Banks open 40 mn accounts under Jan Dhan Yojana

The finance ministry on Thursday said 40 million bank accounts have been opened under the Pradhan Mantri Jan Dhan Yojana and that banks have mobilised Rs 3,700 crore (Rs 370 billion) so far.

"Banks have opened 40 million accounts so far. Banks have mobilised about Rs 3,700 as deposits (in the accounts)... So, per account about Rs 900 deposits have been collected," Financial Services Secretary G S Sandhu told reporters.

Prime Minister Narendra Modi had launched this ambitious scheme of financial inclusion on August 28.

The benefit of Pradhan Mantri Jan Dhan Yojana can be extended to existing account holders without opening a new account.

The government is giving adequate publicity to the benefit to be extended to account holders, sources added.

The main features of the scheme include Rs 5,000 overdraft facility for Aadhar-linked accounts, RuPay Debit Card with in-built Rs 1 lakh accident insurance cover.

Besides, account holders under the scheme will get life insurance cover of Rs 30,000. This was additional benefit announced by the Prime Minister during the launch of the scheme. Sandhu further said government was also considering transfer of kerosene oil and LPG subsidies directly in bank accounts.

Currently, the government subsidises the products so consumers can buy fuel below market price. Under direct benefit transfer, the consumer will be paid cash subsidy so he can buy kerosene and LPG at market price.