International Journal Of Scientific Research And Education ||Volume||3||Issue||6||Pages-3595-3603||June-2015|| ISSN (e): 2321-7545 Website: http://ijsae.in Commercial Bank’s Performance On Pradhan Mantri Jan Dhan Yojana Authors Dr. C. Paramasivan1, R. Kamaraj2 1 Assistant Professor and Research Advisor 2 Ph.D Full Time Research Scholar Department of Commerce Periyar E.V.R College Tiruchirappalli, Tamil Nadu Email id: kamaraj019@gmail.com ABSTRACT Financial inclusion performing in our country in a different name and activities no frills account scheme has been replaced as PMJDY scheme which was announced by the new NDA government. Pradhan Mantri Jan Dhan Yojana scheme is a totally contributory scheme and very closely people are travelling to banking sector day by day. In the last few years RBI launched many more schemes for banking sectors. Besides financial inclusion is one of the core activities of banking performance and directly people are getting government financial services in their living place. In 2005 RBI launched No Frills Accounts scheme for all the income level and financially poor people should use banking sectors, but this scheme did not cover all the people. Only 2000 people opened bank account in each village. That is why Indian Prime Minister Mr. Narendra Modi announced on August 15, 2014 and simultaneously this PMJDY scheme was launched on 28 August, 2014. The scheme highlight was opening day 1.5 crores people opened this scheme joining baking sectors. This study is focused on commercial banks performance on PMJDY. Keywords: Pradhan Mantri Jan Dhan Yojana, Reserve Bank Of India, Financial Inclusion, No Frills Account, Inclusive Banking. INTRODUCTION Financial inclusion is the recent concept, which helps achieve the sustainable development of the country, through available financial services to the unreached people with the help of financial institutions. Financial inclusion can be defined as easy access to formal financial services or systems and their usage by all members of the economy. RBI announced and launched many more schemes for banking sector. This scheme had many more restrictions and had not achieved for banking sectors. Five years ago no frills account was launched by RBI but this scheme was not comfortable for all the income level people to continue with the banking sector. This study helps us to understand the financial inclusion position, Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3595 commercial bank’s performance of Pradhan Mantri Jan Dhan Yojana in India. With this view, the present article discusses the PMJDY scheme by commercial banks during the period from September 2014 to March 2015. REVIEW OF LITERATURE Artta Bandhu Jena (2015) focused on financial inclusion is very vital towards economic development and well structured financial system of a country. PMJDY is an ambitious financial scheme which will provide a host of benefits including a bank account, insurance and a debit card to non-bank account holders in India. PMJDYs target is to open 7.5 crore bank accounts by January, 2015. Barhate and Jagtap (2014) discovered in their study financial inclusion, strategy of PMJDY and issues related to the success of the scheme. They concluded that every new thing requires determination and attitude towards success path. Besides that to withstand the heat of economic down surge and fight poverty, the Jan Dhan Yojana is good mechanism. Paramasivan and Ganeshkumar (2013) have revealed that branch density has significant impact on financial inclusion. It is not possible to achieve financial inclusion only by creating investment awareness, without significantly improving the investment opportunities in India. Rajanikanta Khuntia (2014) delivered that in every household within the grasp of the banking system there has been an ongoing process started a decade ago. In order to reduce the degree of “financial untouchability” the new government has come up with a big bang action plan which is popularly known as “Pradhan Mantri Jan-Dhan Yojana”. It’s a mega financial inclusion plan with the objective of covering all households in the country with banking facilities along with inbuilt insurance coverage. Shetty and Deokar (2014) discussed in their findings that “Pradhan Mantri Jan Dhan Yojana” is not a new programme but there were various programmes initiated by RBI and Ministry of Finance, but due to lack of co-ordination among people, government and RBI, the objectives of all those programme have not been achieved till now. Formulation of programme is not sufficient for conversion of dreams into reality, but this requires effective and transparent implementation of that programme at the ground level with the coordination of government, bank and the general public. STATEMENT OF THE PROBLEM The Pradhan Mantri Jan Dhan Yojana (Prime Ministers Scheme for People’s Wealth) is an ambitious scheme for comprehensive financial inclusion launched by Prime Minister of India, Narendra Modi on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014. He declared that a bank account for each household was a "national priority.” The scheme has been started with a target to provide 'universal access to banking facilities' starting with "Basic Banking Accounts" with overdraft facility of Rs.5000 after six months and RuPay Debit card with inbuilt accident insurance cover of Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3596 Rs. 1 lakh and RuPay Kisan Card. In next phase, micro insurance etc. will also be added. Without Financial Inclusion, we cannot think of economic development because a large chunk of total population remains outside the growth process. Though our country's economy is growing at one digit, still the growth is not inclusive with the economic condition of the people in rural areas worsening further. One of the typical reasons for poverty is being financially excluded. Though there are a few people who are enjoying all kinds of services from savings to net banking, still in our country around 40% of people lack access to even basic financial services like savings, credit and insurance facilities. India is second only to China in the number of people excluded from financial facilities. Even after 68 years of independence, around ten crore households are not connected with banking. This study highlights the valuable performance of commercial banks to contribute to Pradhan Mantri Jan Dhan Yojana account scheme. It is more opportunity for all the income level and financial untouchable people to travelling to banking sector. So we justify Pradhan Mantra Jan Dhan Yojana is a boon in the present day’s population to enhance financial circulation. Hence, there is a need to understand the performance of the commercial banks with regard to the opening of PMJDY. OBJECTIVE To study the commercial bank’s performance on Pradhan Mantri Jan Dhan Yojana scheme. RESEARCH METHODOLOGY The study is descriptive in nature. For the study secondary data were, only analyzed from websites, various journals, reports, and newspapers. PRADHAN MANTRI JAN DHAN YOJANA SIX PILLARS Universal Access to Banking Facilities Mapping of each district into Sub Service Area (SSA) catering to 1000-1500 households in a manner that every habitation has access to banking services within a reasonable distance say 5 km by 14 August, 2015. No Frill Account with RuPay Debit card Account holder would be provided a RuPay Debit Card. Facility of an overdraft to every basic banking account holder would be considered after satisfactory operation / credit history of six months. Financial Literacy Programme Financial literacy would be an integral part of the Mission in order to let the beneficiaries make best use of the financial services being made available to them. Creation of Credit Guarantee Fund Creation of a Credit Guarantee Fund would be to cover the defaults in overdraft accounts. Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3597 Micro- Insurance Micro- insurance provided to all willing and eligible persons by 14 August, 2018, and then on an ongoing basis. Unorganized sector Pension schemes like Swavalamban: By 14 August, 2018 and then on an ongoing basis. Under the mission, the first three pillars would be given thrust in the first year. Table No: 1 No. of Account Opened Under PMJDY by Commercial Banks S.No Month Rural 1. SEP 2014 31265266 2. OCT 2014 40604949 3. NOV2014 49501384 4. DEC 2014 62348872 5. JAN 2015 75016094 6. FEB 2015 81649227 7. MAR 2015 87844803 (Source: www.pmjdy.gov.in 2014-2015) % 59 59 59 60 60 60 60 Urban 21713191 28113748 33732820 42133595 50457195 55154668 59318676 % 41 41 41 40 40 40 40 Total 52978557 68718697 83234204 104482467 125473289 136803895 147163479 Table no: 1 shows total no. of accounts opened under PMJDY by commercial bank. In the month of September 2014, 52978557 accounts were opened under the PMJDY, of which 59 per cent of accounts (31265266) were opened in rural areas, and 41 per cent of accounts (21713191) were opened in urban places. In the month of October 2014, 68718697 accounts were opened under the PMJDY, of which 59 per cent of accounts (40604949) were opened in rural areas, and 41 per cent of accounts (68718697) were opened in urban places. In the month of November 2014, 83234204 accounts were opened under the PMJDY, of which 59 per cent of accounts (49501384) were opened in rural areas, and 41 per cent of accounts (33732820) were opened in urban places. In the month of December 2014, 104482467 accounts were opened under the PMJDY, of which 60 per cent of accounts (62348872) were opened in rural areas, and 40 per cent of accounts (68718697) were opened in urban places. In the month of January 2015, 125473289 accounts were opened under the PMJDY, of which 60 per cent of accounts (75016094) were opened in rural areas, and 40 per cent of accounts (50457195) were opened in urban places. In the month of February 2015, 136803895 accounts were opened under the PMJDY, of which 60 per cent of accounts (81649227) were opened in rural areas, and 40 per cent of accounts (55154668) were opened in urban places. In the month of March 2015, 147163479 accounts were opened under the PMJDY, of which 60 per cent of accounts (87844803) were opened in rural areas, and 40 per cent of accounts (59318676) were opened in urban places. On the whole, a maximum of accounts (59% to 60%) were opened in rural places during the period from September 2014 to March 2015. RUPAY DEBIT CARD RuPay debit card is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfil the Reserve Bank of India’s desire to have a domestic, Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3598 open loop, and multilateral system of payments in India. RuPay debit Card facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa card in India. NPCI maintains ties with discover financial to enable the card scheme to gain international acceptance. Table No: 2 Commercial Banks Issued Rupay Debit Card S.No 1. 2. 3. 4. 5. 6. 7. Month Private Bank SEP 2014 144017 OCT 2014 464529 NOV 2014 1264735 DEC 2014 2195593 JAN 2015 4593161 FEB 2015 5117247 MAR2015 5549767 % Public Bank % 0.80 1.31 2.40 3 4 4.19 4.22 17316603 33722980 49216661 73130361 912320204 100092148 108110088 97 95.5 93.62 86.41 82.34 82.11 82.23 Regional Rural Bank 388329 1117745 2088478 9304777 14967614 16678823 17822870 % Total 2.17 3.16 3.97 11 13.50 13.68 13.55 17848949 35305254 52569874 84630371 110792799 121888218 131482725 (Source: www.pmjdy.gov.in2014-2015) Table no: 2 reveals that in the month of September 2014, 17848949 accounts were issued rupay debit card under the PMJDY, of which 97 per cent of accounts (17316603) were issued rupay debit cards in public sector banks, and 0.80 per cent of accounts (144017) were issued rupay debits cards in private sector banks, and 2.17, per cent of accounts (388329) were issued rupay debit cards in regional rural banks. In the month of October 2014, 35305254 accounts were issued rupay debit cards under the PMJDY, of which 5.51 per cent of accounts (337229809) were issued rupay debit cards in public sector banks, and 1.31 per cent of accounts (464529) were issued rupay debit cards in private sector banks, and 3.16, per cent of accounts (1117745) were issued rupay debit cards regional rural banks. In the month of November 2014, 52569874 accounts were issued rupay debit card under the PMJDY, of which 93.62 per cent of accounts (49216661) were issued rupay debit cards in public sector banks, and 2.40 per cent of accounts (1264735) were issued rupay debit cards in private sector banks, and 3.97 per cent, of accounts 2088478 were issued rupay debits regional rural banks. In the month of December 2014, 84630371 accounts were issued rupay debit cards under the PMJDY, of which 86.41 per cent of accounts (73130361) were issued rupay debit cards in public sector banks, and 3 per cent of accounts (2195593) were issued rupay debit cards in private sector banks, and 11 per cent of accounts (9304777) were issued rupay debit cards regional rural banks. In the month of January 2015, 110792799 accounts were issued rupay debit cards under the PMJDY, of which 82.34 per cent of accounts (912320204) were issued rupay debit cards in public sector banks, and 4 per cent of accounts (4593161) were issued rupay debit cards in private sector banks, and 13.50 per cent of accounts (14967614) were issued rupay debit cards regional rural banks. In the month of February 2015, 121888218 accounts were issued rupay debit cards under the PMJDY, of which 82.11 per cent of accounts (100092148) were issued rupay debit cards in public sector banks, and 4.19 per cent of accounts (5117247) were issued rupay debit cards in private sector banks, and 13.68 per cent of accounts (16678823) were issued rupay debit cards Regional rural banks. The month of March 2015, 131482725 accounts were issued rupay debit card Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3599 under the PMJDY, of which 82.23 per cent of accounts (108110088) were issued rupay debit cards in public sector banks, and 4.22 per cent of accounts (5549767) were issued rupay debit cards in private sector banks, and 13.55 per cent, of accounts (17822870) were issued rupay debit cards regional rural banks. On the whole, a maximum of rupay debit cards were issued (82.11% to 97%) in public sector banks during the period from September 2014 to March 2015. Table No: 3 Banking Sectors Wise Accounts Opened Under PMJDY S. No Month Public Sector Bank Total no of account % holder 1. Sep 14 43321447 81.77 2. Oct 14 55447338 80.68 3. Nov 14 66831507 80.29 4. Dec 14 83091061 79.52 5. Jan 15 98447525 78.46 6. Feb 15 107297643 78.43 7. Mar 15 115444945 78.44 (Source: www.pmjdy.gov.in 2014-2015) Private Sector Bank Total no of account % holder 1187131 2.24 1905154 2.77 2249575 2.70 2881535 2.75 5238483 4.17 5702361 4.16 6106680 4.14 Regional Bank Total no of account holder 8469979 11366205 14153122 18509871 21787281 23803891 25611854 Rural Total no. of A/c holders % 15.98 16.54 17.00 17.71 17.36 17.40 17.40 52978557 68718697 83234204 104482467 125473289 136803895 147163479 Table no: 3 indicates banking sectors wise accounts opened under PMJDY. In the month of September 2014, 52978557, accounts were opened under the PMJDY, of which 81.77 per cent of accounts (43321447) were opened in public sector banks, and 2.24 per cent of accounts (1187131) were opened in private sector banks, and 15.98 per cent of accounts (8469979) were opened in regional rural banks. In the month of October 2014, 68718697, accounts were opened under the PMJDY, of which 80.68 per cent of accounts (55447338) were opened in public sector banks, and 2.77 per cent of accounts (1905154) were opened in private sector banks, and 16.54 per cent of accounts (11366205) were opened in regional rural banks. In the month of November 2014, 83234204, accounts were opened under the PMJDY. Off which 80.29 per cent of accounts (66831507) were opened in public sector banks, and 2.70 per cent of accounts (2249575) were opened in private sector banks, and 17 per cent of accounts (14153122) were opened in regional rural banks. In the month of December 2014, 104482467, accounts were opened under the PMJDY, of which 79.52 per cent of accounts (83091061) were opened in public sector banks, and 2.75 per cent of accounts (2881535) were opened in private sector banks, and 17.71 per cent of accounts (18509871) were opened in regional rural banks. The month of January 2015, 125473289 accounts were opened under the PMJDY, of which 78.46 per cent of accounts (98447525) were opened in public sector banks, and 4.17 per cent of accounts (5238483) were opened in private sector banks, and 17.36 per cent of accounts (21787281) were opened in regional rural banks. In the month of February 2015, 136803895, accounts were opened under the PMJDY, of which 78.43 per cent of accounts (107297643) were opened in public sector banks, and 4.16 per cent of accounts (5702361) were opened in private sector banks, and 17.40 per cent of accounts (23803891) were opened in Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3600 regional rural banks. In the month of March 2015, 147163479 accounts were opened under the PMJDY, of which 78.44 per cent of accounts (115444945) were opened in public sector banks, and 4.14 per cent of accounts (6106680) were opened in private sector banks, and 17.40 per cent of accounts 25611854 were opened in regional rural banks. On the whole, a maximum (78.43% to 81.77%) of accounts were opened in public sector banks during the period from September 2014 to March 2015. Table No: 4 Total Amount of Balance in the Accounts Opened Under PMJDY S.No 1. 2. 3. 4. 5. 6. 7. Month Balance in Account (Lakhs) SEP 2014 397152.09 OCT 2014 518073.15 NOV2014 649410.6917 DEC 2014 835338.39 JAN 2015 1049962.62 FEB 2015 1269387.50 MAR 2015 1567029.41 (Source :( www.pmjdy.gov.in 2014-2015) Table no:4 above total amount of balance in the accounts opened under PMJDY shows Rs. 397152.09 lakhs as balance in the accounts in September 2014, and Rs. 518073.15 lakhs as balance in the accounts in October 2014, and Rs. 649410.6917 lakhs as balance in the accounts in November2014, and Rs. 835338.39 lakhs as balance in the accounts in December2014, and Rs. 1049962.62 lakhs as balance in the accounts in January2015, and Rs. 1269387.50 lakhs as balance in the accounts in February2015, and Rs. 1567029.41 lakhs as balance in the accounts in March 2015, On the whole, a maximum amount of Rs. 1567029.41 recorded from September 2014 to March 2015. Table No: 5 Total Number of Account Holders with Zero Balance Amount in PMJDY S. No 1. 2. 3. 4. 5. 6. 7. Month No. of accounts with zero balance SEP 2014 40745912 OCT 2014 52173633 NOV2014 61822343 DEC 2014 76550950 JAN 2015 84473729 FEB 2015 85916974 MAR 2015 86213334 (Source: www.pmjdy.gov. in 2014-2015) Table no: 5 explains that in the month of September 2014, 40745912 accounts were with zero balance, and in the month of October 2014, 52173633 accounts were with zero balance, and in the month of November 2014, 61822343 accounts were with zero balance, and in the month of December 2014, 76550950 accounts were with zero balance, and in the month of January 2015, 84473729 accounts were with zero balance, and Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3601 in the month of February 2015, 85916974 accounts were with zero balance, and in the month of March 2015, 86213334 accounts were with zero balance. On the whole, a maximum of account holders with zero balance in amount was recorded as the period from 86213334 during the period from September 2014 to March 2015. FINDINGS 1. A maximum of accounts (59% to 60%) were opened in rural places during the period from September2014 to March 2015. Therefore, the scheme has given more focus on rural places. 2. A maximum of rupay debit cards were (82.11% to 97%) by public sector banks during the period from September2014 to March 2015. Therefore, PSBs performed will in issue of rupay debit cards. 3. A maximum (78.43% to 81.77%) of accounts were opened by public sector banks during the period from September 2014 to March 2015. Therefore PSBs concentrate more on PMJDY. 4. A maximum amount of Rs.1567029.41 was recorded as during the period from September 2014 to March 2015. 5. A maximum amount of Rs.86213334 was recorded as during the period from balance in account is during the period from September2014 to March 2015. SUGGESTIONS PMJDY scheme is a good and timing transaction for the people. Government must provide many more schemes in banking sector to contribute to all the income level people to travel them to banking sector. PMJDY scheme is a collaborative one for rural and urban areas. So government should give extra awareness and banking facilities within 5 kilometres from one bank. CONCLUSION Reserve bank of India announced and launched many more schemes in banking sector. Banking sector is one of the emerging ventures and blood of financial inclusion. Last five years ago RBI launched no frills accounts but this scheme did not cover all the people and had not achieved for banking sector. Present day’s Indian Prime Minister Narendra Modi launched Pradhan Mantri Jan Dhan Yojana scheme to totally contribute to all the income level people willingly and to make them continuously travel to banking sector. Pradhan Mantri Jan Dhan Yojana scheme is fully helpful to rural and urban area people in getting directly government financial services. This study highlights commercial bank’s performance on Pradhan Mantri Jan Dhan Yojana. Hence, it is concludes that, the PMJDY scheme has created an impressive result in the banking sector with regard to eradication of financial untouchability in the country. Mere opening of accounts may not fulfill the aim of the scheme, but there should be continuous operation of bank accounts to give the real success of the scheme. Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 Page 3602 REFERENCE 1. Artta Bandhu Jena (2015). “The Pradhan Mantri Jan Dhan Yojana – A Forward Journey towards Financial Inclusion”, TRANS Asian Research Journals. Vol.4, Issue.4. 2. Barhate G. H. and Jagtap V. R., (2014), Pradhan Mantri Jan-Dhan Yojana: National Mission on Financial Inclusion, International Journal of Applied Research, Vol. 4, No. 12, pp.340-342. 3. Paramasivan.C and Ganeshkumar.V (2013),“Overview of Financial Inclusion in India”, International Journal of Management & Development Studies, Vol.2, Issue.3, pp45-49. 4. Rajanikanta Khuntia (2014) “Pradhan Mantri Jan Dhan Yojana (PMJDY): A New Drive towards Financial Inclusion in India”, Zenith International Journal of Business Economics & Management Research, Vol.4, Issue.11, pp10-20. 5. Shetty. S., and Deokar, B. K. (2014). "Financial Inclusion Differences between the Government and RBI?, Economic & Political Weekly, Vol.49(35), pp12-15. Website www.pmjdy.gov.in www.rupay debit card Wikipedia.org http://bcagour.blogspot.in/2015/02/6-pillars-of-pmjdy.html17.25pm27.07.2015 Dr. C. Paramasivan , R. Kamaraj IJSRE Volume 3 Issue 6 June 2015 View publication stats Page 3603