PM’s Jan Dhan takes banking to the poor
1.5cr accounts in a day, 7.5cr by Jan. 26
Prime Minister Narendra Modi on Thursday launched his government’s ambitious mega financial inclusion scheme, Jan Dhan Yojana, to bring the poor into the “economic mainstream” and to “eradicate financial untouchability”.
Some 1.5 crore bank accounts are expected to be opened on the first day itself, that will be a record of sorts. The scheme envisages opening bank accounts for 7.5 crore families by January 26, 2015. This is the first major scheme launched by Mr Modi after he assumed office after winning the Lok Sabha elections.
Under the scheme, announced by the Prime Minister in his Independence Day speech, every household will have at least a basic bank account with a RuPay debit card and an in- built accident insurance cover of ` 1 lakh as well as an additional ` 30,000 life insurance
Most ambitious programme yet by Modi govt aimed at ending ‘ financial untouchability’ across the country
cover for those opening bank accounts before January 26, 2015. Further, an overdraft facility up to ` 5,000 will also be permitted to Adhaar- enabled accounts after satisfactory operation of the account for six months. For bank accounts opened under the scheme, no minimum balance will be required.
“While Mahatma Gandhi worked to remove social untouchability, if we want to get rid of poverty we have to first get rid of financial untouchability. We have to connect every person with the financial sys-
BJP- led government is giving this scheme can be gauged from the fact that it was simultaneously launched in states by 20 chief ministers and several Union ministers, including Prakash Javadekar in Pune, Ravi Shankar Prasad in Chennai, Sushma Swaraj in Bhopal, Rajnath Singh in Lucknow and Smriti Irani in Surat. Some 77,852 camps were organised by PSU banks on the opening day to open accounts for the poor.
The PM said when banks were nationalised in 1969, it was done with the objective of bringing people into the economic mainstream. “But that objective had not been achieved till date. After 68 years of independence, not even 68 per cent of India’s population has access to banking,” Mr Modi said. He said it was easy for the rich to get loans at low interest rates. “But the poor are forced to seek loans from moneylenders at five times the rate charged to the rich. Is it not the responsibility of the banking industry to provide banking access to the poor?” the PM asked. He said a breakthrough was required to overcome the vicious cycle of poverty and debt, and that breakthrough had been achieved on Thursday.
Mr Modi said the nationwide success of the enrolment drive on Thursday would give confidence not just to the officials from the finance ministry and banking sector, but also to officers across the Union government, that they can successfully achieve the goals that they set for themselves. “Never before would insurance companies have issued 1.5 crore accident insurance policies in a single day. Never before in economic history would 1.5 crore bank accounts have been opened in a single day. Never before has the government of India organised a programme of such scale — over 77,000 locations — with the participation of so many chief ministers, Union ministers, government and bank officials,” said Mr Modi.