study of pmjdy account holders - cafral · 2015. 9. 7. · their pmjdy accounts. this is based on...

STUDY OF PMJDY ACCOUNT HOLDERS

© Intellecap 2015. All rights reserved

Contents

2

Objective of the Study

Methodology adopted

Analysis and key findings from the Study

Summary of Findings

Disclaimer


Contents

3


Methodology adopted


Summary of Findings

Disclaimer



4

The study initiated by CAFRAL was aimed at getting

feedback from the PMJDY beneficiaries who are the first

time entrants into the banking system


Contents

5


Methodology adopted


Summary of Findings

Disclaimer


Identified locations

6

MADHYA PRADESH

INDORE | DEWAS | DHAR

3 districts with different levels of banking

penetration

Indore: >60% | Dewas: 40%-50% | Dhar:


Identified areas: More focus on public gatherings rather than

individual households in order to target all segments of population

7

MANDI

JAN SUNVAYEE

RURAL HOUSEHOLDS

AANGANWADI

URBAN SLUMS

PANCHAYAT

SMALL INDUSTRIES


Key Study facts

8

800+ 313

99 Indore

101 Dewas

113 Dhar

Number of

people met

Respondents having

PMJDY Accounts

Male : Female

80:20

10 Day Study

Rural : Urban

67:33


Contents

9


Methodology adopted


Summary of Findings

Disclaimer


Profile of Respondents - Profession

10

“Approximately 70% of the

respondents were

dependent on daily income

(small farmers and daily

wage labourers)”

*Elementary Occupation mainly consists of Tailor, Cycle Repair Shop,

Small Flour Mill, etc.

Daily Wage Labourer

39%

Farmer 33%

Elementary Occupation

10%

Shopkeeper 10%

Houswife 5% Driver

3%


Profile of Respondents – Age Group

11

“Majority of respondents were in the age-group of 35-60 years”

18-35 35-60 >60

41% 54% 5%


Account opening period

12

“Majority of the accounts were opened in the past 1-6 months”

July’15 June’15 May’15 Apr’15 Mar’15 Feb’15 Jan’15 Dec’14 Nov’14 Oct’14 Sep’14 Aug’15

23%

74%

3%

Last 1 Month

1-6 Months

>6 Months


Banks with which respondents have been associated

13

State Bank of India 30%

Narmada Jhabua

Grameen Bank 28%

Bank of India 15%

IDBI 14%

Union Bank 2%

Central Bank 1%

Don’t Know 2%

Others 8%

313

Accounts

“The respondents had

opened their accounts from

a mix of various banks”


Reasons for opening PMJDY account

14

To deposit Regular

Savings To avail insurance

scheme

Financial Support

from Government

1

2 3

Direct Benefit Transfers

and Subsidies

4 52%

23% 10% 6%

Everybody in

village was

opening

Facility

available at

doorstep

To remit

money to

family

3.9% 2.0% 1.4%

Pressure from

Administrative

Authorities

Others

(to access bank

facilities, etc.)

0.3% 0.7%

Approached

by Banks

0.7%

KEY REASONS

OTHERS


RuPay Card and Bank Passbook availability

15

“21% of the respondents

have not received any

documents from their bank

after opening their account”

RuPay Card + Passbook

45%

Bank Passbook

26%

No document

21%

Passbook Slip 5%

RuPay Card 3%


Money in house vis-à-vis Money in Bank

16

97% of the respondents felt

that their money is

safe in Bank

100% of the respondents

prefer bank rather

than keeping the

money at home


Utilization of account

17

64% of the respondents

have transacted at

least once

36% of the respondents have

not transacted at all

Unavailability

of

documents

Don’t have

enough

savings

No

information on

branch

Bank

process is

difficult

Didn’t feel the

requirement

Don’t

understand the

process

Busy during

banking

hours

Opened

account

recently

49.1% 15.2% 8.9% 8.0%

6.3% 5.4% 4.5% 1.8%

Through Bank

Branch

Through Bank

Mitra Through ATM

76.4% 22.4% 1.3%


Utilization of RuPay card

18

99%

0% 0%

1%

WITHDRAWAL

MONEY TRANSFER SHOPPING

OTHERS

“Majority of the respondents

used the RuPay card for

withdrawal only and were

not aware about its other

uses.”

*Others include paying bills such as electricity,

water, etc.

© Intellecap 2015. All rights reserved 19

50.5%

Did not know that they can retain

money in their account and don’t have to withdraw it immediately

95% were not aware that they can

transfer money to another account directly from the bank

Awareness regarding account usage


Mobile banking and its penetration

20

84% Respondents had a mobile

51% Respondents received messages

from their Banks

Calls Only 65%

Calls + Messages

34%

Others 1%

USE OF MOBILE PHONE BY

RESPONDENTS

56% Respondents were not aware that

they can check account balance

through mobile

*Others also include Whatsapp,

Facebook, and surfing online


Contents

21


Methodology adopted


Summary of Findings

Disclaimer


Summary of Findings (1/2)

22

Lack of financial literacy campaigns

“The Financial Literacy programs have been very limited when

compared to opening of accounts, thus leading to lack of

awareness on features and low usage”

Financial Illiteracy

“Many account holders had deposited INR 100 in their

account after opening, but withdrew the same in order to

activate the RuPay card”

Lack of financial support from Banks to Business Correspondents

“Delay from banks in providing commissions to BCs which

was agreed upon for opening accounts in rural areas,

resulted in some BCs charging INR 20-30 per account from

the customers, in order to maintain their costs”


Summary of Findings (2/2)

23

Lack of knowledge on mobile banking

“While a large majority use mobile phones, they are not aware

or do not understand how to use it to get details about their

accounts”

Access to Bank Outlets

“Access to a bank outlet was not stated as a problem by the

respondents, but the time to be spared to operate the

account did come out as a hindrance to usage”

Zero Balance Facility

“Many people have opened a savings account under PMJDY

as it allowed zero balance which was not the case earlier and

also low cost insurance.”


Contents

24


Methodology adopted


Summary of Findings

Disclaimer


Disclaimer

25

THIS STUDY IS FOR OUR CLIENT CAFRAL ONLY. THE STUDY WAS CONDUCTED

ON THE BENEFICIARIES WHO WERE WILLING TO PROVIDE INFORMATION ON

THEIR PMJDY ACCOUNTS. THIS IS BASED ON THE INFORMATION THAT WE

CONSIDER RELIABLE, BUT WE DO NOT REPRESENT IT AS ACCURATE OR

COMPLETE, AND IT SHOULD NOT BE RELIED ON AS SUCH. THIS STUDY WAS NOT

INTENDED AND FOCUSSED ON THE CONSUMERS OF ANY PARTICULAR BANK.

FURTHER, THIS STUDY WAS FOCUSSED ON A SMALL GROUP OF ~300

BENEFICIARIES AND SHOULD NOT BE CONSTRUED AS A REFLECTION OF THE

NATIONAL PERCEPTION.


Contact Details

Bhagvath Chandra

Associate Director - Business

Consulting Services

Intellecap

[email protected]

+919619097090

Smita Aggarwal Senior Program Director

CAFRAL

[email protected]

+912226571026
mailto:[email protected]:[email protected]

study of pmjdy account holders - cafral · 2015. 9. 7. · their pmjdy accounts. this is based on...

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