Banks spent Rs 2,000 crore for opening accounts under Jan Dhan Yojana: IBA chairmanSays opening an account costs Rs 140 against estimates of Rs 80BS Reporter |ChennaiFebruary 3, 2015Last Updated at 09:36 IST

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The Pradhan Mantri Jan-Dhan Yojana (PMJDY), the financial inclusion programme launched in the end of August, 2014, has costbanksaround Rs 2,000 crore, according to T M Bhasin, chairman ofIndian Banks Assoiciation(IBA) and chairman and managing director, Indian Bank.

Opening one account under the scheme costs around Rs 140 as against the estimate of Rs 80 per account, he added.

"All banks put together incurred a cost of around Rs 2,000 crore for PMJDY... Initially we were expecting that it will be Rs 80 for opening an account and Rs 40 for transactions," he said.

There was a meeting two days back with the government and these details have been discussed there, he added.

"Banks have been incurring a cost of Rs 140 on each account. If we take the banking correspondents, there are around 1.50 lakh BCs across the country. Even if you calculate Rs 1,000 per month, it will cost you an amount. Then there are costs for connectivity, handheld devices for which the bank has to pay. Rupay card is costing Rs 20 each and there are costs for activation, PIN generation, posting etc," he said.

For the urban PMJDY accounts, banks will not get anything except some charges, but for rural accounts, since the BCs are involved, 1% of the amount transferred along with the NEFT and Aadhar commission would come to the banks, Bhasin added.

Around 12.4 crore acounts have been opened under the scheme, as on January 30, 2015.

Bhasin said that around Rs 10,300 crore is lying in these accounts at present. Around Rs 52,000 crore would be distributed during the next fiscal year through these accounts. At present, around 73% accounts are lying as zero balance and activation of these accounts will happen once the subsidies starts flowing. This will make the system automatically viable, he added.Karnataka reaches saturation in Jan Dhan Yojana expansionSince the launch of the scheme on August 28, 2014, banks have achieved a 98.37 per cent progress in the stateBS Reporter |BengaluruMarch 3, 2015Last Updated at 20:40 ISTBest SIP Investment Plans

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RELATED NEWS Jan Dhan Yojana crosses 100-mn mark 87.6 million accounts opened under Jan Dhan Yojana Banks achieve 80-95% target in Jan Dhan Yojana in Karnataka A life cover to cost Rs 90 under Jan Dhan Yojana Banks in Punjab opened 29.45 lakh a/c under Jan Dhan Yojna

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Karnataka has been declared as saturated in implementation of the Prime MinistersJan Dhan Yojana(PMJDY) by the State Level Monitoring Committee. Since the launch of the PMJDY on August 28, 2014, banks have achieved a 98.37 per cent progress in the state, the State Level Bankers Committee (SLBC) said.

Banks have completed household survey in all the 7,627 sub-service areas (SSAs) and 4,559 wards in Karnataka state, covering 8.06 million households in SSAs and 5.13 million households in wards (totaling 13.20 million). As against this, banks have covered 7.96 million households in SSAs and 5.02 million households in wards by opening a minimum one account per household, thereby achieving a 98.37 per cent progress, T K Srivastava, executive director of Syndicate Bank and convener of SLBC said.

The first important milestone of opening at least one bank account in the name of the family head of all the households in the state has been achieved. Now, the important task before us is to ensure that all the accounts opened do not continue with zero balance, he said at the 130th meeting of SLBC, here on Tuesday. He said the issue ofRuPay cardsand their delivery, ensuring regular transactions in all these accounts and Aadhaar-linkage for the smooth transfer of funds is the next challenge for banks. Proper support and coordination amongst banks, government agencies, OMCs is imperative for hassle free transfer of funds/benefits directly to the beneficiaries accounts, he said.

I appeal to the banks to extend the overdraft facility to all eligible account holders as per the norms after proper counselling. Banks should make sure that all the BCs appointed are made to function properly and they have the approved handheld device of 1.5.1 version fully active and operational for the AEPS and Rupay transaction, Srivastava said.

Speaking on the occasion, Latha Krishna Rau, additional chief secretary and development commissioner, government of Karnataka, brought to the notice of the SLBC that the distribution of Rupay cards was inadequate and told the banks to ensure a proper distribution across the state.

She also suggested that the distribution of benefits should not be denied just because consumers are not linked their accounts with Aadhaar numbers.

Since the launch of the PMJDY programme and up to February 14, 2015, the banks have opened 6.22 million basic savings bank deposit accounts in Karnataka. Of these, 3.66 million accounts allow for zero balance and the remaining 2.56 million accounts have a balance of Rs 426.72 crore. The total number of accounts with Aadhaar seeding is 3.57 million. The number of accounts in the rural areas is 3.81 million and in urban areas it is 2.40 million. The banks have so far issued 5.15 million Rupay cards.

Of the 7,627 SSAs allotted, 5,293 are covered under fixed BC locations, 2,302 covered through branches, 5 covered through mobile vans and 27 SSAs are yet to be covered.RuPay cards: NPCI gets 9 bids for insurance coverThe last day for receiving quotations ended on Feb 20; the winner of the bidding process will be announced next weekNupur Anand |MumbaiFebruary 21, 2015Last Updated at 22:40 ISTSmall Investment Options

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RELATED NEWS NPCI receives nine bids for providing accidental insurance cover on RuPay cards Jan Dhan: Inclusion scheme excludes most Jan Dhan Yojana: Many questions remain No more confusion: Plain vanilla insurance products coming up Jan Dhan Yojana: Clarity awaited on insurance

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National Payments Corporation of India (NPCI), the issuer ofRuPaycards, has received nine bids to provide accidentinsurancecover on the debit cards issued as a part of the Pradhan Mantri Jan Dhan Yojana.

The last day for receiving quotations ended on February 20. The winner of the bidding process will be announced in the next week. As part of the process, the insurance company will be providing a cover of Rs 1 lakh that can be claimed in case of death or permanent disability on cards issued under the scheme.

In the last round, HDFC Ergo had won the mandate to provide general insurance cover on RuPay cards. The companys contract will end on March 31, 2015. Even this time, both public and private sector companies have participated in the bidding process.

The accidental insurance cover on the cards issued under the scheme so far will be active only if the card has been swiped before 45 days at any Merchant Establishment/ATM /e-commerce /Micro ATM/Business Correspondent of the bank. However, the government wants the no-swipe period to be extended to 180 days. As a result, this time around bids have been invited for a no-swipe period of 45, 90 and 180 days.

In the last round,NPCIhad managed to retain the minimum one swipe before 45 days as the cost will balloon if the period is extended to 90 or 180 days. NPCI believes that this clause is necessary to keep the card active and encourage transactions.

This time around, we will see the quotation for the all three cases and will send the minimum amount that has been quoted to the government for 90 and 180 days. If they are willing to pay the incremental price difference arising out of an extended tenure then we can look at increasing the no-swipe day else we will have to evaluate, said a person familiar to the development.

Currently only NPCI pays the insurance premium which works out to be under Re 1.

A P Hota, managing director & chief executive officer of NPCI, said bids have been received and the process is likely to be completed next week.

At the end of January, a total of 12.54 crore accounts have been opened under thePMJDYscheme and a total of 11.07 crore RuPay cards have been issued.

SWIPE AND CLAIM

The accidental insurance cover on these cards issued so far will be active only if the card has been swiped before 45 days at any ATM of the bank The govt wants the no-swipe period to be extended to 180 days As a result, this time around bids have been invited for a no-swipe period of 45, 90 & 180 days In the last round, NPCI had managed to retain the min one swipe before 45 daysRuPay cards: NPCI gets 9 bids for insurance coverThe last day for receiving quotations ended on Feb 20; the winner of the bidding process will be announced next weekNupur Anand |MumbaiFebruary 21, 2015Last Updated at 22:40 ISTSmall Investment Options

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Tweet1Add to My Page

RELATED NEWS NPCI receives nine bids for providing accidental insurance cover on RuPay cards Jan Dhan: Inclusion scheme excludes most Jan Dhan Yojana: Many questions remain No more confusion: Plain vanilla insurance products coming up Jan Dhan Yojana: Clarity awaited on insurance

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National Payments Corporation of India (NPCI), the issuer ofRuPaycards, has received nine bids to provide accidentinsurancecover on the debit cards issued as a part of the Pradhan Mantri Jan Dhan Yojana.

The last day for receiving quotations ended on February 20. The winner of the bidding process will be announced in the next week. As part of the process, the insurance company will be providing a cover of Rs 1 lakh that can be claimed in case of death or permanent disability on cards issued under the scheme.

In the last round, HDFC Ergo had won the mandate to provide general insurance cover on RuPay cards. The companys contract will end on March 31, 2015. Even this time, both public and private sector companies have participated in the bidding process.

The accidental insurance cover on the cards issued under the scheme so far will be active only if the card has been swiped before 45 days at any Merchant Establishment/ATM /e-commerce /Micro ATM/Business Correspondent of the bank. However, the government wants the no-swipe period to be extended to 180 days. As a result, this time around bids have been invited for a no-swipe period of 45, 90 and 180 days.

In the last round,NPCIhad managed to retain the minimum one swipe before 45 days as the cost will balloon if the period is extended to 90 or 180 days. NPCI believes that this clause is necessary to keep the card active and encourage transactions.

This time around, we will see the quotation for the all three cases and will send the minimum amount that has been quoted to the government for 90 and 180 days. If they are willing to pay the incremental price difference arising out of an extended tenure then we can look at increasing the no-swipe day else we will have to evaluate, said a person familiar to the development.

Currently only NPCI pays the insurance premium which works out to be under Re 1.

A P Hota, managing director & chief executive officer of NPCI, said bids have been received and the process is likely to be completed next week.

At the end of January, a total of 12.54 crore accounts have been opened under thePMJDYscheme and a total of 11.07 crore RuPay cards have been issued.

SWIPE AND CLAIM

The accidental insurance cover on these cards issued so far will be active only if the card has been swiped before 45 days at any ATM of the bank The govt wants the no-swipe period to be extended to 180 days As a result, this time around bids have been invited for a no-swipe period of 45, 90 & 180 days In the last round, NPCI had managed to retain the min one swipe before 45 days