Week After PM Launches Jan Dhan Yojana, Madhya Pradesh Has Already Achieved One Third of Its Target

Shivpuri: In just a week after the launch of the Prime Minister Jan Dhan Yojana or PMJY, Madhya Pradesh seems to have taken a lead in its implementation. Nearly 13.85 lakh bank accounts have been opened of which almost 10 lakh are in rural areas.

On August 27, Prime Minister Narendra Modi and his Cabinet colleagues had launched the PMJY scheme as one of their flagship events to promote financial inclusion and bring everyone under the banking system.

For Madhya Pradesh the target is to open around 40 lakh bank accounts by 26 January 2015. But the state has already achieved one-third of its target. And the officials give credit to the state government.

Ashok Kothari, the lead bank officer of Shivpuri district says, "We started working on the scheme two or three days ahead of the launch on August 28. We publicised it and also each bank kiosk in the district had a target of opening 150 accounts. This was done in all districts of state and this way 7-8 lakh accounts were opened and the remaining came to us due to publicity of the scheme."

30-year-old Amar Singh of Sirsaud village has been working at a roadside hotel for the past 18 years. He earns a measly sum of Rs 3000 a month and supports his wife Bimla and Debu.

Amar Singh told NDTV, "I got to know about the scheme after neighbors opened accounts. I also opened an account so that I can save some money for my children and family. Also I can avail an overdraft and I also will get an insurance cover."

Just 11 kms away in Amoli Crusher village, shopkeeper Vijay Jain along with hundreds of other villagers is anxiously waiting for a bank kiosk to open in his area so that he too can open a bank account under the Jan Dhan Yojana and become entitled to a Rs 30000 worth life insurance cover, Rs 1 lakh insurance cover in case of an accident and a Rs 5000 overdraft.

Vijay is among the almost 14 lakh beneficiaries of the scheme in Madhya Pradesh. He barely has enough to save but a week ago he enrolled into the scheme and has opened a zero balance account as the incentive offered under the scheme gives him the hope of a better future for his family.

Vijay says, "Yes I want to open an account under the scheme as there are so many benefits. As I can avail loan, insurance cover and even get benefits of other schemes in future. I know all this as it was in the newspapers."

Jan dhan Yojaya is basically a drive to speed up the financial inclusion scheme which has been progressing at a snail's pace in the country. Insurance cover and over draft benefits certainly seem to be acting as a catalyst. However there are a few terms and conditions which apply. For instance, to avail an overdraft, the person's account should be active for at least six months.

And at this stage insurance aspect of the scheme is even unclear to the bankers. Mr Kothari says,"We still are awaiting details about the life insurance and accidental insurance. At the moment there is no clarity about how much premium is to be paid to the insurance company. Those terms are yet to be discussed by the government and companies."