Poor implementation of Jan Dhan Yojna in Jammu

Big merchants like 'Nirav Modi' are getting colossal loans without providing any guarantee, banks are working for them. For my new home, I went to a bank for the loan. I was giving them my land as a mortgage still Bank denied it by saying you don't have a job, they chose Nirav Modi who can survive without loan over us Jan Dhan had created ruckus all over the country but still, we are not getting the benefits", says 60 year old Jay Sharma. Jan Dhan Account was supposedly for financial inclusion but this might not be the real case.

Government reports Paints all gloomy picture but the reality is something else. In Jammu and Kashmir only 17-20% of the population is the Jan Dhan account holder. Despite the Government claims of the 100% coverage in Jammu, on ground, it is clear that there are people who are being neglected "they rejected my application for account opening", Says Kiren mahon.

Some have applied just for the sake of having account or they were persuaded to do so. These accounts are now lying dormant without any transaction. Only 10% have zero balance in their accounts, but the problem is more profound as an account which has balance doesn't ensure that transactions through that is regular.

Government is only focusing on the 100% coverage. But the success of the Jan Dhan singularly doesn't lie in the number of accounts but true success will come with raise in the number of operating account. In last one year due to lack of transactions in Accounts, 92,52,609 accounts were frozen under the PMJDY.

People are muddled; they are unaware about the benefits given under this scheme and on the top of that bank employee behave annoyingly. They do not answer holder query properly, because of that account holder has to operate the account with half knowledge. People have never heard of the accidental benefit and life cover and overdraft facility, nor have laid claims for any of them. Deveraj (52) a fruit seller went to apply for overdraft facility but the bank said there is 5 km limit for availing overdraft facility you stay far away. Those who know about schemes are just because money is being deducted as a premium from their account." Is it that one in which 12rs gets deduct from the account. Banks employee told me to register for it I have no idea what it is meant for" said 24 year old Manoj kumar when asked about accidental insurance.

People are not aware of Bank Mitra facility which could be a great help for the area in Jammu and Kashmir which do not have proper bank facilities.

The major drawback of these accounts is 10,000 limits per day which make it less user-friendly. Jan Dhan Yojana gives the financial freedom but does not give the economic freedom. JDY is not aligned with people's personal choice of select banking services and facilities.

As Private banks are also involved they sometimes asks for the hidden cost in the scheme which is not right. There need to be a regulatory mechanism to check the implementation of the scheme.

The success of the PMJDY scheme depends on the effective regulatory system. The stakeholders have to build a sustainable ecosystem to keep the accounts active and successful implementation of the programme. The challenge is the conversion of the non-operative accounts with zero balance into operative and for this, it's important to focus on financial literacy Programme.

The article is written by a student of IIMC Jammu

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