Banks spent Rs 2,000 crore for opening accounts under Jan

Dhan Yojana: IBA chairman

Says opening an account costs Rs 140 against estimates of Rs 80
BS Reporter | Chennai
February 3, 2015 Last Updated at 09:36 IST

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The Pradhan Mantri Jan-Dhan Yojana (PMJDY), the financial inclusion programme launched in the end of August,
2014, has cost banks around Rs 2,000 crore, according to T M Bhasin, chairman of Indian Banks Assoiciation (IBA)
and chairman and managing director, Indian Bank.
Opening one account under the scheme costs around Rs 140 as against the estimate of Rs 80 per account, he
added.
"All banks put together incurred a cost of around Rs 2,000 crore for PMJDY... Initially we were expecting that it will be
Rs 80 for opening an account and Rs 40 for transactions," he said.
There was a meeting two days back with the government and these details have been discussed there, he added.

"Banks have been incurring a cost of Rs 140 on each account. If we take the banking correspondents, there are
around 1.50 lakh BCs across the country. Even if you calculate Rs 1,000 per month, it will cost you an amount. Then
there are costs for connectivity, handheld devices for which the bank has to pay. Rupay card is costing Rs 20 each
and there are costs for activation, PIN generation, posting etc," he said.
For the urban PMJDY accounts, banks will not get anything except some charges, but for rural accounts, since the
BCs are involved, 1% of the amount transferred along with the NEFT and Aadhar commission would come to the
banks, Bhasin added.
Around 12.4 crore acounts have been opened under the scheme, as on January 30, 2015.
Bhasin said that around Rs 10,300 crore is lying in these accounts at present. Around Rs 52,000 crore would be
distributed during the next fiscal year through these accounts. At present, around 73% accounts are lying as zero
balance and activation of these accounts will happen once the subsidies starts flowing. This will make the system
automatically viable, he added.

Karnataka reaches saturation in Jan Dhan Yojana expansion

Since the launch of the scheme on August 28, 2014, banks have achieved a 98.37 per cent progress in
the state
BS Reporter | Bengaluru
March 3, 2015 Last Updated at 20:40 IST

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Karnataka has been declared as saturated in implementation of the Prime Ministers Jan Dhan Yojana (PMJDY) by the
State Level Monitoring Committee. Since the launch of the PMJDY on August 28, 2014, banks have achieved a 98.37
per cent progress in the state, the State Level Bankers Committee (SLBC) said.
Banks have completed household survey in all the 7,627 sub-service areas (SSAs) and 4,559 wards in Karnataka
state, covering 8.06 million households in SSAs and 5.13 million households in wards (totaling 13.20 million). As
against this, banks have covered 7.96 million households in SSAs and 5.02 million households in wards by opening
a minimum one account per household, thereby achieving a 98.37 per cent progress, T K Srivastava, executive
director of Syndicate Bank and convener of SLBC said.
The first important milestone of opening at least one bank account in the name of the family head of all the
households in the state has been achieved. Now, the important task before us is to ensure that all the accounts
opened do not continue with zero balance, he said at the 130th meeting of SLBC, here on Tuesday. He said the
issue of RuPay cards and their delivery, ensuring regular transactions in all these accounts and Aadhaar-linkage for
the smooth transfer of funds is the next challenge for banks. Proper support and coordination amongst banks,
government agencies, OMCs is imperative for hassle free transfer of funds/benefits directly to the beneficiaries
accounts, he said.
I appeal to the banks to extend the overdraft facility to all eligible account holders as per the norms after proper
counselling. Banks should make sure that all the BCs appointed are made to function properly and they have the
approved handheld device of 1.5.1 version fully active and operational for the AEPS and Rupay transaction,
Srivastava said.
Speaking on the occasion, Latha Krishna Rau, additional chief secretary and development commissioner,
government of Karnataka, brought to the notice of the SLBC that the distribution of Rupay cards was inadequate
and told the banks to ensure a proper distribution across the state.
She also suggested that the distribution of benefits should not be denied just because consumers are not linked
their accounts with Aadhaar numbers.
Since the launch of the PMJDY programme and up to February 14, 2015, the banks have opened 6.22 million basic
savings bank deposit accounts in Karnataka. Of these, 3.66 million accounts allow for zero balance and the
remaining 2.56 million accounts have a balance of Rs 426.72 crore. The total number of accounts with Aadhaar
seeding is 3.57 million. The number of accounts in the rural areas is 3.81 million and in urban areas it is 2.40
million. The banks have so far issued 5.15 million Rupay cards.
Of the 7,627 SSAs allotted, 5,293 are covered under fixed BC locations, 2,302 covered through branches, 5 covered
through mobile vans and 27 SSAs are yet to be covered.

RuPay cards: NPCI gets 9 bids for insurance cover

The last day for receiving quotations ended on Feb 20; the winner of the bidding process will be
announced next week
Nupur Anand | Mumbai
February 21, 2015 Last Updated at 22:40 IST

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NPCI receives nine bids for providing accidental insurance cover on RuPay cards
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No more confusion: Plain vanilla insurance products coming up
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National Payments Corporation of India (NPCI), the issuer ofRuPay cards, has received nine bids to provide
accidentinsurance cover on the debit cards issued as a part of the Pradhan Mantri Jan Dhan Yojana.
The last day for receiving quotations ended on February 20. The winner of the bidding process will be announced in
the next week. As part of the process, the insurance company will be providing a cover of Rs 1 lakh that can be
claimed in case of death or permanent disability on cards issued under the scheme.
In the last round, HDFC Ergo had won the mandate to provide general insurance cover on RuPay cards. The
companys contract will end on March 31, 2015. Even this time, both public and private sector companies have
participated in the bidding process.
The accidental insurance cover on the cards issued under the scheme so far will be active only if the card has been
swiped before 45 days at any Merchant Establishment/ATM /e-commerce /Micro ATM/Business Correspondent of the
bank. However, the government wants the no-swipe period to be extended to 180 days. As a result, this time
around bids have been invited for a no-swipe period of 45, 90 and 180 days.
In the last round, NPCI had managed to retain the minimum one swipe before 45 days as the cost will balloon if the
period is extended to 90 or 180 days. NPCI believes that this clause is necessary to keep the card active and
encourage transactions.
This time around, we will see the quotation for the all three cases and will send the minimum amount that has
been quoted to the government for 90 and 180 days. If they are willing to pay the incremental price difference

arising out of an extended tenure then we can look at increasing the no-swipe day else we will have to evaluate,
said a person familiar to the development.
Currently only NPCI pays the insurance premium which works out to be under Re 1.
A P Hota, managing director & chief executive officer of NPCI, said bids have been received and the process is likely
to be completed next week.
At the end of January, a total of 12.54 crore accounts have been opened under the PMJDY scheme and a total of
11.07 crore RuPay cards have been issued.
SWIPE AND CLAIM

The accidental insurance cover on these cards issued so far will be active only if the card has been swiped
before 45 days at any ATM of the bank

The govt wants the no-swipe period to be extended to 180 days

As a result, this time around bids have been invited for a no-swipe period of 45, 90 & 180 days

In the last round, NPCI had managed to retain the min one swipe before 45 days

RuPay cards: NPCI gets 9 bids for insurance cover

The last day for receiving quotations ended on Feb 20; the winner of the bidding process will be
announced next week
Nupur Anand | Mumbai
February 21, 2015 Last Updated at 22:40 IST

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Invest in best SIP plans in just 2 Mins & avail high returns. www.myuniverse.co.in/ZipSip
Ads by Google

Tweet
1

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RELATED NEWS

NPCI receives nine bids for providing accidental insurance cover on RuPay cards
Jan Dhan: Inclusion scheme excludes most
Jan Dhan Yojana: Many questions remain
No more confusion: Plain vanilla insurance products coming up
Jan Dhan Yojana: Clarity awaited on insurance

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Term Plan Calculator

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Ads by Google

National Payments Corporation of India (NPCI), the issuer ofRuPay cards, has received nine bids to provide
accidentinsurance cover on the debit cards issued as a part of the Pradhan Mantri Jan Dhan Yojana.
The last day for receiving quotations ended on February 20. The winner of the bidding process will be announced in
the next week. As part of the process, the insurance company will be providing a cover of Rs 1 lakh that can be
claimed in case of death or permanent disability on cards issued under the scheme.
In the last round, HDFC Ergo had won the mandate to provide general insurance cover on RuPay cards. The
companys contract will end on March 31, 2015. Even this time, both public and private sector companies have
participated in the bidding process.
The accidental insurance cover on the cards issued under the scheme so far will be active only if the card has been
swiped before 45 days at any Merchant Establishment/ATM /e-commerce /Micro ATM/Business Correspondent of the
bank. However, the government wants the no-swipe period to be extended to 180 days. As a result, this time
around bids have been invited for a no-swipe period of 45, 90 and 180 days.
In the last round, NPCI had managed to retain the minimum one swipe before 45 days as the cost will balloon if the
period is extended to 90 or 180 days. NPCI believes that this clause is necessary to keep the card active and
encourage transactions.
This time around, we will see the quotation for the all three cases and will send the minimum amount that has
been quoted to the government for 90 and 180 days. If they are willing to pay the incremental price difference
arising out of an extended tenure then we can look at increasing the no-swipe day else we will have to evaluate,
said a person familiar to the development.
Currently only NPCI pays the insurance premium which works out to be under Re 1.
A P Hota, managing director & chief executive officer of NPCI, said bids have been received and the process is likely
to be completed next week.
At the end of January, a total of 12.54 crore accounts have been opened under the PMJDY scheme and a total of
11.07 crore RuPay cards have been issued.
SWIPE AND CLAIM

The accidental insurance cover on these cards issued so far will be active only if the card has been swiped
before 45 days at any ATM of the bank

The govt wants the no-swipe period to be extended to 180 days

As a result, this time around bids have been invited for a no-swipe period of 45, 90 & 180 days

In the last round, NPCI had managed to retain the min one swipe before 45 days