Committee tells banks to bring down number of zero balance accounts under PM Jan-Dhan Yojana

State Level Bankers’ Committee (SLBC), Tamil Nadu, has advised the banks to bring down the number of zero balance accounts for those accounts opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY).

Under PMJDY, a basic savings bank account is opened for unbanked people. Rupay Debit card is provided to the PMJDY account holder. The scheme is aimed at ensuring access to financial services to weaker sections and low income groups.

The SLBC said 130.52 lakh PMJDY accounts were opened in Tamil Nadu as of September 30, 2022. Out of these, 68.53 lakh accounts are in rural areas and 61.99 lakh accounts are in urban areas. It pointed out that 13.58 lakh accounts had zero balances as of September 30, 2022, accounting for 10.4% of the total accounts.

The SLBC pointed out that the number and percentage of zero balance accounts have increased when compared to the numbers as of June 30, 2022. In that period, there were 11.48 lakh zero balance accounts, accounting for 9.12% of the total accounts. It said 70.94% of PMJDY accounts are issued with Rupay cards.

The SLBC told the banks to scale up their financial literacy activities in rural areas and make efforts to increase the utilisation / activation of Rupay Cards.