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Jandhan Yojna: targets achieved & surpassed

The financial inclusion project (FIP) of Dena Bank is progressing well and the bank has covered all 6481 villages, allotted to it by SLBC / lead banks in various states, either through branch or business correspondents for extending banking services to the habitants of theses villages. All the households in these villages have been covered with at least one basic bank account. “We have opened 400,679 new saving accounts and carried out 16,21,006 transactions through BCs during Q1 2015-16, registering yoy growth of more than 204% for account opening and 15 times growth for transactions, which is mainly due to implementation of Pradhan Mantri Jan Dhan Yojana and technology up gradation initiated by the bank,” says K.C. Chhipa, GM, Priority Sector & RRB, Dena Bank.

Central Bank of India has been able to garner FI business to the tune of Rs157 crore as of Q1 2015-16, registering yoy growth of 109%.According to R.B. Gupta, GM, Priority Sector / Financial Inclusion of the bank, over 65 lakh BSBD accounts (yoy growth 24%) have been opened and 23.42 lakh transactions (130% yoy) have been made through the BC network.

Bank of Baroda too has surpassed all targets of ‘Disaggregated FIP 2016’ in December 2014 itself. For FY 2015-16, the bank has surpassed annual Basic Saving Bank Deposit Account (BSBDAs) opening and amount targets, with achievement being 187.15% and 149% respectively. It has also achieved annual targets for BC appointment (157%), for number of transactions and amount of transactions in FI accounts opened through BC (158% and 395.5% respectively) and for OD facility in BSBDA amount (155%). The bank has also achieved urban ward coverage targets and 97% of target for opening of branches in unbanked villages for 2015-16. Says G.B. Bhuyan, GM, Financial Inclusion: “What the bank has achieved by July 2015 against the set targets to be achieved by March 2016 is as follows: opened 5226 branches by July 2015 against targeted 5450 branches; 8899 BCAs deployed against target 5503; 4248 banking outlets opened in villages with population 2000+ against targeted 4228; 17783 banking outlets in villages with population under 2000 against targeted 17,298; 2593 BC outlets in urban locations against targeted 760 outlets. Some 63.52 lakh basic savings bank deposits account (BSBDAs) opened through BCs against targeted 23.89 lakh and Rs441 crore deposited in such BSBDAs against targeted Rs60 crore.”


Three states – Gujarat, Maharashtra and Chhattisgarh – topped in implementing FI agenda of the Dena Bank as of Q1 2015-16. Chhipa says 167,153 accounts have been opened in Gujarat, 51,630 in Maharashtra and 37,498 in Chhattisgarh. “In terms of number of transactions, Gujarat has been way ahead with 989,490 transactions, whereas Maharashtra and Chhattisgarh have come distant second and third with 235,659 and 253,888 transactions respectively,” he adds.

Uttar Pradesh, Rajasthan and Gujarat have topped in implementing FI agenda for BoB. As of Q1 2015-16, UP covered the maximum number of villages – 6321- followed by Gujarat – 4113 – and Rajasthan – 1436. Rajasthan deployed maximum number of BCs – 4468, followed by UP – 2411 and Gujarat – 1313.

In the case of Central Bank of India, Uttar Pradesh, Madhya Pradesh and West Bengal are the 3 toppers in implementing FI agenda. Gupta says in UP, the bank has provided business of Rs64.22 crore by opening 13.47 lakh numbers of BSBD accounts. The MP business reached Rs35.2 crore (13.46 lakh BSBD accounts) and in West Bengal,it was Rs13.73 crore (5.16 lakh BSBD accounts).”


Bank of Baroda has appointed 8645 BCs as of Q1 2015-16 across the country. It provides training to BCs at district / regional level to make them effective and efficient.

Since Dena Bank has already engaged required number of BCs to cover the allotted villages and no new BCs were appointed during Q1 2015. However, in case existing BCs resigned or were discontinued due to non-performance, the same were replaced with new BCs. The bank has provided all BCs with UIDAI/IBA standard 1.5.1 version micro ATMs capable of interoperable Aadhhar Enabled (EAPS), and RuPay card enabled transactions. All the micro ATMs are connected to the financial inclusion gateway set of the bank and all transaction are taking place on line and real time, says Chippa.

As of Q1 2015-16, 6386 BCs are working for Central Bank of India. SHGs and NGOs are not appointed for implementation of ITeFI so far. Says Gupta: “The servers of the hand held devices of BCs are connected through the Corporate BC/TSP’s server which in turn is connected through our bank’s CBS gateway which enables online transaction at BC terminal on real time basis.”


Network connectivity is the primary problem facing all these banks. Dena Bank has tried installing network antennas to overcome the problem and it has been successful to some extent. Gupta says in the starting phase there were obsolete hand held devices, but now these has been updated to micro ATM 1.5.1 version. Earlier, account opening through e-KYC, AEPS transactions, RuPay Card transactions were not possible. But now with the introduction of Aadhaar and micro ATM these tasks have become possible.

The second most important problem is low level of financial literacy for which all banks have been undertaking a variety of activities. The third problem is low confidence about banking services and low awareness among the villagers on the government benefit schemes.


In order to maintain the balance in accounts and to refrain from making them inoperative, CBI has been providing financial literacy to customers through FLCCs, motivating them to retain some deposits in their accounts, making them aware of the disadvantages of inoperative accounts and motivating them to make regular transactions so that after a period of satisfactory transactions, they will be entitield for OD facility. Inoperative account disqualifies the customer from the insurance cover, says Gupta, adding through BC mode, the customers are getting services at their doorstep which also motivates them as they do not have to forgo one day’s earning because earlier they used to go to the branch to withdraw money.


Bank of Baroda offers cardless solutions for transaction at its BC points. Transactions are processed either through biometric authentication or Aadhaar based authentication online realtime. The bank has issued 1.29 million KCCs with outstanding amount of Rs16,650 crore.

In Dena Bank’s case, all the transactions done at BCs locations are through biometric authentication from the bank’s own data base or UIDAI data base (AEPS transactions). Says Chhipa: “Our bank has cardless solution for FI transactions and no biometric cards are issued to customers.”

Even Central Bank of India has dispensed with biometric cards or smart cards after introduction of online transaction since last year. Gupta says as of Q1 2015-16, 395 KCCs have been issued to farmers through BCs in our bank.”


Bank of Baroda has made significant progress in PMJDY. It could mobilize deposits to the tune of Rs1586 crore and 14,284 overdrafts, amounting to Rs421.21 lakh, have been disbursed. Bhuyan says Aadhaar seeding has taken place for over 4 million accounts and e-KYC compliant accounts are over 1.5 lakh. The number of PMJDY enrolment exceeds 1.3 million and PMSBY 3.6 million.

For Central Bank of India over 3 million accounts have been seeded with Aadhaar as on 28 September 2015 under PMJDY. Nearly 25 lakh accounts have zero balance and over 6 million passbooks have been issued. Says Gupta: “The outstanding balance in these accounts has increased to Rs558.3 crore from Rs449.25 crore as on 30 June 2015.

Status of Accounts opened under PMJDY as on August 12, 2015

No of Accounts (In crore)




No of Rupay Debit Cards

Balance in Accounts (Rs crore)

% of Zero Balance Accounts

Public Sector Banks







Regional Rural Bank







Private Banks














Source: PMJDY Website, ICRA


The performance of PMJDY in Bank of Baroda has been phenomenal. Over the period of 1 year, the scheme has been able to mobilize Rs1586 crore. According to Bhuyan, during the initial period, the entire chunk of deposit came in from only 25% of the accounts. Majority of the accounts were zero balance or inactive. However, after continuous efforts put in by the branches, only 34% accounts remain unfunded or inactive, he says. Moreover, introduction of micro insurance schemes have also contributed significantly towards funding in accounts and consequent reduction of zero balance and inactive accounts.

Due to various government-initiated financial literacy initiatives and due to the launching of social security schemes, about 60% PMJDY accounts at Dena Bank have balances.

Central Bank of India has found that households having accounts in the bank have relatively more savings. Accidental insurance of Rs1 lakh and life insurance of Rs30,000 provided by RuPay debit cards are the most attractive features in this scheme. Many customers have received their claim timely. Leakages found earlier are reducing. Customers are now capable of withdrawing money through ATMs and PoS. Gupta says customers are now getting benefit of OD facility of Rs5000 which is a needy help and an alternative to borrowing funds from informal sectors.


For FY 2015-16, Bank of Baroda has decided to add new corporate BCs for strengthening the BC network and upgradation of BC applications for improved performance. Bhuyan says the bank will set up 1000 new urban kiosk points and deploy 10,000 BCs during FY 2015-16.

The bank’s targets under Jandhan are to open a bank account for every individual above the age of 10 years, to grant overdraft and micro credit to every BSBD account holder and to link Aadhaar number of every account holders of bank. “We will strive hard to provide social security through micro insurance schemes to every BSBD account holder and old age security in the form of Atal Pension Scheme to take care of uncertainties in the life of deprived and under privileged citizens of the society,” says Bhuyan

Funding of zero balance accounts by customers to bring down the percentage of such accounts to 30% is one of the major targets of Dena Bank under FI initiatives. Chhipa says the bank is in the process of implementing RuPay card-based transactions and the same is expected to be completed by end of October 2015.

Central Bank of India targets FI business to be of Rs175 crore and FI accounts and transactions through BC outlets to be 69 lakh and 78.7 lakh respectively. “We have targeted reduction of inoperative accounts to be 20% of accounts opened,” says Gupta

The bank has targeted Aadhaar seeding to be 70% under PMJDY. Gupta says the bank has decided to achieve 100% issuance of passbook, 100% reduction of zero balance accounts, 100% activation of RuPay cards and 100% hand held devices with micro ATM version 1.5.1 under PMJDY.

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