Finance ministry asks PSBs to revive inoperative Jan Dhan accounts

The Union Finance Ministry has asked Public Sector Banks (PSBs) to revive inoperative accounts under the Pradhan Mantri Jan-Dhan Yojana (PMJDY).

“We have been directed to focus on PMJDY accounts that have become inactive. This is a part of the financial inclusion initiative, as some individuals tend to forget about these accounts after opening them. The Department of Financial Services (DFS) has urged us to address this issue,” said a senior banker who attended the meeting, requesting anonymity.

The Finance Ministry convened a meeting of PSB heads to assess the progress of various financial inclusion schemes, including PM Vishwakarma, Jan Suraksha, and Mudra Yojana. The meeting was chaired by Financial Services Secretary Vivek Joshi.

As of December 6, 2023, about 20 per cent of PMJDY accounts nationwide were inactive, the then Minister of State for Finance Bhagwat K Karad had said in a written reply to the Rajya Sabha. 

The banker added that the discussion primarily focused on government schemes such as Atal Pension Yojana (APY), PM Vishwakarma and reviewed their implementation on the ground.

“We were also advised to concentrate on core banking and increasing deposits. We also discussed the technological upgradation of Regional Rural Banks (RRBs) and the timelines banks had committed to DFS. Centralised KYC (Know Your Customer) was also brought up. Nothing was discussed regarding RBI’s draft guidelines on infrastructure financing,” the banker added.

Last year in September, Prime Minister Narendra Modi had launched the PM Vishwakarma scheme, which aims to provide loan assistance at minimal interest rates to traditional craftsmen and artisans without the need for collateral.

The meeting was attended by Dinesh Kumar Khara, Chairman of State Bank of India (SBI); Debadatta Chand, MD & CEO of Bank of Baroda; MV Rao, MD & CEO of Central Bank of India; Ajay Kumar Srivastava, MD & CEO of Indian Overseas Bank; Swarup Kumar Saha, MD & CEO of Punjab and Sind Bank; Atul Kumar Goel, MD & CEO of Punjab National Bank; Ashwani Kumar, MD & CEO of UCO Bank; and Rajneesh Karnatak, MD & CEO of Bank of India, along with other bank officials and senior Finance Ministry representatives.

The review meeting was also attended by senior executives of UIDAI, NABARD, SIDBI, Mudra Ltd. CERSAI & NCGTC.