Pradhan Mantri Jan Dhan Yojana (PMJDY) is an ambitious attempt, spearheaded by Prime Minister’s office, to achieve the objective of financial inclusion. The drive, which is facilitated by banks has seen opening of more than 12.5 crore bank accounts and also been featured in the Guinness Book of World Records.
Going by sheer number of bank accounts opened till date, this is a remarkable achievement. It is worth noting that, in spite of launching various initiatives like Bank Nationalization, Banking Correspondence Agents, Swabhiman, Regional Rural Banks, No-frills account, Bharatiya Mahila Bank and 25% rural branch rule, yet financial inclusion still remained elusive for India. While the earlier schemes focused on reaching the villages through business correspondents, technology enabled banking, etc, PMJDY focuses on at least one account per household. These accounts opened under PMDJY are attractively packaged by additional benefits like accident & life insurance, debit card, overdraft and mobile banking facility.
This report highlights the key challenges faced or are likely to be faced during the operational execution of PMJDY, along with the strategies to overcome the challenges which can lead to the initiative being successful in meeting its objectives. The key challenges which could impede the success of PMJDY are infrastructural issues pertaining within India, ability to keep the accounts ‘live’, lack of financial and technological literacy amongst the masses, duplication of accounts, managing the ecosystem of business correspondents and the economic burden on stakeholders (especially banks) of keeping these accounts active. A sustainable ecosystem with vibrant technology infrastructure support, deployment of innovative technology solutions
to make small ticket transactions economically viable and effective monitoring
mechanism will be required to make this initiative a success. The PMJDY is an ambitious initiative with aggressive timelines and deliverables. The ability of the initiative to be successful in its endeavor to provide comprehensive
financial inclusion to each citizen will depend on seamless and efficient
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