Account balance in Jan Dhan accounts jumps 140% in one year

The number of accounts stood at 262 million compared to 198.3 million on a year-on-year basis. The biggest gain was seen post demonetisation. M Saraswathy   The account balance in the Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts has jumped 143 percent to Rs 71036.58 crore as on December 28, 2016 compared to Rs 29225.56 crore in December 30, 2016.

 The number of accounts stood at 262 million compared to 198.3 million on a year-on-year basis. The biggest gain was seen post demonetisation where the account balance jumped from Rs 45636.60 crore on November 9 to Rs 64252.15 crore on November 16, merely in a week. It further rose to Rs 72834.72 crore on November 23. Among them, public sector banks had 209 million accounts opened whereas regional rural banks and private banks accounted for the rest. Under the original scheme, the government envisaged opening 150 million accounts. 

While there were unconfirmed reports stating that some of these accounts were being used to store unaccounted money, banks said that large deposits of money have reduced. The government has cautioned people against letting others use their accounts for fraudulent activities and has warned that they will be penalised for this. PMJDY is a National Mission on Financial Inclusion envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility. In addition, the beneficiaries would get RuPay Debit card having inbuilt accident insurance cover of Rs 1 lakh. The scheme also provides a life cover of Rs 30,000 payable on death of the beneficiary, subject to fulfillment of the eligibility condition. Further, overdraft facility upto Rs 5000 is available in only one account per household, preferably lady of the household 

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