Finance Minister Nirmala Sitharaman has instructed the regional rural banks (RRBs) to take steps to remove the duplication of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts and ensure that the benefits of the scheme reach the intended beneficiaries. She also asked the RRBs to facilitate storage facility for apple growers in Jammu and Kashmir and Himachal Pradesh, where the fruit production is high.
PMJDY scheme aims to provide financial inclusion
The PMJDY scheme was launched by Prime Minister Narendra Modi in 2014 with the aim of providing universal access to banking services, especially for the poor and marginalized sections of the society. The scheme offers a basic savings bank account with zero balance requirement, a RuPay debit card, an overdraft facility of up to Rs 10,000, and an accident insurance cover of Rs 2 lakh.
According to the latest data from the PMJDY website, as of August 25, 2023, there are over 43 crore PMJDY accounts in the country, with a total balance of over Rs 1.47 lakh crore. Out of these, about 23 crore accounts are held by women and about 31 crore accounts are in rural and semi-urban areas.
Duplication of PMJDY accounts poses a challenge
However, one of the challenges faced by the PMJDY scheme is the duplication of accounts, which means that some people have more than one PMJDY account or have both a PMJDY account and a non-PMJDY account. This leads to wastage of resources and misuse of benefits.
According to a report by The Indian Express, citing data from the National Payments Corporation of India (NPCI), as of March 31, 2020, there were about 5.9 crore duplicate PMJDY accounts in the country, which accounted for about 14% of the total PMJDY accounts. The report also said that about 3.6 crore PMJDY account holders had received more than one installment of Rs 500 under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), which was announced by the government in March 2020 to provide relief to the poor during the COVID-19 pandemic.
To address this issue, Sitharaman directed the RRBs to remove the duplication of PMJDY accounts and ensure that only one account per person is operational under the scheme. She also urged them to increase the penetration of PMJDY accounts in rural areas and provide better services to the account holders.
RRBs asked to support apple growers in J&K and Himachal Pradesh
Another issue that Sitharaman discussed with the RRBs was the lack of adequate storage facility for apple growers in Jammu and Kashmir and Himachal Pradesh, where apple is one of the major crops. According to a report by The Economic Times, citing data from the Ministry of Agriculture and Farmers Welfare, Jammu and Kashmir produced about 18.28 lakh metric tonnes of apple in 2020-21, while Himachal Pradesh produced about 4.46 lakh metric tonnes.
However, due to various factors such as weather conditions, market fluctuations, transportation issues, and security concerns, many apple growers face difficulties in selling their produce at remunerative prices. Sitharaman asked the RRBs to facilitate storage facility for apple growers in these states, which would help them preserve their produce and sell it at a later date when the demand is high.
RRBs urged to upgrade digital capabilities and support MSMEs
Sitharaman also emphasised on the need to upgrade the digital capabilities of RRBs and instructed Punjab National Bank (PNB), which is the sponsor bank for several RRBs, to ensure that all RRBs under its ambit acquire digital onboarding capability by November 1, 2023. This would enable RRBs to offer online banking services to their customers and compete with other banks in terms of technology.
Additionally, Sitharaman asked RRBs to map their branches with micro, small and medium enterprises (MSMEs) clusters and put greater thrust on increasing lending under Pradhan Mantri Mudra Yojana (PMMY), which provides loans up to Rs 10 lakh to non-corporate and non-farm small businesses. She said that RRBs should support MSMEs in rural areas and help them grow their businesses.
Sitharaman held a review meeting with heads of RRBs of Northern Region on Wednesday, where she discussed various issues related to their performance and functioning. The meeting was attended by officials from the Ministry of Finance, Reserve Bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), state governments, and sponsor banks.
