Open accounts under Jan Dhan Yojana in rural areas: Chief Secy

Tribune News Service

Shimla, December 19

Chief Secretary P Mitra today urged bankers to open more bank accounts under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) in remote and un-banked areas of the state so that people could reap benefits of schemes by direct transfer in their accounts.

He directed bankers to extend accidental insurance of Rs 1 lakh for free to beneficiaries. Presiding over the 134th state-level bankers’ committee meeting organised by UCO Bank in Shimla today, Mitra said the PMJDY was gaining momentum as around 6 lakh new accounts have been opened by banks under this scheme in the state. He said UCO Bank had installed a toll-free telephone facility 1800-180-8053 to facilitate consumers. The six districts have attained a level of more than 95 per cent coverage of households having at least one bank account, he said, adding that all households should be covered.

He said they hoped banks’ would perform better under Annual Credit Plan in the current quarter and urged stakeholder banks to improve credit deposit (CD) ratio through its banking networks. Mitra said 24 new branches had consolidated the expansion plan in the quarter ending in September, 2014, increasing branch network to 1,859 branches, out of which 1,483 branches were in rural areas. As many as 43 new ATMs were installed for the benefit of consumers, he said.

The Chief Secretary also reviewed the working of banks for achievement of credit targets fixed under annual credit plan 2014-15.

He urged banks to boost the flow of credit so that various financial targets earmarked for the current fiscal were achieved by 2015.

Dr Shrikant Baldi, Principal Secretary, Finance, urged bankers to improve CD ratio and strengthen BCA network in terms of quality and quantity in financial transaction by building up public faith by holding awareness campaign in rural areas.

The banks should identify activities other than traditional ones for capital infusion to create more employment and improve the GDP, Baldi said.

He said the banking outreach in the state had been consolidated well by maintaining 3,694 persons per branch average. It is a good indicator in a hilly state as compared to other states, Baldi said.

Executive director, UCO Bank, JK Garg, said banks disbursed credit of Rs 4,558 crore to about 2.09 lakh accounts under ACP up to September, 2014.

The total business of banks in the state increased to Rs 96,850 crore up to September, 2014, registering an annual growth of 8.15 per cent.

He said UCO Bank had converted ATM structure to E-lobby at BCS, Shimla, where customers can deposit and withdraw cash and take entries in their passbook individually.

Regional Director, Reserve Bank of India, IS Negi stressed the need to accelerate financial literacy and awareness campaign for various schemes educating people to know the benefit of schemes so that they come forward to avail banking facilities.