Pradhan Mantri Jan-Dhan Yojana (PMJDY) is one of the ambitious schemes of the Central Government. But almost eight years after its launch, banks are still struggling to make the accounts cost-effective. According to a report by Moneycontrol, the maintenance cost of accounts of Jan Dhan Yojana is more than the benefit being given.
According to experts, the average cost to maintain a Jan Dhan account ranges from Rs 3,200 to Rs 3,500 per year. Even though most of the maintenance is handled through technology, the time involved and the terms and conditions for every new account becomes a headache. An MD said the net cost of maintaining these accounts for banks will come down only as the deposit base increases in the coming months.
He said that at present, the average deposit amount in Jan-Dhan account is around Rs 3,000, which is expected to increase from Rs 5,000 to Rs 6,000 eventually, but it is a slow and lengthy process.
how many connected beneficiaries
PMJDY was launched by the Narendra Modi government in August, to bring affordable banking products and services to the doorstep of every unbanked household in India. After that there was a huge increase in the number of applicants. According to government data, 454.7 million beneficiaries have opened Jan Dhan accounts so far. So far more than Rs 167,400 crore has been deposited in this.
what kind of burden on the banks
Many accounts were opened under this scheme during the COVID-19 pandemic, but many accounts have become inactive or are rarely used. This increases the carrying cost of the banks. Many of them also have low deposits. According to government data, the average deposit per account till April 13 was Rs 3,723. Of the total 430.4 million PMJDY accounts in August 2021, only 368.6 million are active accounts.
Banks are not getting margin
Explain that banks make most of their money by lending money to the depositors at a fixed rate of interest. Interest is also paid to the depositors on depositing their money in banks. In such a situation, the difference between the two is the benefit of the banks. Thus, higher the amount deposited, higher will be the profit to the banks.
How much interest do you get on Jan Dhan account?
It is worth noting that the interest rate applicable for Jan-Dhan Savings Bank account is currently around 4 per cent for most public sector banks. This is higher than the interest paid on regular savings bank accounts, which ranges between 2.75 per cent and 3.50 per cent.
maintenance costs
Once a Jan-Dhan account is opened, banks are required to perform maintenance tasks such as issuance of checkbooks and RuPay debit cards, which carry additional cost burden. This is not equal to the return that banks get from these accounts. This also explains the lack of enthusiasm for the accounts of banks.