1 INTRODUCTION

The Prime Minister, Shri Narendra Modi, today declared the beginning of the end
of financial untouchability in India, with the opening of an estimated 1.5 crore
bank accounts across the country, in an exercise unprecedented in scale in
economic history.

Formally launching the Pradhan Mantri Jan Dhan Yojana (PMJDY) at a function
broadcast across the nation from Vigyan Bhawan in New Delhi, the Prime Minister
described the occasion as a festival to celebrate the liberation of the poor from a
poisonous cycle. (Vish-chakra se gareebon ki aazaadi ka parv)

Expressing satisfaction at a number of records being broken today, the Prime

Minister said the nationwide success of the enrolment drive today would give
confidence not just to the officials of the Department of Financial Services and
banking sectors, but also to officers across the Union Government, that they can
successfully achieve the goals that they set for themselves. “Never before would
insurance companies have issued 1.5 crore accident insurance policies in a single
day. Never before in economic history would 1.5 crore bank accounts have been
opened in a single day. Never before has the Government of India organized a
programme of such scale over 77,000 locations with the participation of so many
Chief Ministers, Union Ministers, Government and bank officials.” He said the
success is an inspiration for achieving new heights.

The Prime Minister said that though the initial target of PMJDY was to open bank
accounts for 7.5 crore families in one year, he had exhorted the concerned officials
to complete the task before the next Republic Day.

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Elaborating the benefits under PMJDY, the Prime Minister said this was not a
mere bank account, but had other benefits including an RuPay debit card, Rs 1 lakh
accident insurance cover, and an additional Rs. 30,000/- life insurance cover for
those opening bank accounts before January 26th, 2015. He said the account
performance would be monitored and overdraft facility would be given. The Prime
Minister said he had sent 7.25 lakh bank employees, exhorting them to help reach
the target of 7.5 crore bank accounts, and bring freedom from financial
untouchability.

The Prime Minister referred to the five beneficiary couples who had received
account opening kits in today’s event at Vigyan Bhawan, and said the ladies
appeared to have dressed for a festival. He said they knew that there could be no
bigger festival than the opening of a bank

The Prime Minister said when banks were nationalized in 1969; it was done with
the objective of bringing people into the economic mainstream. But that objective
had not been achieved till date. After 68 years of independence, not even 68% of
India’s population had access to banking, he added. He said it is easy for the rich to
get a loan at low interest rates. But the poor are forced to seek loans from money-
lenders at five times the rate charged to the rich. Is it not the responsibility of the
banking industry to provide banking access to the poor, the Prime Minister asked.

The Prime Minister illustrated his point through the example of a mother saving
money and being forced to hide it somewhere within the house. He said the bank
officials who had opened an account for such a mother, had been blessed today.
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He said a breakthrough was required to overcome the vicious cycle of poverty and
debt, and that breakthrough had been achieved today. He said there were
similarities between the poor getting access to mobile telephones, and getting
access to debit cards. They both had the effect of instilling confidence and pride
among the poor, he added.

The Prime Minister referred to the ancient Sanskrit verse: Sukhasya Moolam
Dharma, Dharmasya Moolam Artha, Arthasya Moolam Rajyam which puts the
onus on the state to involve people in economic activity. “This Government has
accepted this responsibility,” the Prime Minister said.

The Prime Minister said Indians had a habit of saving, and thinking about the
future of their children.

The Prime Minister also distributed awards to winners of the Name and Logo
contest for this scheme. He observed that those who won prizes were
predominantly from non-Hindi speaking states, but had won prizes for coining a
name and slogan in Hindi. This is an example of national integration, he said.
Speaking on the occasion, the Finance Minister said PMJDY would be taken
forward in Mission Mode, and the first target of reaching 7.5 crore unbanked
families would be achieved by January 26th, 2015.

The Minister of State for Finance, Smt. Nirmala Sitharaman, said the lady of the
house had been given priority in the PMJDY. She said this scheme would touch the
lives of everyone in a positive and constructive way.

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The name “ Jan Dhan” was chosen through an online competition on the MyGov
Platform and received more than 6000 suggestion from Indian citizens. After
evaluation the jury shortlisted “Jan Dhan” which was suggested by 7 individuals.
Slogan of this scheme is " Mera Khata – Bhagya Vidhaata” (My Bank Account –
The Creator of the Good Fortune) The primary objective of the programme,
Pradhan Mantri Jan Dhan Yojana, is to deepen financial inclusion. As many as
60000 bank camps will be conducted and about 1 crore accounts are targeted to be
opened in just one day. The long term vision of the Jan Dhan Yojana is to lay the
foundation of a cashless economy and is complementary to the Digital India
Scheme. This scheme has set an ambitious target of bringing in more than 7.5 crore
un- banked families into India banking system by opening more than 15 Crore
bank accounts at the rate of two bank accounts per household. Every individual
who opens

a bank account becomes eligible to receive an accident insurance cover of up-to Rs

1 Lakh for his entire family. Once the bank account has been active for 6 months
and has been linked to account holders Aadhar identity , they would become
eligible for an overdraft of up to Rs 2,500 , which

would further be enhanced by the bank to Rs 5000 over time.

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1.2 PURPOSE

In a run up to the formal launch of this scheme, the Prime Minister personally
mailed to CEOs of all banks to gear up for the gigantic task of enrolling over 6.0
crore (75 million) households and to open their accounts. In this email he
categorically declared that a bank account for each household was a "national
priority".

The scheme has been started with a target to provide 'universal access to banking
facilities' starting with Basic Banking Accounts with overdraft facility of Rs.5000]
after six months and RuPay Debit card with inbuilt accident insurance cover of Rs.
1 lakh and RuPay Kisan Card.In next phase, micro insurance & pension etc. will
also be added.

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1.3 OBJECTIVES

 To get an overview of various saving schemes launched by government of

India in banking sector

 To get an overview of the PRADHAN MANTRI JAN DHAN YOJANA

 To understand the functioning of PRADHAN MANTRI JAN DHAN

YOJANA

 To analyze the impact of PRADHAN MANTRI JAN DHAN YOJANA

 To understand the level of awareness about PRADHAN MANTRI JAN

DHAN YOJANA

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FEATURES OF JAN DHAN YOJANA

Given below are a list of important features of the Pradhan Mantri Jan dhan yojana
, a financial inclusion scheme which was launched earlier this week. The
government scheme was launched by PM Modi at a function in New Delhi.

Important Features Of Jan Dhan Yojana

 Zero Balance Account

The accounts under PMJDY will be zero balance accounts which means
account holders do not need to maintain any bank balance. Most regular
bank accounts require that a minimum balance which might vary from Rs
500 to Rs 5000 will have to be maintained in the bank account failing which
a penalty will have to be the customer. In April this year , RBI announced
that banks can no longer charge a penalty for non-maintenance of average
quarterly balance, this was after it received complaints from bank account
holders that their bank balances had disappeared over several months.
Keeping this in mind , banks have now introduced zero balance accounts
under Pradhan Mantri Jan Dhan Yojana.

 Insurance Cover Of Rs 1 Lakh Along With Rupay Cards

All account holders will receive a Rupay Debit Card so that they can
withdraw money from any ATM and also use it to make payments at
merchant establishments. Each Rupay Card will also insure the Card Holder
with accident insurance of upto Rs 1 Lakh from HDFC Ergo and Medical

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 Insurance of up to Rs 30,000 for sick account holders. This money could be
used for treatment and paying medical bills when the need arises.

 Pass Book And Cheque Books

Some Banks are issuing additional pass books and cheque books to some
users if they make an additional payment of Rs 100 to Rs 500. This is an
additional feature and can be availed by account holders only if they feel the
need for it.

 Direct Benefit Transfers

Another valuable feature of Pradhan Mantri Jan Dhan Yojana is that bank
accounts which are linked to Aadhaar ID’s can avail government subsidies
by electronic transfer directly into their accounts . For Example: The
government might transfer food subsidies it provides to ration card holders
directly into their bank account.

 Overdraft / Loan

Overdraft of Rs 5000 will be provided to account holders who transact regularly

using their rupay card and maintain a good balance in their bank account

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4.2 PROCEDURE AND CONDITIONS FOR JAN DHAN YOJANA

With an eye on availing the overdraft facilities in PMJDY, many individuals are
planning to open an account but are confused about the procedure and conditions
for opening a new account. Under PMJDY anyone can open an account by
submitting the completed account opening form and paying a fee (Charged by
some banks such as Bank of Baroda.).

4.2.1 People Who Already Have A Bank Account

 Primarily the PMJDY scheme is meant for those who do not have a savings
bank account but people who already have an account can avail the benefits
of the scheme .
 They can open a bank account if they have an Aadhaar card which is not
linked to any other bank account. Once you submit your aadhaar
identification , your unique id will get logged in to the system and you will
not be allowed to open multiple accounts under Pradhan Mantri Jan Dhan
Yojana.
 It is recommended that you open your account at a bank branch which is
different from where your current active savings account is located.

4.2.2 PMJDY Bank Account Opening Procedure And Form

If you have been thinking about how you can open an account under PMJDY, do
not worry. It is a very simple process just follow the steps outlined below

 To open a bank account under PMJDY scheme first visit your nearest bank
branch and inquire whether the bank is part of the PM Jan Dhan Yojana.

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  If the bank is a part of PMJDY then ask for the Account Opening Form and
fill in your details and submit it along with a color passport size photograph
and your signature.

4.2.3 Sample Account Opening Form

Given below is a sample account opening form from HDFC bank which is
used to open personal savings accounts. This format is only for reference
purposes. Download it here. You can get a similar form at your nearest bank
branch.

4.2.4 Pradhan Mantri Jan Dhan Yojana Helpline

 To know more about the Pradhan Mantri Jan Dhan Yojana Scheme you can
contact the Department of Financial Services at the following telephone
numbers 011- 23745128 / 23748714.
 These are the numbers of Rajat Sachar who is the economic advisor for the
Ministry of Finance and his office will provide all the details required about
PMJDY.
 There is no toll free number as of yet but it could be launched in the coming
weeks.

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4.4 BENEFITS, DETAILS AND ELIGIBILITY

With the launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheduled for
today, banks around the country have launched enrollment camps for opening of
zero balance savings accounts around the country. Many senior level bankers have
been camping in rural areas since the last week to co-ordinate their Banks
enrollment drive and also to convince the local population to enroll in large
numbers for savings bank accounts.

There is some confusion with regard to eligibility, benefits and purpose of the Jan
Dhan Yojana. We have compiled answers to these questions to clear the confusion
for our readers. Please go through them in detail below:

4.4.1 Benefits Of Opening Bank Account Under PMJDY

 The bank account opened under PMJDY will be a zero balance account
and customers are not required to maintain any minimum balance.
 A Rupay Kisan Debit Card will be issued which can be used to withdraw
money from ATM’s and free accident insurance up to Rs 2 Lakh will be
provided for those who open their bank account within 100 days of
scheme being launched.
 An overdraft facility of Rs 5000 will be provided after six months of the
account at the discretion of the bank only if your account has been active
and seen a lot transactions. The over-draft limit which is like a short term
loan can be increased up to Rs 15,000 if the repayment is prompt.

4.4.2 To Open An Account Under Pradhan Mantri Jan Dhan Yojna

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 To open a bank account visit your nearest bank branch or enrollment
camp that is being conducted in your city or town. There are more
than 60,000 locations all over India where you can enroll, however the
addresses are not available online and can only be found out by
inquiring at your local bank office.

4.4.3 Existing Customers Of A Bank Take Part In The Pradhan Mantri

Jan Dhan Yojana

 This depends on the bank some banks are willing to open Bank A/C’s
for existing customers while others intend to open bank accounts for only
those who do not have any account. Contact your nearest bank branch to
find out if you are eligible to open another account.
 Rather that open multiple savings account it would be better to convince
a family member or worker such as a maid servant who does not have a
bank account to enroll in this scheme.

4.4.4 Fee To Open A Bank Account Under PMJDY

Reports coming in from the ground indicate that some banks like
Bank of Baroda are charging a fee of Rs 100 to open a new account. It
is still not clear if this amount will be credited to the newly opened
account or will be considered as account opening charges. More
details are expected to become clear later in the day. Contact your
nearest Bank branch for more details.

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4.6 BURDERN OF PMJDY ON BANKS.

Some economists have warned that the financial inclusion scheme will burden
banks and the scheme will be exploited by unscrupulous elements. To clear
these apprehensions, the Finance Ministry has released a press note.

 The note says that the insurance scheme will be funded by the revenue
generated from Rupay Card Transactions and thus there will be no additional
burden on the banks.
 The overdraft limit will be given by the bank at it’s discretion only when it is
satisfied with the operation of the bank account. Currently banks are
providing overdraft facility on more than Thirty five lakh Savings Deposit
Accounts and they have not faced any major rise in defaults.
 Also a Credit Guarantee Fund will be set up as part of PM Jan Dhan Yojana
which will take care of defaults on overdraft extended.

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4.13 DOCUMENTS NEEDED TO OPEN BANK ACCOUNT

 If you have aadhar card or aadhar number, then you don't need any other
document, if your residential address is changed after aadhar card, then you
can self attach the new address proof.
 if you don't have aadhar card then you have to give any one of the following
documents;
 election card,
 ration card,
 driving license,
 any other identification certificate authorized by government officer.
 You can also show electricity bill or telephone bill, marriage or birth
certificate.

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FACILITIES UNDER PMJDY

4.8 RUPAY DEBIT CARD

National Payment Corporation of India (NPCI) promoted by RBI on 26 March

2012 launched an Indian payment gateway system as an alternate solution to
MasterCard and Visa which are widely used across the world and have dominance
even in India.

As of now RuPay debit card has been issued. Processing of RuPay card is done by
the payment gateway company CCAvenue which powers more than 80% of
ecommerce merchants in the country. Card issuing banks will have to pay fees for
every transaction to the company which will setup machines and thus generate
revenues.

4.8.1 Rupay Card Advantages

 Accepted at around 1,45,270 ATMs.

 Acceptance by over 8,75,000 point-of-sale (PoS) terminals
 Over 10,000 E-commerce sites have added RuPay is one of the payment
method. For e.g. coke2home.com, justrechargeit.com and futurebazaar.com
now accept this card. You should also know about using RuPay for online
payments
 Accepted at around 1.8 lakh merchant terminals in India out of the current 8
lakhs
 Transaction fee charged to the merchant is 0.01%
 Transaction limit is very high. Of course this will vary from bank to bank
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  Customers will get SMS alert for every transaction done through their card

4.8.2 Rupay Card Disadvantages

 Visa and MasterCard provides rewards points and at this stage there is no
such update on the reward points system by RuPay card
 No updates available on issuance and annual fees

4.8.3 Application

Indian consumers can apply for RuPay Cards at the public banks and private
sector banks. And is also issued by over 200 co-operative and rural banks in the
country. Here’s the list of few these banks where application of RuPay
cards can be made:

 Public sector banks

For easy access, wherever possible links to the bank website are mentioned
below

1. Central Bank of India

2. State Bank of India

3. Bank of Baroda

4. Punjab National Bank

5. Bank of India

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 6. Union Bank of India

7. Punjab and Sind Bank. Download RuPay application form here

You can open bank account under PMJDY which was recently launched by
government of India and get RuPay debit card for free

 Private Sector banks

Federal bank is first private sector bank in India to launch RuPay card.
Click latest news by bank here

Existing customers having savings or current bank accounts in any of these

banks can apply for RuPay card. Recently Indian government has asked
public banks to issue RuPay card to their existing customers and install
terminals which can accept this payment. However this does not mean these
banks will stop issuing Visa and Mastercards. But government is stressing
on giving more focus to country’s own card. Read more about withdrawal
limit of RuPay card.

4.8.4 Benefits Of Launching Rupay Card

With an aim of not to generate profit at this stage, following are the main reasons
to launch RuPay debit card

 Reducing the cash usage

 Very cost effective: Transaction cost is very less as compared to
internationally used Visa and MasterCard since the whole process will take

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 place within India. So Indian banks have to pay fees in Rupees to
international payment companies and thus saving on foreign currency.
 Cost of clearance would be low due to processing within India
 Reduced dependence on card systems currently used worldwide
 Huge savings to Indian consumers
 As all the transaction data would be available in India and thus prevent
customer purchase data going out of the country
 People with no or limited access to banking and financial services can easily
avail the cards as they would be available in rural areas as well

4.7 OVERDRAFT IN JAN DHAN YOJANA

The provision of over draft in Jan Dhan Yojana has many people in India excited
though many of them do not fully understand what this facility is, in this article we
will explain how an over draft works and why it is like an unsecured loan.

 An overdraft is a value added facility that banks provide for customers and
preferred clients. A bank khata which has an overdraft allows the account
holder to withdraw more money than what the bank account holds.
 An overdraft can be said to have occurred when the account balance goes
below zero and becomes negative. It can also be compared to an unsecured
short term loan given by the bank to its account holders.

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  Example of Overdraft Suppose you have an account opened
under PMJDY in August 2014 and it has a balance of Rs 1000 in March
2015 and the bank has provided Rs 5000 as overdraft six months after you
opened you account in February 2015. Then you can withdraw up to Rs
6000 from March 2015 from your account and when you withdraw the entire
amount your bank balance will be shown as -6000.
 Now ever time you deposit money into your over drawn account , the money
will be adjusted against your overdraft and the balance will become zero
only when you repay the entire Rs 5000.
 A nominal interest rate will be charged on the money withdrawn by you by
the bank. In India overdraft usually attracts an interest rate between 12-20%
p.a.
 Under Pradhan Mantri Jan Dhan Yojana, the limit for the overdraft has been
set at Rs 5000 and will only be provided if the bank account is active and
contains a good amount of money.
 The bank will decide which account will get the overdraft under PMJDY.
 If the Bank account holder successfully and regularly pays back the initial
Rs 5000 over draft taken along with the Interest due, then the bank will
increase the overdraft limit to Rs 15,000 to preferred customers over time.

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4.7.1 Benefits Of Overdraft In Pradhan Mantri Jan Dhan Yojana

 It helps in building a culture of Responsible Credit among the people of the

country. It rewards those who repay their loans by extending higher
amounts.
 By giving a loan and overdraft facilities without collateral to clients,
PMJDY wants to help low-income people escape from the clutches of
money lenders.
 The overdraft facility will benefit those customers who might need money in
case of emergencies.
 It will help develop a credit profile of the person who opens the bank
account and he may later be given personal loans and credit card facilities, if
the bank is satisfied with his repayment schedule.
 It will help to transform India’s economy which relies heavily on cash
payments into a cashless economy as the Rupay Kisan card can be used to
make payments online and at merchant establishments. This decreases the
need to carry cash everywhere.

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4.7.2 Eligibility For Overdraft In PMJDY

 To become eligible for the overdraft in Pradhan Mantri Jan Dhan Yojana,
the bank account holder must transact regularly using his Rupay Card and he
mush also maintains a high bank balance.
 Banks make a profit on accounts only when it has a positive balance and
only when they find your Bank Account profitable will they extend overdraft
facilities to you. So maintaining a healthy balance of Rs 4000 – 5000 per
account will make it easier to avail the loan later on.
 Use your Rupay Kisan Card to make payments at merchant establishments
which will lead to a positive credit profile.

LOAN UNDER PRADHAN MANTRI JAN DHAN YOJANA

The first phase of PM Jan Dhan Yojana would last till August 15th, 2015 and will
be primarily focused on opening of savings bank account, issuing of Rupay debit
cards to new account holders, provision of accident insurance cover and extending
of loans / overdraft facilities to these new account holders. A Credit Guarantee
Fund to cover defaults on overdrafts is also expected to be created in this year.
Some experts believe that it might cost the government as much as Rs 70,000
crore.

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In the second phase which will begin from August 2015 and last till August 2018,
it will be focused on provision of micro-insurance and enrollment in pension
services.

Loans under PMJDY

 As incentives to new account holders, they can avail an over-draft (loan) of

up to Rs 5000 rupees on their savings account which will be given at the
discretion of the Bank. This loan amount would then be further raised to Rs
15,000, if there is timely repayment of the first loan taken by the account
holder.

 This provision of overdraft on each savings account is to primarily make

cheap credit available to ordinary citizens in India who would have to
otherwise depend on money lenders who charge very high interest rates.

 The overdraft will only be given to those savings accounts which have been
linked to an Aadhaar Unique Id, this is to prevent fraud and ensure that
individuals do not open multiple savings accounts with the aim of cornering
the credit facilities.

 The PMJDY scheme has taken a leaf from the Microfinance Sector in
India where Microfinance Companies initially provide a small loan and
only later increases the size of the loan disbursement when the microfinance
client has successfully repaid his first loan. This ensures that only credit
worthy individuals with the financial capacity to repay, get loans.

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4.9 PREMIUM FOR LIFE COVER UNDER PMJDY

The Finance Minister in consultation with LIC has finalised arrangement for
payment of premium towards life insurance cover under Jan Dhan scheme. It has
been decided to set aside Rs 50 cr from Social Security Fund worth about Rs 1,800
cr managed by LIC, sources said. This would be a revolving fund and LIC would
manage it, sources said, adding that Finance Minister Arun Jaitley is likely to
approve the arrangement soon.

A Social Security Fund (SSF) was set up in 1988-89 for providing social security
through group insurance scheme to the weaker and vulnerable sections of the
society. The SSF is administered by LIC for meeting insurance requirements of the
segment. Under the Pradhan Mantri Jan Dhan Yojana (PMJDY) one who opens
account before January 26, 2015 would get Rs 30,000 life insurance cover. This
benefit was added by the Prime Minister Narendra Modi when he launched the
scheme on August 28. Under the scheme, banks have opened 3.02 cr accounts and
mobilised about Rs 1,500 cr.

As of September 8, 2014, 3.02 cr accounts have been opened, of which 1.89 cr are
in rural areas and 1.13 cr are in urban areas. Banks have collected deposits of Rs
1,496.51 cr under the scheme so far. In order to spread financial inclusion, banks
have been asked to open 7.5 cr accounts by January 26. PMJDY scheme envisages
to provide one account to 15 cr unbanked households across the country in the first
phase.

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IMPACT OF PRADHAN MANTRI JAN DHAN YOJNA

Help to remove poverty

 NEW DELHI: The Pradhan Mantri Jan Dhan Yojana scheme will help
eradicate poverty and curb corruption at the grassroots level, industry said
today.
 "It is an innovative and much-needed step in the right direction which will
address the biggest national challenge i.e. eradication of poverty, through
financial inclusion," CII Director General Chandra it Banerjee said.
 Prime Minister Narendra Modi today launched his government's mega
scheme 'Jan Dhan Yojana', declaring that it was aimed at eradicating
financial untouchability by providing bank accounts to the poor.
 On the inaugural day, a record 1.5 crore bank accounts were opened across
the country, the largest such exercise on a single day possibly anywhere in
the world.
 "The benefits under government's welfare schemes running into thousands
of crores of rupees can be directly transferred to the beneficiaries' accounts.
Huge pilferage in the middle will be eliminated," Assocham Secretary
General D S Rawat said.
 The plan seeks to give India's poor access to affordable financial services
like savings account, easy credit and insurance, Banerjee said.
 "The positive spin-off effects of extending financial services to the masses
are multifold and would clearly impact the overall development trajectory of
the nation," Ficci President Sidharth Birla said.
 The key distinction from earlier designs is the introduction of a combination

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 of savings, loans and insurance products. This would ensure most basic
needs of beneficiaries are taken care of, Birla said.
 "Linking financial literacy and direct cash transfer with this programme
ensures demand inducement and sustainability of this model," Birla added.

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decisive push to financial inclusion|

We have been hearing the phrase 'financial inclusion' for a long time now. For a couple of years
to 2013, financial inclusion had been reduced to a comical chase of targets for bank accounts that
had to be opened. With the usual combination of minimal thought and maximum illusion of
action, banks were stuffing their system with 'no-frills' accounts, which were actually no-use
bank accounts.

However, over the last week, for the first time, a viable and useful shape of a real financial
inclusion plan has emerged, along with an actual name, the Jan Dhan Yojana. The Prime
Minister's Independence Day address made it clear that there is now a tremendous political will
behind the rethought financial inclusion programme. Interestingly, four days before the PM's
address underscored the push that financial inclusion would get, some details about the plan had
already been revealed by the Reserve Bank of India (RBI) Governor Raghuram Rajan.

On August 11, while delivering the Lalit Doshi Memorial Lecture in Mumbai, Rajan said the
government would announce a scheme for full financial inclusion on Independence Day. This
would include "identifying the poor, creating unique biometric identifiers for them, opening
linked bank accounts, and making government transfers into those accounts".

Interestingly, Rajan linked the success of financial inclusion to many things, including breaking
the "link between poor public service, patronage, and corruption".

While the larger impact of widespread financial inclusion will come in time, the description of
actual financial services that will be included in the scheme was interesting. These are the five Ps
of inclusion; product, place, price, protection, and profit; "products that address their needs; a
safe place to save, a reliable way to send and receive money, a quick way to borrow in times of
need or to escape the clutches of the moneylender, easy-to-understand accident, life and health
insurance, and an avenue to engage in savings for old age." The adjectives used for each is quite
revealing.

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In a way, it is an indicator of the main problem that the financially excluded face currently. A
'safe' way to invest, a 'reliable' way to send and receive money, a 'quick' way to borrow in times
of need, and sadly, 'easy to understand' insurance products. I say sadly because, while the other
services are often delivered by unregulated operators, it's not surprising that they are not safe,
reliable or quick.

However, insurance is delivered by regulated entities and is still found wanting. Coming from
the RBI governor, this is a serious indictment of Irda's continuing failure. But then, if the Irda
was bothered, it would have done something about this long ago.

Which brings us to the last and most problematic P of the five Ps of financial inclusion — profit.
These services will be transformative, but cannot be delivered unless the service provider makes
a profit, but is satisfied with a small profit. So far, retail financial services in India have been
mostly provided either by providers who are unable to make money — and thus stay dependent
on government rescues — or by providers who are unable to keep their hands out of their
customers' pockets.

Jan Dhan Yojana would be a game-changer:

HYDERABAD: The Jan Dhan Yojana, launched by Prime Minister Narendra Modi today, would
be a game-changer for common people, Union Urban Development and Parliamentary Affairs
Minister M Venkaiah Naidu said.

"The government has taken a major initiative for financial inclusion. This will bring about a sea
change... this will be a game-changer for common people, more people coming into the banking
sector and becoming partners in the financial services is a welcome step," he told reporters, after
launching the scheme here.

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TYPES OF SAVING SCHEMES

2.1 POST OFFICE MONTHLY INCOME SCHEME (MIS)

2.1.1 Salient Features

 Interest rate of 8.4% per annum payable monthly w.e.f. 01-04-2013

 Maturity period is 5 years.
 No Bonus on Maturity w.e.f. 01.12.2011.
 No tax deduction at source (TDS).
 No tax rebate is applicable.
 Minimum investment amount is Rs.1500/- or in multiple thereafter.
 Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a
joint account.
 Auto credit facility of monthly interest to saving account if accounts are at
the same post office.
 Account can be opened by an individual, two/ three adults jointly, and a
minor through a guardian.
 Non-Resident Indian / HUF cannot open an Account.
 Minors have a separate limit of investment of Rs. 3 lakhs and the same is not
clubbed with the limit of guardian.
 Facility of premature closure of account after 1 year but on or before 3 years
@ 2.00% discount.
 Deduction of 1% if account is closed prematurely at any time after three
years.

28 | P a g e
  Suitable scheme for retired employees/ senior citizens and for those who
need regular monthly income.

2.2 PUBLIC PROVIDENT FUND (PPF)

2.2.1 Salient Features

 Interest rate of 8.7% per annum w.e.f. 01-04-2013.

 Minimum deposit is 500/- per annum.
 Maximum deposit is Rs. 1,00,000/- per annum
 The scheme is for 15 years.
 Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate
under section 80C of IT Act.
 Interest is completely tax-free.
 Deposits can be made in lumpsum or in 12 installments.
 One deposit with a minimum amount of Rs 500/- is mandatory in each
financial year.
 Withdrawal is permissible from 6th financial year.
 Loan facility available from 3rd financial year upto 5th financial year. The
rate of interest
 charged on loan taken by the subscriber of a PPF account on or after
01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall
continue to be charged on the loans already taken or taken up to 30.11.2011.
 Free from court attachment.
 Non-Resident Indians (NRIs) not eligible.

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  An individual cannot invest on behalf of HUF (Hindu Undivided Family) or
Association of persons.
 Ideal investment option for both salaried as well as self employed classes.

2.3 NATIONAL SAVINGS CERTIFICATE (NSC)

2.3.1 salient Features

 NSC VIII Issue (5 years) – Interest rate of 8.5% per annum w.e.f. 01-04-
2013
 NSC IX Issue (10 years) - Interest rate of 8.8% per annum w.e.f. 01-04-2013
 Minimum investment Rs. 100/-. No maximum limit for investment.
 No tax deduction at source.
 Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate
under NSC - section 80C of IT Act.
 Certificates can be kept as collateral security to get loan from banks. Trust
and HUF cannot invest.
 A single holder type certificate can be purchased by an adult for himself or
on behalf of a minor or to a minor.
 The interest accruing annually but deemed to be reinvested will also qualify
for deduction under NSC - section 80C of IT Act.

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2.4 POST OFFICE TIME DEPOSIT SCHEME

2.4.1 Salient Features

 1 year, 2 year, 3 year and 5 year time deposits can be opened.

 Interest payable annually but compounded quarterly:
 Period Rate Of Interest
One Year 8.2%

Two Years 8.3%

Three Years 8.4%

Five Years 8.5%

 Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/-

thereafter. No maximum limit.
 Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate
under section 80C of IT Act.
 Interest income is taxable.
 Facility of redeposit on maturity of an account.
 In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on
or after 01.12.2011 between 6 months to one year from the date of deposit,
simple interest at the rate applicable to from time to time to post office
savings account shall be payable. 2 year, 3 year or 5 year accounts on or
after 01.12.2011 if closed after one year, interest on such deposits shall be
calculated at a
 discount of 1% on the rate specified for respective period as mentioned in
the concerned table given under Rule 7 of Post office Time Deposit Rules.
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  Account can be pledged as security against a loan to banks/ Government
institutions.
 Any individual (a single adult or two adults jointly) can open an account.
Group Accounts, Institutional Accounts and Misc. account not permissible.
 Trust, Regimental Fund or Welfare Fund not permissible to invest.

2.5 Senior Citizen's Savings Scheme

2.5.1 Salient Features

 Interest @ 9.2% per annum from the date of deposit on quarterly basis w.e.f.
01-04-2013
 Minimum deposit is Rs 1000 and multiples thereof. Maximum limit of 15
lakhs.
 Maturity period is 5 years and can be extended for a further period of 3
years.
 Age should be 60 years or more, and 55 years or more but less than 60 years
who has retired under a Voluntary Retirement
 Scheme or a Special Voluntary Retirement
 Scheme on the date of opening of the account within three months from the
date of retirement.
 No age limit for the retired personnel of
 Defence services provided they fulfill other specified conditions.
 The account may be opened in individual capacity or jointly with spouse.
 TDS is deducted at source on interest if the interest amount is more than Rs
10,000/- per annum.
 Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate
32 | P a g e
 under section 80C of IT Act.
 Interest can be automatically credited to savings account provided both the
accounts stand in the same post office.
 Premature closure is allowed after one year on deduction of 1.5% of the
deposit and after 2 years on deduction of 1%.
 No withdrawal permitted before the expiry of a period of 5 years from the
date of opening of the account.
 Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not
eligible to open an account.

2.6 POST OFFICE SAVINGS ACCOUNT

2.6.1 Salient Features

 Rate of interest 4.0% per annum
 Minimum amount Rs 50/- in case of non- cheque account, Rs.500/- in case
of cheque account.
 Maximum balance permissible is Rs 1,00,000/- in a single account and Rs
2,00,000/- in a joint account.
 Interest Tax Free.
 Any individual can open an account.
 Cheque facility available.Group Account, Institutional Account,
otherAccounts like Security Deposit account & Official Capacity account
are not permissible.

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2.7 RAJIV GANDHI EQUITY SAVING SCHEME

Sebi today announced the framework forRajiv Gandhi Equity Savings Scheme, a
government initiative aimed at attracting small investors into the capital market.
"The objective of the scheme is to encourage flow of savings in the financial
instruments and improve the depth of the domestic acapital market," the Securities
and Exchange Board of India (Sebi) said in a circular. Under the scheme,
announced in the 2012-13 Union Budget, new investors can avail tax benefits who
invest up to R 50,000 in the stock market and whose gross total annual income is
less than or equal to R 10 lakh.

The scheme was notified by the Department of Revenue, Finance Ministry on

November 23 this year. For transactions undertaken by investors through their
Rajiv Gandhi Equity Savings Scheme (RGESS) designated demat account,
depositories may seek necessary transactional details from stock exchanges for
enforcing lock-in (period), among others. "On receipt of such request from
depositories, stock exchanges shall provide the details to depositories on an
immediate basis. It shall also be ensured that a uniform file structure is used by
stock exchanges and depositories for such intimation of transaction details," the
circular said. Sebi said as per the notification, eligible securities brought into the
demat account would automatically be subject to lock-in during the first year,
unless the new investor specifies otherwise. In case there is any specification, the
new retail investors shall submit a declaration indicating that such securities are
not to beincluded within the above limit of investment.

34 | P a g e
BANK PROFILE

UNION BANK OF INDIA

Type : Public company (BSE :532477 )

Industry : Financial services

Headquarter : Mumbai, India

Key people : Mr. Arun Tiwari

(Chairman & MD )

Revenue : 211.44 billion (US$3.5 billion) (2012)

Net income : 17.87 billion (US$290 million) (2012)

Owners : Government of India

Employees : 27,746 (2011)

Website : www.unionbankofindia.co.in

35 | P a g e
3.1 AN OVERVIEW

Union Bank of India (UBI ) ( BSE : 532477 ) is one of the largest government-
owned banks of India (the government owns 60.13% of its share capital). It is
listed on the Forbes 2000 , and has assets of USD 13.45 billion. All the bank's
branches have been networked with its 6420 ATMs. Its online Telebanking facility
are available to all its Core Banking Customers - individual as well as corporate. It
has representative offices in Abu Dhabi, United Arab Emirates , Beijing, Peoples
Republic of China , London, Shanghai, and Sydney, and branches in Hong
Kong,Dubai(Dubai International Financial Centre) and Antwerp, Belgium. The
bank is in the process of upgrading its representative offices in London and Sydney
to branches. UBI is active in promoting financial inclusion policy and is a member
of the Alliance for Financial Inclusion (AFI) .

3.2 HISTORY

Union Bank of India (UBI) was registered on 11 November 1919 as a limited

company in Mumbai and was inaugurated by Mahatma Gandhi, the Father of the
nation and he said on the occasion: "We should have the ability to carry on a big
bank, to manage efficiently crore of rupees in the course of our national activities.
Though we have not many banks amongst us, it does not follow that we are not
capable of efficiently managing crore and tens of crore of rupees."

36 | P a g e
At the time of India's Independence in 1947, UBI only had four branches - three in
Mumbai and one in Saurashtra , all concentrated in key trade centres. After
Independence UBI accelerated its growth and by the time the government
nationalised it in 1969, it had grown to 240 branches in 28 states. Shortly after
nationalisation, UBI merged in Belgaum Bank , a private sector bank established in
1930 that ha itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank.
Then in 1985 UBI merged in Miraj State Bank , which had been established in
1929. In 1999 the Reserve Bank of India requested that UBI acquire Sikkim Bank
in a rescue after extensive irregularities had been discovered at the non-scheduled
bank. Sikkim Bank had eight branches located in the North-east, which was
attractive to UBI.

UBI began its international expansion in 2007 with the opening of representative
offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of
China. The next year, UBI established a branch in Hong Kong, its first branch
outside India. In 2009, UBI opened representative office in Sydney, Australia. At
present, the offshore banking operations of Union Bank of India are led by its
branches in Hong Kong and newly opened branch in Dubai at Dubai International
Financial Centre.

A Brighter FutureMahatma Gandhi's prescient words anticipated the growth of the

bank that has taken place in the decades that followed. The Bank now operates
through over 4000+ branches across the country. The Bank's core values of
prudent management without ignoring opportunities is reflected in the fact that the
Bank has shown uninterrupted profit during all 93 years of its operations.

Union Bank has been playing a very proactive role in the economic growth of
India and it extends credit for the requirements of different sectors of economy.

37 | P a g e
Industries, exports, trading, agriculture, infrastructure and the individual segments
are sectors in which the bank has deployed credit to spur economic growth and to
earn from a well diversified portfolio of assets.

Resources are mobilized through Current, Savings and Term Deposits and through
refinance and borrowings from abroad. The Bank has a large clientele base of over
49 million.

On the technology front the Bank has taken early initiatives and 100% of its
branches are computerized. The Bank has also introduced Core Banking Solution
with connectivity between branches. 100% of the business of the Bank is under
Core Banking Solution making it a leader among its peers in infusion of
technology. Many innovative products are developed using the technology
platform to offer an array of choices to customers, adding speed and convenience
to transactions.

Technology will also enable the Bank to derive substantial cost reduction while
creating the requisite capacity to handle the ever increasing volume of business in a
competitive environment that offers immense opportunities.

At the end of March 2014 the Bank achieved total business level of Rs. 5,32,007 crore (Rupees
five lakh thirty two thousand seven crore) Behind all these achievements is a dedicated team of
staff, which is truly cosmopolitan in its composition. Many generations of members of staff have
contributed in building up the strong edifice of the Bank. The present team of over 31,000
members of staff distinguishes itself with its customer centricity, willingness to learn and
adherence to values enabling us to be recognized as a caring organization where people enjoy
their work and relationship with customers.

38 | P a g e
3.3 CORPORATE VISION

 To become the bank of first choice in our chosen areas by building

beneficial and lasting relationships with customers through a process of
continuous improvement

3.4 CORPORATE MISSION

 To be a customer centric organization known for its differentiated customer

service
 To offer a comprehensive range of products to meet all financial needs of
customers
 To be a top creator of shareholder wealth through focus on profitable growth
 To be a young organization leveraging on technology & an experienced
workforce
 To be the most trusted brand, admired by all stakeholders
 To be a leader in the area of Financial Inclusion.

39 | P a g e
3.5 AWARDS & COMMENDATIONS

Union Bank of India has been the proud recipient of many awards and
commendations. Union Bank of India won 6 IBA (Indian Bank Association)
Technology Awards under following categories

Winner

 Best Payment Initiatives Runner up

 Best Technology Bank of the year
 Best Risk Management & Security
 Best use of Mobility Technology
 Best Internet Bank
 Best Use of Technology in Training and Learning Initiative

Union Bank of India bags Financial Inclusion Technology Initiative award in the
Global Conference on Financial Inclusion & Payment Systems Union Bank bags
First prize under RBI Rajbhasha Shield and Second prize under Bilingual House
Journal Competition from Reserve Bank of India. UBI bags IDRBT IT Excellance
Awards 2012-13 under following categories

 IT Excellance Award for "Best IT Team"

 Special Award for "Technology for FI"
 Special Award for "Managing IT Risk."

The Dale Carnegie Leadership Award was conferred on Union Bank of India on
28th October 2010 by Dale Carnegie Training for the Bank's transformation
initiatives undertaken through project Nav Nirman.

40 | P a g e
UBI has been the winner of Association of Business Communicators of India
(ABCI) Gold Award for marketing and Brand Communications, 2010. The award
is in recognition of the transformation process undertaken by the Bank.

UBI was ranked as the 275th most valuable global banking brand for calendar year
2009, up from 351st rank in 2008.

The ranking is carried by Brand Finance Plc, an independent intangible asset

valuation and brand strategy global firm.

The brand value rating for Union Bank is A+ (A means strong) compared to BB
(BB means Average) in previous

Bank's brand value increased by 148% during the calendar year 2009.

The Asian Banker ranked Union Bank of India the 7th Strongest Bank in Asia-
Pacific Region in 2009. The Bank was ranked at No. 3 amongst banks in India.

UBI has participated in the prestigious Banking Technology Awards 2009

conducted by IBA-TFCI award and bagged the Best User of Business Intelligence
award.

Union Bank of India was awarded the prestigious Skoch Challenger Award 2009
for excellence in capacity building through innovative concept of 'Village
Knowledge Centre' as part of financial inclusion initiatives.

41 | P a g e
Case study and analysis

FIGURE.1

20

18

16
NO.OF CUSTOMERS

14

12

10

0
QUESTION 3 QUESTION 4 QUESTION 7 QUESTION 8

As fig.1 shows that question no.1 is whether customers know what is PARDHAN
MANTRI JAN DHAN YOJNA in that 18 customers out of 20 customers knows
what is PMJDY ,while to customers don’t know what is PMJDY.

QUESTION NO.3 shows that how many customers think that PMJDY is helpful
for people ,16 customers out of 20 customers says that it is helpful for people but 4
customers think that it is not helpful for the customers .

42 | P a g e
Question no.4 shows whether customers have an account under PMJDY or not
,19ustmers have an account under PMJDY ,while only 1 customers does not have
an account under PMJDY.

Question no.7 shows that whether bank is providing service properly to customers
or not ,in that 12 customers are satisfied with the services of bank but 8 customers
are not satisfied because they think bank is enable to provide properly due to
increase in customers .

Question no. 8 state that 15 customers think that bank is efficiently solving that
problems regarding PMJDY while 5 customers think that bank does not provide
service efficiently .

43 | P a g e
FIGURE.2

PERCENTAGE
70

60

50

40

30 PERCENTAGE

20

10

0
ADVERTISEMENT NEWS PAPER FIERNDS VISIT IN BANK OTHERS

As fig 2 shows that percentage of customers come to know about PRADHAN

MANTRI JAN DHAN YOJANA 60 percent through ADVERTISEMENT,10
percent through NEWSPAPER,5 percent through FRIENDS, 20 percent through
VISIT IN BANK and 5 percent through OTHERS.

44 | P a g e
FIGURE 3

CUSTOMERS

EASY
HARD

Fig 3 shows about the process of the opening an saving bank account in
PRADHAN MANTRI JAN DHAN YOJANA in that 15 customers thinks that the
accounting process under PMJDY is EASY while 5 customers thinks that the
account opening process is hard

45 | P a g e
FIGURE 4

MEMBER OF FAMILY

1 MEMBER
MORE THAN 2

Fig 4 shows the member of family have an account under PRADHAN MANTRI
JAN DHAN YOJANA which shows that 11 customers out of 20 customer have
atleast one account in their family members under PRADHAN MANTRI JAN
DHAN YOJANA and 9 customers have more than 2 accounts under PRADHAN
MANTRI JAN DHAN YOJANA in their

46 | P a g e
CONCLUSION

There are lots of indirect benefits of PradhanMantri Jan Dhan Yojana but there are
some major benefits,such as Get interest (4% per annum) on Money deposit (same
as saving account).You will get RuPay debit card, by which you can withdraw
money from any ATM, anytime, anywhere.you will get Rs 1 lakh accident
insurance cover, and an additional Rs. 30,000/- life insurance cover for those
opening bank accounts before January 26th, 2015. No requirement of maintaining
minimum balance.You can transfer money to any account in India, anywhere,
anytime.you can get money of government schemes directly in your bank
account.You will get overdraft facility after operating bank account for 6
month.you will get benefit of insurance, pension plans etc.

The PMJDY has been conceived as a national mission on financial inclusion with
the objective of covering all households in the country with banking facilities and
having a bank account for each household. The scheme, pushed by the government
in a mission mode, seeks to provide two accounts to 7.5 crore identified
households by August 2018. PMJDY lies at the core of Prime Minister Narendra
Modi-led governments development philosophy of Sab Ka Sath Sab Ka Vikas.

47 | P a g e
REFERENCES

NEWSPAPER

 Hindustan Times
 Times Of India
 Economic Times

WEBSITES

 Indiamicrofinance.com/pmjdy
 www.money control.com
 www.maxnewinfo.com
 www.niticentral.com

48 | P a g e
ANNEXTURE

QUESTIONNAIRE FOR CUSTOMERS

PERSONAL DETAILS:

1. NAME: ____________________________________________________

2.ADDRESS:_______________________________________________________
__________________________________________________________________
___________________________________________________

3. CONTACT DETAILS: (M) :- ___________________________________

4. GENDER: MALE / FEMALE

5. AGE:______ YEARS

6. OCCUPATION: _____________________________________________

QUESTIONS ON SURVEY:

1) Do you know what is PRADHAN MANTRI JAN DHAN YOJANA?

Yes ( ) No ( )

2) How did you come to know about PMJDY?

Advertisement ( )

49 | P a g e
 Newspaper ( )

Friends ( )

Visit in bank ( )

others. ( )

3) Did you think that PMJDY is helpful for people ?

Yes ( ) No ( )

How?

_____________________________________________________________

4) Do you have an account under PMJDY?

Yes ( ) No ( )

5) How was the process of opening an saving account in PMJDY?

Easy ( )

Hard ( )

6) How many member of your family have an saving account in this scheme?

1 member ( )

50 | P a g e
 2 or more ( )

7) Due to increase in customers is bank providing you service properly ?

Yes ( ) No ( )

8) Do you think bank is efficient in resolving customers problem regarding

PMJDY?

Yes ( ) No ( )

!!! Thank You !!!

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