Concerned about Jan Dhan achieving proper inclusion: Raghuram Rajan

Mumbai, Sep 30 (IANS) Welcoming the Pradhan Mantri Jan Dhan Yojana fianancial inclusion scheme, Reserve Bank (RBI) Governor Raghuram Rajan Tuesday said his primary concern was about achieving proper inclusion.

“We welcome the Jan Dhan Yojana, it is part of RBI’s plan to get universal access,” he said at a press conference here after announcing the central bank’s bi-monthly monetary policy.
“What I am more concerned about is that we actually achieve proper inclusion by bringing in households that were not reached in past. We are working with the government to try and make this dream a possibility,” Rajan said.
Rajan said he is not worried about the quality of KYC (know-your-customer) norms processing for opening new accounts, as this is to be handled over time.
“I am not as worried about the quality of KYC for small accounts. In fact, we have essentially allowed for KYC that can be upgraded over time and in fact we have been more liberal on KYC,” the governor said.
Rajan had earlier this month cautioned the banks on the risks involved in just trying to enrol as many numbers, asking them not to compromise on the aim of the programme.
“When we roll out the scheme, we have to make sure it does not go off the track. The target is universality, not just speed and numbers,” Rajan had said at an industry chamber Ficci-organised conference of bankers here.
Reporting earlier this month that many existing account holders have opened a new account to avail of incentives announced under the scheme, the finance ministry said it was publicising the fact that Jan Dhan benefits can be extended to existing account holders in their previous accounts as well, and a new account need not be opened for this.
The Jan Dhan Yojana was launched by Prime Minister Narendra Modi in August to bring 7.5 crore more families into the banking network by January 26, 2015.
Banks have collected deposits of close to Rs.1,500 crore under the scheme, while a survey of unbanked households is expected to complete by mid-October, the finance ministry said earlier this month.

Over 5.1 crore accounts have been opened so far.