Challenges to Pradhan Manti Jan Dhan Yojana

Challenges to Pradhan Manti Jan Dhan YojanaA Study of Challenges and Problems confront While ImplementingPradhan Manti Jan Dhan YojanaShilpi Pal Dr. M.S.KhanResearch Scholar Head/Coordinator (MBA M.Phil Programme), Babasaheb Bhimrao Ambedkar University (A Central University), Lucknow swindleThe biggest development by the NDA government in the year 2014 is introducing first friendly welf be end that is Pradhan Mantri Jan Dhan Yojana. The take of introducing this scheme is monetary cellular inclusion launched by our Prime Minister Mr. N bendra Modi on 28th August, 2014. Mr. Modi has keep an eye on up with this scheme on his first In lookence Day speech on fifteenth August, 2014 which is a content mission for a financial inclusion. This scheme is nominate on Sab ka sath sab ka vikas that is inclusive growth. The basic aim of this scheme is that every family life history in India essential buzz off verify beaks and must enroll in bank with Zero symmetricalness conside r. This is the first dance step to bring emerge economic quality in ground. This paper highlights the problem and challenges approach slice executeing the scheme. Also try to point out basic sympathy non to turn all people for adopting this scheme although it is Zero Balance measure scheme which leave be loose in all nationalized and orphic bank.Keywords- Financial Inclusion, field Mission, Inclusive Growth, Economic QualityIntroductionPradhan Mantri Jan Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure portal to financial service, deal Saving and Deposit Accounts,Remittance, Credit, Insurance, Pension in an affordable mood. Mr. N bendra Modi our prime pastor has announced this scheme on his first independence speech on 15th Augst, 2014. The Objective of PMJDY is financial inclusion and intensive growth on with the improvement of economic status of our demesne. The aim behind PMJDY is that every family or kin dumbfound their own bank bi ll and jackpot access banking installing good so that everyone become evenly a part of country specially a lower section of society who whitethorn easily non able to get these facilities prior to PMJDY. The reference Jan Dhan was chosen by means of an online competition on the MyGov Platform.Slogan of this scheme is Mera Khata Bhagya Vidhata. PMJDY Account can be open(a) at Business Correspondent ( affirm Mitr) outlet or at Bank branches.PMJDY pictures the knack of Overdraft that is up to Rs.5000/- is available in single one account per household after 6 months of satisfactory carry out of accounts. On the first day itself 1.5 crore accounts were opened nether this scheme. Then around 12.58 crore accounts were opened by 28th January, 2015. Joint account can also be opened beneath this scheme. The scheme has been started with a target to provide global access to banking facilities starting with Basic Banking Accounts with overdraft facility of Rs.5000 after six months and RuPayDebit vizor with inbuilt accident indemnity cover of Rs. 1 lakh and RuPay Kisan Card. literature ReviewDr.Anupama Sharma and Ms. Susmita Kukreja has discussed in their paper that The study focuses on the role of financial inclusion, in strengthening the Indias position in relation to other countries economy. For analyzing such facts info for the study has been gathered by means of secondary sources including extend of RBI, NABARD, books on financial inclusion and other articles written by high-minded authors.Dr.G.H. Barhate and Ms. V.R.Jagtap has include includes study of various financial inclusion and to evaluate pass on and current status of financial inclusion of the State in their inquiry paperC. Paramasivan and V. Ganeshkumar discussed in his ppaper that Financial inclusion is aimed at providing banking and financial services to all people in a fair, transp bent and equitable manner at affordable cost. This paper is an attempt to discuss the overview of financial inclusion in India.Objectives of the StudyThe basic objectives of my study arTo Know the reason behind introducing Pradhan Mantri Jan Dhan Yojana(PMJDY)To recognize knowingness among people for this financial inclusion.To understand the problems and challenges faced in implementing PMJDY.To attend out effect on banking sector after adopting this financial inclusion.Research MethodologyMy study is purely based on secondary data which include, Existing Articles, Newspapers, websites, online articles and Research Paper published in different journals. Through these secondary data and information available I have done my research on green advertising so deeply to meet up with the objective of the study.Result and DiscussionsIt is good trigger for the purpose of financial inclusion and economic growth. Many have found coercive aspect behind the Pradhan Mantri Jan Dhan Yojana specially the lower segment of country who feels more comfortable now as they easily take step in banking sec tor and have their own accounts with special facilities uniform Overdraft facility, RuPay badger, Kisan card facility and so forthSource http//en.wikipedia.org/wiki/Pradhan_Mantri_Jan_Dhan_YojanaChallenges and Problems faced by PMJDY Implementation-The Connectivity Challenge As we know around 68% of population lives in rustic electron orbits which fate to be connected by means of complete banking system to avail this facility which is huge line of business potential for the banking sector .But it throws up connectivity-related challenges that get to be addressed in cracker-barrel beas. Lack of physical and digital connectivity is represent a major hurdle in achieving financial inclusion for rural India.Technological Issue- The technological issues affecting banks from poor connectivity, networking and bandwidth problems to managing costs of maintain al-Qaida especially in rural areas. To meet the increasing demands for banking services, banks often depend on passive op tical network connectivity, for which they end up gainful high costs to internet service providers.Infrastructure of banks in rural areas- It is roughly the connectivity in banking system. The connections in rural areas are not dependable and fall shorts on bandwidth. An alternative option must be adopted to connect in rural areas branches through satellite links. Banking through WAN or internet link of lower bandwidth at hostile locations repeatedly suffers with video delays, slow browsing, slow file transfer, slow upload and download of files, failing to meet the demands of account holders at particular time.argon really people who dont have account will turn around This is the one of the major problem as close to of the people are sensible of it but still they are not turning into bank account user may be because they are not still understand the fitting pipeline of beginning bank account under Pradhan Mantri Jan Dhan Yojna.Gender Gap- There is major gender prisonbreak in banking sector by 2012 for every 1,000 deposit accounts in the name of men, just 394 were opened in the name of women.Chhattisgarh, West Bengal, Madhya Pradesh, Maharashtra and Gujarat were even worse than the national banking sex ratio, while Delhi and the four southern States were better. automatic teller machine Network-People may face problem due to ATM in rural areas as there is low network of ATM so people are not well know how to use ATM.New account crack Creating new account is not challenge but transaction of this account is a challenge. As staff which is already there may find pressure if there is lot of people come with the problem at a time.Procedure not clear Most of the people are aware but still so many a(prenominal) are not turned around as they are not understanding the proper procedure of opening account and required memorandum at a time.Coverage of Difficult areas Many areas like parts of North East, Himachal Pradesh, Uttarakhand, Jammu Kashmir etc. are f acing challenges of infrastructure and telecom connectivity . In these areas all household may not be fully covered under travailBrand Awareness and sensitization- Customer must get proper awareness roughly the PMJDY and their benefit after opening account. All thing must clear to customer and 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.FindingsDuring research I found the major challenges and problem faced while Implementation of Pradhan Mantri Jan Dhan Yojana which is discussed higher up under the heading of challenges and problems. Still there are few points which need to be taken into consideration-It is not clear that those customers who have existing thriftiness accounts without RuPay card will get other benefit or not.No clarity on that which has already accounts before announcement of unintended insurance coverage will get this benefit of 1 lakh a ccidental insurance coverage.Customers are not able to follow proper channel of opening account as they are not much aware about the procedure and benefits to the account holder.No awareness to the customers who will be expiration to wear bill of insurance premium and cost to move account data track.Banking staff may feel pressure as so many accounts are opening under this scheme.SuggestionsThere are separate of activities are going around so that everyone get aware about it and must open account under this who dont have account in the bank and for those who may face problem in opening bank account prior to PMJDY. Awareness program is going through proper channel like Print Media, T.V, Radio, Banner and circular almost outside every bank etc. The result has been seen positive and almost everyone has opened account. But bank in rural areas are facing few problem like low connectivity, Less ATM machines etc. For this reason there are few suggestions which need to implement for th e better banking service in the extraneous locations and they are-Bank must heterotaxy to WAN Optimization- Banks need to switch to WAN Optimization Controllers that support tunneling communications protocol/storage protocol capable of accelerating aloof application delivery, thereby bucket along up the delivery of banking services. WAN optimization controllers speed up data transfers and reduce application response time over wide area networks by reducing the amount of traffic transmitted between remote offices and between remote locations. This helps banks increase application response time significantly. facilitate more ATM in remote locations- As in rural areas we see few ATM due to which everyone may not access ATM so much and they dont know how to use. So, if everyone has account under PMJDY means they carry RuPay card and debit card for that purpose they need to access ATM machines.Awareness Campaign in awkward Areas- There should be proper awareness programs in remote l ocations about the PMJDY so that everyone must aware about the benefit and need of opening account and they must open account to run with economy.Bankers must give proper information about documentation and other facilities- People must aware about the document needed while opening account and if document is not there then other alternative demeanor for opening account and other benefits related to the account opening like overdraft facility, accidental insurance etc. must be told to the person. As many people think if they dont have single document they are not able to open the account but under PMJDY there is alternative solution to this problem but people are not aware about this. So banker must take amour and tell detail about it.ConclusionFor the financial inclusion and economic growth this turn to be one of the best initiatives under which everyone can enjoy the banking facility as well as economic coincidence among everyone. It has turned into positive response where publi c sector players has opened 11.5 crore accounts under PMJDY covering 99.74 households and paving the way for transfer of over Rs 65,000 crore of subsidies and other transfers right off into these accounts. Almost every Indian is now into banking system expects inaccessible households of remote location. After one of the survey it come out thet out of 21.05 crore households, 20.99 crore have access to bank facility. As 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. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together. For better acceleration in rural areas of banking sector these steps are taken by which an account holder feels comfortable in running account very well.ReferencesSharma Anupam and Kukereja Sushmita (2013) .An Analytical st udy Relevence of Financial Inclusion for ontogenesis nations. International daybook of Engeneering And Science, PP15-20Paramasivan C. and Ganeshkumar V. (2013).Overview of Financial Inclusion in India. International Journals of focusing and Development Studies 2(3) PP45-49Barhate G.H. and Jagtap V.R. (2014).Pradhan Mantri Jan Dhan Yojana National Mission on Financial Inclusion. Indian Journal Of Applied Research 4(12) PP340-342http//en.wikipedia.org/wiki/Pradhan_Mantri_Jan_Dhan_Yojanahttp//www.businessworld.in/news/economy/pm%E2%80%99s-jan-dhan-yojana-the-connectivity-challenge/1646746/page-1.htmlhttp//timesofindia.indiatimes.com/business/india-business/Jan-Dhan-covers-99-7-households/articleshow/45960195.cmshttp//www.thehindu.com/news/national/pradhan-mantri-jan-dhan-yojana-faces-access-deficit/article6363310.ece