project report on financial inclusion through the pradhan mantri jan dhan yojana

A study on financial inclusion through the PMJDY

A study on “FINANCIAL INCLUSION THROUGH THE PRADHAN MANTRI JAN-DHAN YOJANA”

With Reference to

BANK OF MAHARASTRA

Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

(2014-2016)

By

Savitribai Phule Pune university, PUNE .

Under the guidence of

Prof. Smita pachare

Submitted By:- Submitted To:-Saroj kr. Sah Savitribai Phule

MBA(Finance) PUNE UNIVERSITY

PUNE

SHREE CHANAKYA EDUCATION SOCITY’S

INDIRA INSTITUTE OF MANAGEMENT, PUNE 85/5-A, “TAPASYA”, New Pune-Mumbai Highway, Tathwade, Pune – 411 033

email: [email protected]


Title page

Title Name Page no.

EXECUTIVE SUMMARY

- Title of the project and organization where project was undertaken

- Importance of the project

- Objectives of the project

- Methodology adopted

- Learning from the project

1 -2

CHAPTER 1: INTRODUCTION AND RATIONALE OF THE STUDY

1.1 Introduction to the Financial inclusion trough PMJDY

1.2 Significance of the study

1.3 Role of technology in financial inclusion

3-13

CHAPTER 2: INDUSTRY/ SECTOR PROFILE

2.1 Overview of the Banking industry

2.2 Contribution of the sector towards financial inclusion

2.3 Major players

2.4 Regulatory framework

14-17

CHAPTER 3: ORGANIZATIONAL PROFILE AND BUSINESS

OVERVIEW

3.1 Mission and Vision of the company

3.2 Registered Address/ Number of branches

3.3 Composition of Board

3.4 Major customers

3.5 Financial performance

3.6 Achievements

3.7 Organogram

3.8 Major product lines

18- 37

CHAPTER 4: OUTLINE OF PROBLEM/TASK UNDERTAKEN Challenges

4.1 Identification of problem or task undertaken

38-42


4.2 Implication of existing problem or task on the host organization

CHAPTER 5: LITERATURE REVIEW (RESEARCH PROJECT) 43-46

CHAPTER 6: OBJECTIVES AND SCOPE OF PROJECT 47

CHAPTER 7: METHODOLOGY / RESEARCH METHODOLOGY

(RESEARCH PROJECT)

- Process Flow chart depicting the activities planned for conducting the project.

- Sequencing of activities with respect to time

R.M:- Type of Research, Sampling Plan, Data Collection techniques (write only

what you have actually used)

48-49

CHAPTER 8: ANALYSIS AND FINDINGS

8.1 Data Tabulation

8.2 Graphical interpretation

8.3 Findings with explanation

8.4 Hypothesis Testing

50-65

CHAPTER 9: CONCLUSIONS / CONCLUSIONS & SUGGESTIONS

(RESEARCH PROJECT)

- FINDING , SUGGESTION AND RECOMMEDATIO - conclusions

66-69

CHAPTER 10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST

ORGANISATION

BIBLIOGRAPHY/ REFERENCES in appropriate style

ANNEXURES: GLOSSARY, QUESTIONAIRE/ CHECK LIST OF

QUESTIONS

70 - 71

72-75

Titled pages

Content of table and graphical figure Page no.


1. Method Of Gathering Information (fig.1)…………………………………2. Performance of Jan Dhan Yojana under financial inclusion (fig.2)…………

Data Will Be Taken From Bank Of Maharastra And Research On That…3. Bank wise Detail of Villages / SSAs / Households Allotted and Covered (fig3)…4. phase wise target covered of business corresponding (fig.4)……………… All Branches of Bank of Maharastra report related PMJDY…………….

5. Pradhan Manti Jiwan Jyati Bima Yojana (fig.5) …………………………………………………..

6. Rradhan Mantri Surksha Bima Yojana (fig.6)……………………………7. Atal Pension Yojana (fig.7)………………………………………………

8. No. of acc. Opened with in one day from 16-aug 2014 (fig.8)…………..

Data collection through the questionnaire by the respondent people

9. have a bank acoount(fig.9)……………………………………………….

10. No. of account in your household (fig.10)………………………………

11. types of accounts do you have (fig.11)…………………………………

12. any one helped you while opening the a/c (fig.12)……………………..

13. Reasons for not having even a single bank a/c(fig.13)………………….

14. Reasons for being refused a bank a/c (fig.14)…………………………..

15. Awareness about Saving A/c under PMJDY(fig.15)…………………..

16. Reasons that’s not awareness about PMJDY (fig.16)…………………..

17. Types of debit card will be available under PMJDY (fig.17)…………

18. Awareness about various facilities covered under PMJDY(fig.18)…….

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DECLARATION


We, SAROJ KUMAR SAH here by, declare that project entitled “ Financial Inclusion

Through The Pradhan Mantri Jan-Dhan Yojana Services” at Bank of Maharastra” and

Submitted in partial fulfillment for the award of degree in INDIRA INSTITUTE OF

MANAGEMENT PUNE . with the guidance of Prof. Smita pachare, Is my original work and

no part of this dissertation has been submitted for the award of any other

degree/diploma/fellowship or similar title or prizes to any University.

Place: PUNE Mr. SAROJ KUMAR SAH

Date :


ACKNOWLEDGEMENT

One looks back with appreciation to the brilliant teachers, but with gratitude to those who touches our human feelings. The curriculum is so much necessary raw material, but warmth is the vital element for the growing plant and for soul of the

child. -Carl Jung

I would like to express my heartfelt gratitude goes to Prof. SMITA PACHARE, Assistance professor of the department of IIMP MBA , for acting as my patient

guidance enthusiastic encouragement and useful critiques of this research work. . Her guidance and constant support as well as sharing with me work experience as

a researcher regarding my project titled and also for her support for successful completion of this project. and for all her guidance & encouragement rendered to

me throughout this project.

My thanks and appreciation also goes to people who have willingly helped me out with their ability.

I would also like to thank Branch Manger of BOM Mr. Suresh pandey and dy. Manager R.B. kumar and also he is my mentor in training period. who with his new ideas and knowledge of the subject has helped me continuously to finish my

report.

Place: saroj kumar sah

Date: Indira institute of Management

PUNE


EXECUTIVE SUMMARY:-

Tittle of project study:-

“STUDY ON “FINANCIAL INCLUSION THROUGH THE PMJDY.”

(PRADHAN MANTRI JAN DHAN YOJANA)

ORGANIZATION NAME :-

BANK OF MAHARASTRA THEREGAON BRANCH(0853) PUNE

Located at Survey No. 21, Pimpri Chinchwad,

P. O. Thergaon, Pune 411033,

Pune - Maharashtra and branch code is 000853.

OBJECTIVES OF PROJECT

Study of the financial inclusion Role of institution to promote to financial inclusion in india To identify level of awareness on PMJDY among resident of village THEGAON BRANCH PUNE MAHARASTRA To identify the level of usage of benefits arising out of PMJDY. Response to the PMJDY in india Measure performance of BANK OF MAHARASTRA in PMJDY

Data collected :- Primary & Secondary Data Collection

METHODOLOGY

TARGET POPULATION- The target audience includes the residents of THERGAON Village, District PUNE MAHARASTRASAMPLE FRAME-The Random sample frame had a total of 200 residents.SAMPLE SIZE- The sample size for this research is around 200.SAMPLE METHOD- The sample method included conducting a survey with residents either through personal interaction or through telephonic interaction. Convenience sampling technique was adopted.


Learning from project

Have helped to filled the form of PMJDY accounts

Have lots of individuals accounts to open bank account under PMJDY. Was able to clear doubts of individuals related to Insurance cover, RuPay debit card,

Overdaft facility etc. Convince people to apply for Aadhar Card.

Fund transfer to them accounts and deposits in FD, RD, and MIDS accounts

Aadhar card , PAN card link to their accounts.

With the help of RBI diary have make it clear to people who are not interested in opening the bank account about importance of bank and facilities they can avail.

Create awareness among people about RSBY.

conclusion

The main objectives of the research were to identify the approaches adopted by different banks and to know about the customer response towards the banking approaches under financial inclusion program. This project is totally based on progress to the poor people and how to encouraged these people for change his life and some thing saving from own his income its also helps to the increase in indian economy the way of this plan PMJDY scheme . so The study concluded that though the banks are complying with RBI norms in terms of opening branches, offering no frills account, kisan credit card, simplifying KYC norms, but still is lot of effort to be put in for financial inclusion progress.


CHAPTER I:- INTRODUCTION AND RATIONALE OF THE STUDY

1.1 FINANCIAL INCLUSION THROUGH THE PRADHAN MANTRI JAN-DHAN YOJANA

INTRODUCTION

Objective of “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” is

ensuring access to various financial services like availability of basic

saving bank account, access to need based credit, remittances facility,

insurance and pension to the excluded section i.e. weaker section and

low income groups. This deep penetration at affordable cost is possible

only with effective use of technology.


“A good job is the best form of inclusion. Rather than assuming the poor need an increasing

array of hand-outs, they should be empowered to equip themselves and their children to become

effective contributors to the economy.”

- Raghuram Rajan

Hon'ble Prime Minister, Sh. Narendra Modi on 15 August, 2014 announced "Pradhan Mantri Jan-Dhan Yojana (PMJDY)" which is a National Mission for Financial Inclusion. The task is gigantic and is a National Priority. This National Mission on Financial Inclusion has an ambitious objective of covering all households in the country with banking facilities and having a bank account for each household. It has been emphasized by the Hon'ble PM that this is important for including people left-out into the mainstream of the financial system.

The Pradhan Mantri Jan-Dhan Yojana launched on 28 August, 2014, across the nation simultaneously. It will be launched formally in Delhi with parallel functions at the state level and also at district and sub-district levels. Camps are also to be organized at the branch level. The Pradhan Mantri Jan-Dhan Yojana lies at the core of development philosophy of "Sab Ka Sath Sab Ka Vikas".

With a bank account, every household would gain access to banking and credit facilities. This will enable them to come out of the grip of moneylenders, manage to keep away from financial crises caused by emergent needs, and most importantly, benefit from a range of financial products. As a first step, every account holder gets a RuPay debit card with a 1,00,000/- accident cover. Further, they will be covered by insurance and pension products. There is need to enroll over 7.5 crore households and open their accounts.

Earlier efforts by the Government of India includes setting up a committee on financial inclusion under the chairmanship of Dr. C. Rangarajan. The committee finalized its report in early 2008. As is evident from the preamble of the report, the committee interpreted financial inclusion as an instrumentality for social transformation. "Access to finance by the poor and vulnerable groups is a prerequisite for inclusive growth. In fact, providing access to finance is a form of empowerment of the vulnerable groups. Financial Inclusion denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups. The various financial services included credit, savings, insurance and payments and remittance facilities. The objective of financial inclusion is to extend the scope of activities of the organized financial system to include within its ambit people with low incomes. Through graduated credit, the attempt must be to lift the poor from one level to another so that they come out of poverty."

Financial inclusion: It has been defined, by the Committee on Financial Inclusion, 2008, as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. It primarily represents access to a bank account backed by deposit insurance, access to affordable credit and the payments system.


1.2 Importance/ significance of Financial Inclusion:

Financial inclusion, more particularly when promoted in the wider context of economic inclusion, can uplift financial conditions and improve the standards of lives of the poor and the disadvantaged. Access to affordable financial services would lead to increasing economic activities and employment opportunities for rural households with a possible multiplier effect on the economy. It could enable a higher disposable income in the hands of rural households leading to greater savings and a wider deposit base for banks and other financial institutions.

It will enable the Government to provide social development benefits and subsidies directly to the beneficiary bank accounts, thereby drastically reducing leakages and pilferages in social welfare schemes. Further, expanding the reach of financial services to those individuals who do not currently have access would be an objective that is fully consistent with the people-centric definition of inclusive growth which attempts to bridge the various divides in an economy and society, between the rich and the poor, between the rural and urban populace, and between one region and another. Thus, financial inclusion could be an instrument to provide monetary fuel for economic growth and is critical for achieving inclusive growth.

1.2.1 Financial Inclusion in India – Background:

The efforts to include the financially excluded segments of the society into formal financial system in India are not new. The concept was first mooted by the Reserve Bank of India in 2005 and Branchless Banking through Banking Agents called “Bank Mitr” (Business Correspondent) was started in the year 2006. In the year 2011, the Government of India gave a serious push to the programme by undertaking the "Swabhimaan" campaign to cover over 74,000 villages, with population more than 2,000 (as per 2001 census), with banking facilities. Because of the RBI‟s drive for financial inclusion, the number of bank accounts increased by about 100 million during 2011-13. The Swabhimaan campaign, however, was limited in its approach in terms of reach and coverage. Convergence of various aspects of comprehensive Financial Inclusion like opening of bank accounts, digital access to money (receipt/credit of money through electronic payment


channels), availing of micro credit, insurance and pension was lacking. The campaign focused only on the supply side by providing banking facility in villages of population greater than 2000 but the entire geography was not targeted. There was no focus on the households. Also some technology issues hampered further scalability of the campaign. Consequently the desired benefits could not be achieved and a large number of bank accounts remained dormant.

1.2.2 Financial Inclusion: Current Status: Data from Census, 2011 estimates that only 58.7 percent of the households have access to banking services. The present banking network of the country (as on 31.03.2014) comprises of a bank branch network of 1,15,082 and an ATM network of 1,60,055. Of these, 43,962 branches (38.2 percent) and 23,334 ATMs (14.58 percent) are in rural areas. According to World Bank Findex Survey (2012) a only 35 percent of Indian adults had access to a formal bank account and 8 percent borrowed from a formal financial institution in last 12 months. Access to formal financial institutions has improved gradually but thousands of villages still lack a bank branch; less than 10 percent of all commercial bank credit goes to rural areas, where around 70 per cent of the total population lives. Data from the RBI show that only 46,126 out of 640,867 villages in India were covered by banks in March 2014. Thus the need for financial inclusion is beyond question.

Rural urban total0

10

20

30

40

50

60

70

80

Availability of banking services

Axis Title

Financial Inclusion- Summary progress of all Banks including Regional Rural Banks (RRBs), during five years period are as under:-


Particular Year ended 2010

Year ended 2011

Year ended 2012

Year ended 2013

Year ended 2014

Banking outlets in Villages1.Branches2. Villages covered by BCs

3 Other Models

4. Total

33,378

34,174

142

67,674

34,811

80,802

595

1,16,200

37,471

1,41,136

3,146

1,81,783

40,837

2,21,341

6,276

2,68,454

46,126

3,37,678

-

3,83,804

Urban location through BCs

447 3,771 5,891 27,143 60,730

Basic Saving Bank Deposit A/c- branches

1. No. in millions2. Amount in billions

60.1944.33

73.1257.89

81.20109.87

100.80164.69

126.00273.30

Basic Saving Bank Deposit A/c- BCs

1. No. in millions2. Amount in billions

13.2710.69

31.6318.23

57.3010.54

81.2718.22

116.9039.00

OD facility availed in BSBDA’s accounts

1. No. in millions 0.18 0.61 2.71 3.92 5.90

2. Amount in billions 0.10 0.26 0.08 1.55 16.00

KCCs (No. inmillions)

24.31 27.11 30.24 33.79 39.90

The statistics show that there is substantial progress towards opening of accounts, providing basic banking services during the recent years as indicated above. However, it is essential that all the sections be financially included in order to have financial stability and sustainability of the economic and social order. According to World Bank Findex Survey (2012) only 35% of Indian adults had access to a formal bank account and 8% borrowed from a formal financial institution in last 12 months. The miniscule number suggests an urgent need to further push the financial inclusion agenda to ensure that people at the bottom of the pyramid join the mainstream of the formal financial system

1.3 Role Of Technology In Financial Inclusion Under PMJDY


1. Technology and financial inclusion are the popular coinage in banking parlance in the country. Main hurdle in financial inclusion so far has been large numbers and low volumes, translating into unaffordable costs. The only way to bring down the cost to an affordable level and to improve the reach to the farthest / remotest corner of the country is by effectively leveraging the Technology.

2. In order to make available the banking facilities across the length and breadth of the country, latest technological products like e-KYC, IMPS, AEPS, mobile banking etc. have the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge.

3. Under the guidance of RBI various organizations like National Payments Corporation of India (NPCI), Institute for Development & Research in Banking Technology (IDRBT) etc. are contributing significantly in bringing new technology based products.

4. Reserve Bank has, thus, been actively involved in harnessing technology for the development of the Indian banking sector over the years. A major technological development in banking sector is the adoption of the Core Banking Solutions (CBS). CBS is a step towards enhancing, customer convenience through, Anywhere, Anytime Banking. It is important to leverage this technological advancement to look at areas beyond CBS that can help in not just delivering quality and efficient services to customers but also generating and managing information effectively. The adoption of CBS led to various technological products like NEFT, RTGS, mobile banking, Internet Banking, ATMs, etc. Some of the Technological based products have made significant changes in the banking outreach to the masses are appended below:

Adopting core banking solution (CBS) by the Banks, including all Regional Rural Banks (RRBs).

Next, a multi-channel branchless approach using handheld devices, mobiles, cards, micro-ATMs and kiosks can be used.

Transactions put through such front-end devices are seamlessly integrated with the banks' CBS.


Implementation of the electronic payment system such as RTGS (Real Time Gross Settlement),

Electronic Clearing Service (ECS), Electronic Funds Transfer (NEFT), Cheque Truncation System (CTS), Banking transaction by using Mobile phones etc.

5. The present plan of the PMJDY under National Mission on Financial Inclusion proposed to use the Technology in a big way to achieve the goal in a time bound manner. Some of the major products are appended hereunder:

(i) Electronically Know Your Customer (e-KYC):

In the year 2013, RBI permitted e-KYC as a valid process for KYC verification under Prevention of Money Laundering (Maintenance of Records) Rules, 2005. In order to reduce the risk of identity fraud, documentary forgery and have paperless KYC verification, UIDAI has launched its e- KYC services. Under the e-KYC process under the explicit consent of the customer and after his or her biometric authentication from UIDAI data base individual basic data comprising name, age, gender and photograph can be shared electronically with Authorized Users like Banks, which is a valid process for KYC. The aforesaid process is paperless and has made the account opening of customers having Aadhaar number 24 easier. Almost all the banks have either adopted this process or in the advance stage of putting the system live. The e-KYC process would be used in large scale for opening accounts in future.

(ii) Transaction through Mobile Banking: The mobile-phone revolution that is transforming the country could also turn into a banking revolution in terms of reach and transaction. Today, the number of mobiles in India is 886 million. The reach of mobile to the remote village and its usage by the common man has become order of the day and it is estimated that around 1/4 of mobile users are residing in villages/small towns. The coverage of mobile phones and the use of such instruments by all section of the population can be exploited for extending financial services to the excluded populations. It enables the subscribers to manage their financial transactions (funds transfer) independent of place and time. The subscriber can approach a retailer of mobile networkfor withdrawal/deposit of money and the transaction takes place using SMS messages. The Mobile Banking services are generally available through a java application on


Blackberry, Android, iPhones and Windows mobile phones. Various banking services like Funds Transfer, Immediate Payment Services, Enquiry Services (Balance enquiry/ Mini statement), Demat Account Services, Requests for Cheque Book, Bill Payments, etc. may be carried out through mobile banking. There are transaction limits for mobile banking and these services are free of charge. The mobile banking services are also available over SMS. The basic financial transactions from the Bank accounts can be executed through a mobile based PIN system using "Mobile Banking". Mobile banking through mobile wallet was also launched in 2012. Mobile telephony and prepaid wallets would also be utilized for coverage of households under the Financial Inclusion campaign.

(iii) Micro-ATMs:

Micro-ATMs are biometric authentication enabled hand-held device. In order to make the ATMs viable at rural / semi-urban centers, low cost Micro-ATMs would be deployed at each of the Bank Mitra location. This would enable a person to instantly deposit or withdraw funds regardless of the bank associated with a particular Bank Mitra / Business Correspondent. This device will be based on a mobile phone connection and would be made available to every Bank Mitra / Business Correspondent. Customers would have to get their identity authenticated and withdraw or put money into their bank accounts. This money will come from the cash drawer of the Bank Mitra / Business Correspondent. Essentially, Bank Mitras will act as bank for the customers and all they need to do is verify the authenticity of customer using customer's UID. The basic transaction types to be supported by micro ATM are Deposit, Withdrawal, Fund transfer and Balance enquiry. Micro-ATM offers one of the most promising options for providing financial services to the unbanked population. Micro-ATMs would have various options of authentication like biometric, PIN based etc. and it would also be used as mobile ATMs to enable transactions near the door step of the customers. The


Micro-ATMs offer an online interoperable, low-cost payments platform to everyone in the country.

(ivImmediate Payment System (IMPS):

Immediate Payment Service (IMPS) was launched by NPCI on 22 November, 2010. It offers an instant, 24X7, interbank electronic fund transfer service through mobile phones as well as internet banking & ATMs. In the process of remittances across the bank there are four stakeholder i.e. (i) Remitter (Sender), (ii) Beneficiary (Receiver), (iii) Banks & (iv) National Financial Switch - NPCI. In order to remit fund through IMPS, the sender should use mobile banking to send money, the receiver mobile number should be registered with his bank and the money is credited to receivers account instantly. For registration the Remitter must register for mobile banking and get Mobile Money Identifier (MMID) & Mobile Banking PIN (MPIN) for initiation of a transaction. MMID is a 7 digit number, to be issued by the bank to the customer upon registration and the Beneficiary must Register his/her mobile number with the bank account and get MMID. A remitter can initiate an IMPS transaction by sending an SMS to his bank typing the Beneficiary Mobile Number, Beneficiary MMID and Amount. The receiver will get an SMS confirmation for the credit of his account. Payments Corporation of India (NPCI), is facilitating the Interbank Mobile Payment Service (IMPS)

(v) National Unified USSD Platform (NUUP):

Mobile banking is one of the most potent mode for increasing reach of banking facilities to the masses. Today, mobile phones have become a household device in India, with almost 900 mn mobile phones connection. Mobile banking service can be initiated using SMS - an unencrypted service, considered unsafe - or using mobile banking app. Though very interactive, the major problem with mobile banking apps is that these need to be downloaded and installed on the mobile phone. Less than 40% of Indian users have compatible J2ME handsets and GPRS connection on their mobile phone, as required by this system. To resolve aforesaid issues, an alternative solution on USSD platform is available. Customers can avail USSD solution through any mobile phone on GSM network, irrespective of make and model of the phone. This does not require any application to be downloaded on customer's mobile phone and need for GPRS connectivity. USSD is user- friendly so it is easy to communicate and educate customers as well. USSD alleviates the need for application download and is more secure than SMS channel.


Banking customers can use this service by dialing *99#, a "Common number across allTelecom Service Providers, (TSPs)" , on their mobile and transact through an interactive menudisplayed on the mobile screens.

Using *99#, a customer will be able to access both financial like fund transfer as well as nonfinancialservices like balance enquiry and mini statement of bank account, at his/her own convenience. Key services that NUUP will offer include, interbank account to account fund transfer, balance enquiry, mini statement besides host of other services. A notable inclusion in the NUUP service is a new addition in the form of Query Service on Aadhaar Mapper (QSAM). Under this feature a user can come to know about his/her AADHAAR seeding status with the banks, a service that will find tremendous utility for the governments direct subsidy disbursals programme. This product this scheduled to be launched on 28 August, 2014.

(vi) RuPay Debit cards:

RuPay is a new card payment scheme launched by the National Payments Corporation of India (NPCI), to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments. "RuPay", the word itself has a sense of nationality in it. "RuPay" is the coinage of two terms Rupee and Payment. RuPay Cards address the needs of Indian consumers, merchants and banks. The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and thestrength of the RuPay brand-all of which will contribute to an increased product experience. The main features are as under:

• Lower cost and affordability• Customized product offering • Protection of information related to Indianconsumers• Provides electronic product options tountapped/unexplored consumer segment


(vii) Aadhaar Enabled Payment System (AEPS):

AEPS is a banking product which allows online interoperable financial inclusion transaction at PoS (Micro-ATM) or Kiosk Banking through the Business Correspondent of any bank using the Aadhaar authentication. Presently, four Aadhaar enabled basic types of banking transactions are available i.e. (i) Balance Enquiry, (ii) Cash Withdrawal, (iii) Cash Deposit & (iv) Aadhaar to Aadhaar Funds Transfer. For undertaking AEPS transaction by customer, two inputs i.e. IIN (Identifying the Bank to which the customer is associated) & Aadhaar Number are required.

(viii)Aadhaar Payments Bridge System (APBS):

The Aadhaar Payments Bridge System enables the transfer of payments from Government and Government Institutions to Aadhaarenabled accounts of beneficiaries at banks and post offices. Every Government Department or Institution that sends EBT and DBT/DBTL payments to individuals simply needs to prepare a file containing the Aadhaar number and amount and submit it to their accredited bank. The accredited bank then processes the file through an interoperable Aadhaar Payments bridge and funds are credited into the accounts of beneficiaries. Upon receiving incoming funds, the beneficiary's bank will notify him or her through an SMS or any other communication channel that is established between the bank and the customer.

Financial servicesthrough mobile

telephony

Micro mobile andBiometric ATMs

Internet enabledmodels and PCsand Ultra small

branches

Biometric handleddevices

Smart cards andPOs terminals

Technologies Enabling Financial Inclusion


CHAPTER :- 2 INDUSTRY PROFILE

2.1 BANKING INDUSTRY

Banking in India in the modern sense originated in the last decades of the 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and the General Bank of India, established 1786 but failed in 1791.

The largest bank, and the oldest still in existence, is the State Bank of India. It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government, the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.

Current period

All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks. Scheduled Commercial Banks in India are categorized into five different groups according to their ownership and/or nature of operation. These bank groups are:

• State Bank of India and its Associates

• Nationalised Banks

• Private Sector Banks

• Foreign Banks

• Regional Rural Banks.

• Cooperative Banks

• Scheduled Bank

In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.

2.1.1 Adoption of banking technology


The IT revolution has had a great impact on the Indian banking system. The use of computers has led to the introduction of online banking in India. The use of computers in the banking sector in India has increased many fold after the economic liberalization of 1991 as the country's banking sector has been exposed to the world's market. Indian banks were finding it difficult to compete with the international banks in terms of customer service, without the use of information technology.

a) Automated teller machine

The total number of automated teller machines (ATMs) installed in India by various banks as of end June 2012 was 99,218. The new private sector banks in India have the most ATMs, followed by off-site ATMs belonging to SBI and its subsidiaries and then by nationalised banks and foreign banks, while on-site is highest for the nationalised banks of India.

b) Cheque truncation initiative

In 2008 the Reserve Bank of India introduced a system to allow cheque truncation in India, the cheque truncation system as it was known was first rolled out in the National Capital Region and then rolled out nationally.

c) Expansion of banking infrastructure

Physical as well as virtual expansion of banking through mobile banking, internet banking, and tele banking, bio-metric and mobile ATMs is taking place since last decade and has gained momentum in last few years.

d) Make in India I. jan dhan yojana

Pradhan Mantri Jan Dhan Yojana (IPA: Pradhāna Mantrī Jana Dhana Yōjanā) English: Prime Minister's People Money Scheme) (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened under this scheme.

II. Digital village

Through this Digital Village initiative, we are trying to set an example on how technology can change the lives of people," said Kochhar, who began her career with erstwhile ICICI Ltd in 1984 as a management trainee and has been instrumental in shaping the retail banking sector in India.

"One of the key points is providing cashless banking services to every villager. But it is not only about making sure that the commercial life of a person goes ahead without cash, but we want to ensure that technology is there in every sphere of life.


"On banking we have digitized all our offerings - from opening an account to sale of goods to purchase of products including milk from the vendor or kirana stores. At the same time, we have digitized the school records, the Gujarat syllabus and even teaching methods and tools

2.2 Contribution of sector towards GDP

Banking (10%)

The Indian finance market comprises the organized sector categorized into private, public and foreign owned banks and the unorganized sector including individual bankers or money lenders. The country’s gross domestic saving stands around 32.7%, most of it invested in personal assets like land, property or gold. The Indian Insurance Industry has grown in the recent past at rate of 15-20%. Today the Insurance plus banking services contribute to 10% of the country’s GDP. It is a well-evolved industry serving as a boon for economic development of India by providing long- term funds for development of infrastructure. Besides, it strengthens the risk taking capacity of the country. As per the Life Insurance Council, Indian life insurance industry ranks fifth among the largest life insurance markets of the world.

2.3 Major players in banking industry

State Bank of India

ICICI Bank Ltd

HDFC Bank ltd

Axis Bank Ltd

Kotak Mahindra Bank Ltd

Punjab National bank

IDBI Bank

YES Bank Ltd

CITI Bank Ltd

COSMOS Bank

Bank of Maharastra

2.4 Regulatory framework


The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. However, Government of India plays a significant role in controlling the financial system in.

Reserve Bank of India: Reserve Bank of India is the apex monetary Institution of India. It is also called as the central bank of the country.

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

It acts as the apex monetary authority of the country. The Central Office is where the Governor sits and is where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. The preamble of the reserve bank of India is as follows:

Preamble: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

Recent guidelines for financial inclusion

2012: RBI permitted Aadhaar letter as a proof of both Identity & Address for the purpose of opening of bank Accounts

2012: GoI introduced Sub Service Area (SSA) approach for opening of banking outlet and for Direct Cash Transfer.

2012: Aadhaar Payment Bridge System (APBS) was introduced for centralized credit of Social Benefits. Guidelines on Direct Benefit Transfer issued by GoI.

• 2013: To ease the account opening process RBI permitted to use e-KYC.

TRAI issued guidelines on USSD based mobile banking services for Financial inclusion 2014: RBI issues guidelines for scaling up of Business Correspondent model

CHAPTER: 3 ORGANIZATION PROFILE


Bank of Maharastra

Bank of Maharashtra

Bank of Maharastra is a major public sector bank in India. Government of India holds 81.2% of the total shares. The bank has 15 million customers across the length and breadth of the country served through more than 1868 branches. It has largest network of branches by any public sector bank in the state of Maharashtra.

Bank of Maharashtra". Facilities All the branches of Bank of Maharashtra have been fully computerized, with Depository services and Demat facilities being offered at 131 branches as of April 2009. The bank aims at increasing its ATM network from 345 to 500 soon, apart from planning to install Biometric ATMs at some selected branches. Apart from it, introduction of Phone Banking, Internet Banking and Mobile Banking is also on the cards. Other Highlights Apart from providing regular banking services to the customers, Bank of Maharashtra has established two Joint Ventures to fulfill its other commitments towards the general public and society. These Joint Ventures are M-SETI and Mahabank Info Centre. Mahabank Self-Employment Training Institute (M-SETI) is an effort initiated by Mahabank Agricultural Research & Rural Development Fund (MARDEF), a trust run by Bank of Maharashtra receiving help from National Bank for Rurl Development (NABARD). The institute runs various self-employment oriented training courses for the rural unemployed youth from the districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and Nandurbar. Mahabank Info Centre is a yet another initiative by Bank of Maharashtra aimed at providing various retail baking related information to the customers, and enabling smoother operations for them.

IMPACT OF Pradhan Mantri Jan Dhan Yojana ON BANK

https://en.wikipedia.org/wiki/Maharashtra

https://en.wikipedia.org/wiki/India


The scheme aims to provide at least one bank account to each household across the country, with a target of covering 75 million households by 26 January 2015. Targeted at those who have never had a bank account in their lives, the scheme has simplified the whole process of opening an account. The KYC (know-your customer) rules to open a bank account have been simplified; the only document required is either Aadhar card, voter‟s identity card, driving license, PAN card, or card issue under MGNREGA. Even if the address mentioned in the document is different from the current residence of the applicant, a self-declaration will suffice. For those who do not have any of above mentioned identity proofs, a „small account‟ could be opened with a self-attested photograph alongwith signature or thumb impression in the presence of the bank official. The PMJDY is being implemented in two phases. In the first phase (till August 14, 2015) every account holder will receive a RuPay debit card, and will be able to use basic mobile banking services, such as balance enquiry. Further, every account holder under the scheme will get an accident insurance cover of Rs.1 lakh. Bank accounts opened between 28 August 2014 and 26 January 2015 would also get life insurance cover worth Rs30,000/-. These accounts are also eligible for over draft facility of Rs.5,000/- based on performance during the first six months. There will also be a financial literacy programme, expansion of Direct Benefit Transfer under various schemes through the beneficiaries‟ bank accounts, and issuance of RuPay Kisan Card. In the second phase (from August 2015 to 14 August 2018), micro insurance and unorganized sector pension schemes would also be provided. Bank accounts opened after 26 January 2015 would be eligible for life insurance cover and micro insurance in this phase. As it is difficult to spread bank branches across all unbanked areas, Business Correspondents (BCs) will be deployed on a large scale to help execute the plan8.

3.1 Vision & Mission of Bank of Maharastra

VISION

To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse sections of the society, enhancing shareholders’ and employees’ value while moving towards global presence

The Bank continued to have the support and patronage of the common man. Right from its inception, the focus of the Bank has been to assist small business enterprises, traders, self-employed and others commonly known as the Priority Sector

MISSION of Bank of Maharastra


To ensure quick and efficient response to customer expectations. To innovate products and services to cater to diverse sections of society. To adopt latest technology on a continuous basis. To build proactive, professional and involved workforce. To enhance the shareholders’ wealth through best practices and corporate governance. To enter international arena through branch network.

Mission Mode Objectives (6 Pillars) Through The Jan-Dhan Yojana

PMJDY to be executed in the Mission Mode, envisages provision of affordable financial servicesto all citizens within a reasonable distance. It comprises of the following six pillars:-

a. Universal access to banking facilities: Mapping of each district into Sub Service Area (SSA) catering to 1000-1500 households in a manner that every habitation has access to banking services within a the reasonable distance say 5 km by 14 August, 2015. Coverage of parts of J&K, Himachal Pradesh, Uttarakhand, North East and the Left Wing Extremism affected districts which have telecom connectivity and infrastructure constraints would spill over to the Phase II of the program (15 August, 2015 to 15 August, 2018)

b. Providing Basic Banking Accounts with overdraft facility and RuPay Debit card to all households: The effort would be to first cover all uncovered households with banking facilities by August, 2015, by opening basic bank accounts. Account holder would be provided a RuPay Debit Card. Facility of an overdraft to every basic banking account holder would be considered after satisfactory operation / credit history of six months.c. Financial Literacy Programme: Financial literacy would be an integral part of the Mission in order to let the beneficiaries make best use of the financial services being made available to them.d. Creation of Credit Guarantee Fund: Creation of a Credit Guarantee Fund would be to cover the defaults in overdraft accounts.e. Micro-Insurance: To provide micro- insurance to all willing and eligible the persons by 14 August, 2018, and then on an ongoing basis.f. Unorganized sector Pension schemes like Swavalamban: By 14 August, 2018 and then on an ongoing basis. Under the mission, the first three pillars would be given thrust in the first year.

3.2 Registered Address/ Number of branches

Number of branches


The Bank has 2260 branches spread over 29 states and 5 Union Territories and 1841 ATMs

REGISTERED ADDRESS

Bank of Maharashtraबँक अॉ�फ महाराष्ट्र

Type Public CompanyBSE & NSE: MAHABANK

Industry Banking,Capital markets and allied industries

Founded 1935

Headquarters 1501, Lokmangal,Shivaji nagar,Pune Maharastra, India

Key people Sushil Muhnot , Chairman & Managing Director

R K Gupta, R Athmaram , Executive Directors

Products Loans, credit cards, savings, investment etc.

Revenue ₹60939 million(US$950 million)

Total assets ₹ 481 million

Website www.bankofmaharashtra.in

3.3 COMPOSITION BOARD OF DIRECTOR

S.No Name Designation

1 Mr.Sushil Muhnot Chairman & Managing Director

http://www.bankofmaharashtra.in/

https://en.wikipedia.org/wiki/Asset

https://en.wikipedia.org/wiki/Indian_rupee

https://en.wikipedia.org/wiki/India

https://en.wikipedia.org/wiki/Pune

https://en.wikipedia.org/wiki/Capital_markets

https://en.wikipedia.org/wiki/Banking

https://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

https://en.wikipedia.org/wiki/Bombay_Stock_Exchange

https://en.wikipedia.org/wiki/Types_of_business_entity

https://en.wikipedia.org/wiki/File:Bank_of_Maharashtra.svg


2 Mr.Ateesh Singh Director

3 Mr.G Sreekumar Director

4 Mr.Ramadev L Sayadiwal Director

5 Mr.Sanjeev Jain Director

6 Mr.Premchandra Amolakchand Sethi Director

7 Mr.R Athmaram Executive Director

8 Mr.R K Gupta Executive Director

3.4 FINANCIAL PERFORMANCE of BOM

1. Total Business has increased from 207171.76 crore as on 31.03.2014 to 223329.21 crore

as on 31.03.2015, registering a growth of 7.80% on Y-o-Y basis.

2. Total Deposits have increased from 116803.09 crore as on 31.03.2014 to 122118.95

crore as on 31.03.2015, registering a Y-o-Y growth of 4.55%. The Bank had consciously

discouraged high cost bulk deposits.

3. CASA has increased from 41921.18 crore as on 31.03.2014 to 45296.80 crore as on

31.03.2015, registering a Y-o-Y growth 8.05% Share of CASA to total deposits was 37.09% as

on 31.03.2015.

4. Cost of Deposits has declined to 7.03% for the year ended 31.03.2015 against the 7.13%

for year ended 31.03.2014

5. Gross Advances have increased from 90368.67 crore as on 31.03.2014 to 101210.26

crore as on 31.03.2015, registering a growth of 12.00% on Y-o-Y basis. The bank credit crossed

the milestone of 1,00,000 core.

6. Priority Sector advances increased from 34,826 crore as on 31.03.2014 to 39094 crore

showing growth of 12.26%, which came to 41.76% of ANBC as against the required level of

40%.

7. Containing NPAs was challenge for the entire banking sector and the Bank was not an

exception. Gross and Net NPAs were 6402.06 crore (6.33%) and 4126.57 crore (4.19%) as on

31.03.2015, as against 2859.85 crore (3.16%) and 1807.32 crore (2.03%) as on 31.03.2014.


8. Net Interest Income was 3875.03 crore for year ended 31.03.2015 as against 3508.93

crore for year ended 31.03.2014 registering a rise of 10.43%

9. Net Interest Margin (NIM) improved to 2.82% for year ended 31.03.2015, as against

2.71% for year ended 31.03.2014.

10. Non-Interest Income has increased from 894.19 crore for the year ended 31.03.2014 to

1005.98 crore for 31.03.2015, showing a rise of 12.50%.

11. Operating Profit during the year ended 31.03.2015 increased to 2355.09 crore as against

2006.37 crore during the year ended 31.03.2014 showing an increase of 17.38%

12. Net Profit during the year ended 31.03.2015 stood at 450.69 crore as against 385.98 crore

during the year ended 31.03.2014 showing an increase of 16.77%.

13. Capital Adequacy Ratio (Basel – III) was 11.94% as on 31.03.2015 as compared to

10.79% as on 31.03.2014. The same under Basel II stood at 12.79 % as on 31.03.2015 as against

12.11% as on 31.03.2014.

14. Return on Assets for the year ended 31.03.2015 improved to 0.33% as against 0.30% as

on 31.03.2014.

15. Cost to Income Ratio improved to 51.75% for the year ended 31.03.2015, as against

54.43% for the year ended 31.03.2014.

Financial performance of all the Bank through the PMJDY

1. 26939 crores deposited in to all Bank under PMJDY account as on 18 Nov. 2015

2. 9.16 crores deposited under PMSBY as on oct 2015

3. 2.86 crores deposited under PMJJBY as on oct 2015

3. Deposited under PMJDY 1.26 lac Bank mitra as on oct 2015

3.4 Major customer 1 Balaji college ( includes all the departments accounts)2. Pandit petrol pump3. paper mills


3.5 Awards & Achievment receive by Bank of Maharastra

Bank was conferred as BEST BANK-PUBLIC SECTOR in BFSI Awards-2015 by World HRD Congress in recognition of the Best performances in Banking Category.The Award was received by Shri S.Muhnot, Chairman & Managing Director on behalf of the Bank at the function held at Mumbai.

Financial Express India’s Best Bank AwardSri.S. Muhnot, Chairman & Managing Director, Bank of Maharashtra is seen receiving Winner Award– ‘Growth’ Category with Devendra Fadnavis, Chief Minister of Maharashtra.

Shri R. Athmaram (Executive Director) & Shri M. C. Kulkarni (General Manager,IT) receiving the “Best Bank for managing IT risk among mid size Banks” award from Dr. Raghuram G. Rajan ( Governor, Reserve Bank of India) on 15th October 2014

Bank Grabbed 5 Awards in BFSI Awards by World HRD Congress

Sri. R. K. Gupta, Executive Director, Bank of Maharashtra is seen receiving BFSI Best Bank – Public Sector Award from organizers.

Bank of Maharashtra has been awarded the "Best Banker in Customer Friendliness" by The Sunday Standard FINWIZ 2012


Bank was conferred as BEST BANK-PUBLIC SECTOR in BFSI Awards-2014 in recognition of the Best performances in Banking Category.The Award is received by Shri.Sushil Muhnot, Chairman and Managing Director on behalf of Bank at the function held at Hotel Taj Lands End, Mumbai on 14th February 2014. Shri. S.Bharatkumar, General Manager Planning and Shri. M.C.Kulkarni , General Manager, Mumbai City Zone were also present on the occasion

Bank of Maharashtra Grabbed 2 Awards in Skoch Summit

Sri. R.K.Gupta, Executive Director, Bank of Maharashtra is seen receiving Skoch Gold Award from Ms.Meenakshi Lekhi, M.P, Loksabha in the presence of Mr.Sameer Kochhar, Chairman, Skoch Group and Ms.Manisha Kochhar, Skoch Group.

RBI Dy Governer, Dr. K. C. Chakrabarty inaugurates Mahabank Gram Seva Kendras (26-12-2011)

Bank has pioneered in taking the banking to the door steps of remote villagers in real sense when its SIX Mahabank Gram Seva Kendras were inaugurated at the hands of Dr. K. C. Chakrabarty, Dy Governor, RBI at Navghar village near Uran of Raigad District on 26-12-2011.

As an innovation under the financial inclusion plan embarked by the Bank, Mahabank Gram Seva Kendras are established in the remote villages like Navghar (Raigad), Dhuktan (Thane), Panoli (Ahmednagar), Koli Boddkha (Aurangabad), Solu (Pune) and Survadi (Satara) on pilot basis.

Progress of Bank through jan- dhan yojanaMaha Gram Seva Kendra - An initiative by Bank of Maharashtra

Located in a remote village, the Kendra will provide all basic banking services to the customers. It will be manned by one bank official from the parent branch to which the Kendra is linked.

This initiative is an alternative to BC model service delivery channel provided by the Bank in selected remote villages to give more personalized services.AWARDS and ACHIEVEMENTS OF FINANCIAL INCLUSION THROUGH PMJDY

Awards to be taken from world record Guinness book


India received the awards and create Guinness book record in all over the world for the most bank account opened in a week as part of financial inclusion campaign 18,096,130 and was achieved by department of finance services, it’s a great full achievement award financial inclusion through the PMJDY scheme

Government achievement under Financial inclusion through PMJDY scheme as on 05/08/2015


Pradhan Mantri Jan - Dhan Yojana (Accounts Opened as on 18.11.2015)

(All Figures in Crores)

Bank Name

RURAL

URBAN

TOTAL

NO OF RUPAY CARDS

AADHAAR SEEDED

BALANCE IN ACCOUNTS

% OF ZERO-BALANCE-ACCOUNTS

Public Sector Banks

8.33 6.75 15.08 13.42 6.97 21,157.45 36.01

Regional Rural Banks

2.97 0.50 3.46 2.47 0.96 4,629.32 34.97

Private Banks 0.44 0.29 0.73 0.64 0.23 1,152.83 41.10

Total 11.73 7.54 19.27 16.54 8.15 26,939.60 35.96Sources: ministry of finance. Figures in crore , Disclaimer: Information is based upon the data as submitted by different banks/SLBCs

Above the table shows that all the sector private , public and rural regional Banks are opened Bank account under Pradhan Mantri Jan-Dhan yojana schemes. The reports shows also number of bank accounts opened in rural and urban area than no. of Rupay debit cards distributed to the customers. than Balanced of money from the new account under PMJDY report and lastly shows no. of accounts to be opened in zero balance account . all of the above mentioned report are taken from Minitry of Finance and information based on the data as submitted by different banks/states level bankers committees.

progress report of deposited amount in all the bank under PMJDY


3.6 Organization Structure:

Chairman

CGMS-circles

General Manager

Dy. General Manager

Regional manager

Branch manager


Deputy Manager Deputy Manager Deputy Manager

(Advance) (Cash) (Account)

Clerk

3.6 PRODUCT AND SERVICES

ATM Services Credit Card

DEMAT Services Bancassurance

Distribution of Mutual Funds Western Union Money Transfer facitity

Capital Market Application (ASBA) ASBA PLUS

Executors and Trustee Services Mahabill Pay

RTGS/NEFT MAHAeTRADE (On line Share Trading Facility)

Mahabank Swasthya Yojna Maha Suraksha Yojana

E Payment Taxes New Pension Scheme

Govt Business Maha-Double Deposit Scheme

Door Step Banking e-SBTR

Mahabank Corporate SUPREME Payroll Maha Suraksha Payroll Scheme

Pradhan Mantri Jeevan Jyoti Bima Yojana Pradhan Mantri Suraksha Bima Yojana

Atal Pension Yojana

New Business Initiatives taken up by bank after implementation of PMJDY

“ Purple Previleges” Account for HNIs-with features like Assistance of Dedicated Relationship Manager, specially designed Purple Lounges etc.

http://www.bankofmaharashtra.in/Atal-Pension-Yojana.asp

http://www.bankofmaharashtra.in/Pradhan-Mantri-Suraksha-Bima-Yojana.asp

http://www.bankofmaharashtra.in/Pradhan-Mantri-Jeevan-Jyoti-Bima-Yojana.asp

http://www.bankofmaharashtra.in/Maha-Surkasha-Payroll-Scheme.asp

http://www.bankofmaharashtra.in/downdocs/Mahabank-Corporate-SUPREME-Payroll.pdf

http://www.bankofmaharashtra.in/e-SBTR.asp

http://www.bankofmaharashtra.in/Door-Step-Banking-Services.asp

http://www.bankofmaharashtra.in/downdocs/Maha-Double-Deposit-Scheme.pdf

http://www.bankofmaharashtra.in/Govt-Business.asp

http://www.bankofmaharashtra.in/New-Pension-Scheme.asp

http://www.bankofmaharashtra.in/e_payment_taxes.asp

http://www.bankofmaharashtra.in/Maha-Suraksha-Yojana.asp

http://www.bankofmaharashtra.in/Swasthya_Yojana.asp

http://www.bankofmaharashtra.in/Online_Trading.asp

http://www.bankofmaharashtra.in/rtgs_neft.asp

http://www.bankofmaharashtra.in/mahabil.asp

http://www.bankofmaharashtra.in/addon.asp

http://www.bankofmaharashtra.in/ASBA-PLUS.asp

http://www.bankofmaharashtra.in/asba.asp

http://www.bankofmaharashtra.in/Western-Union-Money-Transfer-facitity.asp

http://www.bankofmaharashtra.in/Distribution-of-Mutual-Funds.asp

http://www.bankofmaharashtra.in/downdocs/Bancassurance.pdf

http://www.bankofmaharashtra.in/dmat.asp

http://www.bankofmaharashtra.in/credit-card.asp

http://www.bankofmaharashtra.in/services_atm.asp


Mobile Banking app- “MahaMobile” -Designed to be intuitive and user friendly, will enable the Bank’s customers to view all their deposit and loan accounts, do fund transfers, bill payments and raise a variety of service requests on their mobile anytime, anywhere.

3 Modernized Branches Titled “Utkarsha Branches” to ensure improved productivity for maximizing customer satisfaction and delightful Banking experience for customers of all segments.

“MAHA e-SBTR” (e-Secured Bank & Treasury Receipt) facility for payment of Registration Fee and Stamp Duty in the state of Maharashtra.

“Maha Secure” –A next Generation Digital Banking Solution, secured by REL-ID Technology, a high end product introduced to attract the technology savvy customers and youngsters. The Maha Secure banking app will enable secure access to internet banking.

“Maha Sarvajan Savings Bank Deposit Account”- A Basic Savings Bank Account to make basic Banking facilities available to all sections of population under all Income groups.

New “ Maha Combo Loan Scheme” for House and car taken together for targeting retail customers

3.6.1 Details about PMJDY Schemes under Bank through the Financial inclusion

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria.

Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana

1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If address has changed, then a self certification of current address is sufficient.2. If Aadhaar Card is not available, then any one of the following Officially Valid Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport & NREGA Card. If these documents also contain your address, it can serve both as “Proof of Identity and Address”.


3. If a person does not have any of the “officially valid documents” mentioned above, but it is categorized as ‘low risk' by the banks, then he/she can open a bank account by submitting any one of the following documents:

a. Identity Card with applicant's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;

b. Letter issued by a gazette officer, with a duly attested photograph of the person.

Purpose of PMJDY Products & services in india through the Banking sector

In a run up to the formal launch of this scheme, the Prime Minister personally mailed to Chairmans of all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore (75 million) households and to open their accounts. In this email he categorically declared that a bank account for each household was a “national priority”. The scheme has been started with a target to provide 'universal access to banking facilities’ starting with “Basic Banking Accounts” with overdraft facility of Rs.5000. after six months and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and RuPay Kisan Card. In next phase, micro insurance & pension etc. will also be added. Under the scheme:

1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh(to be given by 'HDFC Ergo').

2. Those who open accounts by January 26, 2015 over and above the 1 lakh accident, they will be given life insurance cover of 30,000(to be given by LIC).

3. After Six months of opening of the bank account, holders can avail 5,000 overdraft from the bank.

4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP)for which all banks and mobile companies have come together


3.6.2 Differences between Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima Yojana (PMSBY)

PM Modi on 9 May 2015 launched Bima Yojanas.The name of Bima Yojana are Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima Yojana (PMSBY).The main reason to launch this Bima Yojana by PM Modi is to provide maximum protection to every Indian against Death or Disability due to accident or any reason. Now I am providing the difference between Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima Yojana (PMSBY), which is listed below.

1 Premium – In Suraksha Bima Yojana (PMSBY) the premium is of Rs 12/- annually. Against Rs 12/- you would be getting a coverage of Rs 2 lakhs. Where as in Jeevan Jyoti Bima Yojana the premium is Rs 330/- annually. Against Rs 330/- you would be getting a coverage of Rs 2 lakhs.

2 Benefit- In Suraksha Bima Yojana (PMSBY) you would be getting a sum insured of Rs 2 lakhs against the Death due to accident or partial disability. In Jeevan Jyoti Bima Yojana (PMJJBY) you would be getting a sum insured of Rs 2 lakhs against the Death due to any reason.

3. Eligibility- In Suraksha Bima Yojana (PMSBY) the eligibility to get enrolled is age must be from 18 to 70 Years. In Jeevan Jyoti Bima Yojana (PMJJBY) the eligibility to get enrolled is age must be from 18 to 50 Years.

4. Death Due to Natural Cause- In Suraksha Bima Yojana (PMSBY) Yojana if the death has happened naturally in that case you would not get any benefit. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) if the death happened naturally due to any reason you would be getting a sum assured of Rs 2 lakhs.5. Coverage providing Age- In Suraksha Bima Yojana (PMSBY) the coverage is provided upto the age of 70 years. Whereas in Jeevan Jyoti Bima Yojana (PMJJBY) coverage providing age is upto 55 years.

http://yoyomoneysingh.in/10-points-to-know-pradhan-mantri-jeevan-jyoti-bima-yojana/


http://yoyomoneysingh.in/10-differences-between-jeevan-jyoti-bima-yojana-pmjjby-and-suraksha-bima-yojana-pmsby/



http://yoyomoneysingh.in/10-points-to-know-pradhan-mantri-suraksha-bima-yojana/












6. Disability Benefit- In Suraksha Bima Yojana (PMSBY) there is Disability benefit, where as in Jeevan Jyoti Bima Yojana (PMJJBY) there is no disability benefit.

7. Partial Disability Benefit- In Suraksha Bima Yojana (PMSBY) in case of partial disability you would be get a sum insured of Rs 1 lakhs. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) there is no such partial disability benefit is there.

8. Number of Policy- In Suraksha Bima Yojana (PMSBY) one person only one policy is allowed. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) one person only one policy is allowed.9. Mode of Payment- In Suraksha Bima Yojana (PMSBY) the premium amount is auto debited from your saving account. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) the premium amount is auto debited from your saving account.

10. Period of coverage - In Suraksha Bima Yojana (PMSBY) the period of coverage is of only one year that from 1 st June to 31 May of Next year. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) the period of coverage is of only one year that from 1st June to 31 May of Next year. In both the Yojana if you are interested for future year in that case you have to renew it again.

11. Tax Benefit - In both the Yojana you would not be getting any Tax benefit.

3.6.3 10 Differences between Atal Pension Yojana (APY) and New pension System (NPS)

Atal Pension Yojana (APY) and New pension System (NPS) both are the Yojana which are supposed to provide security after retirement. The Security in both the Yojana will be provided in the form of pension. On 9 May 2015 PM Modi has launched Atal Pension Yojana .the main reason to launch the Atal pension Yojana is to provide security to the unorganized sector of Indian Society.

Difference between APY and NPS

1. Joining Age – The Age of joining in Atal Pension Yojana is from 18 to 40 years. Whereas in New Pension System Age of joining is from 18 to 55 Years.

2. Who can join – Only resident Indian can join in APY but in NPS any Indian including NRI can also join

3.Pension slab – In APY there are five pension slab i.e Rs 1000/-,Rs 2000/-,Rs 3000/-,Rs 4000/-,Rs 5000/-.Where as in NPS it decided by the Pension Fund Manager performance.50% amount will be paid at the time of retirement and rest will be paid on yearly basis.

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4. Guaranteed Pension – In APY there is guaranteed pension after retirement. In NPS there is no guaranteed pension. In NPS Safe and reasonable market based returns over the long term.

5. Type of account - In APY there is only one type of account is there. Where as in NPS there are two types of account is there. In NPS there are Tier-I and Tier-II of account are there.

6. Premature Withdrawal - In APY there is no premature withdrawal allowed except death or special condition. Where as in NPS Premature withdrawal is allowed. The premature withdrawal is only allowed in Tier-II account. But to open Tier-II account you must have Tier-II account in which premature withdrawal is not allowed.

7. Government Contribution – In APY there is 50% or max of Rs 1000/- contribution from Government is done if the account is opened on or before 31 Dec 2015.Where as in NPS there is no such Government is allowed.

8. Tax Benefit- In APY there is no tax benefit, where as in NPS you can avail a Tax rebate upto Rs 2, 00,000.

9. Reason to join- In APY you can join only to get pension after 60 years. Where as in NPS there are three reasons which are listed below.

(i) To provide old age income.(ii) Safe and remarkable return over long period.(iii) Extending old age security coverage to all citizens.

9. Fund Manager – In APY there is no option to select Pension Fund Manager. Where as in NPS there is a option to select Pension Fund Manager. There are six Pensions Fund Manager who will manage your contributions. The six Pension Fund Manager are listed below.

(i) HDFC Pension Management Co.Ltd(ii) ICIC Prudential Pension Fund Management Co. Ltd.(iii) Kotak Mahindra Pension Fund Ltd.(iv) LIC Pension Fund Ltd.(v) Reliance Capital Pension Fund Ltd. (vi) SBI Pension Funds Pvt. Ltd.


(vii) UTI Retirement Solutions Ltd(viii) Pension Fund by Birla Sunlife Insurance Co. Ltd.

10.Permanent Account – In NPS once you are enrolled in Yojana you will be issued Unique Permanent Retirement Number (PRAN).In this way you can operate your account from anywhere within in the India. Whereas there is no such PRAN is there in APY. The monthly contribition in APY will be auto debited from your saving account.

11. Where to open account - In APY you can open in any Indian bank where you have a saving account. Where as in NPS you can open the account at List POPs.

12. Toll free Number –The Toll-free number for NPS is 1-800-222080.Whereas the National toll free number for APY is 1800-180-1111/1800-110-001.

13. Official Website - The official Website for APY is

3.6.4 Roles of major stakeholders:

1 Department of Financial Services:• Overall ownership of the Mission Mode Project on Financial Inclusion• Overall Monitoring and Implementation of the Mission

2 Other Central Government Departments:• In order to achieve the complete financial inclusion and transfer of social benefits in the accounts of the beneficiaries, the concerned Departments of Central Government would coordinate with the stake holders.• Presently, 26 centrally Social benefits scheme under DBT are sponsored by eight Departments of the Central Government as under:

I. M/o Social Justice & EmpowermentII. M/o Human Resources Development, D/o Higher EducationIII. M/o Human Resources Development, D/o School Education & LiteracyIV. M/o Tribal AffairsV. M/o Minority AffairsVI. M/o Women and Child DevelopmentVII. M/o Health & Family WelfareVIII.M/o Labour and Employment

• MGNREGA is sponsored by Ministry of Rural Development (MoRD, GoI), and is likely to be included in Direct Benefit Transfer.

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• Departments like Department of Posts for using the rural post offices / Gramin Dak Sewak, Department of Telecommunications for telecom connectivity, Ministry of Information & Broadcasting and DAVP to assist in media campaign, DEITY in development of logistic support formonitoring like creation of portal for data updating, development of electronic reporting system, MoRD for convergence with NRLM, HUPA for convergence with NULM etc.

3 Reserve Bank Of India (RBI):• To align their directions to the Banks on Financial inclusion with the Mission mode• FIF fund allocation support• Depositor Education and Awareness Fund scheme 2014 support• To guide and support Banks in Financial Literacy Campaign and revamping and expansion of FLCCs upto the Block level

4 Banks: As defined in the Mission Mode document

5 Indian Bank Association( IBA):• Coordination in Financial Inclusion Effort with all Banks• Key monitoring role in Financial Literacycampaign• Coordination in publicity and campaign• Coordination in centralised handling of customers grievances / issues through Toll free numbers in coordination with Banks• A dedicated Desk to be set up for monitoring of implementation of FI. Coordinate with SLBC for Grievances redressal.

6 National Bank of Agriculture & Rural Development ( NABARD):• Coordination in publicity and campaign• Monitoring of Implementation of Financial Inclusion in respect of organisations working under NABARD• Allocation of funds from Financial Inclusion Fund (FIF)• Financial Literacy by SHGs/JLGs beneficiaries.

7 State Governments:• Appointment of Mission Director at State level• Monitoring of financial inclusion campaign in coordination with SLBC & all the stake holders• Direct Benefit Transfer of the State schemes in the bank accounts of the beneficiaries• One officer of the State Government on deputation to oversee implementation issue.

8 State Level Bankers Committee (SLBC):• SLBC Convenor GM to act as Secretary to state implementation committee• Coordination with all the Banks for Financial Inclusion Activity• Monitoring and follow up of different activities of Financial inclusion


9 District Administration:• Key role in implementation of FI in the districts• District Collector (DC) to act as chairman of District level implementation committee

10 Lead District Manager (LDM):• Lead District Manager (LDM) to act as Secretary to the District Implementation Committee• LDM to coordinate with all the Banks in FI implementation in the District

11 Local Bodies:• Representatives of local bodies ( panchayats in rural areas and municipalities in urban areas) to assist in implementation of FI in various ways like in organising camps in opening of accounts, identification of persons for opening of account, in financial literacy campaign etc.

12 National Payment Corporation of India (NPCI):• Coordination and necessary guidance and supports to banks for in providing and proper operations of RuPay cards• To facilitate inter-operability among Bank Mitr (Business Correspondent)• Necessary supports to Banks in making available USSD based mobile banking with low end mobile phones so that customer can avail basic banking services like deposit, withdrawal, fund transfer, balance enquiry etc across the banks. This product may be enabled at Bank Mitr (Business Correspondent) outlets also.

13 Unique Identification Authority of India (UIDAI):• Convergence of Aadhaar enrolment withBank account opening.• Facilitating the subsidy scheme on procurement of Aadhaar Enabled Payment System (AEPS) machines by Banks.• Fast conversion of EID to UID to ensure faster credit to Bank accounts.• Mapping multiple accounts with a single Aadhaar number.


CHAPTER:- 4 OUTLINE OF PROBLEM/TASK UNDERTAKEN

4.1 CHALLENGES IDENTIFIED IN THE IMPLEMENTATION OF THE MISSION

1. Telecom connectivity: The feedback from the Banks is that in tribal and hilly areas of the country, the telecom network is not reliable and therefore setting up Bank Mitr (Business Correspondent) in these areas and ensuring opening of bank accounts is going to be difficult. A meeting was held with representatives of the Department of Telecom (DoT) and BSNL in this regard and it was assured that the ongoing telecom connectivity problems would be resolved by mutual consultation. It was also informed that DoT is separately seeking the Government approval to cover all villages in the North East and difficult areas with telecom connectivity. Banks would also work to utilize the National Optical Fibre Network (NOFN) when it reaches the Panchayat level.

2. Keeping the accounts "Live": It is essential that all Government benefits - Central, State or local should flow to these accounts as it has been observed that a lot of duplicacy exists in this area and sometimes States have not followed theservice area approach and allocated areas to some banks other than service area banks creating avoidable confusion. The DBT schemes especially MNREGA need to be pushed and DBT in LPG needs to be restarted. The list of DBT schemes at present may be seen in Annexure 6.3. Brand awareness and sensitization: In order to achieve a "demand" side pull effect, it would be essential that there is Branding and awareness on Bank Mitr (Business Correspondent) model for providing basic banking services, Banking Products available at Bank Mitr (Business Correspondent) outlets and RuPay Cards. Customers to be made aware that overdraft of up to 5,000/- to be provided in their account is a credit facility which needs to be repaid in order to get fresh limits and is not a grant.

4. Commission to Bank on Direct Benefit Transfer (DBT): A task force on Aadhaar Enabled Unified Payment infrastructure headed by Sh. Nandan Nilekani in its report Feb, 2012 recommended that last mile transaction cost of 3.14 % with a cap of 20/- per transaction be budgeted for various EBT, DTS and last mile payments through Micro- ATMs and ATMs. The


commission applicable for DBT should also cover DBTL (DBT of LPG). MGNREGA may also be included in Direct Benefit Transfer.

5. Coverage of difficult areas: Parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing Extremism (LWE) districts face challenges of infrastructure besides Telecom connectivity. All households in such areas may not be fully covered under the campaign. Coverage of some of the areas might, therefore, spill over to Phase-II.

6. Infrastructural limitations: Especially in rural/remote areas power supply and network connectivity are still issue in most part of the country. Because of poor connectivity of internet and frequent power failure in some areas, it is not possible to do banking transaction. This problem is being seen mostly in North Eastern State and to overcome this problem RBI came up with Satellite Connectivity Scheme to provide 100% subsidy to bank branches in the NER subject to maximum 12,000 per month or the actual expenditure incurred by the bank, whichever is less, subject to the condition that the branches would offer services of electronic funds transfer free of charge to their customers. 43.3% of the total 1756 branches in the North-East region had taken satellite connectivity after the launch of the scheme. The scheme has since been extended by another year and Sikkim hasalso been brought under the ambit of the Scheme.

7. Robust Payment and Settlement system: Money transfers, payments including with Rupay etc under financial inclusion are going to add large volumes specially in number of transactions is another challenge which needs to be tackled by NPC and RBI. Differentiated Banks seem to be a possible solution.

4.1.1 Strategy for achievement of objectives

• In order to achieve the above objectives, a broad collaborative strategy with all stake holders is proposed. It is proposed to encourage Public-Private partnerships. Moreover, inter-department convergence and synergies will be gainfully utilized. The existing rural infrastructure of post offices having Gramin Dak Sewaks would be optimally utilized to become Bank Mitr (Business Correspondent) of the Banks. One of the key strategies will be deployment of online fixed point Bank Mitr (Business Correspondent) to deliver basic banking services near to the customer doorstep. There are 1.26 lakh Common Service Centres, out of which only 12,000 are BCs of the Banks.• The strategy is to take forward the Bank Mitr (Business Correspondent) model for expansion of banking services by modifying it to ensure both operational flexibility and viability of the Bank Mitr (Business Correspondent). Technological innovations like RuPay card and mobile banking would be made use of. Banks will use the RBI's scheme for subsidy on rural ATMs and UIDAI's scheme for subsidy on micro ATMs to augment their resources at the village level.• Convergence with the National Rural Livelihood Mission (NRLM) in rural areas and National Urban Livelihood Mission (NULM) in urban areas would be sought for in covering each household with bank accounts. The expansion plans of the Department of Telecom to provide


telecom connectivity in difficult areas would be effectively utilized for the provision of banking facilities in these areas. Department of Telecom has been requested to ensure that problems of poor and no connectivity are resolved on priority.

4.2 The implementation strategy:

The implementation strategy of the plan is to utilize the existing banking infrastructure as well as expand the same to cover all households. While the existing banking network would be fully geared up to open bank accounts of the uncovered households in both rural and urban areas, the banking sector would also be expanding itself to set up an additional 50,000 Business correspondents (BCs), more than 7000 branches and more than 20,000 new ATMs in the first phase. Keeping the stiff targets in mind, in the first phase, the plan would focus on first three pillars in the first year starting from 15th August, 2014.The target for setting up additional 50,000 BCs is quite challenging given the constraints of telecom connectivity. In order to achieve this plan, phase wise and State wise targets for Banks have been set up for Banks for the period 15th August, 2014 to 14th August, 2015. Roles of various stakeholders like other Departments of the Central Government, State Governments, RBI, NABARD, NPCI and others have been indicated. Gram Dak Sewaks in rural areas are proposed as Business Correspondent of Banks. Department of Telecom has been requested to ensure that problems of poor and no connectivity are resolved. It is understood that of the 5.93 lakh inhabited villages in the country (2011 census) only about 50,000 villages are not covered with Telecom connectivity11.

4.2.1 Challenges before:

A business correspondent is a representative of the bank that provides doorstep banking services through the use of smart card handling devices which are connected to the main servers of the bank. The RBI has allowed banks to use the services of NGOs, microfinance institutions, non-banking finance companies and post offices as BCs. Some caution is obviously warranted because the JDY relies heavily on the BC model for expanding the banking network in both the rural and urban areas. One of the primary reasons behind the unsatisfactory performance of the BC model is the poor remuneration (Rs 2000-3000 per month) paid to business correspondents. For such a meager amount, it is unfair to expect a BC to visit villages or slums at regular intervals, open new bank accounts for the poor people, process financial trans-actions, educate customers about banking services and answer all queries of the customers.


Under the JDY, the BCs will get a minimum compensation of Rs.5000 per month. This is a welcome move but there are several other important factors which act as a barrier in the delivery of banking services through the BC model. Some of these factors include inordinate delay in issuing smart cards to customers (three to six months); limited utility of smart cards as services such as remittance are not loaded; inadequate cash handling limit given to BCs; devices not working properly due to technical problems or poor network connectivity; lack of trust in BCs; lack of customer-centric banking products and services; poor governance and inadequate supervision of BCs; and absence of a comprehensive strategy for financial education13. The expanded financial architecture will need personnel, which is lacking, and could be important supply side deficit. Banks have been advised under the PMJDY to open 200 accounts a day in each of their existing rural branches, but they are wary, as the existing infrastructure in those branches cannot handle the extra load. Therefore, banking reach should be increased gradually and along with the capacity of banking infrastructure, so that the customer base at any time can be serviced well and the system is not pressurized at any time14. Financial inclusion can not be achieved only by meeting the target numbers. The RBI Governor, Raghuram Rajan had cautioned banks on the risks involved in just hunting for number with regard to Jan-Dhan Scheme, asking them not to compromise on core objective of the programme. ”When we roll out the scheme, we have to make sure it does not go off the track. The target is universality, not just speed and numbers.” The scheme can be a “waste” if it leads to duplication of accounts, if no transaction happens on the new accounts and if the new users get bad experiences15. In Prime Minister‟s own words this Pradhan Mantri Jan-Dhan Yojana lies at the core of this government‟s development philosophy of Sab Ka Sath Sab Ka Vikas.

4.3 TIMELINE FOR FINANCIAL INCLUSION PLAN

Comprehensive Financial Inclusion of the excluded sections is proposed to be achieved by 14 August, 2018 in two phases as under:

The Yojana will be implemented in two phases:-

Phase I (15 Aug, 2014 - 14 Aug, 2015)

• Universal access to banking facilities in all areas except areas with infrastructure and connectivity constrains like parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82 Left Wing Extremism (LWE) districts.• Providing Basic Banking Accounts and RuPay Debit card which has inbuilt accident insurance cover of ` 1 lakh. Aadhaar number will be seeded to make account ready for DBT payment.• Financial Literacy Programme

Phase II (15 Aug, 2015 - 14 Aug, 2018)


• Overdraft facility up to 5000/- after six months of satisfactory operation / history• Creation of Credit Guarantee Fund for coverage of defaults in A/Cs with overdraft limit up to 5,000/-.• Micro Insurance• Unorganized sector Pension schemes like Swavalamban. Some of the Phase II activities would also be carried out in Phase I. In addition, in this phase, coverage of households in hilly, tribal and difficult areas would be carried out. Moreover, this phase would focus on coverage of remaining adults in the households and students.

TIMELINE FOR IMPLEMENTATION

S.No Activities Timeline1 Launch 28/08/20142 Coverage of SSAs (opening of 50,000 Bank Mitr

(Business Correspondent) outlet in rural areas andadditional ones as necessary in Urban areas)10,000 15/08/201415,000 (Aggregate 25,000) 30/11/201415,000 (Aggregate 25,000) 31/03/201510,000 (Aggregate 50,000) 30/06/2015

3 Opening of accounts (estimated at 7.5 crore)25% 30/11/2014

50% 31/03/2015

75% 30/06/2015

100% 14/08/2015

4.4 Launch Function:

a. Simultaneous launch in Delhi, State capitals and Districtsb. Unveiling of the logo and merchandise of the campaignc. Low cost mobile banking (USSD) display with all telecom providersd. Highlighting of RuPay Card to be provided to the beneficiaries

CHAPTER :- 5 REVIEW OF LITERATURE


Many researchers have conducted the study on Financial Inclusion from different perspectives. To conduct the research, I have gone through the following past studies:

1. (Ms Apurva A. Chauhan,2012)

concluded in her study that India is at moderate level regarding financial inclusion as compared to other countries regarding number of branches, ATMs, bank credit and bank deposits. RBI have adopted various strategies such as no-frill account, use of regional languages, simple KYC norms etc. to strengthen financial inclusion. To cope up with the challenges to spread financial inclusion, there is a need of viable and sustainable business models with focus on accessible and affordable products and processes, synergistic partnerships with technology service providers for efficient handling of low value, large volume transactions and appropriate regulatory and risk management policies that ensure financial inclusion.

2. (Dr.R.Krishnakumar ) The study concluded that though the banks are complying with RBI norms in terms of opening branches within areas of at least 2000 population, offering no frills account, kisan credit card, General card, simplifying KYC norms, but still is lot of effort to be put in for financial inclusion progress. Biometric cards should be introduced for security in transactions as well as saving time. Business correspondents should be employed in villages and trained in advance for promoting financial inclusion program. Banks need to open its more branches within rural and remote areas and creating more awareness about banking services among rural people by telling them about the benefits of the banking services. Financial inclusion requires efforts on the parts of three parties- RBI, all the banks as well as general public for its better progress.

3. (Shabna Mol TP, 2014) conclude that most of the BPL household are included in the financial inclusion system in terms of access of bank account .It is only for the enjoying the government benefits and schemes. It must be noted that access to a bank account does not necessarily mean usage of the account. The level of awareness about the features and benefits of bank account and banking services are comparatively low. Bank must take step to increase the awareness among people about all sachems and services provided by them. To induce saving habit among BPL households it will lead to continuous usage of bank account. All this will lead to achieving financial inclusion system in effectively for the growth of our economy.

4. (Financial Inclusion in India – a Review of Initiatives and Achievements, By Sonu Garg, Dr. Parul Agarwal, 2014)


concluded that Even though enough efforts are being made by all stake holders viz Regulator, Government, Financial Institutions and others, the efforts are not yielding the kind of result expected. The regulator has to create a suitable regulatory environment that would keep the interest of all the stakeholders. The concern of banks about profitability is to be addressed by the regulator as the entire process of financial inclusion would be a kind of social work in the first few years. The concerns of the government about the reach, feasibility and implementation of government policies to the last mile needs to be addressed. The easy availability of financial services to the last mile user, the people in tier 3 to tier 6 in entirety needs to be addressed. The bank’s concerns can be addressed by leveraging ICT, designing innovative products and service models. A structured expansion and appropriate regulatory norms addressing the bank’s concern and inclusion of NBFCs, MFI and SHG in the last mile connectivity of people to financial services could resolve the people’s concern. Also bank use intensive mobile banking services to deliver banking and financial services to the people. For achieve targets of FIP, it’s needs to empowering MSMEs through provide timely and adequate finance because MSME‟s are the best medium for achieving inclusive growth which generate local demand and consumption, provide employment to millions of fresher’s. The aadhar card could be the answer to the government’s concern as the bank accounts can be linked to the holder’s aadhar number; however the sheer scale makes it difficult. Alternate to the same could be use of the vast postal office network at the disposal of the government. The post offices can easily reach the end user and vice-versa as the infrastructure is already in place. Regulatory bodies, banks and Government should intensively work on create awareness by educating people about finance. Thus, Innovative products, out of the box service models, effective regulatory norms and leveraging technology together could change the landscape of the current progress of the much needed andwanted, Financial Inclusion Program.

5. (Revving up the Growth Engine through Financial Inclusion, Address by Dr. K. C. Chakrabarty, Deputy Governor, Reserve Bank of India at the 32nd SKOCH Summit held at Mumbai on June 6, 2013)concluded that, the task of financial inclusion in a country like ours with large population and geographical spread is, indeed, challenging. The data released from the recent census of India indicates that only 58.7% of households in India avail of banking services with the figure being 54.4% for rural areas and 67.8% for urban areas. While there is greater awareness among policy makers and financial sector participants about the importance of prioritising the goal of universal financial access, there is a need to ensure that progress on the ground is in line with these expectations. The opening of bank accounts is only the first stage and the focus now is not just on improving access but also on better use of the financial infrastructure. In this regard, the collaborative approach combining financial inclusion with financial literacy, along with closer monitoring of progress in transactions, is expected to boost operations in FI accounts. Considering the enormity of the task, the combined will power of the society is required to ensure success in this challenging objective. All stakeholders, including policy makers, regulators, state and district administration, IT solution providers, software and hardware vendors, civic society, media and public at large have to come together and pool their collective


might if we have to ensure that the goal of meaningful financial inclusion and leveraging financial access as a means for economic empowerment of the excluded masses, is successfully achieved.

6. (Dr. Tushar Kanti Das) Concluded that Building inclusive financial sectors improves people’s lives, in particular those of the poor. A small loan, a saving account or an insurance policy can make a great difference to a low income family. They enable people to invest in better nutrition, housing, health and education for their children. They ease the strain of coping with difficult times caused by crop failures, illness or death. They help people plan for the future. Empirical evidence indicates that countries with large proportion of population excluded from the formal financial system also show higher poverty ratios and higher inequality. If we are talking of financial stability, economic stability and inclusive growth with stability, it is not possible without achieving Financial Inclusion. Thus financial inclusion is no longer a policy choice but is a policy compulsion today and banking is a key driver for inclusive growth. However, we must bear in mind that apart from the supply side factors, demand side factors, such as lower income and /or asset holdings also have a significant bearing on inclusive growth. Owing to difficulties in accessing formal sources of credit, poor individuals and small and macro enterprises usually rely on their personal savings or internal sources to invest in health, education, housing, and entrepreneurial activities to make use of growth opportunities. Inclusive financial sectors can break the vicious circle of poverty if implemented properly. This can empower the poor and can ensure that poor people have access to a wider range of financial services. For this unremitting effort from all the stakeholders are required. With more opportunities to build the poor will lead the way out of poverty with dignity.

8. (Speech on Financial Inclusion delivered by Dr. (Smt) Deepali Pant Joshi, Executive Director, Reserve Bank of India at the Vth Dun and Bradstreet Conclave on Financial Inclusion – Kolkata on October 28, 2013) Concluded that RBI has adopted a Bank led model but one which is essentially Model Neutral. We have tried to create an enabling environment that facilitates competition and fosters innovation.8Once the financial Inclusion plans are implemented customers will be able to transact electronically with each other as well as with individuals and firms outside the village. This will in days to come reduce dependence on Cash and High volumes will lower the costs of transactions. International experience reflects that digitizing social transfers is an effective way of bringing the excluded within the financial system the Business Case for Banks in this segment, as of now, depends on government payments. Going forward we hope that Banks will introduce new products and services crafted to the needs and income streams of poor borrowers which will enable self-sustaining financial inclusion. As Banking is a public good this is essential in the interests of Public Policy

9. (P. Arulmurugan, 2013)


Conclude that Access to financial services such as savings, insurance and remittances are extremely importance for poverty alleviation and development. In order to achieve the goal of total financial inclusion, policy makers, MFIs, NGOs, and regulator have to work together. The issue of FI has received large importance in India during the recent years. India had invested considerable amount of resources in expanding its banking network with the objective of reacting it to the people. During the last 40 years huge infrastructure has been created in banking sector. However, this large infrastructure that has penetrated even in remote rural area has been able to serve only a small part of potential customers. While India is on very high growth path, almost at the two digit level, majority of the people are out of growth process. This is neither desirable nor sustainable for the nation. We also know that one of the most important diving forces of growth is financial institution. Therefore, it is now realised that unless all the people of the society are bought under the ambit of institutional finance, the benefit of high growth will not percolate down and by that process majority of the population will be deprived of the benefits of high growth. Thus, financial inclusion is not only the socio- political imperative but also an economic ones.

10. K C Chakrabarty: Financial inclusion – issues in measurement and analysis (Kuala Lumpur, 5 November 2012.) Concluded that issue of expanding the geographical and demographic reach poses challenges from the viability perspectives. Appropriate business models are still evolving and various delivery mechanisms are being experimented with. Financial literacy and level of awareness continue to remain an issue and the ICT Based BC Model is also taking time to stabilize. It calls for coordination of all the stakeholders like sectoral regulators, banks, governments, civil societies, NGOs, etc. to achieve the objective of financial inclusion. Challenges of financial exclusion are faced by most countries globally and each country has to develop its own customized solutions drawing upon its own experiences and those of its peers across the globe. On the measurement challenges, first, it needs to be reckoned that financial inclusion concepts, policies, delivery models and implementation processes are still evolving. It is, therefore, essential that the policy for achieving total financial inclusion also keeps changing to adapt to the needs of the environment. This poses challenges for measurement of various financial inclusion initiatives as also their aggregation across activities, institutions, regions and so on. Statistical analysis of performance of financial inclusion initiatives and development of benchmarking standards can be quite complex. Second, while existing initiatives in measuring financial inclusion are commendable, there is a need for greater focus on the micro and distributional dimensions. Third, we should explore the need to change the focus of present information systems of banking business from traditional accounting model to customer centric business model. This would call for expanding the scope of the currently used measures of financial inclusion.

CHAPTER :- 6 OBJECTIVES AND SCOPE OF PROJECT


OBJECTIVE OF THE STUDY

1. To identify level of awareness on PMJDY among resident of village THEGAON BRANCH PUNE MAHARASTRA

2. To identify the level of usage of benefits arising out of PMJDY.

3. To identify how much problem they are facing when they come to the bank for PMJDY scheme.

4. To identify the PMJDY scheme are really worked for rural area people and its helps to increase There economic growth.

SCOPE OF THE STUDY

1. The target group include unemployed people, house wife, agriculturalists, and people engaged in small business in village.

2. The target group are people residing in Thergaon Village, District pune, Maharastra.

3. Banking habits and awareness about financial products and services come within the purview of the study.

CHAPTER:7 Research & Methodology


The project aims at understand the level of awareness and achievement of RBI and GOIs efforts in achieving the dream target financial inclusion. The survey was conducted among 200 residents of Thergaon village district pune Maharastra . This research work started with exploratory research design, in due course of time it was converted to causal research design.

SAMPLE DESIGNTARGET POPULATION- The target audience includes the residents of THERGAON Village,

District PUNE MAHARASTRASAMPLE FRAME- The sample frame had a RANDOM SAMPLE frame.SAMPLE SIZE- The sample size for this research is around 200.SAMPLE METHOD- The sample method included conducting a survey with residents either through personal interaction or through telephonic interaction. Convenience sampling technique was adopted.

7.1 METHOD OF DATA COLLECTION

1. Primary data :The method included preparing a questionnaire with questions mainly related to awareness related to basic banking. The process included when they are vising the the bank for any of purpose like deposite the money, withdraw the money on behalf of his/ her PMJDY account I insist to fill the questionnaire which are made by me and generating information about their banking facilities they are using.

The meeting was done as per the preference of the resident it was done in the following two ways-a. Either through personal interaction- This method was most preferred as it results in increase in knowledge of both the parties and adds a personal touch, which is not present in telephonic interaction.

Shortlisting an area

Meeting people

Convincing them to share information related to Banking habits

Analyzing information

Spreading awareness


b. Or through telephonic interaction- This method was less preferred, as it didn’t gave an idea as who is responding to the questions, it was like blindly trusting the respondent about his identity.

2. Secondary data :

Under secondary data used to different internet sites magazines, News paper, Ministry of finance site and government sites related PMJDY

CONDUCTING SURVEYThe survey was conducted with the help of questionnaire. It was either filled by me or by the respondents. In around 95% cases the respondent was reluctant to fill the questionnaire in his writing.

KNOWLEDGE SHARINGA person learns throughout his life, so keeping this in mind, knowledge was shared both ways. I learnt the problems of the respondents, the way they work and I created awareness about PMJDY.

7.2 DATA COLLECTIONGATHERING INFORMATION FROM RESPONDENT PEOPLE

METHOD OF GATHERING INFORMATION

Telephonic interview2%

personal interaction98%

Chart Title

Fig. 1Tools for data collection: The tool for data collection is questionnaire consisting of set of

questions related to Implementation of PMJDY .CHAPTER :- 8 DATA ANALYSIS AND FINDINGS

Performance of Jan Dhan Yojana under financial inclusion

Telephonic interview 2%personal interaction 98%


Due to the preparations done in the run-up, as mentioned above, on the inauguration day, 1.5 Crore (15 million) bank accounts were opened. The Prime Minister said on this occasion- “Let us celebrate today as the day of financial freedom.” By September 2014, 3.02 crore accounts were opened under the scheme, amongst Public sector banks, SBI had opened 30 lakh (3 million) accounts, followed by Punjab National Bank with 20.24 lakh (2 million) accounts, Canara Bank 16.21 lakh (1.62 million) accounts, Central Bank of India 15.98 lakh (1.59 million) accounts and Bank of Baroda with 14.22 lakh (1.42 million) accounts. It was reported that total of 7 Crore (70 million) bank accounts have been opened with deposits totaling more than 5000 crore Rupees (approx. 1 billion USD) as of November 6, 2014. As the government met the target, Union Finance Minister Arun Jaitley has revised the target for opening of bank accountsunder the Pradhan Mantri Jan Dhan Yojana (PMJDY),

Amounts deposited to the Bank under the PMJDY account

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 7-Oct 18-Nov

10450 12694 15670 16192 19520 19015 20769 22901 24939 25145 26939

Jan-15

Feb-15

Feb-15

Mar-15

Mar-15

Mar-15

Apr-15

Apr-15

Apr-15

May-15

May-15

May-15Jun-15

Jun-15Jul-1

5Jul-1

5Jul-1

5

Aug-15

Aug-15

Aug-15

Sep-15

Sep-15

Sep-15

Oct-15Oct-

15

Nov-15

Nov-15

0

5000

10000

15000

20000

25000

30000

Amounts deposited under financial inclision through PMJDY Account

Tota

l Am

ount

s in

cror

es

(fig. in crores)

Fig. 2Analysis :-the ambitious financial inclusion scheme launched by the government, around of from 7.5 crore to 10 crore by January 26, 2015.On 20th January 2015, the scheme enteredinto Guinness book of


world records setting new record for 'The most bank accounts opened in one week'. Continuously showing the figures are collected amount under PMJDY gap of one month . so in end of financial year 2014-15 , 15670 crores amounts are deposited . further the graph shown till 18-nov 2015 , 26939 crores amounts are deposited to the all Bank above the data collected from submitted by ministry of finance report and all the Banks are submitted reports to the government .

DATA WILL BE TAKEN FROM BANK OF MAHARASTRA AND RESEARCH ON THAT…1. Bank wise Detail of Villages / SSAs / Households Allotted and Covered as on 31.05.2014 Table 1

Village SSA (sub service area) No. of householdalloted Covered Allotted Covered Allotted Covered

Total alloted to all bank 302753 164958 92667 60821

91,760,353

52,752,864

Bank of Maharstra 10235 7106 3048 2128 2,706,761

2,075,228

other banks 292518 157852 89619 58693 89,053,592

50,677,636

Diagram

alloted covered alloted covered alloted coveredvillage SSA (sub service area) No. of household

0100000002000000030000000400000005000000060000000700000008000000090000000

100000000

Bank wise Detail of Villages / SSAs / Households Allotted and Covered as on 31.05.2014

No.

of c

over

ase

are

a ,S

SA,&

hou

shol

d

Fig:3Anaysis:-


Above mention the diagram shows that Bank wise detail allotted and covered by the different banks in which we finding the bank of maharastra only that is in village area allotted 10235 and covered 7106 same as in sub-service area 3048 out of 92667 rest of these covered by other banks and lastly in case of number of household allotted to BOM 27,06,761 and covered of 20,75,228 .

2. phase wise target covered of business corresponding Table 2

phase wise target covered of Business correspondingup to 31.08.2014

31.08.2014 to 30.11.2014)

30.11.2014 to 31.03.2015

31.03.2015 to 30.06.2015

STATES Phase 1 phase 2 phase 3 phase 4Maharastra 1000 1500 1500 1172all other states 9520 13790 13443 6258Total 10520 15290 14943 7430

Phase 1 phase 2 phase 3 phase 4

1000 1500 1500 1172

9520

13790 13443

6258

10520

15290 14943

7430

Phase wise target for coverage of Business Correspondents

Maharastra all other states total

Fig. 4 Analysis:- Above the figure shows that phase wise target for coverage of business corresponding model and also also shows Maharastra and other states. Target covered in phase 1,2,3,4, . in Maharastra phase 1st shows 1000 area covered , 2nd phase 1500, 3rd phase 1500, and 4th phase rest of area 1172 .


3. All branches of Bank of Maharastra in pune detail report in PMJJBY, PMSBY and APY scheme detail and and also shows bank of Maharastra THERGAON BRANCH(0853)

Table 3PMJJBY PMSBY APY

Reported by BOM

till 31/07/2015 covered

Reported till 31/07/2015 covered

Reported

till 31/07/2015 covered

THERGAON BRANCH(0853) 1000 1085 1500 1524 2 1All other 68 branches in pune 60295 47531 78724 73170 1397 807Total covered by BOM in PUNE only 61295 48616 80224 74694 1399 808

THERGAON BRANCH(0853)All other 68 branches in

pune Total covered by BOM in PUNE only

1000

6029561295

1085

4753148616

PRADHAN MANTI JIWAN JYATI BIMA YOJANA

PMJJBY Reported by BOM PMJJBY till 31/07/2015 covered

Fig. 5Analysis:-Above the diagram is shown on PRADHAN MANTRI JIWAN JYOTY BIMA YOJANA in this figure Bank of Maharatra Thergaon branch(0853) has receive the target 1000 of account but it fulfilled above the target which is given by the main branch and the rest of branch reports are include in other branch in pune .


RRADHAN MANTRI SURKSHA BIMA YOJANA

THERGAON BRANCH(0853) All other 68 branches in pune Total covered by BOM in PUNE only

1500

78724 80224

1524

73170 74694

RRADHAN MANTRI SURKSHA BIMA YOJANA

PMSBY Reported PMSBY till 31/07/2015 covered

Fig. 6Analysis:- Here is the figures are pradan mantri suraksha bima yojana in that case in BOM THERGAON branch received 1500 target but they will achieved the target with than 1500 so in this behavior this branch are worked very properly and rest of other branches are fulfilled the target but maximums are failed.

THERGAON BRANCH(0853) All other 68 branches in pune Total covered by BOM in PUNE only

2

1397 1399

1

807 808

ATAL PENSION YOJANAAPY Reported APY till 31/07/2015 covered

Fig. 7


Analysis:- In ATAL PENSION YOJANA REPORT in BOM THERGAON BRANCH got the target 2 people and they fulfilled 1 so these are the reports provided by the BOM thergaon branch when I am working as a trainee .

4. Achievement of bank account reaching a target with in one day from 16-Aug 2014 by the specific bank .

Bank's name No. of acc. Opened with in a dayCENTRAL BANK OF INDIA 1085000IDBI BANK 362000UNION BANK 550000DENA BANK 300000ICICI BANK 100000BANK OF MAHARASTRA 290000SBI BANK 2000000

CENTR

AL BANK O

F INDIA

IDBI BANK

UNION BANK

DENA BANK

ICICI BANK

BANK OF MAHARAST

RA

SBI B

ANK0

200000400000600000800000

100000012000001400000160000018000002000000

No. of acc. Opened with in one day from 16-aug 2014

No.

of a

ccou

nt

Fig.8Analysis

Above mentioned the diagram shows that no. of account opened with in a day from 16-aug 2014. In that case we are taking some bank’s name and all of them Bank of Maharastra reaching a target 290000 accounts opened in a day as well as SBI bank are reached maximum number of account 2000000.


BELLOW THE DATA TO BE TAKEN FROM RESPONDENT PEOPLE WHO IS FILLED THE QUESTIONNAIRE. All the questionnaire are attached with project report at end.

Q 1 & Q 2 no need to shows in table and graph so I take directly from Q 3Q3. Does any one of you have bank account?

Bank AccountYes 193No 7

Bank Account yes

No

020406080

100120140160180200

Chart Title

Series1

HAVING BANK ACCOUNT OF RESPONDENT

Fig. 9DATA:-Here above the figure taken from research in that case out of 200 people 193 people are having account only 7 peoples not having any account the reason is what somebody says they new person or they don’t have any local address proof so they are not having account.

If yes, Kindly answer following questions otherwise go to Q.4Q3.1 No. of account in your household

Analysis :- Fig.10

no. of acc in household 1 2 3 4

More than 4

no.of people 13 77 61 29 13


While survey it has been found that majority of respondent have 2 bank account in their household. 13 respondents have 1 bank account in their household, while majority of respondent i.e. 77 respondent have 2 bank accounts in their household, 61 respondent have 3 bank accounts in their household whereas 29 and 13 respondents have 4 and more than 4 bank accounts in their households respectively

Q3.2 Which type of account do you have?types of account

saving acc 173current acc. 8FD 14RD 13

saving acc current acc. FD RD0

20406080

100120140160180

173

8 14 13

Series1

Fig.11Through survey it was found that out of 193 respondents 173 were having saving account whereas 8 were having current account and rest i.e. 14 and 13 were having deposits like FD and RD respectively.

Q3.3 What were the reasons that your household opened the account?

the reasons that your household opened the account

a) To receive Govt. payments from NREGA59

b) To receive Govt. payments from schemes other than NREGA43

c) For receiving remittance 19d) For saving 67


e) To request a loan 4

f). If other, please specify 8

Interpretation: During survey it was found that out of 193 respondents, 59 and 43 respondents opened an bank a/c in order to receive government payments under NREGA and schemes other than NREGA respectively whereas 19, 67, 4 opened bank a/c for receiving remittances, for purpose of savings and request a loan respectively and only 8 respondents opens the bank a/c for other reasons.

Q3.4 Who helped you while opening the a/c ?

helped while opening a bank acconta) Village Panchayat Official 39b) Bank Official 108

c) Neighbors/Friends/Relatives/Employer26

d) Business Correspondent/Post Office 20

a) Village Pan-chayat Official, 39

b) Bank Official, 108

c) Neighbors/Friends/

Relatives/Em-ployer, 26

d) Business Correspondent/Post Office,

20

Fig.12Analysis


It’s necessary to know the source from where our consumer comes to know about our product. In case of financial inclusion it’s necessary for RBI, commercial banks that which is the best source of spreading awareness. In Aakhar village majority of the respondents those who possess bank accounts, came to know about services with the help of Bank officials. Banks from time to time conduct awareness programs, drama, Nataks etc. the theme of all is spreading knowledge. To some extent banks have been able to spread awareness. More need to done not only at board level but also at ground level. Out of 200 respondent 39 respondents open a/c with the help of Gram panchayat and majority of respondent have opened a/c via bank officials whereas 20 and 26 respondent open bank a/c with the help of Bank Correspondent and Friends/Relatives respectively.

Q4. Reasons for not having even a single bank a/c in your family ?

Reasons Very little money to put in

Lengthy procedures

Many charges are there

Tried to open but was refused

No. of Respondents

2 1 1 3

Very little money to put in

Lengthy procedures Many charges are there

Tried to open but was refused

0

0.5

1

1.5

2

2.5

3

No. of Respondents

no. o

f per

son

Analysis:- fig.13Out of 200 respondents only 7 respondent don’t have bank a/c. The main reasons they don’t have account are either they don’t have much money to keep in their bank a/c or they think opening an bank a/c may charge some money or they found opening an bank a/c have lengthy procedures but there are few people who tried to open an bank a/c but due to some reasons has been refused by banks.

Q5. Reasons for being refused a bank a/c


Had to maintain minimum Balance in account 2Other (please specify)------------ 1

Fig.14Analysis :-Out of 7 unbanked respondent 3 tried to open a bank account, but where refused by bank to open the bank a/c. The main reasons were either bank don’t have a/c opening form or they have asked individuals to open the bank a/c with minimum Rs 500.

Q6. Awareness about Basic Banking Saving A/c which was announced on 15th

August 2014No. of respondant

Yes 198No 2

67%

33%

Reasons for being refused by bank

Had to maintain minimum balance Other (Please Specify) ____


YES NO

Fig.15Analysis:-

While doing survey it has been found that majority of people are aware about PMJDY while only 2 were not aware about it.

Q7. Reasons for not having awareness about Basic Banking Saving A/c. No promotion by Banks, government or village panchayat in village. Not in a habit of reading newspaper. Lack of Media Advertisement via TV/Radio

Reasons for not having awareness about PMJDY .

Not in a habit of reading newspaper

2198


Analysis:- fig.16Those who are not aware the main reason for their lack of awareness was they are not in a habit of reading newspaper. These were very illiterate respondents who are not interested in what is happening around themselves.

Q9) Which kind of debit card will be available for those who open accounts under PMJDY?-

Types of debit card No. of respondent

RuPay debit card 165 Other debit card 10 Don’t know about it 25

RuPay debit card Other debit card

Don’t know about it

0

50

100

150

200 165

10 25

Types of debit card will be available

Series1

fig.17Analysis:-Above the figure is shows for available of debit card under the PMJDY. And same thing most of the people they are given correct answer out of 200, 165 people are tick the RuPay card other are said other debit card or don’t know any thing in that case very senior citizen people are not having proper knowledge other wise ok..

Q10. Awareness about various facilities covered under PMJDY like:

No. of respondant out of ( 200) Facilities

good Neutral poorTotal 200


Overdraft facility of 5,000 73 97 30 200Life insurance cover 117 34 49 200Personal Accident cover 76 83 41 200Rupay card 173 21 6 200

Overdraft facility of 5,000

Life insurance cover

Personal Accident cover

Rupay card0

20

40

60

80

100

120

140

160

180

Awareness about various facilities covered under PMJDY

good

Neutral

poor

Fig.18Analysis:-Under this figure all the situation blue colour is shown the people have good knowledge or excellent awareness about as per given facilities as a same like that Red colour is shown modurate or netural knowledge about as well as green colour of spared shown a people have very little or poor knowledge about in all the cases so as per the figure

Out of 200 respondents, 73 were having good knowledge about Over Draft Facility, majority i.e. around 97 were having medium knowledge and 30 were having poor knowledge. Through this survey I was able to clear respondent’s concepts that what exactly the concept of Over Draft facility of 5,000 is about and for whom this facility is there. And when one can avail this Over Draft facility.


Out of 200 respondents, 117 were having good knowledge about Life Insurance cover, whereas 34 and 49 were having medium and poor knowledge about Life Insurance Cover. With this survey I was able to explain the individual about the importance of Life Insurance cover in individual life. And when and to whom it is payable.

Out of 200 respondents, 76 were having good knowledge about Personal Accident cover, majority i.e. around 83 were having medium knowledge and 41 were having poor knowledge. Through this survey I was able to clear respondents doubts like what exactly Personal Accident cover is all about. Who will pay the premium of that? And if both husband and wife have opened the bank account under PMJDY are eligible for Personal Accident cover separately or not.

Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas 21 respondents don’t have very clear knowledge about card and 6 respondents were having poor knowledge. Through survey I was able to clear doubts of respondents like what exactly Rupay Debit card is. What are the advantage of having Rupay Debit card and how one can keep debit card operational?

HYPOTHESIS TESTING

In this study we will apply chi-square test at 95% confidence level and 5% significance level.

GENERATED HYPOTHESIS

NULL: People are not aware about PMJDY.

ALTERNATIVE: People are aware about PMJDY.

People are Aware People Are not Aware

TOTAL


Have bank account 193 0 193

Don’t have bank account

5 2 7

Total 198 2 200/200

Solutions:-

OBSERVED EXPECTED O-E (O-E)^2/E

193 193*198/200= 191.07

1.93 0.0194

5 198*7/200=6.93 -1.93 0.537

0 193*2/200= -1.93 -1.93 1.93

2 7*2/200= 0.07 1.93 53.212

The Chi-square statistic is 55.6999. The P value is 0. This result is significant at p < 0.05.We will accept our Alternative Hypothesis. It means respondents of Thergaon Village, Districtpune, Maharastra are aware about of PMJDY.

CHAPTER : 9 CONCLUSIONS (SALES PROJECT) / CONCLUSIONS & SUGGESTIONS (RESEARCH PROJECT

FINDING , SUGGESTION AND RECOMMEDATION

FINDINGS

Through survey following things have been found out:-1. under the PMJDY scheme lots of account opened but only 60 % accounts are operating continue the reason is the people are one open account on the basis of only receive the benefits of government.2. Out of 200 respondents only 7 were not having bank a/c in their household.


3. Majority of the people open bank a/c in order to save money i.e. 67 whereas 59 respondents opened a/c in order to receive government payment under NREGA.

4. Majority of the accounts in the village has been opened by Bank official i.e. 108, 39 by village panchayat, 20 by business correspondent and 18 with the help of friends and relatives.

5. Through survey it has been found that 2 respondents are not interested in opening of bank account because they have very little money to put whereas 1 respondent thinks there is a lengthy procedure to open bank account and 1 think there are many hidden charges. It has also been found that 3 respondents were tried to open the bank account but were refused by the banks to open bank account.

6. Those respondents who tried to open bank account but refused by bank because bank has asked them to open bank account with minimum Rs. 500 or banks are not having account opening form.

7. Through survey it has been found that majority of people are aware about PMJDY while out of 200 only 2 were not aware about that.8. And those who are aware about PMJDY are not having crystal like understanding on various aspects of PMJDY.

9. Out of 200 respondents, 73 were having good knowledge about Over Draft Facility, majority i.e. around 97 were having medium knowledge and 30 were having poor knowledge. Through this survey I was able to clear respondent’s concepts that what exactly the concept of Over Draft facility of 5,000 is about and for whom this facility is there. And when one can avail this Over Draft facility. 10. Out of 200 respondents, 117 were having good knowledge about Life Insurance cover, whereas 34 and 49 were having medium and poor knowledge about Life Insurance Cover. With this survey I was able to explain the individual about the importance of Life Insurance cover in individual life. And when and to whom it is payable.

11. Out of 200 respondents, 76 were having good knowledge about Personal Accident cover, majority i.e. around 83 were having medium knowledge and 41 were having poor knowledge. Through this survey I was able to clear respondents doubts like what exactly Personal Accident cover is all about. Who will pay the premium of that? And if both husband and wife have opened the bank account under PMJDY are eligible for Personal Accident cover separately or not. 12. Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas 21 respondents don’t have very clear knowledge about card and 6 respondents were having poor knowledge. Through survey I was able to clear doubts of respondents like what exactly Rupay Debit card is. What are the advantage of having Rupay Debit card and how one can keep debit card operational?


SUGGESTIONS

We must promote the financial Inclusion aggressively to serve our own low income families but also to show ways to improve the life of poor people around the world. Suggestion are as follow:

1. Develop low cost bank branch model: India needs to develop a low cost bank branch model, possibly attached to village post office.

2. Promote financial product and services: Reserve Bank and Government should give the suggestion to commercial banks to promote the financial product and services of banking through all the educational institution (primary, secondary, and higher secondary)

3. Develop financial literacy: The government of India should help develop financial literacy among the population, particularly in low income families. That can be done by teaching it in primary school, high schools and colleges.

4. Telecom companies: should be allowed to provide payments and money transfer services.

5. Add extra incentives to lend in rural area: The RBI should mandate that commercial banks have a certain percentage of their portfolio in small loans. In addition, important social considerations should be factored into loan decisions. The children have to be attending a school before they are eligible for a loan. Similar conditions should be imposed for eligibility of loan in India. The government could also add extra incentives to lend in rural areas.

6. Financial system need to revised and strengthened: The community based financial systems like the chit funds need to be revived and strengthened. They serve as a very useful savings and credit function and result in local growth and employment.

7. Encourage people to access banking services: The bank should step up to over whelm all these problems and to disseminate its service to remote area. The bank should encourage the people to access banking services by ways of no frill account, financial inclusion campaign and business correspondent. The government should encourage the banks to adopt financial inclusion by means of financial assistance, advertisement and awareness programme etc. to achieve the Inclusive growth. We must promote the financial.

8. Inclusion aggressively to serve our own low income families but also to show ways to improve the life of poor people around the world.

9. Directing government benefits through service area banks: Any government or social security payments or payments under all the government schemes should be strictly routed through the service area bank account. This will make people in rural areas to compulsorily have an account in their service area branch to avail the government benefits.


10. Strengthening of BC Model:i) To ensure both operational flexibility and viability of the BC agents with proper training about basic banking and insurance products, provide them good infrastructure in terms of good quality computers and other peripherals like microATM, bio-metric scanners, and internet connectivity.

ii) Banks may be advised to adopt a scheme for financing to the BC’s to set up office and buy a laptop, a two wheeler vehicle and some working capital funds. These credit facilities can also be covered under Credit Guarantee Fund.

CONCLUSION

This project has been undertaken to study the PMJDY program in Bank of Maharastra Thergaon

Village Branch, District Pune, Maharastra and to find out the steps taken by the banks in the area

of Financial Inclusion. The main objectives of the research were to identify the approaches

adopted by different banks and to know about the customer response towards the banking

approaches under financial inclusion program. Under this project find out that sometimes

bankers are suffering from lots of problem to the convinced to the customer from the Jan-Dhan


Yojana schemes because government of policy time to time change in regarding PMJDY

schemes and that’s why bankers are confused to understanding the policy. It also aims at

finding out how the schemes of RBI on Financial Inclusion are taken into account and the

banker’s perception on Financial Inclusion.

The study concluded that though the banks are complying with RBI norms in terms of opening

branches, offering no frills account, kisan credit card, simplifying KYC norms, but still is lot of

effort to be put in for financial inclusion progress. Biometric cards should be introduced for

security in transactions as well as saving time. Business correspondents should be employed in

villages and trained in advance for promoting financial inclusion program. Banks need to open

its more branches within rural areas and creating more awareness about banking services among

rural people by telling them about the benefits of the banking services. Financial inclusion

requires efforts on the parts of three parties- RBI, all the banks as well as general public for its

better progress.

CHAPTER:-10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST

ORGANISATION

Have helped to filled the form of PMJDY accounts

Have lots of individuals accounts to open bank account under PMJDY. Was able to clear doubts of individuals related to Insurance cover, RuPay debit card,

Overdaft facility etc. Convince people to apply for Aadhar Card.

Fund transfer to them accounts and deposits in FD, RD, and MIDS accounts

Aadhar card , PAN card link to their accounts.

With the help of RBI diary have make it clear to people who are not interested in opening


the bank account about importance of bank and facilities they can avail.

Create awareness among people about RSBY.

FUTURE SCOPE & LIMITATION

SCOPE OF FURTHER RESEARCH

1. Chairman of IRDA Mr. T.S Vijayan said, that the government should launch scheme Jan Bima Yojana in line of similar programmed launched in banking sector.

2. The scheme can be linked to Swachta Bharat Abhiyan. For construction of toilets in rural area the finance can be done under PMJDY.

3. This can be help to boost previous schemes under financial inclusion such as Micro Finance, SHG for working towards positive development.

4. It could help to build small business in rural area. And creating job opportunities in banking sector.

LIMITATION OF THE STUDY

1. There is shortage of time to conduct the study. Due to the shortage of the time, smaller sample size has been taken which may not be the true representative of the whole universe.

2. Due to time constraint, it was not possible to observe every aspect of Financial Inclusion Program.

3. Due to conservative nature, it may be possible some respondents may not have given their responses in the questionnaire in fully true manner.

4. Since the respondents may be busy with their hectic schedule, so many people may be reluctant to answer.


5. The study is limited to only specific rural areas and therefore, several other potential samples outside these areas have been neglected.

Bibliography

MAGAZINE

NEWS PAPER

WEBSITES

http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=2670 ,accessed on 27th May2014

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CRB5100512KC.pdf , accessed on 27thMay 2014


http://www.preservearticles.com/2012033129398/12-main-reasons-for-nationalisation-ofbanks.html , accessed on 24th May 2014

Anand Sinha (2012), “Financial Inclusion and Urban Cooperative Banks”, edited transcript at the launch of the financial inclusion program of COSMOS Bank at Pune.

Retrieved from http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=654

Pradhan Mantri Jan-Dhan Yojana | Department of Financial ... www.pmjdy.gov.in/

Progress Report - Pradhan Mantri Jan-Dhan Yojana ... www.pmjdy.gov.in/account-statistics-country.aspx

jandhanyojana.net/highlights-of-the-jan-dhan-yojana-pmjdy/ www. bankofmaharashtra .in/ Reserve Bank of India - Speeches - Annual Report

https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=607

WWW.MONEYCONTROL.COM

WWW.WIKIPEDIA.COM

WWW.SLIDSHARE.COM

www.businessindiaonline.com

REPORTS

Ministry of finance report

Financial inclusion (PMJDY) report submitted by government of india

Bank of Maharastra report related to PMJDY

ANNEXURES: GLOSSARY, QUESTIONAIRE/ CHECK LIST OF QUESTIONS

ANNEXURE 1

Final report covered of household in india under PMJDY

Total Households Covered Households Coverage%

21.05 Cr 20.99 Cr 99.74%

http://WWW.SLIDSHARE.COM/

http://WWW.WIKIPEDIA.COM/

http://WWW.MONEYCONTROL.COM/

https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=607

http://www.bankofmaharashtra.in/

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&sqi=2&ved=0CCcQFjABahUKEwitiLeihZTJAhVFc44KHcfoD54&url=http%3A%2F%2Fwww.pmjdy.gov.in%2Faccount-statistics-country.aspx&usg=AFQjCNFA5tFK-JfHc0oNN_8R-5NO6qBcaQ&sig2=UlsQtCvlhQAgCESJkoZuqg&bvm=bv.107467506,d.c2E

http://www.pmjdy.gov.in/

http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=654


Annexures 2

Impact of Financial Inclusion on Households

>90%

75% - 90% 50% - 75%

<50%

Households

Cash Bank acc. Micro insurance scheme

Credits + Subsidies

Life insurance


Annexure 2

Comparision between earlier scheme swabhimaan and latest scheme

PMJDY

s.n. EARLIER APPROACH (SWABHIMAAN) NEW APPROACH (PMJDY)

1 Villages with population greater than 2000COVERED; THUS LIMITED GEOGRAPHICALCOVERAGE

Focus on household; Sub Service Area (SSA) forCOVERAGE OF THE WHOLE COUNTRY

2 ONLY RURAL BOTH RURAL AND URBAN

Digital Money(Through RuPayDebit Cardand Mobile Phone)

Health insurance

General insurance

Accidental insurance

Pension scheme

Social Security

Economic Activity& Livelihood

Economic securityTransaction security


3 Bank Mitr (Business Correspondent) was visitingON FIXED DAYS ONLY

Fixed point Bank Mitr (Business Correspondent)in each SSA comprising of 1000-1500 households(3 to 4 villages on an average) to visit otherVILLAGES IN THE SSA ON FIXED DAYS

4 Offline accounts opening - Technology lock-in with the vendor

ONLY ONLINE ACCOUNTS IN CBS OF THE BANK

5 Focus on account opening and large number of accounts remained dormant

Account opening to be integrated with DBT,CREDIT, INSURANCE AND PENSION

6 NO USE OF MOBILE BANKING Mobile wallet and USSD based mobile banking toBE UTILIZED

7 NITER-OPERABILITY OF ACCOUNTS WAS NOT THERE

INTER-OPERABILITY THROUGH RUPAY DEBIT CARD, AEPS ETC.

8 CUMBERSOME KYC FORMALITIES Simplified KYC/e-KYC in place as per RBIGUIDELINES

9 No guidelines on the remuneration of the Bank Mitr (Business Correspondent). Banks went generally with Corporate BCs who used to be least expensive to them

Minimum remuneration of the Bank Mitr(Business Correspondent) to be ` 5000/-( Fixed+ VARIABLE

10 A recent RBI survey finds that 47% of Bank Mitr are untraceable

Viability and sustainability of Bank Mitr (BusinessCorrespondent) is identified as a critical component

11 MONITORING LEFT TO BANKS Financial Inclusion campaign in Mission Modewith structured monitoring mechanism atCENTRE, STATE AND DISTRICT LEVEL

12 FINANCIAL LITERACY HAD NO FOCUS The rural branches of banks to have a dedicatedFINANCIAL LITERACY CELL

13 NO ACTIVE INVOLVEMENT OF STATES /

DISTRICTS

State level & District level monitoringCOMMITTEES TO BE SET UP


14 No brand visibility of the Programme & BankMITR (BUSINESS CORRESPONDENT)

Brand visibility for the programme & Bank Mitr(BUSINESS CORRESPONDENT) PROPOSED

15 PROVIDING CREDIT FACILITIES WAS NOT

ENCOURAGED

OD limit after satisfactory operations / creditHISTORY OF 6 MONTHS

16 NO GRIEVANCE REDRESSAL MECHANISM Grievance redressal at SLBC level in respectiveSTATES


QUESTIONS ASKED BY RESPONDENTS

1. What is RuPay debit card?

2. How to keep RuPay card safe?

3. Whether overdraft facility can be availed in more than one account?

4. What is accidental insurance cover? And who will pay premium for that?

5. Does a person already having a bank account in any bank needs to open another account under PMJDY to get accidental and life insurance cover?

7. I have no official documents for opening an account. Can I still open anaccount with bank?

8. Can a minor can open an account under PMJDY?

9. Do I have to pay some fees to open a bank account under PMJDY?

10. What is meant by Insurance cover of Rs 30,000 announced by Prime Minister in his speech on 26th August 2014?


QUESTIONNAIRE

Q1. For how long have you been staying in this village? Less than a year 1-5 year More than 5 year

Q2. Who all are there in your family? Joint Family Nuclear Family

Q3. Does any one of you have bank account? Yes No

If yes, Kindly answer following questions otherwise go to Q.4Q3.1 No. of account in your household ?a) 1b) 2c) 3d) 4e) More than 4

Q3.2 Which type of account do you have?a) Saving a/cb) Current a/cc) Fixed Deposit a/cd) Recurring Deposit a/c

Q3.3 What were the reasons that your household opened the account?a) To receive Govt. payments from NREGA

Name: ____________________________________ Age: __________Gender: Male/ Female Occupation: ____________________Address: _______________________________________________________________________________________________________________________________________Mobile No. : ________________________________________________________________


b) To receive Govt. payments from schemes other than NREGAc) For receiving remittanced) For savinge) To request a loanf) If other, please specify ______________________________

Q3.4 Who helped you while opening the a/c?a) Village Panchayat Officialb) Bank Officialc) Neighbors/Friends/Relatives/Employerd) Business Correspondent/Post Office

Q4. Reasons for not having even a single bank a/c in your familya) Very little money to put inb) No banking facilities in areac) Lengthy proceduresd) Many charges are theree) Tried to open but was refusedf) Other (Please specify) ___________________________________

Q5. Reasons for being refused a bank a/ca) No Idb) No address proofc) Unemploymentd) Had to maintain minimum balancee) Don’t knowf) Other (Please Specify) ___________________________________

Q6. Awareness about Basic Banking Saving A/c which was announced on 15th August2014a) yesb) No

Q7. Reasons for not having awareness about Basic Banking Saving A/c.a) No promotion by Banks, government or village panchayat in village.b) Not in a habit of reading newspaper.c) Lack of Media Advertisement via TV/Radio


Q8. Are you availing any of the following services?a) NREGA.b) Gas Subsidyc) Food Subsidyd) Direct Benefit Transfer

Q9. Awareness about various facilities covered under PMJDY like:a) Overdraft facility of 5,000.b) Life insurance cover.c) Personal Accident cover.d) Rupay card

project report on financial inclusion through the pradhan mantri jan dhan yojana

Economy & Finance