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Jan Dhan: Zero-balance a/cs on rise in Punjab, Haryana

CHANDIGARH:The number of zero-balance accounts in Punjab and Haryana is increasing despite the Central government offering incentives in September last year under the Pradhan Mantri Jan Dhan Yojana (PMJDY) to new account holders.

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Vijay C Roy

Tribune News Service

Chandigarh, February 21

The number of zero-balance accounts in Punjab and Haryana is increasing despite the Central government offering incentives in September last year under the Pradhan Mantri Jan Dhan Yojana (PMJDY) to new account holders. During the September-December 2018 quarter, the number of zero-balance accounts swelled by nearly 2 lakh, taking the tally to 17.95 lakh accounts as on December 31, 2018.  

In absolute terms, the banks opened around 5,71,136 accounts in both the states in the period under review. Out of this, 1,86,449 (32.6%) are zero-balance accounts. 

Overall, the zero-balance accounts in Punjab and Haryana was 14.33% and 11.21%, respectively, of the total accounts opened under the PMJDY as on December 31, 2018.

The government in September last had decided to make the PMJDY an open-ended scheme and added more incentives to encourage people to open bank accounts. The government doubled the overdraft limit for account holders to Rs 10,000. Also, free accident insurance cover for those opening Jan Dhan accounts after August 28, 2018 has been doubled to Rs 2 lakh.

Only those account holders are entitled to incentives who have done at least one transaction in their account. 

In Punjab, out of the total 72.70 lakh accounts opened under the PMJDY, around 10.42 lakh accounts (14.33%) have zero balance up to December 31, 2018 while the percentage of zero-balance accounts was 13.41% as on September 30, 2018. In absolute terms, it was 9.11 lakh. Since the government announced incentives in September last, ideally the number of zero-balance accounts should have decreased but it’s the other way round.

Similarly, in Haryana, 6.98 lakh accounts were having zero balance as on September 30 last. The number increased to 7.53 lakh as on December 31, 2018. The percentage increase in zero-balance accounts was 8%. Overall, the percentage of zero-balance accounts out of total accounts under the PMJDY touched 11.21% as on December 31.

Bankers presume that several account holders could be having multiple accounts and, therefore, some accounts are inoperative. “The accounts were opened by the account holders in anticipation that they would get benefits from the government without doing any transaction. We are educating them to do transactions to avail benefits,” said a banker.

“It is the duty of bankers to aware consumers about the benefits of the account. Some of the banks sincerely did their duty while few of the banks just chased the number to meet the target without educating consumers,” said a senior government official.  

In both states, nearly 18 lakh Jan Dhan accounts are inoperative for several months and have zero balance. Expressing concern, the RBI has directed the banks to close such accounts after giving a 30-day notice to the account holders. Those who want to retain their accounts will have to operate within 30 days.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) was announced by Prime Minister Narendra Modi on August 15, 2014 and formally launched on August 28, 2014 across the country. Under the yojana, banks undertook door-to-door enrolling campaign and also held camps in villages.

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