Modi’s financial inclusion plan set for launch

Financial inclusion – one of the pet projects of India’s Prime Minister Narendra Modi is set to turn real with big-bang launch of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) on August 28.

Along with the official launch of the financial inclusion programme in New Delhi, 600 simultaneous functions will be held across the county, which will be attended by the top rung of India’s political and administrative leadership

Under the PMJDY, the government hopes to open 150 million new bank accounts for 75 million identified households by August 2018.

On August 28, all public sector banks will hold ‘bank camps’ for people who do not have a bank account. All together around 60,000 of these camps are expected to work throughout the day and every subsequent Saturday.

Banks have also hired 200,000 banking correspondents — called bank “mitras” –to drive forward the initiative. These mitras, or friends, will all be given standard uniforms. To ensure enthusiasm among these correspondent their salary has been raised from Rs. 2000-3000 to a minimum of Rs. 5000. They will also been given performance induced incentives.

On August 25, Modi e-mailed chairmen and managing directors of public sector bank officers to ensure the success of the programme.

“This is a national priority and we must rise to meet this challenge. There is an urgency to this exercise as all other development activities are hindered by this single disability. I am sure we will overcome this situation collectively,” wrote Modi in the e-mail.

An important part of this initiative will be the Microfinance Institutions Network (MFIN), which has 2.5 crore rural customers in its fold. MFIN has expressed its eagerness and support for the comprehensive financial inclusion programme.

“The microfinance sector is keen to support the comprehensive financial inclusion programme of the Modi government,” said MFIN president Samit Ghoshon August 20.

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