f i nanc i a l i nc lu s i on i n i nd i a
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APPENDIX 2.3
PRADHAN MANTRI JAN‐
DHAN YOJANAȅIMPLEMENTATION
PLAN
1. Network Expansion
Sub-Service Areas
It is proposed to cover rural areas in a cost effective
manner, through the sub-service area approach, and
deploying fully enabled, online, fixed-point BC outlets.
Banks would set up brick-and-mortar branches in 74,351
villages having population of 2,000 and more in a period
of three to five years.
All the villages in the country are proposed to be
mapped, in order to have at least one fixed-point banking
outlet catering to 1,000–1,500 households, called sub-
service area (SSA). All the CSCs are proposed to be
enabled as BC outlets for banks. It is estimated that there
would be about 1,30,000 SSAs in the country, of which
50,000 new SSAs would need to be covered. In addition,
about 75,000 replacements of non-functional BCs
would be required. The SSAs shall be covered through a
combination of branch banking and branchless banking,
the latter comprising of fixed-point BCs. Nearly all
habitations, with a few exceptions, are expected to have
access to banking services within 5 km radius, by 15
August 2015.
Urban Financial Inclusion
The banking network consisted of 71,120 branches and
1,36,721 ATMs in urban, semi-urban and metropolitan
areas as on 31 March 2014. As per Census 2011, 53.4
million urban households out of a total of 78.9 million
were availing banking services.
The number of uncovered
urban households is estimated to be about 15 million
. Urban
centre saturation would be achieved by opening at least
150 per cent number of accounts as the number of the
urban households as per 2011 Census.
Business Correspondents
BC outlets both in rural and urban areas would be fully
equipped with the required infrastructure to carry out
online transactions, and each BC would be given proper
training about banking, insurance and pension products
and also customer handling. Adequate compensation
would be ensured with the suggested remuneration being
Rs. 5000 per month. Various categories of individuals
and agencies would be engaged as BCs. A dress code
with the Mission logo would be applied. Banks would
finance BCs towards equipment and working capital
requirements, and could utilize either individual BCs
directly or utilize the network of CSCs. Corporate BC
companies could also be engaged but the remuneration
structure for the agents deployed with them would have
to ensured by the banks.
Mobile Banking
Mobile banking through Mobile Wallet was launched in
2012 by the Reserve Bank of India (RBI) with three tel-
cos. The three main telcos control over 1,58,000 agents,
around 60 per cent of which are in rural areas. Mobile
telephony and prepaid wallets would also be utilized for
coverage of households under the financial inclusion
campaign. USSD-based mobile banking services are
proposed to be launched on 28 August 2014 through
gateway provided through NPCI to banks, by 40 banks
initially. Agreements have been made with 11 telecom
service providers.
2. Opening of Basic Savings Bank Account of
Every Adult Citizen
Public sector banks have estimated that by 31 May 2015,
out of 91.7 million rural households allocated to them
a balance of 39.4 million rural households will need to
be covered. In addition the RRBs need to cover 19.8
million households out of the 39.7 million households
to be covered by them, or approximately 60 million
households will need to be covered in rural areas.
Each SB account holder would be given an ATM/
debit (RuPay card). Every KCC holder will be provided
a RuPay credit card and every non-agriculturist a RuPay
debit card, which will have an inbuilt accident insurance
of Rs. 1,00,000. The network of cooperative and urban
cooperative banks, which are on CBS, would also be used
for account opening. Inter-operability of payments will
be ensured, both through the debit card and Aadhar-
enabled payments at the BC outlet.
