Public/Private Sector Banks should be banned from opening PMJDY Accounts
The PMJDY launched by Prime Minister
Narendra Modi in August 14, has transformed many lives across India. The PMJDY
implementation has not only transformed the lives of the PMJDY account holders
but also the lives of the Implementation Team across various participants.
Read here about success stories in
Public sector banks viz: Canara Bank, Central Bank of India, Dena Bank, IDBI
Bank, State Bank of Bikaner and Jaipur, State Bank of India, State Bank of
Patiala and Union Bank of India.
Each bank has devoted considerable
human capital to ensure the success of PMJDY scheme. Yes, there are other success
stories which are hidden from the public.
As usual there are two sides to a
coin, Success and Failure. Success or Failure depends from which view point the
person is representing.
PMJDY is a success as can be seen from
the below infographic.
The next step is to prepare the base to
enable new participants to widen the accomplishments of PMJDY.
The following 11 steps will introduce
PMJDY to a new set of Players in the Indian Banking system.
In the next 12-18 months, Payments
Banks and Small Finance Banks will start rolling out their offerings to the Indian
public.
The 56 Regional
Rural Banks to be grouped under Small Finance Banks for the purpose of MUDRA
Loans.
The District Central Cooperative
Banks to be grouped under Payment Banks for the purpose of PMJDY Overdraft
Accounts.
01)
Payment Banks should have the exclusive rights
to open PMJDY accounts.
02)
Payment
banks should have the exclusive rights to open PMJDY Overdraft Accounts.
03)
All
new entrants to Banking system should open a Bank account with a Payment Bank.
04)
All
credits from Government
schemes should only be to bank accounts with a Payment Bank.
05)
Payment
Banks should not issue Cheque Books to their account holders. Transactions
should be through Digital mode or self-withdrawal slips.
06)
PMJDY
Overdraft facility should be granted automatically to all PMJDY accounts
wherein Government Credits are received.
07)
The
concept of ‘Family Accounts’, to be introduced to minimise over-indebtedness
08)
Account
Number portability to be activated from Day 1
09)
PMJDY
Overdraft account should be tagged to a physical Payment Bank Branch which is within
a radius of 10 kms from eligible account
holder’s residence. As and when the account holder shifts his residence, the
PMJDY OD Account should be auto-ported.
10)
Mandatory
physical address verification of PMJDY OD Account holder through the
centralised eKYC agency. The eKYC agency to tag the GPS coordinates of the
account holder in the central repository.
11)
The
PMJDY Overdraft Limit be increased to INR10,000/- to accounts which are of 3
years vintage.
Regulatory
Backing:-
a)
Payment
Banks to be allowed to open PMJDY Overdraft Accounts
b)
One of
the key assessing factors for MUDRA Loans applicants is the successful track
record in servicing their PMJDY Overdraft Account.
Additional Reading
Material:-
AMMA
Loans
Introduction to New
Small
Finance Banks
Introduction to
New Payment
Banks
PMJDY Success
or Failure
Comments
Post a Comment