Lok Sabha Question No. 3528 (UNSTARRED), answered on 2019-07-15
Subject: Usage of Financial Instruments
Ministry: FINANCE
Asked by: Manoj Rajoria

## Government of India Ministry of Finance

## LOK SABHA UNSTARRED QUESTION NO. 3528

ANSWERED ON-15.07.2019 (Monday)/Ashadha, 24, 1941 (Saka)

## USAGE OF FINANCIAL INSTRUMENTS

## 3528. DR. MANOJ RAJORIA:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has taken cognizance of the National Rural Financial Inclusions Survey (NAFIS)  2016-17  undertaken  by  the  National  Bank  for  Agriculture  and  Rural  Development (NABARD) and its findings on the usage of financial instruments by rural households, especially of savings accounts, if so, the details thereof;

(b)  whether  the  Government  has  taken  concrete  steps  to  increase  usage  of  institutional  savings accounts  as  only  55  percent  of  households  reported  savings  and  of  these  53  percent  saved  with institutions, if so, the details thereof; and

(c) whether the Ministry has taken concrete steps to increase repeated usage of financial products and services, including tackling the issue of dormant accounts and if so, the details thereof?

## ANSWER

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

(a) to  (c):  As  per  the  NABARD  All  India  Rural  Financial  Inclusions  Survey  (NAFIS)  2016-17, 50.6% of all households (including agricultural and non-agricultural households) in Tier-III to Tier-VI centres  with  population  of  less  than  50,000  affirmed  to  have  saved  any  money  during  one  year preceding date of survey.

With a view to increasing banking penetration and to promote financial inclusion across the country, a National Mission on Financial Inclusion known as Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched  on  28 th August,  2014  at  national  level  by  the  Hon'ble  Prime  Minister.  Under  the  Yojana, a   Basic  Saving  Bank  Deposit  (BSBD)  account  is  opened  without  requirement  of  any  minimum balance.    Till 03.07.2019, a total of 36.06 crore accounts have been opened under PMJDY across the country  with  aggregate  deposit  of ` 1,00,495  crore.  Out  of  total  36.06  crore  accounts,  21.37  crore (59.26%) are in rural/semi-urban centres.

Further, to consolidate the gains made through financial inclusion initiatives implemented so far and deepen it further to    accelerate the participation of the masses in the economic growth of the country, PMJDY has been extended beyond 14.8.2018   with following modification:

-  Existing Over Draft (OD) limit of ` 5,000 revised to ` 10,000.
-  There will not be any conditions attached for OD upto ` 2,000.
-  Age limit for availing OD facility revised from 18-60 years to 18-65 years.
-  The accidental insurance cover for new RuPay card holders raised from existing ` 1 lakh to ` 2 lakh to new PMJDY accounts opened after 28.8.2018.

For opening of accounts under PMJDY, the focus has now been shifted to from 'every household to every  adult',  with  added  emphasis  on  usage   of  accounts  by  enhancing  DBT  flows  through  these accounts,  adoption  of  social  security  schemes,  linking  saving  product  to  Jan  Dhan  accounts, promoting digital payments through the use of RuPay cards, etc .

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