Small Finance Banks Fail To Open Jan Dhan Yojana Accounts

Despite the availability of a strong branch network, Small Finance Banks (SFBs) are lagging behind in the bid to open accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) in Odisha. The state has a widespread presence of SFBs including Jana Small Finance Bank, Ujjivan Small Finance Bank, Suryodaya Small Finance Bank and Utkarsh Small Finance Bank, however, they are yet to join in on the opening of PMJDY accounts.

According to data gathered by the State Level Bankers Committee (SLBC), public sector lenders are leading the way, having registered 11.9 million PMJDY bank accounts as on June 30, 2019. This accounts for about 70 per cent of such accounts opened in the state.

A long way behind public sector banks are Regional Rural Banks (RRBs) having registered 1.9 million accounts, followed by private sector banks with about five lakh account openings.

“The SFBs are gradually expanding their footprint in Odisha. We are urging them to open bank accounts for people under PMJDY. Their participation will be significant in deepening financial inclusion in the state,” said an official source.

The PMJDY aims to empower the common man by providing zero balance bank accounts. The primary goal of the programme is to achieve financial inclusion, targeting all age groups and covering the entire country.

Currently, under PMJDY, over 360 million bank accounts have been opened across India.

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