Pradhan Mantri Jan Dhan Yojna

1. Pradhan Mantri Jan Dhan Yojna By – Krishna Kunal Collector, Jaipur (Rajasthan) 29th February , 2016

2. Jaipur at a Glance • Jaipur - The capital of Rajasthan • Situated in the heart of the state • As per census 2011: • Population : 66,26,178 • Sex ratio : 910 • Area : 11143 sq KM • No. of Gram Panchayats : 532 • No. of Villages : 2395 • No. of Municipalities : 10 (225 wards) • No. of Municipal Corporations : 1 (JMC,91 wards) • Financial Inclusion : • No. of account holders (PMJDY): 16,17,490 • No. of Banks : 55 • No. of Bank Branches : 992

3. PMJDY – Aims & Objectives • Launched on 15th August 2014 by Hon’ble PM Shri Narendra Modi ji • National Mission to achieve Universal and Affordable Financial Inclusion • Objective: • Ensuring access to need based credit, remittances, insurance, pension etc to excluded sections at affordable cost through effective use of technology • Promote Banking culture in the society through universal Financial Inclusion

4. BHAMASHAH – An initiative of the Govt of Rajasthan Flagship programme to promote DBT and Banking Culture in the society Objectives: • Opening CBS/RTGS enabled bank accounts, linked with Aadhar • Increasing DBT coverage to beneficiaries of as many as 7 Schemes to begin with (MGNREGA, IAY, Pension, PDS, JSY, Scholarships & PalanharYojna) • Door Step Banking through a Dense network of Banking Correspondents/E-Mitras (CSC) • 100% Aadhar UID Coverage • Women Empowerment : Women is enrolled as head of the family for the purpose of DBT under various programmes

5. PMJDY at District Level • A meeting of various stakeholders including public representatives, chaired by Hon’ble MoS for Information and Broadcasting, Col. Rajyavardhan Singh Rathore, was convened in November’14. • Public representatives were sensitized to ensure that no family remains financially excluded after the scheduled camps. • All the 992 branches of 55 banks came forward in the successful implementation of flagship schemes of GoI. • Camps were organised (at ward level and GP level) to make the banks and the target groups meet • Administrative machinery ensured that the camps organised met their objectives • Avg. target of 1000 PMJDY accounts per branch was allocated per branch (based on previous survey)

6. PMJDY at District Level • Directions were issued time to time to concerned functionaries to attain the goals of the scheme in time. • Banks: To cover Entire house holds within the district under the scheme. For this purpose banks were directed to organise ward level/block level/panchayat level camps. Proper publicity of scheme through all means. • SDOs: SDO were appointed as Block level Nodal officers to monitor and implementation of the scheme in organised and timely manner successfully. • BDOs: BDOs were appointed as Assistant Nodal officer at Block level for organising camps in field. • Follow up camps were also organised to meet out the laggards. • This was followed up by PMMY targets of 25 per branch in Sept.’15 • Result: 16,17,490 PMJDY accounts were opened in the district against the allocated target of 10 lakh accounts • 85% of PMJDY accounts (13,74,867) have been linked with UID/Aadhar

7. A synopsis of performance • 16,17,490 PMJDY accounts have been opened in the district • 12,83,641 Rupay cards have been issued (nearly 79.36%) • Transactions worth INR 800 million (7.7 lakh transactions per month) through e-Mitras and micro ATMs take place in the district • 10,05,914 accounts were linked to DBT which is 62.19% of total PMJDY accounts • 13,74,867 accounts have been linked to Aadhar/UID • ZBA accounts have been reduced to ~49% (~34% for women) • 47356 loans worth INR 548.63 crores were disbursed under PMMY

8. Challenges faced Once people started opening the accounts, the following challenges were Identified – • IEC related • Opening bank accounts for excluded sections i.e. weaker sections & low income groups.  • Cultural Transformation – Promoting Banking culture in the society • Large Scale IEC Activities at all levels • Participation of All stakeholders – Banks, Village level functionaries, beneficiaries, NGOs, SDMs, BDOs, SHGs etc • Door-Step banking • Creating a dense network of BCs and micro ATMs through E-mitras, deep down upto revenue village level • Linking bank accounts with ‘Aadhar’ and DBT schemes • Banking Culture • Issuance, Activation and Promoting usage of ‘Rupay’ cards • Ensuring automatic overdraft of upto INR 5k after 6 months of usage

9. Challenges faced • Social Security • Promotion of Awareness for Accidental Insurance and LIC coverage • Reduction of Zero Balance Accounts • Ensuring that accounts become operational; reduce dormancy • Reducing Zero Balance Accounts (ZBA) • Overcoming Infrastructural bottlenecks • Poor internet connectivity due to Mountainous Terrain • Irregular Power supply • Road Connectivity

10. IEC Activities • Doorstep Survey was conducted to enlist the financially excluded families and connect them to banking under PMJDY • Playing of short clips on PMJDY in Gram Sabhas, General Body meetings etc • Nukkad nataks, rallies of women, youth & children at district, block and GP levels • Distributing Pamphlets – to publicize benefits of banking and insurance • Regular Advertisements through Newspapers, banners, FM, Radio channels, Print & Electronic Media • Inclusion of Financial Literacy in school curriculum • Sensitizing govt officials through regular video-conferences, workshops

11. IEC Activities • Sensitizing people with the help of ration dealers, SHGs etc. • Financial literacy camps – participation by bankers, excluded people, public representatives, Anganwadi workers, SHGs, ANMs and 50% female Sarpanchs for greater women participation • Mobile Vans,playing PM’s speech delivered from the Red Fort on 15th August, 2015, were moved across the district by the Banks • The telephone numbers along with email IDs of the Branch Managers of the Banks were collected and displayed at public places for facilitated access • The development of Adarsh (model) School in every panchayat and colleges in every blocks has ensured raised literacy levels. This along with wide spread IEC by banks and all stake holders has increased financial literacy, thus leading to financial inclusion

12. Bank Mitras • Bank Correspondents(Mitras) (BCs) have been engaged by Banks at GPs • Approximately 5000 e-mitras have been opened in the district with ~2000 e-mitras having micro ATM facility • At present, separate 387 e-mitras in the district have become functional as BCs; 200 more are in the pipeline • Micro ATMs/BCs enable door step banking in the villages • Bank Mitras are working!! - In February 2016, a total of INR 17,22,579 has been withdrawn through cash transactions from Micro ATMs in the district till 25th February • Beneficiaries under DBT avail banking services through Bank Mitras in areas yet to be covered by the banks • Any micro ATM failure calls for immediate replacement, not beyond a week • Regular follow up and Monitoring through VC with banks and e-Mitracenters Target: Converting each e-Mitra and every Gram Panchayat in the district into Bank Mitra

13. Rupay card • Establishment of Points of Presence (PoP) and Pay-Points in every revenue village in the form of BC/micro ATMs/E-mitras. • Encourage the beneficiaries to activate Rupay card by doing cash transactions through micro ATMs installed at AtalSewa Kendra through Information Assistants, trained and educated youth at GP level • Regular meetings were held with Stakeholders - Public Representatives, Bankers, Govt. officials at District, Block Gram Panchayat levels for monitoring distribution of Rupay cards • Continuous monitoring and evaluation through VC • Regular meetings to review the status of pending cards/PINs in BLBCs/DLRC and banks internally • Rupay card - Linked to DBT schemes to ensure further penetration Result - 12,83,641 out of 16,17,490 PMJDY accounts (~79.36%) were Rupay cards enabled

14. Accident Insurance Cover • Action plan was prepared for large scale IEC activities and Doorstep survey • Financial literacy Camps were organised for enlightening people about PMJDY, PMJJY, PMSBY & APY; Banks, NGOs, PDS dealers/SHG’s /Anganwadi workers worked actively • Govt offices/Army cantt/Police/PRI/ULB& Public at large were encouraged to pay annual premium for their private staff for larger coverage of social security • Automatic freezing from Balance- Annual premium - three flagship schemes -hassle free auto renewal – Availability of opting out option manually • Most of the accounts opened before 26.01.15 avail additional LIC cover of INR 30,000 • Information Assistants, E-mitras were directed to ensure usage of Rupay debit cards once in 90 days to avail accidental Insurance cover • Success stories were publicized across the district to motivate the people

15. Zero Balance Accounts Countering ZBA – A major challenge under PMJDY • Linkage with DBT under seven different flagship programmeshas reduced slip-backs significantly • Automatic Overdraft facility – A ready reckoner under PMJDY to reduce ZBA • Linking the accounts with PMMY – Emphasis on shishu loans with disbursement target of 25 shishu loans per branch • Linking the accounts with PMJJY, PMSBY & APY – Payment of all 3 schemes (INR 846 min. annual premium) paid by officials for private staff across departments kept the accounts functional • Large scale IEC activities in the district have enlightened the masses

16. ZBA – other initiatives • Women Empowerment - Savings Accounts under Bhamashah and PMJDY schemes are opened in the name of female head of the family • Benefits under JSY are transferred exclusively to accounts headed by women • SMS push facility was used regularly to motivate the accountholders to perform cash transactions from their accounts • Role of public representatives in motivating people was critical Result - The non-functional accounts were gradually reduced to 23%, whereas ZBA were reduced to 49% Caution– Lesser number of ZBA is not a real indicator of financial inclusion as some operational accounts may have zero balance. Also, Some people, seeking overdraft and insurance cover, open multiple accounts, thereby making few of their accounts ZBAs “Promote Savings in the banks”

17. Addressing Infrastructural Bottlenecks • Rajnet, an initiative of the government of Rajasthan, is providing internet facility to E-mitras 24*7 in AtalSevaKendras at GP level. • Telecom operators like BSNL, Airtel etc. were directed to install more towers in the district and improve service delivery; Unconnected villages were connected through USOF programme • Solar panels were installed in ALL AtalSewaKendras to provide uninterrupted power supply • All AtalSeva Kendra, having the e-Mitra/BC, are well connected by roads constructed either under PMGSY or other govtschemes • Out of 5000, 387, E-Mitras were converted into Banking Correspondents (BCs) Goal : Connecting all 2395 villages and 316 wards of Jaipur through Bank Mitras

18. Systematic Changes that Fructified • Bhamashah – Promotion of DBT and reduction of ZBA • Anywhere, Anytime banking for the citizen: In-depth penetration of e-mitras resulted in transactions worth more than 800 million through BCs/E-mitras • Feedback mechanism introduced, along with a 24*7 control room at collectorate • Participation of public representatives on all forums including Gram Sabhas • SMS alerts to educate and inform the account holders about their bank balance • Rigorous efforts in IEC and monitoring through meetings/VCs with officials/Public representatives at various levels including MoS for I&B

19. Systematic Changes that Fructified • Deputation of one trained IT official at every block to help the citizenry • Empowering Bank Mitras and E-Mitras and regular monitoring by Controller of Banks • PMJDY stickers and Registration/reference numbers of the three flagship schemes (PMJJY, PMSSY & APY) were pasted on overleaf or back page of bank passbooks inter alia cheque books, Rupay Debit card and its covers to keep the beneficiaries updated all the time, be pasted on • Renewal date for insurance schemes was regularly updated on the PMJDY stickers pasted on bank passbook • We plan to introduce complete automatic renewal for payment of insurance premium

20. Some Success Stories • Rajasthan MarudharaGraminBank, Rajawas Village, Jaipur: • One Mr.Jagdish opened account under PMJDY and also registered for accidental insurance cover under PMSBY & PMJJY • He succumbed to death in an accident in his scooter repairing shop • His Nominee, his wife Mrs.SarojBai (M 9887360610) is also registered under Bhamashah, PMSBY & PMJJY • Mrs.SarojBai received a claim of INR 2,00,000/- • Regional Rural Bank, Med village, Jaipur • In three PMJDY/ Bhamashah account holders namely Miss Babita Sharma D/o Sri Jagdish R/o Med; Mrs.Andi Devi w/o Sri ChandaLalRegar, R/o Med; aandMrs.Dhapa Devi Saini w/o Shankar LalSaini, R/o Med have opted insurance risk cover under PMSBY and consequent to their sad demise all three have got claims to the tune of INR. 2,00,000/- each

21. Some Bottlenecks that need to be addressed • In few cases, Multiple accounts for an individual have been opened by banks in the rush for meeting targets • Some persons in a bid to get dual benefits of overdraft and insurance cover, opened multiple accounts in different branches • Banks desist from issuing over drafts because of multiple accounts though PMJDY is Aadhar linked Solution • We are trying to achieve cent percent seeding of Bank Accounts with Aadhar and Bhamashah • All such duplicate accounts shall be identified and de-linked from PMJDY

22. Next Steps • Insurance companies and banks should mandatorily intimate the beneficiaries about their pilot schemes/ rate of interest/ bank transactions etc through SMS alerts in bilingual and preferably in one regional language so that a sense of financial inclusion is inculcated. • Speedy Aadhar registration to reach cent percent coverage of the district • Adding more DBT services to the basket of E-Mitras • All the E-mitras shall be provided with micro ATMs to increase penetration • Turn around time for replacement of non functional ATMs to be reduced to less than a day

23. Next Steps • The requisite premium of the benefits under three flagship schemes namely PMSBY, PMJJY and APY can be automatically renewed through a frozen balance in the account of the beneficiary: Will reduce slip-backs • Systematic changes required in PMMY for better financial inclusion and promotion of self employment • Exemption from stamps duty in line of KCC for Shishu Loans ? • Balance sheet not mandatory for Shishu loans? • Need for Registered entrepreneurs - if he is registered, he is not new, thus, thereby denied credit facility? • NPA (IRAC) norms on shishu loans should be made 1 year i.e. two harvesting seasons as in case of Agriculture (KCC), instead of 90 days? • The coverage to RRBs under CGTMSE should be made applicable as prior to amalgamation, dispensing with 2 years Balance Sheet?

24. “Arise, awake, and stop not till the goal is reached” Thank you