Jan Dhan 2.0: Govt sets fresh target to cover 12 cr unbanked population

After covering households, the government has now moved to open bank accounts under Jan Dhan Yojana to cover every eligible individual who does not have a bank account.

About 12 crore adult population is yet to be covered under the financial inclusion scheme, as per the internal estimates of the finance ministry. So far, the scheme has brought about 31 crore people under the formal banking system. The government also plans to cover all the account holders with its two social security insurance schemes.

Launched in 2014, Pradhan Mantri Jan Dhan Yojana, one of the flagship schemes of the Narendra Modi government, has "so far focused on the household coverage. Now the attention will shift to individual level coverage so that every person has a bank account," a senior finance ministry official told DNA Money.

In the second phase, the government plans to open eight crore Jan Dhan accounts in as many as 48,000 backward villages over next three months from June 1 to August 15. "Once this exercise is completed, we will launch next phase," said a finance ministry official. Earlier, during April-May, 2.85 crore accounts were opened during Gram Swarajya Abhiyan, while 45 lakh new insurance covers were provided to the people in 16,850 villages.

Meanwhile, experts are concerned about the high cost incurred by banks on maintaining Jan Dhan accounts. "It is a good initiative, but more social security schemes need to be added to make it useful for population and viable for banks," said former banking secretary D K Mittal.

Jan Dhan Yojana accounts have total deposits of about Rs 81,000 crore.

As per Global Findex Database released by World Bank, about 19 crore adults are yet to be covered under the financial inclusion scheme as of March 2018. However, the government takes the adult population without a bank account to be in the range of 12 crore, excluding those in the age group of 15 -18 years, said an official. The World Bank report includes adults aged 15-18 years.

The government is also planning to extend the insurance coverage to the people in rural areas under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). In the last three years, only 5.35 people have been covered under PMJJBY. The scheme offers a life cover of Rs 2 lakh for an annual premium of Rs 330 for the age group of 18 to 50 years. This covers death due to any reason.

Similarly, accident insurance scheme PMSBY will be promoted by the government to cover more underprivileged population in the age group of 18 to 70 years. The Rs 2 lakh accident cover can be availed of at an annual premium of Rs 12. It has so far covered 13.55 crore people.

These two insurance schemes, which are administered through the public sector insurance companies, have been started in May 2015.

The two schemes have, however, failed to get a good response, mainly due to lack of awareness among people about these products. "We are creating awareness about social security schemes during Gram Swarajya Abhiyan," said a government official.

THE LAST MAN

• Rs 81,000 crore – Total deposits with Jan Dhan Yojana accounts
   
• Rs 8 crore – Jan Dhan accounts government government plans in 48,000 villages over next three months
   
• Rs 31 crore – people have been covered under the Jan Dhan scheme