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LATEST NEWS UPDATES | Cong Jan Dhan gripe

Cong Jan Dhan gripe

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published Published on Nov 2, 2018   modified Modified on Nov 2, 2018
-The Telegraph

World Bank report suggests that 33% of the Jan Dhan accounts were opened by people who already had bank accounts

New Delhi:
The Congress on Thursday said the Jan Dhan accounts, one of Prime Minister Narendra Modi’s flagship programmes, were “an exercise in mass deception”, aimed at creating propaganda tools for “self-praise” rather than the avowed objective of financial inclusion of the poor.

“By December 2016, twenty-four per cent of the Jan Dhan accounts were zero-balance accounts. No data is available for the subsequent period,” former finance minister P. Chidambaram told a news conference.

“Of the remaining accounts, 15-20 per cent have a balance only because bank managers were encouraged to deposit Re 1 in the accounts. (A total of) 6.1 crore Jan Dhan accounts — one out of five — are inactive. According to the World Bank’s Global Findex Database 2017, forty-eight per cent of bank accounts in India are inactive.”

The World Bank report also suggests that 33 per cent of the Jan Dhan accounts were opened by people who already had bank accounts.

Chidambaram said the “SBI alone has spent Rs 775 crore as on 31 December 2016 for maintaining the accountants”, without any comparable benefits accruing to the customers.

He claimed the former UPA government had come up with the idea of financial inclusion with the Basic Savings Bank Deposit Account, also called the “no-frills account”, and opened 25 crore bank accounts by May 2014.

He added that the UPA government had taken several measures to create the necessary financial architecture.

“The BSBDA scheme was renamed the Jan Dhan Yojana. Between 2010 and 2014, (some) 12,748 rural branches of banks were opened and 303,504 bank correspondents appointed,” Chidambaram said.

“In the following four years, between 2014 and 2018, (a total of) 4,679 rural branches were opened and 177,639 bank correspondents appointed. Despite the boast of Jan Dhan, the credit-deposit ratio of the rural population that had reached 67 in March 2014 had declined to 60 by March 2017.”

Chidambaram added: “It is now common knowledge that the Jan Dhan accounts were used to launder money after the demonetisation. (A sum of) Rs 42,187 crore was deposited in Jan Dhan accounts between 8 November 2016 and 30 December 2016.

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The Telegraph, 2 November, 2018, https://www.telegraphindia.com/india/cong-jan-dhan-gripe/cid/1673540?ref=india_home-template


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