M A I N   N E W S

banking for all
PM launches scheme to end ‘financial untouchability’
1.5 cr bank accounts opened on Day 1
To cover 7.5 cr persons by Jan 26
Tribune News Service

PM Narendra Modi speaks during the launch of Jan Dhan Yojana in New Delhi

New Delhi, August 28
Prime Minister Narendra Modi today launched the government's massive financial inclusion scheme, the Pradhan Mantri Jan Dhan Yojana, with a record 1.5 crore bank accounts being opened on the inaugural day.

The PM said this was the beginning of the end to financial untouchability. The poor will get bank accounts and debit cards as the scheme would cover 7.5 crore people by January 26, 2015. Those covered will be provided zero-balance bank account with RuPay debit cards, life insurance cover of Rs 30,000, each besides an accidental insurance cover of Rs 1 lakh each. Later, the account holders will be provided an overdraft facility of up to Rs 5,000.

The launch of the scheme coincides with the completion of the Modi government's 100 days in office. Financial inclusion has been chosen as a flagship scheme of the government as its gets the unbanked connected to the financial system and government programmes.

Talking about the number of records being broken today, the Prime Minister said: "Never before have insurance companies issued 1.5 crore accident insurance policies in a single day. Never before in the economic history have 1.5 crore bank accounts been opened in a single day. Never before the government has organised a programme on such a scale — over 77,000 locations — with the participation of so many Chief Ministers, Union Ministers, government and bank officials."

The PM said he had sent emails to 7.25 lakh bank employees, exhorting them to help reach the target of 7.5 crore bank accounts, and bring freedom from financial untouchability.

Modi recalled bank nationalisation of 1969 with the objective of spreading the reach of the financial system on the doorstep of the poor. "But I regret to say that after 68 years of Independence, not even 68 per cent of population is covered by the banking system," he said.

Modi said a breakthrough was required to overcome the vicious cycle of poverty and debt, "and that breakthrough has been achieved today". He said there were similarities between the poor getting access to mobile phones and debit cards. They both had the effect of instilling confidence and pride in the poor," he said.

Forging financial inclusion

• Beneficiaries will be provided zero-balance bank account with RuPay debit card
• Will get life insurance cover of Rs 30,000 and accidental insurance cover of Rs 1 lakh
• The scheme was simultaneously launched at multiple places by 20 CMs and Union Ministers
• 600 programmes and 77,852 camps were organised on the opening day of the scheme

A breakthrough was required to overcome the vicious cycle of poverty and debt. It has been achieved today. There are similarities between the poor getting access to mobile phones and to debit cards. They both have the effect of instilling confidence and pride in the poor —Narendra Modi, Prime Minister