Saroj pradhan mantri jan dhan yojana

A study on financial inclusion through the PMJDY
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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
(2014-2016)
By
Savitribai Phule Pune university, PUNE .
Under the guidence of
Prof. Smita pachare
Submitted By:- Submitted To:-
Saroj kr. Sah Savitribai Phule
MBA(Finance) PUNE UNIVERSITY
PUNE
SHREE CHANAKYA EDUCATION SOCITY’S
INDIRA INSTITUTE OF MANAGEMENT, PUNE
85/5-A, “TAPASYA”, New Pune-Mumbai Highway, Tathwade, Pune – 411 033

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Title page
Title Name Page no.
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
1 -2
CHAPTER 1: INTRODUCTION AND RATIONALE OF THE STUDY
1.1 Introduction to the Financial inclusion trough PMJDY
1.2 Significance of the study
1.3 Role of technology in financial inclusion
3-13
CHAPTER 2: INDUSTRY/ SECTOR PROFILE
2.1 Overview of the Banking industry
2.2 Contribution of the sector towards financial inclusion
2.3 Major players
2.4 Regulatory framework
14-17
CHAPTER 3: ORGANIZATIONAL PROFILE AND BUSINESS
OVERVIEW
3.1 Mission and Vision of the company
3.2 Registered Address/ Number of branches
3.3 Composition of Board
3.4 Major customers
3.5 Financial performance
3.6 Achievements
3.7 Organogram
3.8 Major product lines
18- 37
CHAPTER 4: OUTLINE OF PROBLEM/TASK UNDERTAKEN
Challenges
4.1 Identification of problem or task undertaken
38-42

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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
(RESEARCH PROJECT)
- ProcessFlowchart depictingthe activitiesplannedforconductingthe 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)
48-49
CHAPTER 8: ANALYSIS AND FINDINGS
8.1 Data Tabulation
8.2 Graphical interpretation
8.3 Findings with explanation
8.4 Hypothesis Testing
50-65
CHAPTER 9: CONCLUSIONS / CONCLUSIONS & SUGGESTIONS
(RESEARCH PROJECT)
- FINDING , SUGGESTION AND RECOMMEDATIO
- conclusions
66-69
CHAPTER 10: KEY LEARNINGS AND CONTRIBUTION TO THE HOST
ORGANISATION
BIBLIOGRAPHY/ REFERENCES in appropriate style
ANNEXURES: GLOSSARY, QUESTIONAIRE/ CHECK LIST OF
QUESTIONS
70 - 71
72-75
Titled pages

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Content of table and graphical figure Page no.
1. 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 JiwanJyati BimaYojana (fig.5) …………………………………………………..
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)…………..
Data collection through the questionnaire by the respondent people
9. have a bank acoount(fig.9)……………………………………………….
10. No. of account in your household (fig.10)………………………………
11. types of accounts do you have (fig.11)…………………………………
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)…………………………..
15. Awareness about Saving A/c under PMJDY(fig.15)…………………..
16. Reasons that’s not awareness about PMJDY (fig.16)…………………..
17. Types of debit card will be available under PMJDY (fig.17)…………
18. Awareness about various facilities covered under PMJDY(fig.18)…….
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DECLARATION
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 :

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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 guidanceand constantsupport 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 thanksand 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: saroj kumar sah
Date: 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.

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CHAPTER I:- INTRODUCTION AND RATIONALE OF THE STUDY
1.1 FINANCIAL INCLUSION THROUGH THE PRADHAN MANTRI JAN-DHAN
YOJANA
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.

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“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 RBI‟s
drive for financial inclusion, the number of bank accounts increased by about 100 million during
2011-13.
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

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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.
Rural urban total
census 2001 30.1 49.5 35.5
census 2011 54.5 67.8 58.7
0
10
20
30
40
50
60
70
80
AxisTitle
Availability of banking services

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FinancialInclusion- Summary progress of all Banks including RegionalRural
Banks (RRBs), during five years period are as under:-
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
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
3 Other Models
4. Total
33,378
34,174
142
67,674
34,811
80,802
595
1,16,200
37,471
1,41,136
3,146
1,81,783
40,837
2,21,341
6,276
2,68,454
46,126
3,37,678
-
3,83,804
Urban location through
BCs
447 3,771 5,891 27,143 60,730
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
2. Amount in billions
13.27
10.69
31.63
18.23
57.30
10.54
81.27
18.22
116.90
39.00
OD facility availed in BSBDA’s accounts
1. No. in millions 0.18 0.61 2.71 3.92 5.90
2. Amount in billions 0.10 0.26 0.08 1.55 16.00
KCCs (No. in
millions)
24.31 27.11 30.24 33.79 39.90

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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, micro-
ATMs and kiosks can be used.

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 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:
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

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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 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.

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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.
(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

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(vii) Aadhaar Enabled Payment System (AEPS):
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.
Financial services
through mobile
telephony
Micro mobile and
Biometric ATMs
Internet enabled
models and PCs
and Ultra small
branches
Biometric handled
devices
Smart cards and
POs terminals
Technologies
Enabling
Financial
Inclusion

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CHAPTER :- 2 INDUSTRYPROFILE
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
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 Co-
operative 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.

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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
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: Pradhāna Mantrī Jana Dhana Yōjanā) 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.

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"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 country’s 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 country’s GDP. It
is a well-evolved industry serving as a boon for economic development of India by providing
long- term funds for development of infrastructure. Besides, it strengthens the risk taking
capacity of 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

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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 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

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CHAPTER: 3 ORGANIZATIONPROFILE
Bank of Maharastra
Bank of Maharashtra
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.

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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, voter‟s 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
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 focusof the Bank has beentoassist small business enterprises, traders, self-employed and others
commonly known as the Priority Sector

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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.
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.

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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
बँक अॉ फ महाराष्ट्र
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.
Revenue ₹60939 million(US$950 million)
Total assets ₹ 481 million
Website www.bankofmaharashtra.in

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3.3 COMPOSITION BOARD OF DIRECTOR
S.No Name Designation
1 Mr.Sushil Muhnot Chairman & Managing Director
2 Mr.AteeshSingh Director
3 Mr.G Sreekumar Director
4 Mr.Ramadev L Sayadiwal Director
5 Mr.Sanjeev Jain Director
6 Mr.Premchandra Amolakchand Sethi Director
7 Mr.R Athmaram Executive Director
8 Mr.R K Gupta Executive Director
3.4 FINANCIAL PERFORMANCE of BOM
1. 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.
2. 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.
3. 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.
4. 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
5. 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.

Page 29
6. 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%.
7. 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.
8. 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%
9. 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%.
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

Page 30
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.
Financial Express India’s 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.

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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.
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.

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AWARDS and ACHIEVEMENTS OF FINANCIAL INCLUSION THROUGH
PMJDY
Awards to be taken from world record Guinness book
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, it’s a great full achievement award financial
inclusion through the PMJDY scheme

Page 33
Government achievement under Financial inclusion through
PMJDY scheme as on 05/08/2015
Pradhan Mantri Jan - Dhan Yojana
(Accounts Opened as on 18.11.2015)
(All Figures in Crores)
Bank
Name
RURAL URBAN TOTAL
NO OF
RUPAY
CARDS
AADHAAR
SEEDED
BALANCE
IN
ACCOUNTS
% OF
ZERO-
BALANCE-
ACCOUNTS
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 offinance. 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.

Page 34
progress report ofdepositedamount in all the bank underPMJDY
3.6 Organization Structure:
Chairman
CGMS-circles
General Manager
Dy. General Manager
Regional manager

Page 35
Branch manager
Deputy Manager Deputy Manager Deputy Manager
(Advance) (Cash) (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

Page 36
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.
 Mobile Banking app- “MahaMobile” -Designed to be intuitive and user friendly, will
enable the Bank’s 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.

Page 37
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 & 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:
a. 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;
b. Letter issued by a gazette officer, with a duly attested photograph of the person.
Purpose of PMJDYProducts & 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
Yojanaby PM Modi is to provide maximumprotectiontoeveryIndianagainstDeathor Disability due to
accidentor any reason.NowIam providingthe 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.

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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 1st 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.

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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 Tier-
II 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 Tier-
II 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) To provide old age income.
(ii) Safe and remarkable return over long period.
(iii) 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) HDFC Pension Management Co.Ltd
(ii) ICIC Prudential Pension Fund Management Co. Ltd.
(iii) Kotak Mahindra Pension Fund Ltd.
(iv) LIC Pension Fund Ltd.
(v) Reliance Capital Pension Fund Ltd.
(vi) SBI Pension Funds Pvt. Ltd.

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(vii) UTI Retirement Solutions Ltd
(viii) 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/TASKUNDERTAKEN
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
budgeted for various EBT, DTS and last mile payments through Micro- ATMs and ATMs. The

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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.
• 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

Page 46
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, non-
banking 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
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.

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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 Minister‟s own words this Pradhan Mantri Jan-Dhan Yojana
lies at the core of this government‟s 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
Phase II (15 Aug, 2015 - 14 Aug, 2018)

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• 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 Activities Timeline
1 Launch 28/08/2014
2 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 15/08/2014
15,000 (Aggregate 25,000) 30/11/2014
15,000 (Aggregate 25,000) 31/03/2015
10,000 (Aggregate 50,000) 30/06/2015
3 Opening of accounts (estimated at 7.5 crore)
25% 30/11/2014
50% 31/03/2015
75% 30/06/2015
100% 14/08/2015
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

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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.

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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
bank’s concerns can be addressed by leveraging ICT, designing innovative products and service
models. A structured expansion and appropriate regulatory norms addressing the bank’s concern
and inclusion of NBFCs, MFI and SHG in the last mile connectivity of people to financial
services could resolve the people’s concern. Also bank use intensive mobile banking services to
deliver banking and financial services to the people. For achieve targets of FIP, it’s needs to
empowering MSMEs through provide timely and adequate finance because MSME‟s are the
best medium for achieving inclusive growth which generate local demand and consumption,
provide employment to millions of fresher’s. The aadhar card could be the answer to the
government’s concern as the bank accounts can be linked to the holder’s 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.
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,

Page 51
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 people’s 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
which will enable self-sustaining financial inclusion. As Banking is a public good this is
essential in the interests of Public Policy

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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
business model. This would call for expanding the scope of the currently used measures of
financial inclusion.

Page 53
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.
The meeting was done as per the preference of the resident it was done in the following two
ways-
Shortlisting an area
Meeting people
Convincing them to share information related to
Banking habits
Analyzing information
Spreading awareness

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