavor to set up a physical branch with least staff quality of 1+1
or 1+2 in 74,351 towns having populace of at least 2000 which were canvassed by BCs in the prior
crusade. This should be possible in a stage way in a time of 3-5 years.
Mapping Sub Service Areas (SSAs):

Under the present arrangement, all the 6 lakh towns over the whole nation are to be mapped by the
Service Area of each Bank to have something like one settled point Banking outlet taking into account
1000 to 1500 families, called as Sub Service Area (SSA). Towns with Panchayat workplaces can be made
the nodal point. This methodology was attempted in 121 DBT regions and the whole mapping brought
about making of 30,855 SSAs. Of these, 30,751 SSAs were soaked with managing an account offices. It is
assessed that the nation over there would be about 1.3 lakh SSAs of which under the present crusade,
about 0.8 lakh would as of now be secured by managing an account offices and around 50,000 new SSAs
would should be secured. In addition, there are more than 1.40 lakh BCs of Public Sector Banks and
Regional Rural Banks in the country zones. Open Sector Banks have assessed to set up around 31,846
SSAs so as to cover the whole geology of the nation. Also the Regional Rural Banks have evaluated to set
up another 14,216 SSAs to finish the SSA inclusion. This means an objective of inclusion of 46,162 SSAs.
Thinking about some field level information confounds, a moderate gauge of inclusion of 50,000 SSAs is
being gotten ready for, under the present crusade. Nonetheless, real field encounter recommends that a
large number of these are not utilitarian. It is assessed that 75,000 substitutions of non practical BCs
would be required. There are around 1.26 lakh system of Common Service Centers (CSC) in the nation,
out of which 12,284 focuses are filling in as keeping money BC outlets. All the remaining CSCs are
proposed to be empowered as BC outlets, for banks.

Coverage of SSAs:

It is recommended that SSAs will be secured through a mix of saving money outlets i.e. branch managing
an account and branch less keeping money. Branch keeping money implies customary Brick and Mortar
branches. These branches are kept an eye on by Bank staff and offer finish keeping money
administrations including outsider installments and handling of credit applications. Branchless managing
an account contains settled point Bank Mitr (Business Correspondent), who go about as agents of Bank
to give fundamental saving money administrations i.e. opening of ledgers, money store, money
withdrawal, exchange of assets, balance enquiries and scaled down explanation office. In addition, they
likewise offer some benefit added extra administrations to bank. Towns without Brick and Mortar parts
of banks would be secured by settled area Bank Mitr (Business Correspondent) outlets ideally at the
panchayat office/transport station/neighborhood advertise. The Bank Mitr (Business Correspondent)
may take into account the neighboring towns in his general vicinity on pre characterized time and days.
The working and visit timing would be unmistakably shown at his place of working. Each home will
approach managing an account benefits inside 5 km by August, 2015, aside from parts of J&K, Himachal
Pradesh, Uttarakhand, North East and the 82 Left Wing fanaticism influenced locale which have telecom
network and framework imperatives. RBI had guided Banks to cover all towns by March, 2016. This
errand would now should be preponed to August, 2015, with the exception of the sloping, inborn,
desert and troublesome zones having test of Telecom availability.
Urban Financial Inclusion:

According to Census 2011, there were 7.89 crore Urban family units out of which 5.34 crore families
were benefiting managing an account administrations. As on 31 March, 2014, the Banking system has
71,120 branches and 1,36,721 ATMs in urban, semi-urban and metropolitan regions. In Urban territories
as well, the Banks would draw in Bank Mitr (Business Correspondent) wherever required. The correct
number of revealed families at present isn't accessible with Banks yet is assessed to be about 1.5 crore.
In the Urban focuses of the area, the Lead District Managers (LDMs) would be dependable to organize
with every single accessible bank in the middle to cover all family units. The Urban focus immersion
would be estimated by opening in any event 150% records of the urban families in that inside according
to Census 2011

Working of Bank Mitr (Business Correspondents):

The Bank Mitr (Business Correspondent) Outlets (in both country and urban zones) would be Completely
outfitted with the required foundation including the PCs and different peripherals like Micro ATM, Bio-
metric scanners, Printer, Web cam and web network. Bank Mitr (Business Correspondent) need to do
online exchanges for which web network is fundamental. In any case, according to the present status
there might be sure availability related issues especially in uneven and innate territories of the nation
which should be tended to promptly. Consequently, there would be an advisory group comprising of
different partners including BSNL to deal with innovation related issues. Each Bank Mitr (Business
Correspondent) would be given legitimate preparing about essential keeping money, protection and
benefits items and furthermore on client taking care of . Sufficient remuneration to the Bank Mitr
(Business Correspondent) would be guaranteed for empowering him to give continuous administrations
especially in the troublesome country and remote territories. The recommended compensation to
achieve the last mile Bank Mitr (Business Correspondent) would be at any rate ' 5,000/ - pm involving
settled sum and extra exchange/action based variable part. While settling on the compensation
structure it would be guaranteed that the expenses on lease, power, web, voyaging and so on are
likewise represented.

Eligibility for Bank Mitr (Business Correspondent):

People like jobless youth and substances like resigned bank worker, resigned instructors, resigned
Government/Military staff, and so forth., kirana shops, PDS, PCOs, CSCs, NGOs/MFIs and segment 25
organizations, Self Help Groups (SHG), Civil Society Organizations, specialists of little sparing plans of
GoI, singular oil siphon proprietor, approved functionaries of SHG, non store taking NBFCs, Post
Offices/Postman/Gramin Dak Sewak, agreeable social orders or other qualified people/elements
permitted by RBI every now and then and so on might be locked in as Bank Mitr (Business
Correspondent). Jobless youth in towns ought to be urged to fill in as Bank Mitr (Business
Correspondent), subject to satisfying other qualification conditions. There would be a clothing standard
with a predetermined shading for the Bank Mitr (Business Correspondent). The dress of Bank Mitr
(Business Correspondent) will establish Jacket, Cap and Bag. The dresses would convey the Mission logo
and in addition the logo of the bank. Ordinary and auspicious installment to the Bank Mitr (Business
Correspondent) for the administrations rendered by them would be the key factor in guaranteeing their
continuation at the town level. 7.1.8 All Banks to set up plan of back to the Bank Mitr (Business
Correspondent) with a base measure of ' 50,000/ - for hardware, ' 25,000/ - for working capital and '
50,000/ - for vehicle advance.

Recommended variations of the Bank Mitr (Business Correspondent) structure could be :

1. Individual Bank Mitr (Business Correspondent) sent straightforwardly by the Bank.

2 .Utilizing the system of Common Service Centers (CSC).

3 .Through Corporate BC Companies i.e. through private investment. While this framework has points of
interest of organization and concentrated control for the Banks and furthermore protects them against
a few dangers, yet commonly these players turn up in misuse of the last mile conveyance specialists
(Bank Mitr).

4 .While drawing in the Corporate BC Companies the compensation structure for the operators
conveyed by them and course of events for their installment would be guaranteed by the separate
banks.

Mobile Banking:

The Inter-Ministerial gathering on conveyance of fundamental money related administrations through a

far reaching outline work imagined the making of "Portable and Aadhaar connected Accounts" by Banks.
The essential money related exchanges on these records can be executed through a versatile based PIN
framework utilizing "Portable Banking PoS". Portable keeping money through versatile wallet was
propelled in 2012. Under this administration, RBI has approved 3 telcos and 5 non-telcos to dispatch this
administration. Three Telcos, Airtel under brand name Airtel Money, Vodafone under Brand name
Vodafone m-pesa and Idea vide Idea Money are dynamic in the space. They authority more than 80,000,
70,000 and 8,000 specialists separately. Around 60% of these Bank Mitr (Business Correspondent) are in
provincial zones. Versatile wallet benefit given by business banks e.g., ICICI if there should be an
occurrence of m-pesa benefit utilized for cash exchange, charge installment and money withdrawals.
The client base of clients profiting such administrations is around 70 lakhs. Versatile communication and
prepaid wallets would likewise be used for inclusion of family units under the Financial Inclusion battle.

National Unified USSD Platform (NUUP):

USSD put together portable keeping money can work with respect to all GSM handsets (93% of current
900 mn). Through USSD portable managing an account administrations like Balance Inquiry, Mini
Statement and Fund exchange will be given. NPCI to give Gateway to every one of the manages an
account with single short code - *99#. Right now, all brilliant wireless previously empowered to utilize
portable keeping money application and fundamental mobile phones are being empowered now under
this stage. USSD based portable keeping money administrations is th proposed to be propelled on 28
August, 2014. The administrations will be given by 40 banks at first and will be joined by 100 banks.
Assention has just been finished with 11 telecom specialist organizations.

Summary of Action Points:

>ap the whole nation with SSAs: Identification of SSAs at the area level through the District Level
Coordination Committees (DLCCs) has just been finished.

>Allocation of SSAs to various banks has likewise been finished.

>Looking to practicality of each inside, banks would endeavor to set up a physical branch with least staff
quality of 1+1 or 1+2 in 74,351 towns having populace of at least 2000 which were shrouded by BCs in
the prior crusade. This should be possible in a stage savvy way over a time of 3-5 years.

> Monitoring and follow up through an entry of the Department of Financial Services (DFS), which would
catch the advancement made in setting up these SSAs
Opening of Basic Saving Bank Account of each grown-up national:

The second mainstay of this arrangement conceives giving essential financial balances (Basic Saving Bank
Deposit Account - BSBDA with zero parity) to every grown-up subject beginning with inclusion
everything being equal. The Financial Inclusion crusade in the past has focused on opening of
fundamental bank accounts. According to RBI gauges, by March 2014, 242 million fundamental
investment accounts were opened

• Census 2011 evaluated that out of 24.67 crore family units in the nation, 14.48

Crore family units approached saving money administrations. Open Sector Banks (PSBs) have assessed
that by 31.05.2014, out of the 9.17 crore country families which were dispensed to them, about 5.23
crore family units have been secured (Bank insightful subtleties are in Annex 5). This leaves about 3.94
crore rustic family units to be secured by PSBs. Moreover, the Regional Rural Banks (RRBs) have likewise
secured about 1.99 crore families out of the 3.97 crore family units designated to them, which leaves
1.98 crore family units to be secured by them.

• Putting the PSBs and RRBs numbers together infers that about 5.92 crore rustic family units are yet to
be secured. Considering field level information confuses in a few occasions, it is evaluated that there are
around 6 crore revealed family units which would should be shrouded in the rustic territories.

• What’s more, account opening of revealed family units in urban territories would likewise be required.
At a traditionalist gauge, about 1.5 crore revealed families, would should be shrouded in urban
territories. According to Nandan Nilekani Report of the Task Force on Aadhaar Enabled Unified Payment
Infrastructure, Feb 2014: "Another class of client (generally provincial, low-pay, uneducated) have been
issued savvy cards that are worked through Bank Mitr (Business Correspondent). This development
using innovation made it conceivable to convey managing an account administrations to un-served
zones and un-served populace for the simple first time. Be that as it may, this advancement has likewise
made restrictive innovation islands, where buyers can't get to their financial balance through different
channels. The bother of the channel regularly drives client to pull back all the cash in their record." In
request to guarantee this does not occur in the present mission, bury operability of the installments will
be guaranteed both through the platinum card and through Aadhaar Enabled Payments at the Bank Mitr
(Business Correspondent) Outlet as and when the range of Aadhaar reaches out to a significant piece of
the nation. Before, it was seen, that huge numbers of the records opened did not have adequate
number of exchanges for banks to discover them suitable. This was on the grounds that these records
were being opened in seclusion without legitimate linkages. Under the present arrangement, this oddity
is proposed to be expelled by its six column approach.
In addition, the records will likewise be ATM empowered to get the advantages of adaptability. The
methodology under this mainstay of the crusade would be as per the following:

1 .Opening of SB account with zero parity (BSBDA). For simplicity of opening of records Banks should
adopt advantage of e-KYC strategy. Those banks who have not initiated the e-KYC offices would need to
consolidate the equivalent up to the BC level.

2 .In request to chop down time on record opening, under the battle, a one page account opening
structure has been planned which might be seen at Annexure 8. All Banks will make appropriate
corrections in their record opening structures promptly

3 .Each SB account holder would be given ATM/Debit (RuPay) card. In the nation there are assessed 13.8
crore farming area holders, out of which KCC have been given to 10.2 crore arrive
proprietors/agriculturist. In the present battle attempt will be made to furnish all KCC holder with RuPay
KCC card and non-agriculturist might be given RuPay check card. The card will have inbuilt mishap
protection of ' 1 lakh. 7.2.4 It has been discovered from National Payments Corporation of India (NPCI)
that the RuPay cards to be issued don't have a generation/operationalization imperative and the
assembling limit is assessed to be around 18 lakh for each day. The personalization limit accessible is
likewise 7.75 lakh every day.

5 .The system of Cooperative/Urban Cooperative Banks which are on CBS would likewise be utilized for
record opening, of revealed families.

6 .This record would be connected with the Aadhaar number of the record holder and would turn into
the single point for receipt of all Direct Benefit Transfers (DBT) from the Central Government/State
Government/Local Bodies. By and by the Direct Benefits Transfer conspire under LPG/Gas conveyance
has been halted and the Dhande panel designated to consider the plan has presented its report. The
other Government plots under DBT are proceeding however the Government Offices are yet to pay the
commission because of Banks. No commission has been consented to in the DBT for LPG by the
Department of Expenditure (DoE) on the contention that these are typical activities for the Banks while
the 2% commission in different plans is to repay banks for the Bank Mitr (Business Correspondent).
Bureau of Financial Services (DFS) has taken up the issue with DoE contending that Banks need to do
considerable different works in operationalizing the plan incorporating managing client complaints
however there has been no aftereffect of these endeavors. This abnormality would should be remedied
so as to guarantee finish purchase in of the banks for the DBT plans. The DBT in LPG which was the
biggest of all DBT plans would should be re-begun.

7. There would be an intermingling with the endeavors of UIDAI to enlist recipients for Aadhaar number
amid record opening. The eID numbers so produced amid this crusade will be caught in the financial
balances opened. As and when the UID numbers get produced, the eID will be supplanted by the UID
number.

8 .It is recommended that DBT incorporating DBT in LPG ought to be sought after to make the program
of budgetary consideration a triumph.

9 .A McKinsey (2011) contemplate evaluated that interfacing each Indian family unit to a computerized
installment framework and mechanizing government installment streams can spare $22 billion every
year, 80% of it from decreased spillages.

10. Each record holder would be given budgetary proficiency sessions on the best way to deal with
his/her cash and credit offices.

11 .The Accounts would be opened in camp mode to guarantee that record might be opened for every
single qualified occupant in time bound way and there after record opening procedure to happen in
continuous premise. The dates/day of the camp to be reported ahead of time through satisfactory and
powerful exposure locally accessible. The camps would be sorted out as a team with the Government
and Bank authorities. In every one of the camp Bank Mitr ( Business Correspondent) and Bank official/s
to guarantee accessibility of adequate AOFs and other stationary for opening of record.

12. Bank might be required to hold more than one camp in every town till 100% immersion level is
accomplished in that town.

13 .Convergence with the endeavors of the National Rural Livelihoods Mission (NRLM) would be looked
for so as to open financial balances for the Self Help Group (SHG) individuals.
14 .The Central Provident Fund Commissioner (CPFC) has been coordinated to get ledgers opened for all
individuals from the EPFO as a feature of Universal Account Number (UAN) practice and money related
consideration arrangement of the Govt. of India for stream of assets through the records. The CPFC will
dispatch unique battle for opening of financial balances of every one of its individuals amid the long
periods of August and September, 2014, till March, 2015. For opening of financial balances under
Pradhan Mantri Jan-Dhan Yojana of every single revealed family, it has been chosen that for better
coordination with the Employee Provident Fund Organization (EPFO), the SLBCs may co-select Additional
Provident Fund Commissioner (PFC)/RPFC Gr.I as its individuals. LDMs would likewise co-pick an agent of
EPFO as individuals from the District Level Bankers' Committee and sort out camps at the Provident
Fund foundations.

15 .Overdraft (OD) up to ' 5,000/ - would be given to the clients following a half year of agreeable
execution of sparing/record as a consumer. This OD office would be secured by the Credit Guarantee
Fund proposed to be made by the Government which is additionally depicted in segment 7.4 of this
report. The Rate of Interest on these records is proposed @ base rate + 2% or 12% whichever is lower
(Including the charges to be paid to Credit Guarantee finance). All Government advantages to stream
into this record - encouraging overhauling of intrigue and diminishing the odds of record getting to be
torpid.

16. Banks will complete a ground review inside three months of the beginning of the Battle for correct
write about inclusion of families with keeping money offices.

17. Whenever every one of the family units of a locale is furnished with ledger, the District Magistrate
will issue a testament to this impact and District will be proclaimed 100% secured. Thus, in states where
every one of the locale are secured will be proclaimed as 100% secured state.

Summary
of Action Points:

> About 6 crore financial balances will be required to be opened in provincial territories.

> What’s more, about 1.5 crore bankaccounts for the urban individuals not having ledgers would should
be opened.
> Identification of individuals with no financial balance

> Re-initiation of torpid records

> Opening of financial balances at town level in camp mode

> Opening of ledgers in urban regions in camp mode

> RuPay platinum card will be given to all non KCC account holders. For KCC recipients, manual pass
book based framework would be supplanted by RuPay ATM empowered cards. Center will be to furnish
Personalized Cards with Name of the Customer and Aadhaar number.

o Using portable keeping money for low end telephones to encourage withdrawal, installments and
exchange of cash through B

Difficulties IDENTIFIED IN THE IMPLEMENTATION OF THE MISSION

>>Telecom network:

\The input from the Banks is that in ancestral and bumpy regions of the nation, the telecom organize
isn't solid and in this way setting up Bank Mitr (Business Correspondent) in these zones and
guaranteeing opening of ledgers will be troublesome. A gathering was held with delegates of the
Department of Telecom (DoT) and BSNL in such manner and it was guaranteed that the progressing
telecom availability issues would be settled by common discussion. It was additionally educated that
DoT is independently looking for the Government endorsement to cover all towns in the North East and
troublesome regions with telecom availability. Banks would likewise work to use the National Optical
Fiber Network (NOFN) when it achieves the Panchayat level.

>>Keeping the records "Live":

It is fundamental that all Government benefits - Central, State or nearby should stream to these records
as it has been seen that a great deal of duplicacy exists around there and now and again States have not
pursued the administration region approach and allotted territories to a few banks other than
administration zone banks making avoidable perplexity. The DBT conspires particularly MNREGA should
be pushed and DBT in LPG should be restarted.

>>Brand mindfulness and refinement:

So as to accomplish a "request" side draw impact, it would be fundamental that there is Branding and
mindfulness on Bank Mitr (Business Correspondent) demonstrate for giving essential managing an
account administrations, Banking Products accessible at Bank Mitr (Business Correspondent) outlets and
RuPay Cards. Clients to be made mindful that overdraft of up to ' 5,000/ - to be given in their record is a
credit office which should be reimbursed so as to get crisp breaking points and isn't a give.

>>Commission to Bank on Direct Benefit Transfer (DBT):

A team on Aadhaar Enabled Unified Payment foundation headed by Sh. Nandan Nilekani in its report
Feb , 2012 suggested that last mile exchange cost of 3.14 % with a top of ' 20/ - per exchange be planned
for different EBT, DTS and last mile installments through Micro-ATMs and ATMs. The commission
appropriate for DBT ought to likewise cover DBTL (DBT of LPG). MGNREGA may likewise be incorporated
into Direct Benefit Transfer.

>>Coverage of troublesome zones:

Parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing Extremism (LWE) areas
confront difficulties of foundation other than Telecom availability. All families in such regions may not
be completely secured under the battle. Inclusion of a portion of the regions may, in this manner,
overflow to Phase-II

End AND SUGGESTIONS

At last, with regards to implementing the general monetary incorporation plan like, Pradhan Mantri Jan
Dhan Yojana, thre srise horde institutional, infrastructural and social hindrances or bottlenecks which
can be resolvesd just with incredible preservance and coordination amongst numerous organizations
engaged with the advancement procedure.

In any case, banks need to set up countless in and around unbanked towns and they need to enroll vast
quantities of country framework to serve those branches.

The following institutional connection is the BCs and the prerequisites are a marvelous number, an extra
inclusion of around 2 lakh towns – nearly multiplying the current inclusion of 2.21 lakh towns through
BCs. Both bank offices and BC outlets ought to have a coordinated connection.

An another necessity is the utilization of data and correspondence innovation (ICT) for keeping money
exchanges. The RBI has detailed that while the banks themselves are encouraging ICT-based
fundamental sparing bank store accounts-the extent of ICT records to add up to accounts expanding
from 25% to 45% in the multi-year time frame I. e., 2012-15.

So as to make the budgetary incorporation conspire PMJDY, an alluring suggestion for banks, thr RBI and
the legislature have been accentuating the significance of Aadhar-empowered Direct Benefit Transfer
(DBT) of social welfare benefits by straightforwardly crediting beneficiaries’' financial balances.

The spread of ATMs, which is basic for the correct implimentation of pradhan mantri jan dhan yojana in
provincial and semi-urban territories.

MY LEARNINGS

This venture gave me incredible chance to find out about the all parts of budgetary incorporation trough
Pradhan Mantri Jan Dhan Yojana. What's more, helped me to think about current circumstance of
monetary consideration in the nation.
In most recent couple of years money related consideration has developed as the greatest inquiry
before the administration and furthermore a successful device to bring entire nation into one formal
monetary framework. It has not just added to the development of money related arrangement of the
nation, yet additionally to helped families tap in to the achievement of monetary and financial
development of the nation. As the data and mindfulness is rising an ever increasing number of
individuals are getting a charge out of the advantages of money related consideration in India. The
fundamental reason of the vast majority of disappointment of money related systeme is expansive piece
of our economy is out of reach of essential budgetary administrations. However, when individuals
mindful of budgetary framework and in the event that they came in formal money related framework, it
will push nation to improve fiscally and there will be development of our economy.

This venture gave me an incredible learning knowledge and in the meantime it gave me enough degree
to implement my instructive capacity. The data exhortation introduced in this venture depends on
optional data.