Duplication of Accounts Under Jan Dhan Yojna on Rise: Survey

Duplication of accounts under the Pradhan Mantri Jan Dhan Yojana is on the rise while 28 per cent of accounts are lying dormant.

Published: 13th March 2016 11:39 AM  |   Last Updated: 13th March 2016 11:39 AM   |  A+A-

By PTI

NEW DELHI: Duplication of accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) is on the rise while 28 per cent of accounts are lying dormant, says a survey by financial inclusion consulting firm MicroSave.

According to the survey, conducted in 42 districts spread across 17 states and one union territory, the reasons for duplication of accounts include misconception that account is only for government benefits/subsidy.

"Around 33 per cent of the customers indicated that PMJDY was not their first account, in comparison to 14 per cent in wave II and I. Hence, indications are that fresh account opening drives are encouraging clients to open a second account. Most of these accounts are not used," the survey said.

MicroSave has been following the progress of PMJDY through three waves (rounds) of surveys. PMJDY Wave-I was conducted in December-2014 followed by Wave-II conducted in July-2015. This report is the third edition of the survey commissioned to examine the progress of PMJDY.

The report noted 31 per cent of multiple account holders (with a bank account in addition to PMJDY) are actively using alternate bank account. While, 28 per cent accounts are dormant - no transactions over the last three months.

 "Customers believed that these accounts will remain active at zero-balance also and there was not much of trigger observed to use them," the survey said.  The survey noted, there has been improvement in Aadhaar linkage status as 62 per cent of the customers interviewed had linked their PMJDY accounts with Aadhaar card, up from 52 per cent in the second round of the survey.

Around 1,627 Bank Mitras and 4,859 customers were covered  in the survey.

Earlier RBI Governor Raghuram Rajan had cautioned banks on the risks involved in just hunting for numbers with regards to Jan Dhan scheme, asking them not to compromise on core objectives of the programme.

Meanwhile, deposits in accounts opened under the government's flagship financial inclusion programme have crossed the Rs 30,000 crore mark. As many as 20.38 crore bank accounts were opened under PMJDY as on January 20.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL2018