Sarojpradhanmantrijandhanyojana 151229170610

A study on financial inclusion through the PMJDY
A study on FINANCIAL INCLUSION THROUGH THE PRADHAN

MANTRI JAN-DHAN YOJANA
With Reference to
BANK OF MAHARASTRA
Submitted in partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(20142016)
By
Savitribai Phule Pune university, PUNE .

Under the guidence of
Prof. Smita pachare
Submitted By:Saroj kr. Sah

MBA(Finance)
email:
sraj_dare@yahoo.com
Submitted To:Savitribai Phule

PUNE UNIVERSITY
PUNE
SHREE CHANAKYA EDUCATION SOCITYS
Page 1
INDIRA INSTITUTE OF MANAGEMENT, PUNE

85/5-A, TAPASYA, New Pune-Mumbai Highway, Tathwade, Pune 411 033
Title page
Title Name
Page no.
1 -2
EXECUTIVE SUMMARY
-
Title of the project and organization where project was
undertaken
Importance of the project
Objectives of the project
Methodology adopted
Learning from the project
CHAPTER 1: INTRODUCTION AND RATIONALE OF THE STUDY
3-13
1.1 Introduction to the Financial inclusion trough PMJDY

1.2Significance of the study
1.3Role of technology in financial inclusion
CHAPTER 2: INDUSTRY/ SECTOR PROFILE

2.1
2.2
2.3
2.4
14-17
Overview of the Banking industry

Contribution of the sector towards financial inclusion
Major players
Regulatory framework
CHAPTER
3:
ORGANIZATIONAL
PROFILE
AND
BUSINESS 18- 37
OVERVIEW
3.1 Mission and Vision of the company
3.2 Registered Address/ Number of branches
3.3Composition of Board
3.4 Major customers
3.5 Financial performance
3.6 Achievements
3.7 Organogram
3.8 Major product lines
CHAPTER 4: OUTLINE OF PROBLEM/TASK UNDERTAKEN

Challenges
38-42
4.1 Identification of problem or task undertaken
Page 2
4.2 Implication of existing problem or task on the host

organization
CHAPTER 5: LITERATURE REVIEW (RESEARCH PROJECT)
43-46
CHAPTER 6: OBJECTIVES AND SCOPE OF PROJECT
47
CHAPTER
7:
METHODOLOGY
RESEARCH
METHODOLOGY 48-49
(RESEARCH PROJECT)
-
Process Flow chart depicting the activities planned for
conducting the project.

- Sequencing of activities with respect to time
R.M:- Type of Research, Sampling Plan, Data Collection techniques (write only
what you have actually used)
CHAPTER 8: ANALYSIS AND FINDINGS
50-65
8.1 Data Tabulation
8.2 Graphical interpretation

8.3 Findings with explanation
8.4 Hypothesis Testing

CHAPTER 9: CONCLUSIONS / CONCLUSIONS & SUGGESTIONS
(RESEARCH PROJECT)
- FINDING , SUGGESTION AND RECOMMEDATIO
- conclusions
66-69
CHAPTER 10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST

ORGANISATION
70 - 71
BIBLIOGRAPHY/ REFERENCES in appropriate style

ANNEXURES: GLOSSARY, QUESTIONAIRE/ CHECK LIST OF 72-75
QUESTIONS
Titled pages
Page 3
Content of table and graphical figure
Page no.
1.
49
Method Of Gathering Information (fig.1)

2. Performance of Jan Dhan Yojana under financial inclusion (fig.2)
Data Will Be Taken From Bank Of Maharastra And Research On That
3. Bank wise Detail of Villages / SSAs / Households Allotted and Covered (fig3)
4. phase wise target covered of business corresponding (fig.4)
All Branches of Bank of Maharastra report related PMJDY.

5. Pradhan Manti Jiwan Jyati Bima Yojana (fig.5)
..
50
51
52
53
54
6. Rradhan Mantri Surksha Bima Yojana (fig.6)
7. Atal Pension Yojana (fig.7)

8. No. of acc. Opened with in one day from 16-aug 2014 (fig.8)..
54
55
Data collection through the questionnaire by the respondent people

9. have a bank acoount(fig.9).
56
10. No. of account in your household (fig.10)
57
11. types of accounts do you have (fig.11)
57
12. any one helped you while opening the a/c (fig.12)..
13. Reasons for not having even a single bank a/c(fig.13).
14. Reasons for being refused a bank a/c (fig.14)..
59
60
60
61
15. Awareness about Saving A/c under PMJDY(fig.15)..

16. Reasons thats not awareness about PMJDY (fig.16)..
62
17. Types of debit card will be available under PMJDY (fig.17)
62
18. Awareness about various facilities covered under PMJDY(fig.18).
63
DECLARATION
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We, SAROJ KUMAR SAH
here by, declare that project entitled Financial Inclusion
Through The Pradhan Mantri Jan-Dhan Yojana Services at Bank of Maharastra and
Submitted in partial fulfillment for the award of degree in INDIRA INSTITUTE OF
MANAGEMENT PUNE . with the guidance of Prof. Smita pachare, Is my original work and
no part of this dissertation has been submitted for the award of any other
degree/diploma/fellowship or similar title or prizes to any University.
Place: PUNE
Mr. SAROJ KUMAR SAH
Date :
Page 5
ACKNOWLEDGEMENT
One looks back with appreciation to the brilliant teachers, but with gratitude to
those who touches our human feelings. The curriculum is so much necessary raw
material, but warmth is the vital element for the growing plant and for soul of the
child.
-Carl Jung
I would like to express my heartfelt gratitude goes to Prof. SMITA PACHARE,

Assistance professor of the department of IIMP MBA , for acting as
my patient guidance enthusiastic encouragement and useful critiques of this
research work. . Her guidance and constant support as well as sharing with me
work experience as a researcher regarding my project titled and also for her
support for successful completion of this project. and for all her guidance &
encouragement rendered to me throughout this project.
My thanks and appreciation also goes to people who have willingly helped me out
with their ability.
I would also like to thank Branch Manger of BOM Mr. Suresh pandey and dy.
Manager R.B. kumar and also he is my mentor in training period. who with his
new ideas and knowledge of the subject has helped me continuously to finish my
report.
Place:
Date:
saroj kumar sah

Indira institute of Management
PUNE
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EXECUTIVE SUMMARY:-
Tittle of project study:STUDY ON FINANCIAL INCLUSION THROUGH THE PMJDY.

(PRADHAN MANTRI JAN DHAN YOJANA)
ORGANIZATION NAME:BANK OF MAHARASTRA THEREGAON BRANCH(0853) PUNE

Located at Survey No. 21, Pimpri Chinchwad,
P. O. Thergaon, Pune 411033,
Pune - Maharashtra and branch code is 000853.
OBJECTIVES OF PROJECT
Study of the financial inclusion
Role of institution to promote to financial inclusion in india
To identify level of awareness on PMJDY among resident of village THEGAON
BRANCH PUNE MAHARASTRA
To identify the level of usage of benefits arising out of PMJDY.
Response to the PMJDY in india
Measure performance of BANK OF MAHARASTRA in PMJDY
Data collected :- Primary & Secondary Data Collection
METHODOLOGY
TARGET POPULATION- The target audience includes the residents of THERGAON Village,
District PUNE MAHARASTRA
SAMPLE FRAME-The Random sample frame had a total of 200 residents.
SAMPLE SIZE- The sample size for this research is around 200.
SAMPLE METHOD- The sample method included conducting a survey with residents either
through personal interaction or through telephonic interaction. Convenience sampling technique
was adopted.
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Learning from project

Have helped to filled the form of PMJDY accounts
Have lots of individuals accounts to open bank account under PMJDY.
Was able to clear doubts of individuals related to Insurance cover, RuPay debit card,
Overdaft facility etc.
Convince people to apply for Aadhar Card.
Fund transfer to them accounts and deposits in FD, RD, and MIDS accounts
Aadhar card , PAN card link to their accounts.
With the help of RBI diary have make it clear to people who are not interested in opening
the bank account about importance of bank and facilities they can avail.
Create awareness among people about RSBY.
conclusion
The main objectives of the research were to identify the approaches adopted by different banks
and to know about the customer response towards the banking approaches under financial
inclusion program. This project is totally based on progress to the poor people and how to
encouraged these people for change his life and some thing saving from own his income its also
helps to the increase in indian economy the way of this plan PMJDY scheme . so The study
concluded that though the banks are complying with RBI norms in terms of opening branches,
offering no frills account, kisan credit card, simplifying KYC norms, but still is lot of effort to be
put in for financial inclusion progress.
CHAPTER I:- INTRODUCTION AND RATIONALE OF THE STUDY

Page 8
1.1
FINANCIAL INCLUSION THROUGH THE
MANTRI JAN-DHAN YOJANA
PRADHAN
INTRODUCTION
Objective of Pradhan Mantri Jan-Dhan Yojana (PMJDY) is

ensuring access to various financial services like availability of basic
saving bank account, access to need based credit, remittances facility,
insurance and pension to the excluded section i.e. weaker section and
low income groups. This deep penetration at affordable cost is possible
only with effective use of technology.
Page 9
A good job is the best form of inclusion. Rather than assuming the poor need an increasing
array of hand-outs, they should be empowered to equip themselves and their children to become
effective contributors to the economy.
- Raghuram Rajan
Hon'ble Prime Minister, Sh. Narendra Modi on 15 August, 2014 announced "Pradhan Mantri
Jan-Dhan Yojana (PMJDY)" which is a National Mission for Financial Inclusion. The task is
gigantic and is a National Priority. This National Mission on Financial Inclusion has an
ambitious objective of covering all households in the country with banking facilities and having
a bank account for each household. It has been emphasized by the Hon'ble PM that this is
important for including people left-out into the mainstream of the financial system.
The Pradhan Mantri Jan-Dhan Yojana launched on 28
August, 2014, across the nation simultaneously. It will be launched formally in Delhi with
parallel functions at the state level and also at district and sub-district levels. Camps are also to
be organized at the branch level. The Pradhan Mantri Jan-Dhan Yojana lies at the core of
development philosophy of "Sab Ka Sath Sab Ka Vikas".
With a bank account, every household would gain access to banking and credit facilities. This
will enable them to come out of the grip of moneylenders, manage to keep away from financial
crises caused by emergent needs, and most importantly, benefit from a range of financial
products. As a first step, every account holder gets a RuPay debit card with a 1,00,000/- accident
cover. Further, they will be covered by insurance and pension products. There is need to enroll
over 7.5 crore households and open their accounts.
Earlier efforts by the Government of India includes setting up a committee on financial inclusion
under the chairmanship of Dr. C. Rangarajan. The committee finalized its report in early 2008.
As is evident from the preamble of the report, the committee interpreted financial inclusion as an
instrumentality for social transformation. "Access to finance by the poor and vulnerable groups
is a prerequisite for inclusive growth. In fact, providing access to finance is a form of
empowerment of the vulnerable groups. Financial Inclusion denotes delivery of financial
services at an affordable cost to the vast sections of the disadvantaged and low-income groups.
The various financial services included credit, savings, insurance and payments and remittance
facilities. The objective of financial inclusion is to extend the scope of activities of the organized
financial system to include within its ambit people with low incomes. Through graduated credit,
the attempt must be to lift the poor from one level to another so that they come out of poverty."
Financial inclusion:
It has been defined, by the Committee on Financial Inclusion, 2008, as the
process of ensuring access to financial services and timely and adequate credit where needed by
vulnerable groups such as weaker sections and low income groups at an affordable cost. It
primarily represents access to a bank account backed by deposit insurance, access to affordable
credit and the payments system.
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1.2 Importance/ significance of Financial Inclusion:

Financial inclusion, more particularly when promoted in
the wider context of economic inclusion, can uplift financial conditions and improve the
standards of lives of the poor and the disadvantaged. Access to affordable financial services
would lead to increasing economic
activities
and
employment
opportunities for rural households
with a possible multiplier effect on
the economy. It could enable a
higher disposable income in the
hands of rural households leading
to greater savings and a wider
deposit base for banks and other
financial institutions.
It will enable the Government to
provide
social
development
benefits and subsidies directly to
the beneficiary bank accounts,
thereby
drastically
reducing
leakages and pilferages in social welfare schemes. Further, expanding the reach of financial
services to those individuals who do not currently have access would be an objective that is fully
consistent with the people-centric definition of inclusive growth which attempts to bridge the
various divides in an economy and society, between the rich and the poor, between the rural and
urban populace, and between one region and another. Thus, financial inclusion could be an
instrument to provide monetary fuel for economic growth and is critical for achieving inclusive
growth.
1.2.1 Financial Inclusion in India Background:

The efforts to include the financially excluded segments of the society into formal financial
system in India are not new. The concept was first mooted by the Reserve Bank of India in 2005
and Branchless Banking through Banking Agents called Bank Mitr (Business Correspondent)
was started in the year 2006. In the year 2011, the Government of India gave a serious push to
the programme by undertaking the "Swabhimaan" campaign to cover over 74,000 villages, with
population more than 2,000 (as per 2001 census), with banking facilities. Because of the RBIs
drive for financial inclusion, the number of bank accounts increased by about 100 million during
2011-13.
Page 11
The Swabhimaan campaign, however, was limited in its approach in terms of reach and
coverage. Convergence of various aspects of comprehensive Financial Inclusion like opening of
bank accounts, digital access to money (receipt/credit of money through electronic payment
channels), availing of micro credit, insurance and pension was lacking. The campaign focused
only on the supply side by providing banking facility in villages of population greater than 2000
but the entire geography was not targeted. There was no focus on the households. Also some
technology issues hampered further scalability of the campaign. Consequently the desired
benefits could not be achieved and a large number of bank accounts remained dormant.
1.2.2 Financial Inclusion: Current Status:
Data from Census, 2011 estimates that only 58.7 percent of the households have access to
banking services. The present banking network of the country (as on 31.03.2014) comprises of a
bank branch network of 1,15,082 and an ATM network of 1,60,055. Of these, 43,962 branches
(38.2 percent) and 23,334 ATMs (14.58 percent) are in rural areas. According to World Bank
Findex Survey (2012) a only 35 percent of Indian adults had access to a formal bank account and
8 percent borrowed from a formal financial institution in last 12 months.
Access to formal financial institutions has improved gradually but thousands of villages still lack
a bank branch; less than 10 percent of all commercial bank credit goes to rural areas, where
around 70 per cent of the total population lives. Data from the RBI show that only 46,126 out of
640,867 villages in India were covered by banks in March 2014. Thus the need for financial
inclusion is beyond question.
Availability of banking services

80
70
60
50
Axis Title
40
30
20
10
0
Rural
urban
total
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Financial Inclusion- Summary progress of all Banks including Regional Rural

Banks (RRBs), during five years period are as under:Particular
Year
ended
2010
Year
ended
2011
Year
ended
2012
Year ended
2013
Year
ended
2014
Banking outlets in
Villages
1.Branches
2. Villages covered by
BCs
33,378
34,811
37,471
40,837
46,126
34,174
80,802
1,41,136
2,21,341
3,37,678
3 Other Models
142
595
3,146
6,276
4. Total
67,674
1,16,200
1,81,783
2,68,454
3,83,804
447
3,771
5,891
27,143
60,730
Urban location through

BCs
Basic Saving Bank Deposit A/c- branches

1. No. in millions
2. Amount in billions
60.19
44.33
73.12
57.89
81.20
109.87
100.80
164.69
126.00
273.30
Basic Saving Bank Deposit A/c- BCs

1. No. in millions
13.27
10.69
31.63
18.23
57.30
10.54
81.27
18.22
116.90
39.00
OD facility availed in BSBDAs accounts

1. No. in millions
0.18
0.61
2.71
3.92
5.90
0.10
0.26
0.08
1.55
16.00
KCCs (No. in
millions)
24.31
27.11
30.24
33.79
39.90
The statistics show that there is substantial progress towards opening of accounts, providing
basic banking services during the recent years as indicated above. However, it is essential that all
the sections be financially included in order to have financial stability and sustainability of the
economic and social order. According to World Bank Findex Survey (2012) only 35% of Indian
adults had access to a formal bank account and 8% borrowed from a formal financial institution
in last 12 months. The miniscule number suggests an urgent need to further push the financial
inclusion agenda to ensure that people
at the bottom of the pyramid join the mainstream of the formal financial system
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1.3 Role Of Technology In Financial Inclusion Under PMJDY

1. Technology and financial inclusion are the popular coinage in banking parlance in the country.
Main hurdle in financial inclusion so far has been large numbers and low volumes, translating
into unaffordable costs. The only way to bring down the cost to an affordable level and to
improve the reach to the farthest / remotest corner of the country is by effectively leveraging the
Technology.
2. In order to make available the banking facilities across the length and breadth of the country,
latest technological products like e-KYC, IMPS, AEPS, mobile banking etc. have the potential to
emerge as a game changer in terms of costs, convenience, and speed of reach. Business models
of banks, telecom operators and other stakeholders need to converge.
3. Under the guidance of RBI
various organizations like National
Payments Corporation of India
(NPCI), Institute for Development
&
Research
in
Banking
Technology (IDRBT) etc. are
contributing
significantly
in
bringing new technology based
products.
4. Reserve Bank has, thus, been
actively involved in harnessing
technology for the development of
the Indian banking sector over the
years. A major technological
development in banking sector is
the adoption of the Core Banking
Solutions (CBS). CBS is a step towards enhancing, customer convenience through, Anywhere,
Anytime Banking. It is important to leverage this technological advancement to look at areas
beyond CBS that can help in not just delivering quality and efficient services to customers but
also generating and managing information effectively. The adoption of CBS led to various
technological products like NEFT, RTGS, mobile banking, Internet Banking, ATMs, etc. Some
of the Technological based products have made significant changes in the banking outreach to
the masses are appended below:
Adopting core banking solution (CBS) by the Banks, including all Regional Rural Banks
(RRBs).
Next, a multi-channel branchless approach using handheld devices, mobiles, cards, microATMs and kiosks can be used.
Page 14
Transactions put through such front-end devices are seamlessly integrated with the banks'
CBS.
Implementation of the electronic payment system such as RTGS (Real Time Gross
Settlement),
Electronic Clearing Service (ECS),
Electronic Funds Transfer (NEFT),
Cheque Truncation System (CTS),
Banking transaction by using Mobile phones etc.
5. The present plan of the PMJDY under National Mission on Financial Inclusion proposed
to use the Technology in a big way to achieve the goal in a time bound manner. Some of the
major products are appended hereunder:
(i) Electronically Know Your Customer (e-KYC):
In the year 2013, RBI permitted e-KYC as a valid process for KYC verification under
Prevention of Money Laundering (Maintenance of Records) Rules, 2005. In order to reduce the
risk of identity fraud, documentary forgery and have paperless KYC verification, UIDAI has
launched its e- KYC services. Under the e-KYC process under the explicit consent of the
customer and after his or her biometric authentication from UIDAI data base individual basic
data comprising name, age, gender and photograph can be shared electronically with Authorized
Users like Banks, which is a valid process for KYC. The aforesaid process is paperless and has
made the account opening of customers having Aadhaar number 24 easier. Almost all the banks
have either adopted this process or in the advance stage of putting the system live. The e-KYC
process would be used in large scale for opening accounts in future.
(ii) Transaction through Mobile Banking:
The mobile-phone revolution that is transforming the
country could also turn into a banking revolution in
terms of reach and transaction. Today, the number of
mobiles in India is 886 million. The reach of mobile
to the remote village and its usage by the common
man has become order of the day and it is estimated
that around 1/4 of mobile users are residing in
villages/small towns. The coverage of mobile phones
and the use of such instruments by all section of the
population can be exploited for extending financial
services to the excluded populations. It enables the
subscribers to manage their financial transactions
(funds transfer) independent of place and time. The
subscriber can approach a retailer of mobile network
for withdrawal/deposit of money and the transaction
takes place using SMS messages.
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The Mobile Banking services are generally available through a java

application on Blackberry, Android, iPhones and Windows mobile phones. Various banking
services like Funds Transfer, Immediate Payment Services, Enquiry Services (Balance enquiry/
Mini statement), Demat Account Services, Requests for Cheque Book, Bill Payments, etc. may
be carried out through mobile banking. There are transaction limits for mobile banking and these
services are free of charge. The mobile banking services are also available over SMS. The basic
financial transactions from the Bank accounts can be executed through a mobile based PIN
system using "Mobile Banking". Mobile banking through mobile wallet was also launched in
2012. Mobile telephony and prepaid wallets would also be utilized for coverage of households
under the Financial Inclusion campaign.
(iii) Micro-ATMs:
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Micro-ATMs are biometric authentication enabled hand-held device. In order to make the ATMs
viable at rural / semi-urban centers, low cost Micro-ATMs would be deployed at each of the
Bank Mitra location. This would enable a person to instantly deposit or withdraw funds
regardless of the bank associated with a particular Bank Mitra / Business Correspondent. This
device will be based on a mobile phone connection and would be made available to every Bank
Mitra / Business Correspondent. Customers would have to get their identity authenticated and
withdraw or put money into their bank accounts. This money will come from the cash drawer of
the Bank Mitra / Business Correspondent. Essentially, Bank Mitras will act as bank for the
customers and all they need to do is verify the authenticity of customer using customer's UID.
The basic transaction types to be supported by micro ATM are Deposit, Withdrawal, Fund
transfer and Balance enquiry. Micro-ATM offers one of the most promising options for
providing financial services to the unbanked population. Micro-ATMs would have various
options of authentication like biometric, PIN based etc. and it would also be used as mobile
ATMs to enable transactions near the door step of the customers. The Micro-ATMs offer an
online interoperable, low-cost payments
platform to everyone in the country.
(ivImmediate Payment System (IMPS):
Immediate Payment Service (IMPS) was
launched by NPCI on 22 November,
2010. It offers an instant, 24X7, interbank
electronic fund transfer service through
mobile phones as well as internet banking
& ATMs. In the process of remittances
across the bank there are four stakeholder
i.e. (i) Remitter (Sender), (ii) Beneficiary
(Receiver), (iii) Banks & (iv) National
Financial Switch - NPCI. In order to
remit fund through IMPS, the sender
should use mobile banking to send
money, the receiver mobile number
should be registered with his bank and
the money is credited to receivers account
instantly. For registration the Remitter
must register for mobile banking and get
Mobile Money Identifier (MMID) &
Mobile Banking PIN (MPIN) for
initiation of a transaction. MMID is a 7
digit number, to be issued by the bank to
the customer upon registration and the
Beneficiary must Register his/her mobile
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number with the bank account and get MMID. A remitter can initiate an IMPS transaction by
sending an SMS to his bank typing the Beneficiary Mobile Number, Beneficiary MMID and
Amount. The receiver will get an SMS confirmation for the credit of his account. Payments
Corporation of India (NPCI), is facilitating the Interbank Mobile Payment Service (IMPS)
(v) National Unified USSD Platform (NUUP):
Mobile banking is one of the most potent mode for increasing reach of banking facilities to the
masses. Today, mobile phones have become a household device in India, with almost 900 mn
mobile phones connection. Mobile banking service can be initiated using SMS - an unencrypted
service, considered unsafe - or using mobile banking app. Though very interactive, the major
problem with mobile banking apps is that these need to be downloaded and installed on the
mobile phone. Less than 40% of Indian users have compatible J2ME handsets and GPRS
connection on their mobile phone, as required by this system. To resolve aforesaid issues, an
alternative solution on USSD platform is available. Customers can avail USSD solution through
any mobile phone on GSM network, irrespective of make and model of the phone. This does not
require any application to be downloaded on customer's mobile phone and need for GPRS
connectivity. USSD is user- friendly so it is easy to communicate and educate customers as well.
USSD alleviates the need for application download and is more secure than SMS channel.
Banking customers can use this service by dialing *99#, a "Common number across all
Telecom Service Providers, (TSPs)" , on their mobile and transact through an interactive
menu
displayed on the mobile screens.
Using *99#, a customer will be able to access both financial like fund transfer as well as
nonfinancial
services like balance enquiry and mini statement of bank account, at his/her own convenience.
Key services that NUUP will offer include, interbank account to account fund transfer, balance
enquiry, mini statement besides host of other services. A notable inclusion in the NUUP service
is a new addition in the form of Query Service on Aadhaar Mapper (QSAM). Under this
feature a user can come to know about his/her AADHAAR seeding status with the banks, a
service that will find tremendous utility for the governments direct subsidy disbursals
programme. This product this scheduled to be launched on 28 August, 2014.
Page 18
(vi) RuPay Debit cards:

RuPay is a new card payment scheme launched by the National Payments Corporation of India
(NPCI), to offer a domestic, open-loop, multilateral system which will allow all Indian banks
and financial institutions in India to participate in electronic payments. "RuPay", the word itself
has a sense of nationality in it. "RuPay" is the coinage of two terms Rupee and Payment. RuPay
Cards address the needs of Indian consumers, merchants and banks. The benefits of RuPay debit
card are the flexibility of the product platform, high levels of acceptance and the
strength of the RuPay brand-all of which will contribute to an increased product experience. The
main features are as under:
Lower cost and affordability
Customized product offering
Protection of information related to Indian
consumers
Provides electronic product options to
untapped/unexplored consumer segment
(vii) Aadhaar
System (AEPS):
Enabled
Payment
AEPS is a banking product which allows online interoperable financial inclusion transaction at
PoS (Micro-ATM) or Kiosk Banking through the Business Correspondent of any bank using the
Aadhaar authentication. Presently, four Aadhaar enabled basic types of banking transactions are
available i.e. (i) Balance Enquiry, (ii) Cash Withdrawal, (iii) Cash Deposit & (iv) Aadhaar to
Aadhaar Funds Transfer. For undertaking AEPS transaction by customer, two inputs i.e. IIN
(Identifying the Bank to which the customer is associated) & Aadhaar Number are required.
(viii)Aadhaar Payments Bridge System (APBS):
The Aadhaar Payments Bridge System enables the transfer of payments from Government and
Government Institutions to Aadhaarenabled accounts of beneficiaries at banks and post offices.
Every Government Department or Institution that sends EBT and DBT/DBTL payments to
individuals simply needs to prepare a file containing the Aadhaar number and amount and
submit it to their accredited bank. The accredited bank then processes the file through an
interoperable Aadhaar Payments bridge and funds are credited into the accounts of beneficiaries.
Upon receiving incoming funds, the beneficiary's bank will notify him or her through an SMS or
any other communication channel that is established between the bank and the customer.
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CHAPTER :- 2 INDUSTRY PROFILE

2.1 BANKING INDUSTRY
Banking in India in the modern sense originated in the last decades of the 18th century. Among
the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-32; and the General Bank of India, established 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India. It originated as the
Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of
the three banks funded by a presidency government, the other two were the Bank of Bombay and
the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India,
which upon India's independence, became the State Bank of India in 1955. For many years the
presidency banks had acted as quasi-central banks, as did their successors, until the Reserve
Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.
Current period
Page 20
All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are
Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. Scheduled Commercial Banks in India are categorized into five different
groups according to their ownership and/or nature of operation. These bank groups are:
State Bank of India and its Associates
Nationalised Banks
Private Sector Banks
Foreign Banks
Regional Rural Banks.
Cooperative Banks
Scheduled Bank
In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised Banks.
Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled
Urban Cooperative Banks.
2.1.1 Adoption of banking technology

The IT revolution has had a great impact on the Indian banking system. The use of computers
has led to the introduction of online banking in India. The use of computers in the banking sector
in India has increased many fold after the economic liberalization of 1991 as the country's
banking sector has been exposed to the world's market. Indian banks were finding it difficult to
compete with the international banks in terms of customer service, without the use of
information technology.
a) Automated teller machine
The total number of automated teller machines (ATMs) installed in India by various banks as of
end June 2012 was 99,218. The new private sector banks in India have the most ATMs, followed
by off-site ATMs belonging to SBI and its subsidiaries and then by nationalised banks and
foreign banks, while on-site is highest for the nationalised banks of India.
b) Cheque truncation initiative
Page 21
In 2008 the Reserve Bank of India introduced a system to allow cheque truncation in India, the
cheque truncation system as it was known was first rolled out in the National Capital Region and
then rolled out nationally.
c) Expansion of banking infrastructure
Physical as well as virtual expansion of banking through mobile banking, internet banking, and
tele banking, bio-metric and mobile ATMs is taking place since last decade and has gained
momentum in last few years.
d) Make in India
I.
jan dhan yojana
Pradhan Mantri Jan Dhan Yojana (IPA: Pradhna Mantr Jana Dhana Yjan) English: Prime
Minister's People Money Scheme) (PMJDY) is National Mission for Financial Inclusion to
ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance,
Credit, Insurance, Pension in an affordable manner.
Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5
Crore (15 million) bank accounts were opened under this scheme.
II.
Digital village
Through this Digital Village initiative, we are trying to set an example on how technology can
change the lives of people," said Kochhar, who began her career with erstwhile ICICI Ltd in
1984 as a management trainee and has been instrumental in shaping the retail banking sector in
India.
"One of the key points is providing cashless banking services to every villager. But it is not only
about making sure that the commercial life of a person goes ahead without cash, but we want to
ensure that technology is there in every sphere of life.
"On banking we have digitized all our offerings - from opening an account to sale of goods to
purchase of products including milk from the vendor or kirana stores. At the same time, we have
digitized the school records, the Gujarat syllabus and even teaching methods and tools
2.2 Contribution of sector towards GDP
Banking (10%)
The Indian finance market comprises the organized sector categorized into private, public and
foreign owned banks and the unorganized sector including individual bankers or money lenders.
The countrys gross domestic saving stands around 32.7%, most of it invested in personal assets
like land, property or gold. The Indian Insurance Industry has grown in the recent past at rate of
15-20%. Today the Insurance plus banking services contribute to 10% of the countrys GDP. It is
a well-evolved industry serving as a boon for economic development of India by providing longterm funds for development of infrastructure. Besides, it strengthens the risk taking capacity of
Page 22
the country. As per the Life Insurance Council, Indian life insurance industry ranks fifth among
the largest life insurance markets of the world.
2.3 Major players in banking industry
State Bank of India
ICICI Bank Ltd
HDFC Bank ltd
Axis Bank Ltd
Kotak Mahindra Bank Ltd
Punjab National bank
IDBI Bank
YES Bank Ltd
CITI Bank Ltd
COSMOS Bank
Bank of Maharastra
2.4 Regulatory framework

The financial system in India is
regulated by independent regulators in the field of banking, insurance, capital market,
commodities market, and pension funds. However, Government of India plays a significant role
in controlling the financial system in.
Reserve Bank of India: Reserve Bank of India is the apex monetary Institution of India. It is
also called as the central bank of the country.
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions
of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially
established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is
where the Governor sits and where policies are formulated. Though originally privately owned,
since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
It acts as the apex monetary authority of the country. The Central Office is where the Governor
sits and is where policies are formulated. Though originally privately owned, since
Page 23
nationalization in 1949, the Reserve Bank is fully owned by the Government of India. The
preamble of the reserve bank of India is as follows:
Preamble: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing
monetary stability in India and generally to operate the currency and credit system of the country
to its advantage."
Recent guidelines for financial inclusion

2012: RBI permitted Aadhaar letter as a proof of both Identity & Address for the
purpose of opening of bank Accounts
2012: GoI introduced Sub Service Area (SSA) approach for opening of banking outlet
and for Direct Cash Transfer.
2012: Aadhaar Payment Bridge System (APBS) was introduced for centralized credit of
Social Benefits. Guidelines on Direct Benefit Transfer issued by GoI.
2013: To ease the account opening process RBI permitted to use e-KYC.
TRAI issued guidelines on USSD based mobile banking services for Financial inclusion
2014: RBI issues guidelines for scaling up of Business Correspondent model
CHAPTER: 3 ORGANIZATION
PROFILE
Bank of Maharastra
Bank of Maharashtra
Page 24
Bank of Maharastra is a major public sector bank in India. Government of India holds 81.2% of
the total shares. The bank has 15 million customers across the length and breadth of the country
served through more than 1868 branches. It has largest network of branches by any public sector
bank in the state of Maharashtra.
Bank of Maharashtra". Facilities All the branches of Bank of Maharashtra have been fully
computerized, with Depository services and Demat facilities being offered at 131 branches as of
April 2009. The bank aims at increasing its ATM network from 345 to 500 soon, apart from
planning to install Biometric ATMs at some selected branches. Apart from it, introduction of
Phone Banking, Internet Banking and Mobile Banking is also on the cards. Other
Highlights Apart from providing regular banking services to the customers, Bank of
Maharashtra has established two Joint Ventures to fulfill its other commitments towards the
general public and society. These Joint Ventures are M-SETI and Mahabank Info Centre.
Mahabank Self-Employment Training Institute (M-SETI) is an effort initiated by Mahabank
Agricultural Research & Rural Development Fund (MARDEF), a trust run by Bank of
Maharashtra receiving help from National Bank for Rurl Development (NABARD). The
institute runs various self-employment oriented training courses for the rural unemployed youth
from the districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and
Nandurbar. Mahabank Info Centre is a yet another initiative by Bank of Maharashtra aimed at
providing various retail baking related information to the customers, and enabling smoother
operations for them.
IMPACT OF Pradhan Mantri Jan Dhan Yojana ON BANK

The scheme aims to provide at least one bank account to each household across the country, with
a target of covering 75 million households by 26 January 2015. Targeted at those who have
never had a bank account in their lives, the scheme has simplified the whole process of opening
an account. The KYC (know-your customer) rules to open a bank account have been simplified;
the only document required is either Aadhar card, voters identity card, driving license, PAN
card, or card issue under MGNREGA. Even if the address mentioned in the document is
different from the current residence of the applicant, a self-declaration will suffice. For those
who do not have any of above mentioned identity proofs, a small account could be opened
with a self-attested photograph alongwith signature or thumb impression in the presence of the
bank official.
The PMJDY is being implemented in two phases. In the first phase (till August 14, 2015) every
account holder will receive a RuPay debit card, and will be able to use basic mobile banking
services, such as balance enquiry. Further, every account holder under the scheme will get an
accident insurance cover of Rs.1 lakh. Bank accounts opened between 28 August 2014 and 26
January 2015 would also get life insurance cover worth Rs30,000/-. These accounts are also
Page 25
eligible for over draft facility of Rs.5,000/- based on performance during the first six months.
There will also be a financial literacy programme, expansion of Direct Benefit Transfer under
various schemes through the beneficiaries bank accounts, and issuance of RuPay Kisan Card. In
the second phase (from August 2015 to 14 August 2018), micro insurance and unorganized
sector pension schemes would also be provided. Bank accounts opened after 26 January 2015
would be eligible for life insurance cover and micro insurance in this phase. As it is difficult to
spread bank branches across all unbanked areas, Business Correspondents (BCs) will be
deployed on a large scale to help execute the plan8.
3.1 Vision & Mission of Bank of Maharastra
VISION
To be a vibrant, forward looking, techno-savvy, customer centric bank serving
diverse sections of the society, enhancing shareholders and employees value
while moving towards global presence
The Bank continued to have the support and patronage of the common man. Right
from its inception, the focus of the Bank has been to assist small business
enterprises, traders, self-employed and others commonly known as the Priority
Sector
MISSION of Bank of Maharastra
To ensure quick and efficient response to customer expectations.
To innovate products and services to cater to diverse sections of society.
To adopt latest technology on a continuous basis.
To build proactive, professional and involved workforce.
To enhance the shareholders wealth through best practices and corporate governance.
To enter international arena through branch network.
Page 26
Mission Mode Objectives (6 Pillars) Through The Jan-Dhan Yojana

PMJDY to be executed in the Mission Mode, envisages provision of affordable financial services
to all citizens within a reasonable distance. It comprises of the following six pillars:a. 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 the reasonable distance say
5 km by 14 August, 2015. Coverage of parts of J&K, Himachal Pradesh, Uttarakhand, North
East and the Left Wing Extremism affected districts which have telecom connectivity and
infrastructure constraints would spill over to the Phase II of the program (15 August, 2015 to 15
August, 2018)
b. Providing Basic Banking Accounts with overdraft facility and RuPay Debit card to all
households:
The effort would be to first cover all uncovered households with banking facilities by August,
2015, by opening basic bank accounts. 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.
c. 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.
d. Creation of Credit Guarantee Fund:
Creation of a Credit Guarantee Fund would be to cover the defaults in overdraft accounts.
e. Micro-Insurance:
To provide micro- insurance to all willing and eligible the persons by 14 August, 2018, and then
on an ongoing basis.
f. 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.
3.2 Registered Address/ Number of branches
Number of branches
The Bank has 2260 branches spread over 29 states and 5 Union Territories and 1841 ATMs
REGISTERED ADDRESS
Bank of Maharashtra

Page 27
Type
Public Company
BSE & NSE: MAHABANK
Industry
Banking,
Capital markets and allied industries
Founded
1935
Headquarters
1501, Lokmangal,
Shivaji nagar,
Pune Maharastra, India
Key people
Sushil Muhnot , Chairman & Managing Director

R K Gupta, R Athmaram , Executive Directors
Products
Loans, credit cards, savings, investment etc.

60939 million(US$950 million)
Revenue
Total assets
481 million
Website
www.bankofmaharashtra.in
3.3 COMPOSITION BOARD OF DIRECTOR

S.No
Name
Designation
Mr.Sushil Muhnot
Chairman & Managing Director
Mr.Ateesh Singh
Director
Mr.G Sreekumar
Director
Mr.Ramadev L Sayadiwal
Director
Mr.Sanjeev Jain
Director
Mr.Premchandra Amolakchand Sethi
Director
Page 28
Mr.R Athmaram
Executive Director
Mr.R K Gupta
Executive Director
3.4 FINANCIAL PERFORMANCE of BOM
Total Business has increased from 207171.76 crore as on 31.03.2014 to 223329.21
crore as on 31.03.2015, registering a growth of 7.80% on Y-o-Y basis.

Total Deposits have increased from 116803.09 crore as on 31.03.2014 to 122118.95
crore as on 31.03.2015, registering a Y-o-Y growth of 4.55%. The Bank had
consciously discouraged high cost bulk deposits.

CASA has increased from 41921.18 crore as on 31.03.2014 to 45296.80 crore as on
31.03.2015, registering a Y-o-Y growth 8.05% Share of CASA to total deposits was
37.09% as on 31.03.2015.
Cost of Deposits has declined to 7.03% for the year ended 31.03.2015 against the
7.13% for year ended 31.03.2014

Gross Advances have increased from 90368.67 crore as on 31.03.2014 to 101210.26
crore as on 31.03.2015, registering a growth of 12.00% on Y-o-Y basis. The bank
credit crossed the milestone of 1,00,000 core.

Priority Sector advances increased from 34,826 crore as on 31.03.2014 to 39094
crore showing growth of 12.26%, which came to 41.76% of ANBC as against the
required level of 40%.

Containing NPAs was challenge for the entire banking sector and the Bank was not
an exception. Gross and Net NPAs were 6402.06 crore (6.33%) and 4126.57 crore
(4.19%) as on 31.03.2015, as against 2859.85 crore (3.16%) and 1807.32 crore
(2.03%) as on 31.03.2014.
Net Interest Income was 3875.03 crore for year ended 31.03.2015 as against 3508.93
crore for year ended 31.03.2014 registering a rise of 10.43%

Net Interest Margin (NIM) improved to 2.82% for year ended 31.03.2015, as against
2.71% for year ended 31.03.2014.

10 Non-Interest Income has increased from 894.19 crore for the year ended 31.03.2014
to 1005.98 crore for 31.03.2015, showing a rise of 12.50%.
11 Operating Profit during the year ended 31.03.2015 increased to 2355.09 crore as
against 2006.37 crore during the year ended 31.03.2014 showing an increase of
17.38%
12 Net Profit during the year ended 31.03.2015 stood at 450.69 crore as against 385.98
crore during the year ended 31.03.2014 showing an increase of 16.77%.
Page 29
13 Capital Adequacy Ratio (Basel III) was 11.94% as on 31.03.2015 as compared to

10.79% as on 31.03.2014. The same under Basel II stood at 12.79 % as on
31.03.2015 as against 12.11% as on 31.03.2014.
14 Return on Assets for the year ended 31.03.2015 improved to 0.33% as against 0.30%
as on 31.03.2014.
15 Cost to Income Ratio improved to 51.75% for the year ended 31.03.2015, as against
54.43% for the year ended 31.03.2014.
Financial performance of all the Bank through the PMJDY
1. 26939 crores deposited in to all Bank under PMJDY account as on 18 Nov. 2015
2. 9.16 crores deposited under PMSBY as on oct 2015
3. 2.86 crores deposited under PMJJBY as on oct 2015
3. Deposited under PMJDY 1.26 lac Bank mitra as on oct 2015
3.4 Major customer

1 Balaji college ( includes all the departments accounts)
2. Pandit petrol pump
3. paper mills
3.5 Awards & Achievment receive by Bank of Maharastra
Bank was conferred as BEST BANK-PUBLIC SECTOR in

BFSI Awards-2015 by World HRD Congress in recognition
of the Best performances in Banking Category.
The Award was received by Shri S.Muhnot, Chairman &
Managing Director on behalf of the Bank at the function
held at Mumbai.
Page 30
Financial Express Indias Best Bank Award

Sri.S. Muhnot, Chairman & Managing Director, Bank of
Maharashtra is seen receiving Winner Award Growth
Category with Devendra Fadnavis, Chief Minister of
Maharashtra.
Shri R. Athmaram (Executive Director) & Shri M. C.

Kulkarni (General Manager,IT) receiving the Best Bank
for managing IT risk among mid size Banks award from
Dr. Raghuram G. Rajan ( Governor, Reserve Bank of
India) on 15th October 2014
Bank Grabbed 5 Awards in BFSI Awards by World

HRD
Congress
Sri. R. K. Gupta, Executive Director, Bank of Maharashtra
is seen receiving BFSI Best Bank Public Sector Award
from organizers.
Bank of Maharashtra has been awarded the "Best Banker

in Customer Friendliness" by The Sunday Standard
FINWIZ 2012
Bank was conferred as BEST BANK-PUBLIC

SECTOR in BFSI Awards-2014 in recognition of the
Best
performances
in
Banking
Category.
The Award is received by Shri.Sushil Muhnot,
Chairman and Managing Director on behalf of Bank at
the function held at Hotel Taj Lands End, Mumbai on
14th February 2014. Shri. S.Bharatkumar, General
Manager Planning and Shri. M.C.Kulkarni , General
Manager, Mumbai City Zone were also present on the
occasion
Bank of Maharashtra Grabbed 2 Awards in

Skoch
Summit
Sri. R.K.Gupta, Executive Director, Bank of
Maharashtra is seen receiving Skoch Gold Award
from Ms.Meenakshi Lekhi, M.P, Loksabha in the
presence of Mr.Sameer Kochhar, Chairman,
Skoch Group and Ms.Manisha Kochhar, Skoch
Group.
Page 31
RBI Dy Governer, Dr. K. C. Chakrabarty inaugurates Mahabank Gram Seva Kendras

(26-12-2011)
Bank has pioneered in taking the banking to the door steps of remote villagers in real sense when
its SIX Mahabank Gram Seva Kendras were inaugurated at the hands of Dr. K. C. Chakrabarty,
Dy Governor, RBI at Navghar village near Uran of Raigad District on 26-12-2011.
As an innovation under the financial inclusion plan embarked by the Bank, Mahabank Gram
Seva Kendras are established in the remote villages like Navghar (Raigad), Dhuktan (Thane),
Panoli (Ahmednagar), Koli Boddkha (Aurangabad), Solu (Pune) and Survadi (Satara) on pilot
basis.
Progress of Bank through jan- dhan yojana
Maha Gram Seva Kendra - An initiative by Bank of Maharashtra
Located in a remote village, the Kendra will provide all basic banking services to the customers.
It will be manned by one bank official from the parent branch to which the Kendra is linked.
This initiative is an alternative to BC model service delivery channel provided by the Bank in
selected remote villages to give more personalized services.
AWARDS and ACHIEVEMENTS OF FINANCIAL INCLUSION THROUGH

PMJDY
Awards to be taken from world record Guinness book
Page 32
India received the awards and create Guinness book record in all over the world for the most
bank account opened in a week as part of financial inclusion campaign 18,096,130 and was
achieved by department of finance services, its a great full achievement award financial
inclusion through the PMJDY scheme
Government achievement under Financial inclusion through

PMJDY scheme as on 05/08/2015
Page 33
Pradhan Mantri Jan - Dhan Yojana

(Accounts Opened as on 18.11.2015)
(All Figures in Crores)
AADHAA
R SEEDED
BALANCE
IN
ACCOUNTS
% OF
ZEROBALANCEACCOUNTS
Bank
Name
RURAL
URBA
N
TOTAL
NO OF
RUPAY
CARDS
Public
Sector
Banks
8.33
6.75
15.08
13.42
6.97
21,157.45
36.01
Regional
Rural
Banks
2.97
0.50
3.46
2.47
0.96
4,629.32
34.97
Private
Banks
0.44
0.29
0.73
0.64
0.23
1,152.83
41.10
Total
11.73
7.54
19.27
16.54
8.15
26,939.60
35.96
Sources: ministry of finance. Figures in crore , Disclaimer: Information is based upon the data as
submitted by different banks/SLBCs
Above the table shows that all the sector private , public and rural regional Banks are opened
Bank account under Pradhan Mantri Jan-Dhan yojana schemes. The reports shows also number
of bank accounts opened in rural and urban area than no. of Rupay debit cards distributed to the
customers. than Balanced of money from the new account under PMJDY report and lastly
shows no. of accounts to be opened in zero balance account . all of the above mentioned report
are taken from Minitry of Finance and information based on the data as submitted by different
banks/states level bankers committees.
progress report of deposited amount in all the bank under PMJDY
Page 34
3.6 Organization Structure:

Chairman
CGMS-circles
General Manager
Dy. General Manager
Regional manager
Branch manager
Page 35
Deputy Manager
(Advance)
Deputy Manager
(Cash)
Deputy Manager
(Account)
Clerk
3.6 PRODUCT AND SERVICES
ATM Services
Credit Card
DEMAT Services
Bancassurance
Distribution of Mutual Funds
Western Union Money Transfer facitity
Capital Market Application (ASBA)
ASBA PLUS
Executors and Trustee Services
Mahabill Pay
RTGS/NEFT
MAHAeTRADE (On line Share Trading Facility)
Mahabank Swasthya Yojna
Maha Suraksha Yojana
E Payment Taxes
New Pension Scheme
Govt Business
Maha-Double Deposit Scheme
Door Step Banking
e-SBTR
Mahabank Corporate SUPREME Payroll
Maha Suraksha Payroll Scheme
Pradhan Mantri Jeevan Jyoti Bima

Yojana
Pradhan Mantri Suraksha Bima Yojana
Atal Pension Yojana
New Business Initiatives taken up by bank after implementation of PMJDY

Purple Previleges Account for HNIs-with features like Assistance of Dedicated
Relationship Manager, specially designed Purple Lounges etc.
Page 36
Mobile Banking app- MahaMobile -Designed to be intuitive and user friendly, will
enable the Banks customers to view all their deposit and loan accounts, do fund
transfers, bill payments and raise a variety of service requests on their mobile anytime,
anywhere.
3 Modernized Branches Titled Utkarsha Branches to ensure improved productivity
for maximizing customer satisfaction and delightful Banking experience for customers of
all segments.
MAHA e-SBTR (e-Secured Bank & Treasury Receipt) facility for payment of
Registration Fee and Stamp Duty in the state of Maharashtra.
Maha Secure A next Generation Digital Banking Solution, secured by REL-ID
Technology, a high end product introduced to attract the technology savvy customers and
youngsters. The Maha Secure banking app will enable secure access to internet banking.
Maha Sarvajan Savings Bank Deposit Account- A Basic Savings Bank Account to
make basic Banking facilities available to all sections of population under all Income
groups.
New Maha Combo Loan Scheme for House and car taken together for targeting
retail customers
3.6.1
Details about PMJDY Schemes under Bank through the Financial inclusion
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure
access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet.
PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to
get cheque book, he/she will have to fulfill minimum balance criteria.
Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana
1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If
address has changed, then a self certification of current address is sufficient.
2. If Aadhaar Card is not available, then any one of the following Officially Valid
Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport &
Page 37
NREGA Card. If these documents also contain your address, it can serve both as Proof
of Identity and Address.
3. If a person does not have any of the officially valid documents mentioned above, but it
is categorized as low risk' by the banks, then he/she can open a bank account by
submitting any one of the following documents:
1. Identity Card with applicant's photograph issued by Central/State Government
Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,
Scheduled Commercial Banks and Public Financial Institutions;
2. Letter issued by a gazette officer, with a duly attested photograph of the person.
Purpose of PMJDY Products & services in india through the Banking sector
In a run up to the formal launch of this scheme, the Prime Minister personally mailed to
Chairmans of all PSU banks to gear up for the gigantic task of enrolling over 7.5 crore (75
million) households and to open their accounts. In this email he categorically 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 Rs. 1 lakh and RuPay Kisan Card. In next phase, micro insurance & pension
etc. will also be added. Under the scheme:
1. Account holders will be provided zero-balance bank account with RuPay debit card, in
addition to accidental insurance cover of Rs 1 lakh(to be given by 'HDFC Ergo').
2. Those who open accounts by January 26, 2015 over and above the 1 lakh accident, they will
be given life insurance cover of 30,000(to be given by LIC).
3. After Six months of opening of the bank account, holders can avail 5,000 overdraft from the
bank.
4. With the introduction of new technology introduced by National Payments Corporation of
India (NPCI), a person can transfer funds, check balance through a normal phone which was
earlier limited only to smart phones so far.
5. Mobile banking for the poor would be available through National Unified USSD Platform
(NUUP)
for which all banks and mobile companies have come together
Page 38
3.6.2 Differences between Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima
Yojana (PMSBY)
PM Modi on 9 May 2015 launched Bima Yojanas.The name of Bima Yojana are
Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima Yojana (PMSBY).The main reason
to launch this Bima Yojana by PM Modi is to provide maximum protection to every
Indian against Death or Disability due to accident or any reason. Now I am providing
the difference between Jeevan Jyoti Bima Yojana (PMJJBY) and Suraksha Bima Yojana
(PMSBY), which is listed below.
1 Premium In Suraksha Bima

Yojana (PMSBY) the premium is of
Rs 12/- annually. Against Rs 12/you would be getting a coverage of
Rs 2 lakhs. Where as in Jeevan Jyoti
Bima Yojana the premium is Rs
330/- annually. Against Rs 330/you would be getting a coverage of
Rs 2 lakhs.
2 Benefit- In Suraksha Bima Yojana
(PMSBY) you would be getting a
sum insured of Rs 2 lakhs against the
Death due to accident or partial
disability. In Jeevan Jyoti Bima
Yojana (PMJJBY) you would be
getting a sum insured of Rs 2 lakhs
against the Death due to any reason.
3. Eligibility- In Suraksha Bima
Yojana (PMSBY) the eligibility to
get enrolled is age must be from 18
to 70 Years. In Jeevan Jyoti Bima
Yojana (PMJJBY) the eligibility to
get enrolled is age must be from 18
to 50 Years.
4. Death Due to Natural Cause- In Suraksha Bima Yojana (PMSBY) Yojana if the death has
happened naturally in that case you would not get any benefit. Where as in Jeevan Jyoti Bima
Yojana (PMJJBY) if the death happened naturally due to any reason you would be getting a sum
assured of Rs 2 lakhs.
5. Coverage providing Age- In Suraksha Bima Yojana (PMSBY) the coverage is provided
upto the age of 70 years. Whereas in Jeevan Jyoti Bima Yojana (PMJJBY) coverage providing
age is upto 55 years.
Page 39
6. Disability Benefit- In Suraksha Bima Yojana (PMSBY) there is Disability benefit, where as
in Jeevan Jyoti Bima Yojana (PMJJBY) there is no disability benefit.
7. Partial Disability Benefit- In Suraksha Bima Yojana (PMSBY) in case of partial disability
you would be get a sum insured of Rs 1 lakhs. Where as in Jeevan Jyoti Bima Yojana (PMJJBY)
there is no such partial disability benefit is there.
8. Number of Policy- In Suraksha Bima Yojana (PMSBY) one person only one policy is
allowed. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) one person only one policy is
allowed.
9. Mode of Payment- In Suraksha Bima Yojana (PMSBY) the premium amount is auto debited
from your saving account. Where as in Jeevan Jyoti Bima Yojana (PMJJBY) the premium
amount is auto debited from your saving account.
10. Period of coverage - In Suraksha Bima Yojana (PMSBY) the period of coverage is of only
one year that from 1st June to 31 May of Next year. Where as in Jeevan Jyoti Bima Yojana
(PMJJBY) the period of coverage is of only one year that from 1 st June to 31 May of Next year.
In both the Yojana if you are interested for future year in that case you have to renew it again.
11. Tax Benefit- In both the Yojana you would not be getting any Tax benefit.
3.6.3 10 Differences between Atal Pension Yojana (APY) and New pension
System (NPS)
Atal Pension Yojana (APY) and New pension System
(NPS) both are the Yojana which are supposed to provide security after retirement. The Security
in both the Yojana will be provided in the form of pension. On 9 May 2015 PM Modi has
launched Atal Pension Yojana .the main reason to launch the Atal pension Yojana is to provide
security to the unorganized sector of Indian Society.
Difference between APY and NPS
1. Joining Age The Age of joining in Atal Pension Yojana is from 18 to 40 years. Whereas in
New Pension System Age of joining is from 18 to 55 Years.
2. Who can join Only resident Indian can join in APY but in NPS any Indian including NRI
can also join
3.Pension slab In APY there are five pension slab i.e Rs 1000/-,Rs 2000/-,Rs 3000/-,Rs
4000/-,Rs 5000/-.Where as in NPS it decided by the Pension Fund Manager performance.50%
amount will be paid at the time of retirement and rest will be paid on yearly basis.
Page 40
4. Guaranteed Pension In APY there is

guaranteed pension after retirement. In
NPS there is no guaranteed pension. In
NPS Safe and reasonable market based
returns over the long term.
5. Type of account - In APY there is
only one type of account is there. Where
as in NPS there are two types of account
is there. In NPS there are Tier-I and TierII of account are there.
6. Premature Withdrawal - In APY
there is no premature withdrawal allowed
except death or special condition. Where
as in NPS Premature withdrawal is
allowed. The premature withdrawal is
only allowed in Tier-II account. But to
open Tier-II account you must have TierII account in which premature
withdrawal is not allowed.
7. Government Contribution In APY
there is 50% or max of Rs 1000/- contribution from Government is done if the account is opened
on or before 31 Dec 2015.Where as in NPS there is no such Government is allowed.
8. Tax Benefit- In APY there is no tax benefit, where as in NPS you can avail a Tax rebate upto
Rs 2, 00,000.
9. Reason to join- In APY you can join only to get pension after 60 years. Where as in NPS
there are three reasons which are listed below.
i
ii
iii
To provide old age income.

Safe and remarkable return over long period.
Extending old age security coverage to all citizens.
9. Fund Manager In APY there is no option to select Pension Fund Manager. Where as in
NPS there is a option to select Pension Fund Manager. There are six Pensions Fund Manager
who will manage your contributions. The six Pension Fund Manager are listed below.
i
ii
iii
iv
v
vi
HDFC Pension Management Co.Ltd

ICIC Prudential Pension Fund Management Co. Ltd.
Kotak Mahindra Pension Fund Ltd.
LIC Pension Fund Ltd.
Reliance Capital Pension Fund Ltd.
SBI Pension Funds Pvt. Ltd.
Page 41
vii
viii
UTI Retirement Solutions Ltd

Pension Fund by Birla Sunlife Insurance Co. Ltd.
10.Permanent Account In NPS once you are enrolled in Yojana you will be issued Unique
Permanent Retirement Number (PRAN).In this way you can operate your account from
anywhere within in the India. Whereas there is no such PRAN is there in APY. The monthly
contribition in APY will be auto debited from your saving account.
11. Where to open account- In APY you can open in any Indian bank where you have a saving
account. Where as in NPS you can open the account at List POPs.
12. Toll free Number The Toll-free number for NPS is 1-800-222080.Whereas the National
toll free number for APY is 1800-180-1111/1800-110-001.
13. Official Website-The official Website for APY is
3.6.4 Roles of major stakeholders:

1 Department of Financial Services:
Overall ownership of the Mission Mode Project on Financial Inclusion
Overall Monitoring and Implementation of the Mission
2 Other Central Government Departments:
In order to achieve the complete financial inclusion and transfer of social benefits in the
accounts of the beneficiaries, the concerned Departments of Central Government would
coordinate with the stake holders.
Presently, 26 centrally Social benefits scheme under DBT are sponsored by eight Departments
of the Central Government as under:
I. M/o Social Justice & Empowerment
II. M/o Human Resources Development, D/o Higher Education
III. M/o Human Resources Development, D/o School Education & Literacy
IV. M/o Tribal Affairs
V. M/o Minority Affairs
VI. M/o Women and Child Development
VII. M/o Health & Family Welfare
VIII.M/o Labour and Employment
MGNREGA is sponsored by Ministry of Rural Development (MoRD, GoI), and is likely to be
included in Direct Benefit Transfer.
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Departments like Department of Posts for using the rural post offices / Gramin Dak Sewak,
Department of Telecommunications for telecom connectivity, Ministry of Information &
Broadcasting and DAVP to assist in media campaign, DEITY in development of logistic support
formonitoring like creation of portal for data updating, development of electronic reporting
system, MoRD for convergence with NRLM, HUPA for convergence with NULM etc.
3 Reserve Bank Of India (RBI):
To align their directions to the Banks on Financial inclusion with the Mission mode
FIF fund allocation support
Depositor Education and Awareness Fund scheme 2014 support
To guide and support Banks in Financial Literacy Campaign and revamping and
expansion
of FLCCs upto the Block level
4 Banks: As defined in the Mission Mode document
5 Indian Bank Association( IBA):
Coordination in Financial Inclusion Effort with all Banks
Key monitoring role in Financial Literacycampaign
Coordination in publicity and campaign
Coordination in centralised handling of customers grievances / issues through Toll free
numbers in coordination with Banks
A dedicated Desk to be set up for monitoring of implementation of FI. Coordinate with SLBC
for Grievances redressal.
6 National Bank of Agriculture & Rural Development ( NABARD):
Coordination in publicity and campaign
Monitoring of Implementation of Financial Inclusion in respect of organisations working under
NABARD
Allocation of funds from Financial Inclusion Fund (FIF)
Financial Literacy by SHGs/JLGs beneficiaries.
7 State Governments:
Appointment of Mission Director at State level
Monitoring of financial inclusion campaign in coordination with SLBC & all the stake holders
Direct Benefit Transfer of the State schemes in the bank accounts of the beneficiaries
One officer of the State Government on deputation to oversee implementation issue.
8 State Level Bankers Committee (SLBC):
SLBC Convenor GM to act as Secretary to state implementation committee
Coordination with all the Banks for Financial Inclusion Activity
Monitoring and follow up of different activities of Financial inclusion
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9 District Administration:
Key role in implementation of FI in the districts
District Collector (DC) to act as chairman of District level implementation committee
10 Lead District Manager (LDM):
Lead District Manager (LDM) to act as Secretary to the District Implementation Committee
LDM to coordinate with all the Banks in FI implementation in the District
11 Local Bodies:
Representatives of local bodies ( panchayats in rural areas and municipalities in urban areas)
to assist in implementation of FI in various ways like in organising camps in opening of
accounts, identification of persons for opening of account, in financial literacy campaign etc.
12 National Payment Corporation of India (NPCI):
Coordination and necessary guidance and supports to banks for in providing and proper
operations of RuPay cards
To facilitate inter-operability among Bank Mitr (Business Correspondent)
Necessary supports to Banks in making available USSD based mobile banking with low end
mobile phones so that customer can avail basic banking services like deposit, withdrawal, fund
transfer, balance enquiry etc across the banks. This product may be enabled at Bank Mitr
(Business Correspondent) outlets also.
13 Unique Identification Authority of India (UIDAI):
Convergence of Aadhaar enrolment withBank account opening.
Facilitating the subsidy scheme on procurement of Aadhaar Enabled Payment System (AEPS)
machines by Banks.
Fast conversion of EID to UID to ensure faster credit to Bank accounts.
Mapping multiple accounts with a single Aadhaar number.
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CHAPTER:- 4 OUTLINE OF PROBLEM/TASK UNDERTAKEN

4.1 CHALLENGES IDENTIFIED IN THE IMPLEMENTATION OF
THE MISSION
1. Telecom connectivity: The feedback from the Banks is that in tribal and hilly areas of the
country, the telecom network is not reliable and therefore setting up Bank Mitr (Business
Correspondent) in these areas and ensuring opening of bank accounts is going to be difficult. A
meeting was held with representatives of the Department of Telecom (DoT) and BSNL in this
regard and it was assured that the ongoing telecom connectivity problems would be resolved by
mutual consultation. It was also informed that DoT is separately seeking the Government
approval to cover all villages in the North East and difficult areas with telecom connectivity.
Banks would also work to utilize the National Optical Fibre Network (NOFN) when it reaches
the Panchayat level.
2. Keeping the accounts "Live": It is essential that all Government benefits - Central, State or
local should flow to these accounts as it has been observed that a lot of duplicacy exists in this
area and sometimes States have not followed theservice area approach and allocated areas to
some banks other than service area banks creating avoidable confusion. The DBT schemes
especially MNREGA need to be pushed and DBT in LPG needs to be restarted. The list of DBT
schemes at present may be seen in Annexure 6.
3. Brand awareness and sensitization: In order to achieve a "demand" side pull effect, it would
be essential that there is Branding and awareness on Bank Mitr (Business Correspondent) model
for providing basic banking services, Banking Products available at Bank Mitr (Business
Correspondent) outlets and RuPay Cards. Customers to be made aware that overdraft of up to
5,000/- to be provided in their account is a credit facility which needs to be repaid in order to get
fresh limits and is not a grant.
4. Commission to Bank on Direct Benefit Transfer (DBT): A task force on Aadhaar Enabled
Unified Payment infrastructure headed by Sh. Nandan Nilekani in its report Feb, 2012
recommended that last mile transaction cost of 3.14 % with a cap of 20/- per transaction be
Page 45
budgeted for various EBT, DTS and last mile payments through Micro- ATMs and ATMs. The
commission applicable for DBT should also cover DBTL (DBT of LPG). MGNREGA may also
be included in Direct Benefit Transfer.
5. Coverage of difficult areas: Parts of North East, Himachal Pradesh, Uttarakhand, J&K and
82 Left Wing Extremism (LWE) districts face challenges of infrastructure besides Telecom
connectivity. All households in such areas may not be fully covered under the campaign.
Coverage of some of the areas might, therefore, spill over to Phase-II.
6. Infrastructural limitations: Especially in rural/remote areas power supply and network
connectivity are still issue in most part of the country. Because of poor connectivity of internet
and frequent power failure in some areas, it is not possible to do banking transaction. This
problem is being seen mostly in North Eastern State and to overcome this problem RBI came up
with Satellite Connectivity Scheme to provide 100% subsidy to bank branches in the NER
subject to maximum 12,000 per month or the actual expenditure incurred by the bank, whichever
is less, subject to the condition that the branches would offer services of electronic funds transfer
free of charge to their customers. 43.3% of the total 1756 branches in the North-East region had
taken satellite connectivity after the launch of the scheme. The scheme has since been extended
by another year and Sikkim has
also been brought under the ambit of the Scheme.
7. Robust Payment and Settlement system: Money transfers, payments including with Rupay
etc under financial inclusion are going to add large volumes specially in number of transactions
is another challenge which needs to be tackled by NPC and RBI. Differentiated Banks seem to
be a possible solution.
4.1.1 Strategy for achievement of objectives
In order to achieve the above objectives, a broad collaborative strategy with all stake holders is
proposed. It is proposed to encourage Public-Private partnerships. Moreover, inter-department
convergence and synergies will be gainfully utilized. The existing rural infrastructure of post
offices having Gramin Dak Sewaks would be optimally utilized to become Bank Mitr (Business
Correspondent) of the Banks. One of the key strategies will be deployment of online fixed point
Bank Mitr (Business Correspondent) to deliver basic banking services near to the customer
doorstep. There are 1.26 lakh Common Service Centres, out of which only 12,000 are BCs of the
Banks.
The strategy is to take forward the Bank Mitr (Business Correspondent) model for expansion of
banking services by modifying it to ensure both operational flexibility and viability of the Bank
Mitr (Business Correspondent). Technological innovations like RuPay card and mobile banking
would be made use of. Banks will use the RBI's scheme for subsidy on rural ATMs and UIDAI's
scheme for subsidy on micro ATMs to augment their resources at the village level.
Page 46
Convergence with the National Rural Livelihood Mission (NRLM) in rural areas and National
Urban Livelihood Mission (NULM) in urban areas would be sought for in covering each
household with bank accounts. The expansion plans of the Department of Telecom to provide
telecom connectivity in difficult areas would be effectively utilized for the provision of banking
facilities in these areas. Department of Telecom has been requested to ensure that problems of
poor and no connectivity are resolved on priority.
4.2 The implementation strategy:

The implementation strategy of the plan is to utilize the existing banking infrastructure as well as
expand the same to cover all households. While the existing banking network would be fully
geared up to open bank accounts of the uncovered households in both rural and urban areas, the
banking sector would also be expanding itself to set up an additional 50,000 Business
correspondents (BCs), more than 7000 branches and more
than 20,000 new ATMs in the first phase. Keeping the stiff
targets in mind, in the first phase, the plan would focus on
first three pillars in the first year starting from 15th
August, 2014.The target for setting up additional 50,000
BCs is quite challenging given the constraints of telecom
connectivity. In order to achieve this plan, phase wise and
State wise targets for Banks have been set up for Banks
for the period 15th August, 2014 to 14th August, 2015.
Roles of various stakeholders like other
Departments of the Central Government, State
Governments, RBI, NABARD, NPCI and others have
been indicated. Gram Dak Sewaks in rural areas are
proposed as Business Correspondent of Banks.
Department of Telecom has been requested to ensure that problems of poor and no connectivity
are resolved. It is understood that of the 5.93 lakh inhabited villages in the country (2011 census)
only about 50,000 villages are not covered with Telecom connectivity11.
4.2.1 Challenges before:
A business correspondent is a representative of the bank that provides doorstep banking services
through the use of smart card handling devices which are connected to the main servers of the
bank. The RBI has allowed banks to use the services of NGOs, microfinance institutions, nonbanking finance companies and post offices as BCs.
Some caution is obviously warranted because the JDY relies heavily on the BC model for
expanding the banking network in both the rural and urban areas. One of the primary reasons
behind the unsatisfactory performance of the BC model is the poor remuneration (Rs 2000-3000
per month) paid to business correspondents. For such a meager amount, it is unfair to expect a
Page 47
BC to visit villages or slums at regular intervals, open new bank accounts for the poor people,
process financial trans-actions, educate customers about banking services and answer all queries
of the customers.
Under the JDY, the BCs will get a minimum compensation of Rs.5000 per month. This is a
welcome move but there are several other important factors which act as a barrier in the delivery
of banking services through the BC model. Some of these factors include inordinate delay in
issuing smart cards to customers (three to six months); limited utility of smart cards as services
such as remittance are not loaded; inadequate cash handling limit given to BCs; devices not
working properly due to technical problems or poor network connectivity; lack of trust in BCs;
lack of customer-centric banking products and services; poor governance and inadequate
supervision of BCs; and absence of a comprehensive strategy for financial education13.
The expanded financial architecture will need personnel, which is lacking, and could be
important supply side deficit. Banks have been advised under the PMJDY to open 200 accounts
a day in each of their existing rural branches, but they are wary, as the existing infrastructure in
those branches cannot handle the extra load. Therefore, banking reach should be increased
gradually and along with the capacity of banking infrastructure, so that the customer base at any
time can be serviced well and the system is not pressurized at any time14.
Financial inclusion can not be achieved only by meeting the target numbers. The RBI Governor,
Raghuram Rajan had cautioned banks on the risks involved in just hunting for number with
regard to Jan-Dhan Scheme, asking them not to compromise on core objective of the
programme. When we roll out the scheme, we have to make sure it does not go off the track.
The target is universality, not just speed and numbers. The scheme can be a waste if it leads
to duplication of accounts, if no transaction happens on the new accounts and if the new users
get bad experiences15. In Prime Ministers own words this Pradhan Mantri Jan-Dhan Yojana
lies at the core of this governments development philosophy of Sab Ka Sath Sab Ka Vikas.
4.3 TIMELINE FOR FINANCIAL INCLUSION PLAN
Comprehensive Financial Inclusion of the excluded sections is proposed to be achieved by 14
August, 2018 in two phases as under:
The Yojana will be implemented in two phases:Phase I (15 Aug, 2014 - 14 Aug, 2015)
Universal access to banking facilities in all areas except areas with infrastructure and
connectivity constrains like parts of North East, Himachal Pradesh, Uttarakhand, J&K and 82
Left Wing Extremism (LWE) districts.
Providing Basic Banking Accounts and RuPay Debit card which has inbuilt accident insurance
cover of ` 1 lakh. Aadhaar number will be seeded to make account ready for DBT payment.
Financial Literacy Programme
Page 48
Phase II (15 Aug, 2015 - 14 Aug, 2018)

Overdraft facility up to 5000/- after six months of satisfactory operation / history
Creation of Credit Guarantee Fund for coverage of defaults in A/Cs with overdraft limit up to
5,000/-.
Micro Insurance
Unorganized sector Pension schemes like Swavalamban. Some of the Phase II activities would
also be carried out in Phase I. In addition, in this phase, coverage of households in hilly, tribal
and difficult areas would be carried out. Moreover, this phase would focus on coverage of
remaining adults in the households and students.
TIMELINE FOR IMPLEMENTATION
S.No
1
2
Activities
Launch
Coverage of SSAs (opening of 50,000 Bank Mitr
(Business Correspondent) outlet in rural areas and
additional ones as necessary in Urban areas)
10,000
15,000 (Aggregate 25,000)
15,000 (Aggregate 25,000)
10,000 (Aggregate 50,000)
Opening of accounts (estimated at 7.5 crore)
25%
Timeline
28/08/2014
50%
31/03/2015
75%
30/06/2015
100%
14/08/2015
15/08/2014
30/11/2014
31/03/2015
30/06/2015
30/11/2014
4.4 Launch Function:

a. Simultaneous launch in Delhi, State capitals and Districts
b. Unveiling of the logo and merchandise of the campaign
c. Low cost mobile banking (USSD) display with all telecom providers
d. Highlighting of RuPay Card to be provided to the beneficiaries
Page 49
CHAPTER :- 5 REVIEW OF LITERATURE

Many researchers have conducted the study on Financial Inclusion from different perspectives.
To conduct the research, I have gone through the following past studies:
1. (Ms Apurva A. Chauhan,2012)

concluded in her study that India is at moderate level regarding financial inclusion as compared
to other countries regarding number of branches, ATMs, bank credit and bank deposits. RBI
have adopted various strategies such as no-frill account, use of regional languages, simple KYC
norms etc. to strengthen financial inclusion. To cope up with the challenges to spread financial
inclusion, there is a need of viable and sustainable business models with focus on accessible and
affordable products and processes, synergistic partnerships with technology service providers for
efficient handling of low value, large volume transactions and appropriate regulatory and risk
management policies that ensure financial inclusion.
2. (Dr.R.Krishnakumar )
The study concluded that though the banks are complying with RBI norms in terms of opening
branches within areas of at least 2000 population, offering no frills account, kisan credit card,
General card, simplifying KYC norms, but still is lot of effort to be put in for financial inclusion
progress. Biometric cards should be introduced for security in transactions as well as saving
time. Business correspondents should be employed in villages and trained in advance for
promoting financial inclusion program. Banks need to open its more branches within rural and
remote areas and creating more awareness about banking services among rural people by telling
them about the benefits of the banking services. Financial inclusion requires efforts on the parts
of three parties- RBI, all the banks as well as general public for its better progress.
3. (Shabna Mol TP, 2014)
conclude that most of the BPL household are included in the financial inclusion system in terms
of access of bank account .It is only for the enjoying the government benefits and schemes. It
must be noted that access to a bank account does not necessarily mean usage of the account. The
level of awareness about the features and benefits of bank account and banking services are
comparatively low. Bank must take step to increase the awareness among people about all
sachems and services provided by them. To induce saving habit among BPL households it will
lead to continuous usage of bank account. All this will lead to achieving financial inclusion
system in effectively for the growth of our economy.
Page 50
4. (Financial Inclusion in India a Review of Initiatives and Achievements, By Sonu Garg,

Dr. Parul Agarwal, 2014)
concluded that Even though enough efforts are being made by all stake holders viz Regulator,
Government, Financial Institutions and others, the efforts are not yielding the kind of result
expected. The regulator has to create a suitable regulatory environment that would keep the
interest of all the stakeholders. The concern of banks about profitability is to be addressed by the
regulator as the entire process of financial inclusion would be a kind of social work in the first
few years. The concerns of the government about the reach, feasibility and implementation of
government policies to the last mile needs to be addressed. The easy availability of financial
services to the last mile user, the people in tier 3 to tier 6 in entirety needs to be addressed. The
banks concerns can be addressed by leveraging ICT, designing innovative products and service
models. A structured expansion and appropriate regulatory norms addressing the banks concern
and inclusion of NBFCs, MFI and SHG in the last mile connectivity of people to financial
services could resolve the peoples concern. Also bank use intensive mobile banking services to
deliver banking and financial services to the people. For achieve targets of FIP, its needs to
empowering MSMEs through provide timely and adequate finance because MSMEs are the
best medium for achieving inclusive growth which generate local demand and consumption,
provide employment to millions of freshers. The aadhar card could be the answer to the
governments concern as the bank accounts can be linked to the holders aadhar number;
however the sheer scale makes it difficult. Alternate to the same could be use of the vast postal
office network at the disposal of the government. The post offices can easily reach the end user
and vice-versa as the infrastructure is already in place. Regulatory bodies, banks and
Government should intensively work on create awareness by educating people about finance.
Thus, Innovative products, out of the box service models, effective regulatory norms and
leveraging technology together could change the landscape of the current progress of the much
needed and
wanted, Financial Inclusion Program.
5. (Revving up the Growth Engine through Financial Inclusion, Address by Dr. K. C.
Chakrabarty, Deputy Governor, Reserve Bank of India at the 32nd SKOCH Summit held
at Mumbai on June 6, 2013)
concluded that, the task of financial inclusion in a country like ours with large population and
geographical spread is, indeed, challenging. The data released from the recent census of India
indicates that only 58.7% of households in India avail of banking services with the figure being
54.4% for rural areas and 67.8% for urban areas. While there is greater awareness among policy
makers and financial sector participants about the importance of prioritising the goal of universal
financial access, there is a need to ensure that progress on the ground is in line with these
expectations. The opening of bank accounts is only the first stage and the focus now is not just
on improving access but also on better use of the financial infrastructure. In this regard, the
collaborative approach combining financial inclusion with financial literacy, along with closer
monitoring of progress in transactions, is expected to boost operations in FI accounts.
Page 51
Considering the enormity of the task, the combined will power of the society is required to
ensure success in this challenging objective. All stakeholders, including policy makers,
regulators, state and district administration, IT solution providers, software and hardware
vendors, civic society, media and public at large have to come together and pool their collective
might if we have to ensure that the goal of meaningful financial inclusion and leveraging
financial access as a means for economic empowerment of the excluded masses, is successfully
achieved.
6. (Dr. Tushar Kanti Das)
Concluded that Building inclusive financial sectors improves peoples lives, in particular those
of the poor. A small loan, a saving account or an insurance policy can make a great difference to
a low income family. They enable people to invest in better nutrition, housing, health and
education for their children. They ease the strain of coping with difficult times caused by crop
failures, illness or death. They help people plan for the future. Empirical evidence indicates that
countries with large proportion of population excluded from the formal financial system also
show higher poverty ratios and higher inequality. If we are talking of financial stability,
economic stability and inclusive growth with stability, it is not possible without achieving
Financial Inclusion. Thus financial inclusion is no longer a policy choice but is a policy
compulsion today and banking is a key driver for inclusive growth. However, we must bear in
mind that apart from the supply side factors, demand side factors, such as lower income and /or
asset holdings also have a significant bearing on inclusive growth. Owing to difficulties in
accessing formal sources of credit, poor individuals and small and macro enterprises usually rely
on their personal savings or internal sources to invest in health, education, housing, and
entrepreneurial activities to make use of growth opportunities. Inclusive financial sectors can
break the vicious circle of poverty if implemented properly. This can empower the poor and can
ensure that poor people have access to a wider range of financial services. For this unremitting
effort from all the stakeholders are required. With more opportunities to build the poor will lead
the way out of poverty with dignity.
8. (Speech on Financial Inclusion delivered by Dr. (Smt) Deepali Pant Joshi, Executive
Director, Reserve Bank of India at the Vth Dun and Bradstreet Conclave on Financial
Inclusion Kolkata on October 28, 2013)
Concluded that RBI has adopted a Bank led model but one which is essentially Model Neutral.
We have tried to create an enabling environment that facilitates competition and fosters
innovation.8Once the financial Inclusion plans are implemented customers will be able to
transact electronically with each other as well as with individuals and firms outside the village.
This will in days to come reduce dependence on Cash and High volumes will lower the costs of
transactions. International experience reflects that digitizing social transfers is an effective way
of bringing the excluded within the financial system the Business Case for Banks in this
segment, as of now, depends on government payments. Going forward we hope that Banks will
introduce new products and services crafted to the needs and income streams of poor borrowers
Page 52
which will enable self-sustaining financial inclusion. As Banking is a public good this is
essential in the interests of Public Policy
9. (P. Arulmurugan, 2013)
Conclude that Access to financial services such as savings, insurance and remittances are
extremely importance for poverty alleviation and development. In order to achieve the goal of
total financial inclusion, policy makers, MFIs, NGOs, and regulator have to work together. The
issue of FI has received large importance in India during the recent years. India had invested
considerable amount of resources in expanding its banking network with the objective of
reacting it to the people. During the last 40 years huge infrastructure has been created in banking
sector. However, this large infrastructure that has penetrated even in remote rural area has been
able to serve only a small part of potential customers. While India is on very high growth path,
almost at the two digit level, majority of the people are out of growth process. This is neither
desirable nor sustainable for the nation. We also know that one of the most important diving
forces of growth is financial institution. Therefore, it is now realised that unless all the people of
the society are bought under the ambit of institutional finance, the benefit of high growth will
not percolate down and by that process majority of the population will be deprived of the
benefits of high growth. Thus, financial inclusion is not only the socio- political imperative but
also an economic ones.
10. K C Chakrabarty: Financial inclusion issues in measurement and analysis (Kuala

Lumpur, 5 November 2012.)
Concluded that issue of expanding the geographical and demographic reach poses challenges
from the viability perspectives. Appropriate business models are still evolving and various
delivery mechanisms are being experimented with. Financial literacy and level of awareness
continue to remain an issue and the ICT Based BC Model is also taking time to stabilize. It calls
for coordination of all the stakeholders like sectoral regulators, banks, governments, civil
societies, NGOs, etc. to achieve the objective of financial inclusion. Challenges of financial
exclusion are faced by most countries globally and each country has to develop its own
customized solutions drawing upon its own experiences and those of its peers across the globe.
On the measurement challenges, first, it needs to be reckoned that financial inclusion concepts,
policies, delivery models and implementation processes are still evolving. It is, therefore,
essential that the policy for achieving total financial inclusion also keeps changing to adapt to
the needs of the environment. This poses challenges for measurement of various financial
inclusion initiatives as also their aggregation across activities, institutions, regions and so on.
Statistical analysis of performance of financial inclusion initiatives and development of
benchmarking standards can be quite complex. Second, while existing initiatives in measuring
financial inclusion are commendable, there is a need for greater focus on the micro and
distributional dimensions. Third, we should explore the need to change the focus of present
information systems of banking business from traditional accounting model to customer centric
Page 53
business model. This would call for expanding the scope of the currently used measures of
financial inclusion.
CHAPTER :- 6 OBJECTIVES AND SCOPE OF PROJECT

OBJECTIVE OF THE STUDY
1. To identify level of awareness on PMJDY among resident of village THEGAON

BRANCH PUNE MAHARASTRA
2. To identify the level of usage of benefits arising out of PMJDY.
3. To identify how much problem they are facing when they come to the bank for PMJDY
scheme.
4. To identify the PMJDY scheme are really worked for rural area people and its helps to
increase There economic growth.
SCOPE OF THE STUDY

1. The target group include unemployed people, house wife, agriculturalists, and people
engaged in small business in village.
2. The target group are people residing in Thergaon Village, District pune, Maharastra.
3. Banking habits and awareness about financial products and services come within the
purview of the study.
Page 54
CHAPTER:7 Research & Methodology

The project aims at understand the level of awareness and achievement of RBI
and GOIs efforts in achieving the dream target financial inclusion. The survey was conducted
among 200 residents of Thergaon village district pune Maharastra . This research work started
with exploratory research design, in due course of time it was converted to causal research
design.
SAMPLE DESIGN
TARGET POPULATION- The target audience includes the residents of THERGAON Village,
District PUNE MAHARASTRA
SAMPLE FRAME- The sample frame had a RANDOM SAMPLE frame.
SAMPLE SIZE- The sample size for this research is around 200.
SAMPLE METHOD- The sample method included conducting a survey with residents either
through personal interaction or through telephonic interaction. Convenience sampling technique
was adopted.
7.1 METHOD OF DATA COLLECTION
1. Primary data :
The method included preparing a questionnaire with questions mainly related to awareness
related to basic banking. The process included when they are vising the the bank for any of
purpose like deposite the money, withdraw the money on behalf of his/ her PMJDY account I
insist to fill the questionnaire which are made by me and generating information about their
banking facilities they are using.
Page 55
Shortlisting an area
Meeting people
Convincing them to share information related to
Banking habits
Analyzing information
Spreading awareness
The meeting was done as per the preference of the resident it was done in the following two
waysa. Either through personal interaction- This method was most preferred as it results in
increase in knowledge of both the parties and adds a personal touch, which is not present in
telephonic interaction.
b. Or through telephonic interaction- This method was less preferred, as it didnt gave an idea
as who is responding to the questions, it was like blindly trusting the respondent about his
identity.
2. Secondary data :
Under secondary data used to different internet sites magazines, News paper, Ministry of
finance site and government sites related PMJDY
CONDUCTING SURVEY
The survey was conducted with the help of questionnaire. It was either filled by me or by the
respondents. In around 95% cases the respondent was reluctant to fill the questionnaire in his
writing.
KNOWLEDGE SHARING
A person learns throughout his life, so keeping this in mind, knowledge was shared both ways. I
learnt the problems of the respondents, the way they work and I created awareness about
PMJDY.
7.2 DATA COLLECTION

GATHERING INFORMATION FROM RESPONDENT PEOPLE
Page 56
METHOD OF GATHERING INFORMATION

Telephonic interview
2%
personal interaction
98%
Chart Title
Telephonic interview; 2%
personal interaction; 98%
Fig. 1
Tools for data collection: The tool for data collection is questionnaire consisting of set of
questions related to Implementation of PMJDY .
CHAPTER :- 8 DATA ANALYSIS AND FINDINGS
Performance of Jan Dhan Yojana under financial inclusion
Due to the preparations done in the run-up, as mentioned above, on the inauguration day, 1.5
Crore (15 million) bank accounts were opened. The Prime Minister said on this occasion- Let
us celebrate today as the day of financial freedom. By September 2014, 3.02 crore accounts
were opened under the scheme, amongst Public sector banks, SBI had opened 30 lakh (3
million) accounts, followed by Punjab National Bank with 20.24 lakh (2 million) accounts,
Canara Bank 16.21 lakh (1.62 million) accounts, Central Bank of India 15.98 lakh (1.59 million)
accounts and Bank of Baroda with 14.22 lakh (1.42 million) accounts. It was reported that total
of 7 Crore (70 million) bank accounts have been opened with deposits totaling more than 5000
crore Rupees (approx. 1 billion USD) as of November 6, 2014. As the government met the
target, Union Finance Minister Arun Jaitley has revised the target for opening of bank
accountsunder the Pradhan Mantri Jan Dhan Yojana (PMJDY),
Amounts deposited to the Bank under the PMJDY account

Jan15
1045
0
Feb15
1269
4
Mar15
1567
0
Apr- MayJun15 15
15
1619
1901
2 19520
5
Jul- Aug15 15
2076 2290
9
1
Sep15
2493
9
7Oct
2514
5
18Nov
2693
9
Page 57
Amounts de posite d unde r financial inclision through PMJDY Account

30000
25000
20000
Total Amounts in crores
15000
10000
5000
0
42063
42124
42169
42228
42284
42034
42093
42154
42213
42274
42326
Fig. 2
Analysis :the ambitious financial inclusion scheme launched by the government, around of from 7.5 crore
to 10 crore by January 26, 2015.On 20th January 2015, the scheme enteredinto Guinness book of
world records setting new record for 'The most bank accounts opened in one week'.
Continuously showing the figures are collected amount under PMJDY gap of one month . so in
end of financial year 2014-15 , 15670 crores amounts are deposited . further the graph shown
till 18-nov 2015 , 26939 crores amounts are deposited to the all Bank above the data collected
from submitted by ministry of finance report and all the Banks are submitted reports to the
government .
DATA WILL BE TAKEN FROM BANK OF MAHARASTRA AND RESEARCH

ON THAT
1. Bank wise Detail of Villages / SSAs / Households Allotted and Covered as on
31.05.2014
Table 1
Village
allote Cover
d
ed
Total alloted
to all bank
Bank of
Maharstra
3027
53
1023
5
16495
8
7106
SSA (sub service

area)
Allott
ed
Covered
92667
3048
60821
2128
No. of household
Covere
Allotted
d
91,760,35
3
52,752,
864
2,706,761
2,075,2
Page 58
28
other banks
2925
18
15785
2
89619
58693
89,053,59
2
50,677,
636
Diagram
Bank wise Detail of Villages / SSAs / Households Allotted and Covered as on 31.05.2014
100000000
90000000
80000000
70000000
60000000
No. of coverase area ,SSA,& houshold
50000000
40000000
30000000
20000000
10000000
0
Fig:3
Anaysis:Above mention the diagram shows that Bank wise detail allotted and covered by the different
banks in which we finding the bank of maharastra only that is in village area allotted 10235 and
covered 7106 same as in sub-service area 3048 out of 92667 rest of these covered by other banks
and lastly in case of number of household allotted to BOM 27,06,761 and covered of 20,75,228 .
2. phase wise target covered of business corresponding
Table 2
phase wise target covered of Business corresponding
STATES
Maharastra
all other
states
Total
up to
31.08.2014
Phase 1
1000
31.08.2014
to
30.11.2014)
phase 2
1500
30.11.2014
to
31.03.2015
phase 3
1500
31.03.2015
to
30.06.2015
phase 4
1172
9520
10520
13790
15290
13443
14943
6258
7430
Page 59
Phase wise target for coverage of Business Correspondents

Maharastra
all other states
15290
total
14943
13790
13443
10520
9520
7430
6258
1500
1000
Phase 1
1500
phase 2
1172
phase 3
phase 4
Fig. 4
Analysis:Above the figure shows that phase wise target for coverage of business corresponding model
and also also shows Maharastra and other states. Target covered in phase 1,2,3,4, . in Maharastra
phase 1st shows 1000 area covered , 2nd phase 1500, 3rd phase 1500, and 4th phase rest of area
1172 .
3. All branches of Bank of Maharastra in pune detail report in PMJJBY,

PMSBY and APY scheme detail and and also shows bank of Maharastra
THERGAON BRANCH(0853)
Table 3
PMJJBY
Report till
ed by
31/07/201
BOM
5 covered
THERGAON
BRANCH(08
53)
All other 68
branches in
pune
Total
covered by
BOM in
PUNE only
PMSBY
Report
till
ed
31/07/20
15
covered
Report
ed
APY
till
31/07/20
15
covered
1000
1085
1500
1524
60295
47531
78724
73170
1397
807
61295
48616
80224
74694
1399
808
Page 60
PRADHAN MANTI JIWAN JYATI BIMA YOJANA

PMJJBY Reported by BOM
PMJJBY till 31/07/2015 covered

60295
47531
1000
1085
61295
48616
Fig. 5
Analysis:Above the diagram is shown on PRADHAN MANTRI JIWAN JYOTY BIMA YOJANA in this
figure Bank of Maharatra Thergaon branch(0853) has receive the target 1000 of account but it
fulfilled above the target which is given by the main branch and the rest of branch reports are
include in other branch in pune .
RRADHAN MANTRI SURKSHA BIMA YOJANA
Page 61
RRADHAN MANTRI SURKSHA BIMA YOJANA

PMSBY Reported
PMSBY till 31/07/2015 covered

78724
73170
80224
74694
15001524
Fig. 6
Analysis:Here is the figures are pradan mantri suraksha bima yojana in that case in BOM THERGAON
branch received 1500 target but they will achieved the target with than 1500 so in this behavior
this branch are worked very properly and rest of other branches are fulfilled the target but
maximums are failed.
ATAL PENSION YOJANA

APY Reported
APY till 31/07/2015 covered

1399
1397
807
808
Fig. 7
Page 62
Analysis:In ATAL PENSION YOJANA REPORT in BOM THERGAON BRANCH got the target 2
people and they fulfilled 1 so these are the reports provided by the BOM thergaon branch when I
am working as a trainee .
4. Achievement of bank account reaching a target with in one day from 16Aug 2014 by the specific bank .
Bank's name
CENTRAL BANK OF INDIA
IDBI BANK
UNION BANK
DENA BANK
ICICI BANK
BANK OF MAHARASTRA
SBI BANK
No. of acc. Opened with in a day

1085000
362000
550000
300000
100000
290000
2000000
No. of acc. Opened with in one day from 16-aug 2014
No. of account
2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
Fig.8
Analysis
Above mentioned the diagram shows that no. of account opened with in a day from 16-aug 2014.
In that case we are taking some banks name and all of them Bank of Maharastra reaching a
target 290000 accounts opened in a day as well as SBI bank are reached maximum number of
account 2000000.
Page 63
BELLOW THE DATA TO BE TAKEN FROM RESPONDENT PEOPLE

WHO IS FILLED THE QUESTIONNAIRE.
All the questionnaire are attached with project report at end.
Q 1 & Q 2 no need to shows in table and graph so I take directly from Q 3
Q3. Does any one of you have bank account?
Bank Account
Yes
193
No
Chart Title
200
150
100
50
0
Bank Account
yes
No
Fig. 9
DATA:Here above the figure taken from research in that case out of 200 people 193 people are having
account only 7 peoples not having any account the reason is what somebody says they new
person or they dont have any local address proof so they are not having account.
If yes, Kindly answer following questions otherwise go to Q.4

Q3.1 No. of account in your household
no. of acc in
household
no.of people
1
13
2
77
3
61
4
29
More
than 4
13
Page 64
no. of account they have

77
80
61
70
60
50
29
40
30
20
13
13
10
0
1
More than 4
Analysis :Fig.10
While survey it has been found that majority of respondent have 2 bank account in their
household. 13 respondents have 1 bank account in their household, while majority of respondent
i.e. 77 respondent have 2 bank accounts in their household, 61 respondent have 3 bank accounts
in their household whereas 29 and 13 respondents have 4 and more than 4 bank accounts in their
households respectively
Q3.2 Which type of account do you have?
types of account
saving acc
current acc.
FD
RD
173
8
14
13
Page 65
173
180
160
140
120
100
80
60
40
20
0
saving acc
current acc.
14
FD
13
RD
Fig.11
Through survey it was found that out of 193 respondents 173 were having saving account
whereas 8 were having current account and rest i.e. 14 and 13 were having deposits like FD and
RD respectively.
Q3.3 What were the reasons that your household opened the account?
the reasons that your household opened the account
a) To receive Govt. payments from NREGA
b)
c)
d)
e)
To receive Govt. payments from schemes

For receiving remittance
For saving
To request a loan
59
other than NREGA
43
19
67
4
f). If other, please specify
Interpretation:
During survey it was found that out of 193 respondents, 59 and 43 respondents opened an bank
a/c in order to receive government payments under NREGA and schemes other than NREGA
respectively whereas 19, 67, 4 opened bank a/c for receiving remittances, for purpose of savings
and request a loan respectively and only 8 respondents opens the bank a/c for other reasons.
Page 66
Q3.4 Who helped you while opening the a/c ?
helped while opening a bank accont
a)
b)
Village Panchayat Official

Bank Official
c)
Neighbors/Friends/Relatives/Employer
d)
Business Correspondent/Post Office
39
108
26
20
d) Business Correspondent/Post Office; 20

a) Village Panchayat Official; 39
c) Neighbors/Friends/Relatives/Employer; 26
b) Bank Official; 108
Fig.12
Analysis
Its necessary to know the source from where our consumer comes to know about our product. In
case of financial inclusion its necessary for RBI, commercial banks that which is the best source
of spreading awareness. In Aakhar village majority of the respondents those who possess bank
accounts, came to know about services with the help of Bank officials. Banks from time to time
conduct awareness programs, drama, Nataks etc. the theme of all is spreading knowledge. To
some extent banks have been able to spread awareness. More need to done not only at board
level but also at ground level. Out of 200 respondent 39 respondents open a/c with the help of
Gram panchayat and majority of respondent have opened a/c via bank officials whereas 20 and
Page 67
26 respondent open bank a/c with the help of Bank Correspondent and Friends/Relatives
respectively.
Q4. Reasons for not having even a single bank a/c in your family ?
Reasons
No. of
Respondents
Very
little
money to put in
2
Lengthy
procedures
1
Many charges
are there
1
Tried to open
but was refused
3
No. of Respondents
3
2.5
2
no. of person
1.5
1
0.5
0
Very little money to put in
Many charges are there
Analysis:fig.13
Out of 200 respondents only 7 respondent dont have bank a/c. The main reasons they dont have
account are either they dont have much money to keep in their bank a/c or they think opening
an bank a/c may charge some money or they found opening an bank a/c have lengthy procedures
but there are few people who tried to open an bank a/c but due to some reasons has been refused
by banks.
Q5. Reasons for being refused a bank a/c

Had to maintain minimum Balance in account
Other (please specify)------------
2
1
Page 68
Reasons for being refused by bank
33%
Had to maintain minimum balance
Other (Please Specify) ____
67%
Fig.14
Analysis :Out of 7 unbanked respondent 3 tried to open a bank account, but where refused by bank to open
the bank a/c. The main reasons were either bank dont have a/c opening form or they have asked
individuals to open the bank a/c with minimum Rs 500.
Q6. Awareness about Basic Banking Saving A/c which was announced on 15th
August 2014
No. of respondant
198
2
Yes
No
198
Page 69
YES
NO
Fig.15
Analysis:While doing survey it has been found that majority of people are aware about PMJDY while
only 2 were not aware about it.
Q7. Reasons for not having awareness about Basic Banking Saving A/c.
No promotion by Banks, government or village panchayat in village.
Not in a habit of reading newspaper.
Lack of Media Advertisement via TV/Radio
Reasons for not having awareness about

PMJDY.
Not in a habit of reading newspaper
Analysis:fig.16
Those who are not aware the main reason for their lack of awareness was they are not in a habit
of reading newspaper. These were very illiterate respondents who are not interested in what is
happening around themselves.
Q9) Which kind of debit card will

who open accounts under PMJDY?Types of debit card
RuPay debit card

Other debit card
Dont know about it
be available for
those
No. of respondent
165
10
25
Page 70
Types of debitcardwill beavailable

200
165
150
100
50
10
25
RuPay debit card

Other debit card
Dont know about it
fig.17
Analysis:Above the figure is shows for available of debit card under the PMJDY. And same thing most of
the people they are given correct answer out of 200, 165 people are tick the RuPay card other are
said other debit card or dont know any thing in that case very senior citizen people are not
having proper knowledge other wise ok..
Q10. Awareness about various facilities covered under PMJDY like:
No. of respondant out of ( 200)

Facilities
good
Overdraft facility
of 5,000
Life insurance
cover
Personal
Accident cover
Rupay card
Neutral
poor
Total
200
73
97
30
200
117
34
49
200
76
173
83
21
41
6
200
200
Page 71
Awareness about various facilities covered under PMJDY

180
160
140
120
100
80
60
40
20
0
good
Neutral
poor
Fig.18
Analysis:Under this figure all the situation blue colour is shown the people have good knowledge or
excellent awareness about as per given facilities as a same like that Red colour is shown
modurate or netural knowledge about as well as green colour of spared shown a people have
very little or poor knowledge about in all the cases so as per the figure
Out of 200 respondents, 73 were having good knowledge about Over Draft Facility, majority i.e.
around 97 were having medium knowledge and 30 were having poor knowledge. Through this
survey I was able to clear respondents concepts that what exactly the concept of Over Draft
facility of 5,000 is about and for whom this facility is there. And when one can avail this Over
Draft facility.
Out of 200 respondents, 117 were having good knowledge about Life Insurance cover, whereas
34 and 49 were having medium and poor knowledge about Life Insurance Cover. With this
survey I was able to explain the individual about the importance of Life Insurance cover in
individual life. And when and to whom it is payable.
Out of 200 respondents, 76 were having good knowledge about Personal Accident cover,
majority i.e. around 83 were having medium knowledge and 41 were having poor knowledge.
Through this survey I was able to clear respondents doubts like what exactly Personal Accident
cover is all about. Who will pay the premium of that? And if both husband and wife have opened
the bank account under PMJDY are eligible for Personal Accident cover separately or not.
Page 72
Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas 21
respondents dont have very clear knowledge about card and 6 respondents were having poor
knowledge. Through survey I was able to clear doubts of respondents like what exactly Rupay
Debit card is. What are the advantage of having Rupay Debit card and how one can keep debit
card operational?
HYPOTHESIS TESTING
In this study we will apply chi-square test at 95% confidence level and 5% significance level.
GENERATED HYPOTHESIS
NULL: People are not aware about PMJDY.
ALTERNATIVE: People are aware about PMJDY.
People are Aware
Have bank account
193
People
Aware
0
Dont have
account
Total
198
200/200
bank
Are
not
TOTAL
193
Solutions:Page 73
OBSERVED
EXPECTED
O-E
(O-E)^2/E
193
1.93
0.0194
193*198/200=
191.07
198*7/200=6.93
-1.93
0.537
193*2/200= -1.93
-1.93
1.93
7*2/200= 0.07
1.93
53.212
The Chi-square statistic is 55.6999. The P value is 0. This result is significant at p < 0.05.
We will accept our Alternative Hypothesis. It means respondents of Thergaon Village, District
pune, Maharastra are aware about of PMJDY.
CHAPTER : 9 CONCLUSIONS (SALES PROJECT) / CONCLUSIONS &

SUGGESTIONS (RESEARCH PROJECT
FINDING , SUGGESTION AND RECOMMEDATION
FINDINGS
Through survey following things have been found out:1. under the PMJDY scheme lots of account opened but only 60 % accounts are operating
continue the reason is the people are one open account on the basis of only receive the benefits
of government.
2. Out of 200 respondents only 7 were not having bank a/c in their household.
3. Majority of the people open bank a/c in order to save money i.e. 67 whereas 59 respondents
opened a/c in order to receive government payment under NREGA.
4. Majority of the accounts in the village has been opened by Bank official i.e. 108, 39 by village
panchayat, 20 by business correspondent and 18 with the help of friends and relatives.
5. Through survey it has been found that 2 respondents are not interested in opening of bank
account because they have very little money to put whereas 1 respondent thinks there is a
lengthy procedure to open bank account and 1 think there are many hidden charges. It has also
been found that 3 respondents were tried to open the bank account but were refused by the banks
to open bank account.
Page 74
6. Those respondents who tried to open bank account but refused by bank because bank has
asked them to open bank account with minimum Rs. 500 or banks are not having account
opening form.
7. Through survey it has been found that majority of people are aware about PMJDY while out
of 200 only 2 were not aware about that.
8. And those who are aware about PMJDY are not having crystal like understanding on various
aspects of PMJDY.
9. Out of 200 respondents, 73 were having good knowledge about Over Draft Facility, majority
i.e. around 97 were having medium knowledge and 30 were having poor knowledge. Through
this survey I was able to clear respondents concepts that what exactly the concept of Over Draft
facility of 5,000 is about and for whom this facility is there. And when one can avail this Over
Draft facility. 10. Out of 200 respondents, 117 were having good knowledge about Life
Insurance cover, whereas 34 and 49 were having medium and poor knowledge about Life
Insurance Cover. With this survey I was able to explain the individual about the importance of
Life Insurance cover in individual life. And when and to whom it is payable.
11. Out of 200 respondents, 76 were having good knowledge about Personal Accident cover,
majority i.e. around 83 were having medium knowledge and 41 were having poor knowledge.
Through this survey I was able to clear respondents doubts like what exactly Personal Accident
cover is all about. Who will pay the premium of that? And if both husband and wife have opened
the bank account under PMJDY are eligible for Personal Accident cover separately or not.
12. Out of 200 respondents, 173 have good knowledge about Rupay debit card. Whereas 21
respondents dont have very clear knowledge about card and 6 respondents were having poor
knowledge. Through survey I was able to clear doubts of respondents like what exactly Rupay
Debit card is. What are the advantage of having Rupay Debit card and how one can keep debit
card operational?
SUGGESTIONS
We must promote the financial Inclusion aggressively to serve our own low income families but
also to show ways to improve the life of poor people around the world. Suggestion are as follow:
1. Develop low cost bank branch model: India needs to develop a low cost bank branch model,
possibly attached to village post office.
2. Promote financial product and services: Reserve Bank and Government should give the
suggestion to commercial banks to promote the financial product and services of banking
through all the educational institution (primary, secondary, and higher secondary)
Page 75
3. Develop financial literacy: The government of India should help develop financial literacy
among the population, particularly in low income families. That can be done by teaching it in
primary school, high schools and colleges.
4. Telecom companies: should be allowed to provide payments and money transfer services.
5. Add extra incentives to lend in rural area: The RBI should mandate that commercial banks
have a certain percentage of their portfolio in small loans. In addition, important social
considerations should be factored into loan decisions. The children have to be attending a school
before they are eligible for a loan. Similar conditions should be imposed for eligibility of loan in
India. The government could also add extra incentives to lend in rural areas.
6. Financial system need to revised and strengthened: The community based financial
systems like the chit funds need to be revived and strengthened. They serve as a very useful
savings and credit function and result in local growth and employment.
7. Encourage people to access banking services: The bank should step up to over whelm all
these problems and to disseminate its service to remote area. The bank should encourage the
people to access banking services by ways of no frill account, financial inclusion campaign and
business correspondent. The government should encourage the banks to adopt financial inclusion
by means of financial assistance, advertisement and awareness programme etc. to achieve the
Inclusive growth. We must promote the financial.
8. Inclusion aggressively to serve our own low income families but also to show ways to
improve the life of poor people around the world.
9. Directing government benefits through service area banks: Any government or social
security payments or payments under all the government schemes should be strictly routed
through the service area bank account. This will make people in rural areas to compulsorily have
an account in their service area branch to avail the government benefits.
10. Strengthening of BC Model:
i) To ensure both operational flexibility and viability of the BC agents with proper training about
basic banking and insurance products, provide them good infrastructure in terms of good quality
computers and other peripherals like micro
ATM, bio-metric scanners, and internet connectivity.
ii) Banks may be advised to adopt a scheme for financing to the BCs to set up office and buy a
laptop, a two wheeler vehicle and some working capital funds. These credit facilities can also be
covered under Credit Guarantee Fund.
Page 76
CONCLUSION
This project has been undertaken to study the PMJDY program in Bank of Maharastra Thergaon
Village Branch, District Pune, Maharastra and to find out the steps taken by the banks in the area
of Financial Inclusion. The main objectives of the research were to identify the approaches
adopted by different banks and to know about the customer response towards the banking
approaches under financial inclusion program. Under this project find out that sometimes
bankers are suffering from lots of problem to the convinced to the customer from the Jan-Dhan
Yojana schemes because government of policy time to time change in regarding PMJDY
schemes and thats why bankers are confused to understanding the policy.
It also aims at
finding out how the schemes of RBI on Financial Inclusion are taken into account and the
bankers perception on Financial Inclusion.
The study concluded that though the banks are complying with RBI norms in terms of opening
branches, offering no frills account, kisan credit card, simplifying KYC norms, but still is lot of
effort to be put in for financial inclusion progress. Biometric cards should be introduced for
Page 77
security in transactions as well as saving time. Business correspondents should be employed in

villages and trained in advance for promoting financial inclusion program. Banks need to open
its more branches within rural areas and creating more awareness about banking services among
rural people by telling them about the benefits of the banking services. Financial inclusion
requires efforts on the parts of three parties- RBI, all the banks as well as general public for its
better progress.
CHAPTER:-10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST

ORGANISATION
Have helped to filled the form of PMJDY accounts
Have lots of individuals accounts to open bank account under PMJDY.
Was able to clear doubts of individuals related to Insurance cover, RuPay debit card,
Overdaft facility etc.
Convince people to apply for Aadhar Card.
Fund transfer to them accounts and deposits in FD, RD, and MIDS accounts
Aadhar card , PAN card link to their accounts.
With the help of RBI diary have make it clear to people who are not interested in opening
the bank account about importance of bank and facilities they can avail.
Create awareness among people about RSBY.
FUTURE SCOPE & LIMITATION
Page 78
SCOPE OF FURTHER RESEARCH

1. Chairman of IRDA Mr. T.S Vijayan said, that the government should launch scheme Jan Bima
Yojana in line of similar programmed launched in banking sector.
2. The scheme can be linked to Swachta Bharat Abhiyan. For construction of toilets in rural area
the finance can be done under PMJDY.
3. This can be help to boost previous schemes under financial inclusion such as Micro Finance,
SHG for working towards positive development.
4. It could help to build small business in rural area. And creating job opportunities in banking
sector.
LIMITATION OF THE STUDY

1. There is shortage of time to conduct the study. Due to the shortage of the time, smaller sample
size has been taken which may not be the true representative of the whole universe.
2. Due to time constraint, it was not possible to observe every aspect of Financial Inclusion
Program.
3. Due to conservative nature, it may be possible some respondents may not have given their
responses in the questionnaire in fully true manner.
4. Since the respondents may be busy with their hectic schedule, so many people may be
reluctant to answer.
5. The study is limited to only specific rural areas and therefore, several other potential samples
outside these areas have been neglected.
Page 79
Bibliography
MAGAZINE
NEWS PAPER
WEBSITES
http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=2670 ,accessed on
27th May
2014
http://rbidocs.rbi.org.in/rdocs/notification/PDFs/CRB5100512KC.pdf , accessed
on 27th
May 2014
http://www.preservearticles.com/2012033129398/12-main-reasons-fornationalisation-ofbanks.html , accessed on 24th May 2014
Anand Sinha (2012), Financial Inclusion and Urban Cooperative Banks,
edited
Page 80
transcript at the launch of the financial inclusion program of COSMOS Bank at Pune.
Retrieved from http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=654
Pradhan Mantri Jan-Dhan Yojana | Department of Financial ...
www.pmjdy.gov.in/
Progress Report - Pradhan Mantri Jan-Dhan Yojana ...
www.pmjdy.gov.in/account-statistics-country.aspx
jandhanyojana.net/highlights-of-the-jan-dhan-yojana-pmjdy/
www.bankofmaharashtra.in/
Reserve Bank of India - Speeches - Annual Report
https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=607
WWW.MONEYCONTROL.COM
WWW.WIKIPEDIA.COM
WWW.SLIDSHARE.COM
www.businessindiaonline.com
REPORTS
Ministry of finance report
Financial inclusion (PMJDY) report submitted by government of
india
Bank of Maharastra report related to PMJDY
ANNEXURES: GLOSSARY, QUESTIONAIRE/ CHECK LIST OF QUESTIONS
ANNEXURE 1
Final report covered of household in india under PMJDY
Total Households
21.05 Cr
Covered
Households
20.99 Cr
Coverage%
99.74%
Page 81
Page 82
50% 75%
Annexures 2
Impact of Financial Inclusion on Households
Households
Cash
Bank acc.
Credits +
Subsidies
Micro
insurance
scheme
Life insurance
Page 83
Digital Money
(Through RuPay
Debit Card
and Mobile
Phone)
Health
insurance
Economic Activity
& Livelihood
General
insurance
Accidental
insurance
Pension scheme
Transaction
security
Economic security
Social Security
Annexure 2
Comparision between earlier scheme swabhimaan and latest scheme

PMJDY
s.n.
1
EARLIER APPROACH (SWABHIMAAN)
NEW APPROACH (PMJDY)
Villages with population greater than

2000
COVERED; THUS LIMITED GEOGRAPHICAL
Focus on household; Sub Service Area

(SSA) for
COVERAGE OF THE WHOLE COUNTRY
COVERAGE
2
3
ONLY
RURAL
Bank Mitr (Business Correspondent)

was visiting
ON FIXED DAYS ONLY
BOTH
RURAL AND URBAN
Fixed point Bank Mitr (Business

Correspondent)
in each SSA comprising of 1000-1500
households
Page 84
4
5
Offline accounts opening - Technology

lock-in with the vendor
Focus on account opening and large
number of accounts remained dormant
NO
NITER-OPERABILITY OF ACCOUNTS WAS NOT
CUMBERSOME KYC
No guidelines on the remuneration of

the Bank Mitr (Business
Correspondent). Banks went generally
with Corporate BCs who used to be
least expensive to them
A recent RBI survey finds that 47% of
Bank Mitr are untraceable
USE OF
MOBILE BANKING
(3 to 4 villages on an average) to visit

other
VILLAGES IN THE SSA ON FIXED DAYS
ONLY ONLINE ACCOUNTS IN CBS OF THE BANK
Account opening to be integrated with
DBT,
CREDIT, INSURANCE AND PENSION
Mobile wallet and USSD based mobile
banking to
BE UTILIZED
10
THERE
FORMALITIES
INTER-OPERABILITY THROUGH RUPAY DEBIT CARD,

AEPS ETC.
Simplified KYC/e-KYC in place as per RBI
GUIDELINES
11
MONITORING
12
FINANCIAL
13
NO
LEFT TO BANKS
LITERACY HAD NO FOCUS
ACTIVE INVOLVEMENT OF STATES
Minimum remuneration of the Bank Mitr

(Business Correspondent) to be ` 5000/( Fixed
+ VARIABLE
Viability and sustainability of Bank Mitr
(Business
Correspondent) is identified as a critical
component
Financial Inclusion campaign in Mission
Mode
with structured monitoring mechanism at
CENTRE, STATE AND DISTRICT LEVEL
The rural branches of banks to have a
dedicated
FINANCIAL LITERACY CELL
State level & District level monitoring
COMMITTEES TO BE SET UP
DISTRICTS
14
No brand visibility of the Programme &

Bank
MITR (BUSINESS CORRESPONDENT)
Brand visibility for the programme & Bank

Mitr
(BUSINESS CORRESPONDENT) PROPOSED
15
PROVIDING
OD limit after satisfactory operations /

credit
HISTORY OF 6 MONTHS
Grievance redressal at SLBC level in
respective
CREDIT FACILITIES WAS NOT
ENCOURAGED
16
NO
GRIEVANCE REDRESSAL MECHANISM
STATES
Page 85
QUESTIONS ASKED BY RESPONDENTS

1. What is RuPay debit card?
2. How to keep RuPay card safe?
3. Whether overdraft facility can be availed in more than one account?
4. What is accidental insurance cover? And who will pay premium for that?
5. Does a person already having a bank account in any bank needs to open another account under
PMJDY to get accidental and life insurance cover?
Page 86
7. I have no official documents for opening an account. Can I still open an

account with bank?
8. Can a minor can open an account under PMJDY?
9. Do I have to pay some fees to open a bank account under PMJDY?
10. What is meant by Insurance cover of Rs 30,000 announced by Prime Minister in his speech
on 26th August 2014?
QUESTIONNAIRE
Name: ____________________________________ Age: __________
Gender: Male/ Female
Occupation: ____________________
Address: ___________________________________________________________________
____________________________________________________________________
Mobile No. : ________________________________________________________________
Q1. For how long have you been staying in this village?
Less than a year
1-5 year
Page 87
More than 5 year

Q2. Who all are there in your family?
Joint Family
Nuclear Family
Q3. Does any one of you have bank account?
Yes
No
If yes, Kindly answer following questions otherwise go to Q.4
Q3.1 No. of account in your household ?
a) 1
b) 2
c) 3
d) 4
e) More than 4
Q3.2 Which type of account do you have?
a) Saving a/c
b) Current a/c
c) Fixed Deposit a/c
d) Recurring Deposit a/c
Q3.3 What were the reasons that your household opened the account?
a) To receive Govt. payments from NREGA
b) To receive Govt. payments from schemes other than NREGA
c) For receiving remittance
d) For saving
e) To request a loan
f) If other, please specify ______________________________
Q3.4 Who helped you while opening the a/c?
a) Village Panchayat Official
b) Bank Official
c) Neighbors/Friends/Relatives/Employer
d) Business Correspondent/Post Office
Q4. Reasons for not having even a single bank a/c in your family
a) Very little money to put in
b) No banking facilities in area
c) Lengthy procedures
Page 88
d) Many charges are there

e) Tried to open but was refused
f) Other (Please specify) ___________________________________
Q5. Reasons for being refused a bank a/c

a) No Id
b) No address proof
c) Unemployment
d) Had to maintain minimum balance
e) Dont know
f) Other (Please Specify) ___________________________________
Q6. Awareness about Basic Banking Saving A/c which was announced on 15th August
2014
a) yes
b) No
Q7. Reasons for not having awareness about Basic Banking Saving A/c.
a) No promotion by Banks, government or village panchayat in village.
b) Not in a habit of reading newspaper.
c) Lack of Media Advertisement via TV/Radio
Q8. Are you availing any of the following services?

a) NREGA.
b) Gas Subsidy
c) Food Subsidy
d) Direct Benefit Transfer
Q9. Awareness about various facilities covered under PMJDY like:
a) Overdraft facility of 5,000.
b) Life insurance cover.
c) Personal Accident cover.
d) Rupay card
Page 89

Sarojpradhanmantrijandhanyojana 151229170610

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A study on financial inclusion through the PMJDY

A study on FINANCIAL INCLUSION THROUGH THE PRADHAN

Savitribai Phule Pune university, PUNE .

Prof. Smita pachare

Submitted By:Saroj kr. Sah

Submitted To:Savitribai Phule

SHREE CHANAKYA EDUCATION SOCITYS

A study on financial inclusion through the PMJDY

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Title of the project and organization where project was

CHAPTER 1: INTRODUCTION AND RATIONALE OF THE STUDY

1.1 Introduction to the Financial inclusion trough PMJDY

CHAPTER 2: INDUSTRY/ SECTOR PROFILE

Overview of the Banking industry

CHAPTER 4: OUTLINE OF PROBLEM/TASK UNDERTAKEN

4.1 Identification of problem or task undertaken

A study on financial inclusion through the PMJDY

4.2 Implication of existing problem or task on the host

CHAPTER 5: LITERATURE REVIEW (RESEARCH PROJECT)

CHAPTER 6: OBJECTIVES AND SCOPE OF PROJECT

Process Flow chart depicting the activities planned for

conducting the project.

8.1 Data Tabulation

8.2 Graphical interpretation

8.4 Hypothesis Testing

CHAPTER 10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST

BIBLIOGRAPHY/ REFERENCES in appropriate style

A study on financial inclusion through the PMJDY

Content of table and graphical figure

Method Of Gathering Information (fig.1)

All Branches of Bank of Maharastra report related PMJDY.

6. Rradhan Mantri Surksha Bima Yojana (fig.6)

7. Atal Pension Yojana (fig.7)

Data collection through the questionnaire by the respondent people

10. No. of account in your household (fig.10)

11. types of accounts do you have (fig.11)

15. Awareness about Saving A/c under PMJDY(fig.15)..

17. Types of debit card will be available under PMJDY (fig.17)

18. Awareness about various facilities covered under PMJDY(fig.18).

A study on financial inclusion through the PMJDY

We, SAROJ KUMAR SAH

here by, declare that project entitled Financial Inclusion

Mr. SAROJ KUMAR SAH

A study on financial inclusion through the PMJDY

I would like to express my heartfelt gratitude goes to Prof. SMITA PACHARE,

saroj kumar sah

A study on financial inclusion through the PMJDY

Tittle of project study:STUDY ON FINANCIAL INCLUSION THROUGH THE PMJDY.

ORGANIZATION NAME:BANK OF MAHARASTRA THEREGAON BRANCH(0853) PUNE

A study on financial inclusion through the PMJDY

Learning from project

CHAPTER I:- INTRODUCTION AND RATIONALE OF THE STUDY

A study on financial inclusion through the PMJDY

Objective of Pradhan Mantri Jan-Dhan Yojana (PMJDY) is

A study on financial inclusion through the PMJDY

A study on financial inclusion through the PMJDY

1.2 Importance/ significance of Financial Inclusion:

1.2.1 Financial Inclusion in India Background:

A study on financial inclusion through the PMJDY

Availability of banking services

A study on financial inclusion through the PMJDY

Financial Inclusion- Summary progress of all Banks including Regional Rural