Lok Sabha Question No. 4629 (UNSTARRED), answered on 2019-07-22
Subject: Revamping of Key Schemes
Ministry: FINANCE
Asked by: S. Jagathrakshakan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION No. 4629

ANSWERED ON 22 nd  JULY, 2019 (MONDAY)/ ASHADHA 31, 1941 (SAKA)

## REVAMPING OF KEY SCHEMES

## 4629. SHRI S. JAGATHRAKSHAKAN:

Will the Minister of FINANCE be pleased to state:

(a)  whether  the  Government  proposes  to  revamp  some  of  the  key  schemes  like  Pradhan Mantri Jan Dhan Yojana, Mudra Loan Limit, Atal Pension Yojana limit etc.;

(b) if so, the details thereof, Scheme-wise;

(c)  whether  any  review  of  these  schemes  has  been  made  to  find  out  the  efficiency  and effectiveness; and

(d) if so, the details thereof and the amount spent for Tamil Nadu during each of the last three years, scheme-wise?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (d) :

## (1)  Pradhan Mantri Jan Dhan Yojana (PMJDY):

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched on 14 th  August, 2014 with the objective to provide universal access to banking facilities to all households in the country with opening of one basic account with additional facility of RuPay debit card having inbuilt accident insurance cover of Rs. 1 lakh and overdraft (OD) facility of upto Rs. 5,000.

The progress under PMJDY is regularly monitored with banks. As informed by banks, as  on  10.07.2019,  36.14  crore  accounts  have  been  opened  with  a  deposit  balance  of  Rs. 1,00,865.56 crore. Out of the total Jan Dhan accounts, while 21.41 crore accounts (59.24%) have  been  opened  in  rural/semi-urban  areas,  19.23  crore  (53.21%)  have  been  opened  by women. Further, 28.50 crore RuPay debit cards have been issued to the Jan Dhan account holders  to  facilitate  banking  transactions.  The  per  account  average  balance  in  PMJDY accounts has increased from Rs. 1,065 in March 2015 to Rs. 2790 in 10 th  July, 2019.

To  further  consolidate  the  gains  made  under  PMJDY  and  to  give  impetus  to  the ongoing  financial  inclusion  initiatives  of  the  Government,  the  PMJDY  program  has  been extended  beyond  14.8.2018  with  the  focus  on  opening  of  accounts  shifting  from  'every household'  to  'every  un-banked  adult'  and  making  the  scheme  more  attractive  with following modifications:

(i)  Existing OD limit revised from Rs. 5,000 to Rs. 10,000.

- (ii) No conditions attached for active PMJDY accounts availing OD upto Rs. 2,000.
- (iii) Age limit for availing OD facility revised from 18-60 years to 18-65 years.
- (iv) Accident insurance cover for new RuPay card holders raised from existing Rs.1 lakh to Rs. 2 lakh for new PMJDY accounts opened after 28.8.2018.

No expenditure has been incurred on the part of the Government of India for the review of PMJDY.

## (2) Pradhan Mantri Mudra Yojana (PMMY):

Pradhan  Mantri  Mudra  Yojana  was  launched on  08.04.2015  with  the  objective  to provide  institutional  finance  for  micro/small  business  units  upto  Rs.10  lakh,  without  any insistence  on  collateral.  The  loan  is  provided  for  non  agricultural  activities,  including activities  allied  to  agriculture  such  as  poultry,  dairy,  beekeeping  etc.  for  term  loan  and working capital requirements. There are three categories under PMMY - Shishu (loan upto Rs. 50,000), Kishore (loan above Rs. 50,000 & upto Rs.5,00,000) and Tarun ( loan above Rs. 5,00,000 & upto Rs. 10,00,000).  Since the launch of the scheme, as on 21.06.2019, over 19.05 crore loans amounting to Rs. 9.34 lakh crore have been extended under PMMY.

Changes to the  scheme  are  made  on  an  ongoing  basis  based  on  the  feedback  from stakeholders. No expenditure has been incurred on the part of the Government of India for the review of PMMY.

## (3) Atal Pension Yojana (APY):

The Pension Fund Regulatory and Development Authority (PFRDA) has proposed to increase the limit of pension and age under Atal Pension Yojana (APY). The same is under examination  in  consultation  with  PFRDA.  Banks  and  post  Offices  are  registered  as  APY Service  Providers  who  are  primarily  entrusted  with  the  distributions  of  the  scheme. PFRDA   regularly advises all its Service Providers to promote the scheme for outreach of the scheme to the ultimate prospective customers. As a result, as on 01.07.2019, a total of 1.67 crore  subscribers  have  been  enrolled  under  the  scheme  with  contribution  of  Rs.  7104.51 crore.

Under  APY,  annual  targets  are  allocated  by  the Ministry  of  Finance  in  terms  of average APY account per branch to be achieved by each APY service provider in order to cover maximum eligible population under the APY. These targets are communicated to all APY Service providers and regular review meetings are conducted with them to analyse their performance  against  the  targets.  Further,  success  strategies  of  successful  APY  service providers who have been able to meet the targets are discussed.

Apart  from  this,  the  actuarial  valuation  of  the  scheme  has  also  been  conducted  to identify pension liabilities, feasibility of the current APY scheme, various scenarios in terms of impact of changes in entry age, minimum pension amount, mortality, interest rate, inflation etc. which may form the basis for improvements in the scheme.

No  expenditure  has  been  incurred  on  the  part  of  the  Government  of  India  for  the review of APY.