8132 - Jan Dhan rolls on, but ‘dhan’ in accounts slow to accrue - The Hindu

BENGALURU, June 11, 2015

Jan Dhan rolls on, but ‘dhan’ in accounts slow to accrue

BAGESHREE S.

About 47 per cent of bank accounts opened under the Pradhan Mantri Jan-Dhan Yojana in Karnataka have zero balance

Banks in Karnataka have gone about creating no-frills accounts under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) with great zeal and created close to 72 lakh accounts since August 15, 2014. The difficult task, however, has been ensuring transactions through the accounts, with nearly half of them categorised as ‘zero-balance’ accounts as of now.

Massive drive

Statistics accessed through SyndicateBank, Karnataka’s nodal bank for the scheme, shows that banks in Karnataka created 71.68 lakh accounts under the PMJDY between August 15, 2014 and May 23, 2015. Of them, 33.88 lakh are zero-balance accounts, which translates to 47.27 per cent.

K. Preetam Lal, General Manager of SyndicateBank, said population in the State yet to have bank account was “less than one per cent”, which includes migrant workers and people in very remote areas. He said the banks had not insisted on opening with a balance in the first phase, but the next target was making them operational, which they hope to achieve by the year-end.

A micro reading of the zero-balance accounts across districts under this much-talked-about financial inclusion mission throws up some interesting patterns. Predictably, many districts with over 50 per cent zero-balance accounts lie in north Karnataka, with Bagalkot (61.19 per cent), Haveri (60.64 per cent), Koppal (57.95 per cent), Vijayapura (56.64 per cent) and Ballari (56.42 per cent) among the toppers.

The contrast

However, it is Bengaluru Rural district that has the maximum number of zero-balance accounts (81.15 per cent). In contrast, Bengaluru Urban district has the least number of zero-balance accounts, at 29.87 per cent.

OD, but only with Aadhaar

People opening the PMJDY account are entitled to overdraft (OD) facility, but conditions apply. The account-holder should have “satisfactory” transaction for six months and he/she should be the head of the family. Another important condition is that he/she should mandatorily have an Aadhaar card, which is important for “reasons of regulation”. As of now, of the 71.68 lakh accounts, 41.25 lakh are Aadhaar-seeded accounts.

Reluctance for RuPay card

A PMJDY card holder is entitled to a RuPay debit card, but a substantial number of those who are entitled for the cards do not appear to be interested in taking them. As per the records, though 63.79 lakh debit cards have been issued, banks have reported that about 20 per cent of them have not been collected by beneficiaries.

* Total number of PMJDY accounts in State: 71,68,528

* Total number of accounts with zero balance: 33,88,737

* Total number of Aadhaar-seeded accounts: 41,25,839

* Total balance in accounts: Rs. 641.93 crore

* RuPay debit cards issued: 63,79,177

7711 - ‘Issue RuPay cards under Jan Dhan Scheme speedily’ - The Hindu

UDUPI, April 1, 2015

Updated: April 1, 2015 05:42 IST

‘Issue RuPay cards under Jan Dhan Scheme speedily’

SPECIAL CORRESPONDENT

H.V. Bharmgoudar, Regional Manager of Syndicate Bank, said that banks should expedite issuance of RuPay debit cards under Pradhan Mantri Jan Dhan Yojana (PMJDY).

He was speaking at the quarterly meeting of the District Level Review Committee meeting for banking development, here.

Mr. Bharmgoudar said that banks should issue pass books and RuPay debit cards to customers. This would help to increase activation of RuPay cards. The customers should be informed of all the benefits of the PMJDY. Many customers had still not got RuPay cards.

These RuPay cards should be provided by the branches of different banks. According to an estimate, about 50 per cent of those who had opened their accounts were not using them. It was necessary to tell people that if they operated their accounts they would get overdraft facility and insurance coverage, he said.

M. Kangavalli, CEO of Zilla Panchayat, said that Aadhaar enrolment camps were being held in rural areas through the lead bank by the administration. Special Aadhaar enrolment camps should be held for physically challenged in rural areas in the coming days, she said.

There was nearly 500 per cent achievement in the Prime Minister’s Employment Generation Programme being implemented by various departments. There was significant achievement in the implementation of welfare programmes for Backward Classes and Minority communities, she said.

Ms. Kanagavalli also released a booklet on District Credit Plan for 2015-16 on the occasion.

7416 - NPCI to come out with virtual form of RuPay debit card - Economic Times

NPCI to come out with virtual form of RuPay debit card

PTI Feb 18, 2015, 09.23PM IST

MUMBAI: After launching the RuPay debit card, National Payments Corp (NPCI) is set to come out with its virtual form in the next few months, a move that will give further push to smartphone-based transactions.

"We are planning to go for pilot of a virtual RuPay card over the next 4-5 months," NPCI Managing Director and Chief Executive A P Hota said here today.

NPCI is the nodal agency for all retail payment systems under the Jan Dhan scheme.

The physical plastic RuPay card carries a 16-digit number. Under the virtual form, there will be no need of a physical card and a transaction can be done with the help of the 16-digit number alone.

The initiative will enable all account-holders send and receive money from their smartphones with a single identifier which may include the Aadhaar number, mobile number or virtual payment address without entering any bank account information.

Average value of the card payment system per head as on date was Rs 1,500 and an average remittance stands at Rs 2,500. Under the new virtual system, the amount would be much less and may include school fee and grocery payments, he said.

The proposed payments banks are likely to provide this virtual card facility from the beginning, Hota said. "The specifications standards are now available for payments banks and hence it is a great opportunity for them."

Around Rs 8,000 crore worth of transactions are taking place through IMPS (immediate payment service) per month. What we are doing now is just putting another extra layer on the already existing system so as to make transaction more easy, Hota explained.

Currently, only around 20 per cent of the total transactions are happening through IMPS and hence NPCI is working on further simplification of the facility so as to make it more popular in future, he added.

Talking about authentication system for the virtual RuPay card, former Chairman of UIDAI Nandan Nilekani said "with everybody having cellphones, going forward the single- factor authentication can be the cellphone, replacing the physical cards."

"Later, Aadhaar-based authentication will come on mobile phone in 12-18 months. Second factor of authentication will be the Aadhaar number. We hope millions of transactions to take place through this mode in the country in days to come," Nilekani said.

7146 - Bank accounts for all set to become a reality - Business Standard

Bank accounts for all set to become a reality

Fin Min says 98.4% households now have bank accounts; Jan Dhan crosses the 100 million mark

BS Reporter  |  Pune  January 2, 2015 Last Updated at 19:13 IST

Financial Services Secretary Hasmukh Adhia (let) addressing a press conference on the inaugural day of the two-day 'Gyan Sangam', retreat of bankers in Pune

The ambitious financial inclusion plan of the government under the Pradhan Mantri Jan Dhan Yojana has inched a step closer to achieve financial inclusion for all with 98.4 per cent of households in the country have bank accounts now.

Under the Pradhan Mantri Jan Dhan Yojna which was unveiled by the Prime Minister Narendra Modi, a target of opening 75 million accounts was set by 26 January which was later revised to 100 million.

“10.3 crore (103 million) new accounts have been opened in the last three months under the Jan-Dhan yojana. By now 98.41 per cent of the households are covered under the Jan-Dhan scheme,” said Hasmukh  Adhia, Secretary, Department of Financial Services.

Banks have managed to achieve the stiff target of opening 100 milion bank accounts a month before the 26 January deadline.

Adhia said banks had conducted survey of household  in which 219 million households, of which 98.4 per cent respondents said they have a bank account. According to the last census, there are 250 million households in the country.

“There are 3 crore to 4 crore (30 million to 40 million) who are effluent sections of the society and declined to take part of the survey,” Adhia said.

Adhia added that RuPay cards have been issued to 79.7 per cent of the accounts. The government is also working on seeding the Aadhaar number with the bank accounts, 33 per cent of the accounts have already been synced with the Aadhaar numbers. At present, it is not mandatory for accounts to be seeded with Aadhaar for DBT benefits. But the banks have been advised to do so to make DBT transfers easy.

However a majority of accounts are still inactive with zero balance and it is a big challenge for the banks is to mobilise savings in these accounts.

“We will be deliberating on how to keep the accounts active. We will have to see how to mobilise savings rate from 30 percent currently to 35 per cent of gross domestic product (GDP). We will also have to see how to use these accounts for Direct Benefit Transfer, pension distribution etc,” added Adhia.

In order to deepen financial inclusion now the finance ministry will be getting into an “open challenge mode” for opening accounts under the Jan Dhan scheme.

This will be announced once the 100 per cent target is achieved.

“Under this anyone who does not have an account can approach a bank and an account will be opened immediately,” explained Adhia.

7102 - India needs at least 3 lakh ATMs: NPCI chief - The Hindu Businessline

India needs at least 3 lakh ATMs: NPCI chief

K RAM KUMAR

Abhaya Prasad Hota, MD and CEO, National Payments Corporation of India

‘With so many accounts and debit cards being issued under Jan Dhan, the ATM infrastructure needs to be ramped up’

MUMBAI, DECEMBER 22:  

With banks opening millions of accounts and issuing the home-grown ‘RuPay’ debit cards under the Pradhan Mantri Jan Dhan Yojana, the ATM network in the country could see a ramp-up from the current 1.82 lakh to three lakh in the next one-and-a-half years.

Reason: debit card acceptance infrastructure needs to be created so that they can be used for transactions such as withdrawal of money and remittance.

Predicting a jump in ATMs, Abhaya Prasad Hota, MD and CEO, National Payments Corporation of India, said it is important that the card acceptance infrastructure, especially ATMs, is built up.

“How do we build the (card) acceptance infrastructure? That is where the big challenge is…With so many cards being issued, where will they be used unless ATMs are installed? Once the ATM infrastructure is in place, the card usage will increase,” said Hota.

A long way to go

The NPCI chief observed that for such a vast country as India, the current 1.82 lakh ATMs is still a small number. The country needs to have a minimum of three lakh ATMs.

According to latest World Bank data, in terms of the ratio of number of ATMs per lakh adults, India, at 11.21 ATMs, is way below Brazil (118.60) and South Africa (59.93).

“Ideally, per lakh adults, there should be about 20 ATMs. We have got about 11. So, we have a long way to go,” said Hota. As on December 19, banks collectively opened 9.66 crore basic savings bank deposit accounts under Jan Dhan Yojana, which is the Centre’s financial inclusion drive for vulnerable groups such as weaker sections and low-income groups.

Kicked-off in August-end, the Yojana seeks to ensure access to financial services, namely, banking/savings and deposit accounts, remittances, credit, insurance and pension in an affordable manner.

Banks collectively have issued 6.92 crore RuPay debit cards to new account holders. RuPay is the home-grown card payment scheme launched by NPCI, the umbrella institution for all retail payment systems in the country, to rival global payments processing giants Visa and MasterCard.

Non-bank ATMs

The NPCI chief said the increase in the number of RuPay debit cards will encourage the seven white label ATM service providers (non-bank entities which set up, own and operate ATMs) to ramp up their ATM network.

“They (white label ATM service providers) are not making good money.

“But now with so many cards coming, possibly their business sentiment would be revived and they would start installing ATMs,” he said.

PIN, biometric enabled

Since ATMs cannot be installed in every village, the services of business correspondents (BCs) are being engaged by banks to reach out banking services to the hinterland.

These BCs have biometric hand-held devices that are integrated with the bank’s core banking solution platform to enable seamless banking transactions such a withdrawal/ deposit of money, remittance, etc.

According to Hota, the new RuPay debit cards which are being issued under the Jan Dhan scheme are PIN-enabled, and wherever Aadhaar number is available, they are also biometric-enabled.

So, in rural areas the new hand-held devices which have been introduced can accept Aadhaar as well as PIN authentication.

(This article was published on December 22, 2014)

5767 - RuPay cards to replace Aadhaar in welfare scheme authentication - Economic Times

RuPay cards to replace Aadhaar in welfare scheme authentication

By Dheeraj Tiwari & M Rajshekhar, ET Bureau | 9 Aug, 2014, 10.40AM IST

NEW DELHI: The finance ministry has decided to limit Aadhaar's role in its welfare scheme payments and, instead, use ATM-enables RuPay cards for last-mile authentication to withdraw money.

While it will continue to use Aadhaar for opening accounts and to eliminate ghosts and duplicates from beneficiary rolls, the ministry has decided to give RuPay ATM cards with bank accounts being opened under to-be-announced financial inclusion drive, Sampoorn Vittiyea Samaveshan, government offici .. 

With the latest development, Aadhaar will be used to identify bank accounts of beneficiaries, as both bank and government databases will be seeded with the Aadhaar number. However, once the cash flows into the Aadhaar-linked bank account, last-mile authentication when the money is being withdrawn will be done using the authentication systems of either the relevant bank or last-mile service provider such as BCs or a cellphone company.

MS Sriram, visiting faculty at IIM Bangalore's Centre .. 

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