PMJDY will ensure financial inclusion: Venkaiah Naidu

Hyderabad, Aug 28 (INN): Union Minister for Urban Development M Venkaiah Naidu launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) here on Thursday.

Speaking on the occasion, Venkaiah Naidu said that according to World Bank Findex Survey (2012), only 35% of Indian adults had access to a formal bank account and 8% borrowed from a formal financial institution in last 12 months. The miniscule number suggests an urgent need to further push the financial inclusion agenda to ensure that people at the bottom of the pyramid join the mainstream of the formal financial system, he said.

“Census 2011 estimated that 58.7% households had access to banking services. Only 54.46% rural households and 67.68% urban households are availing banking services.  In Andhra Pradesh total number of household holding bank accounts are 11163283 and financial inclusion is 53.1% and people yet to get bank account are 9861251 (46.9%) out of total household 21024534. The present banking network of the country, as on March 31, 2014, comprises of a bank branch network of 115082 and an ATM network of 160055. Of these, 43962 branches (38.2%) and 23334 ATMs (14.58%) are in rural areas,” he said.

The Union Minister said that the objective of PMJDY is to ensure access to various financial services like availability savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections and low income groups. Financial Inclusion of the poor will help in bringing them to the mainstream of growth and would also provide the Financial Institutions an opportunity to be partners in inclusive growth, he said.

Venkaiah Naidu said that PMJDY would provide banking services and banking outlets will be established within 5 KM distance of every village.  On an average of minimum of one account per family, the scheme would ensure opening of 6 crore accounts in villages and 1.5 crore in urban areas. At present only 0.43 lakh villages out of the 5.92 lakh villages in the country have bank branches. In order to cover the remaining areas with the banking outlets, a composite approach is proposed through branch and branchless banking, he said.

The Union Minister praised Prime Minister Nadrendra Modi for launching pro-poor and middle class oriented initiatives within 100 days of coming to power.  They include, a saving instrument for girls, girl child and national saving certificate with an insurance cover; Increase in Public Provident Fund (PPF) annual ceiling from Rs. One lakh to Rs.1.5 lakh; Raise in investment limit under Section 80-C from Rupees 1 to 1.5 lakh; New insurance scheme “Varishta Seva Bheema Yojna” for senior citizens and removal of monthly cap of one cylinder per month.