Bank on them.. formal financial banking system turns robust amid PM Jan Dhan Yojana in India..!

New Delhi, February 13: Hailing the government decision of boosting the users to the formal financial system, the Reserve Bank of India on Wednesday opened up the report on trends and progress of banking in India for year 2017-18, powered by the drive to mobilise account ownership among unbanked adults through the Pradhan Mantri Jan Dhan Yojana (PMJDY).

 

 

“The proportion of persons joining the formal financial system in terms of an account at financial institutions has more than doubled since 2011 and by 2017, it had reached 80 per cent of the Indian population comparable with China and better than other BRICS peers”, stated the report.

Within a span of four years, the total number of accounts opened under the PMJDY have expanded to 328 million, with Rs.851 billion deposits as on September 28, 2018. Of these accounts, 59.1 per cent were opened at branches located in rural and semi-urban centres. According to the report further, during 2017-18 the dip in the opening of new bank branches in 2017-18 was on account of banks with high stress on their balance sheet undertaking branch rationalisation, including turning to business correspondent in order to contain expenditure.

The role of business correspondents in expanding the reach of banking services in rural areas is gaining acceptance and recognition which is evident from the growth of 28 per cent in the number of transactions put through by them through the Information and Computer Technology (ICT) channel. Also the number of Basic Savings Bank Deposit (BSBD) accounts and the deposits in these accounts have raised in the four years.

With a view to increase banking penetration and promote financial inclusion, Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th August, 2014 to provide affordable financial services to all citizens within a reasonable distance. Further, to facilitate banking transactions, 27.17 crore RuPay Debit cards with an in-built accident insurance coverage have been issued to beneficiaries under PMJDY.