Page 6 - Life Insurance Today March 2016

 To understand the concept of
PMJDY.
 To know the progress of PMJDY in
general and particularly with ref-
erence to state of Karnataka.
Inclusive growth in India:
In India, the government and the RBI
have been promoting the necessity of
inclusive banking as a collective body,
has been taking several initiatives in
this regard. At the all India level, less
than 5 per cent of poor rural house-
holds have access to microfinance as
compared to 60 per cent in
Bangaladesh. The Southern states
account for almost 75 per cent of
funds flowing under Micro Finance
programmes. The situation survey of
Farmers was conducted in 2003 which
indicated that the rural households
were at 147.90 million and out of it
89.35 million were farmer house-
holds. Data indicated that 51.4 per
cent of the farmer households were
financially excluded.
According to the RAFS 2003, 41 per
cent of rural households have a de-
posit account from formal banks serve
the primary needs of the rich rural bor-
rowers; 66 per cent of large farmers
have a deposit account and 44 per
cent have access to credit. Meanwhile,
the rural poor face severe difficulties in Table 1: PMJDY Accounts opened as on 02nd December 2015
accessing savings and credit from the
formal sectors; 70 per cent of mar-
ginal/landless farmers do not have a
bank account 87 per cent have no ac-
cess to credit from a formal sector.
The essence of financial inclusion is
trying to ensure that a range of appro-
priate financial services is available to
every individual and enabling them to
"If you tell the truth, you don't have to remember anything."
6 March 2016
understand and access those services. Apart from the regular form of finan-
cial intermediation, it may include a basic no frills banking account for making
and receiving payments, a savings product suited to the pattern of cash flows
of a poor household, money transfer facilities, small loans and overdrafts for
productive, personal and other purposes.
Methodology:
The study is purely based on secondary data. The data are collected from jour-
nals, newspapers, reports and website.
Pradhan Mantri Jan Dhan Yojana:
PMJDY is an initiative of financial inclusion which was announced by the hon-
orable Prime Minister on 15th August 2014 and launched by him on 28th Au-
gust 2014 across the country. It is for the first time in history of banking sec-
tor, the inclusive practice has adopted. Through this, inclusion process received
a new boost by Government of India.
The objective of PMJDY is ensuring access to various financial services like avail-
ability of basic savings bank account, access to need based credit, remittance
facility, insurance and pension to the excluded schemes i.e. weaker sections
and low income groups. This deep penetration at affordable cost is possible
only with effective use of technology.
PMJDY is a national mission on financial inclusion encompassing an integrated
approach to bring comprehensive financial inclusion of all the households in
the country. The plan envisages universal access to banking facilities with at
least one basic banking account for every household, financial literacy, access
to credit, insurance and pension facility. In addition, the beneficiaries would
get RuPay Debit card having inbuilt accident insurance covers of Rs 1lakh. The
plan also envisages universal access to banking facilities.
Progress of PMJDY:
Bank name Rural Urban Total No of Bal in % of zero
cards RuPay Accounts balance
Public Sector 8.39 6.80 15.20 accounts 34.54
RRBs (70.98) (89.47) (78.31)
Private Banks 13.46 21450.31 32.09
2.99 0.50 3.49 (81.04) (78.62)
(25.30) (6.58) (17.98) 41.10
2.51 4683.38
0.44 (3.72) 0.73 (15.11) (17.17)
(3.82) (3.76) (3.85)
0.64 1149.36
(4.21)
Source: www.pmjdy.gov.in/account accessed on 11th December 2015
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