Extension of Banking Services for Financial Inclusion
On September 4th 2014, this news made the headlines “Gujarat milkmen get their own bank accounts, ATM cards. A man, from Prime Minister Narendra Modi’s native district, Mehsana, has been ahead of him in launching a financial payment method similar to the former’s ambitious ‘Jan Dhan’ scheme. Joseph Verghese, 42, has given 60,000 milk producers their own bank accounts with an ATM card to boot!”1
India, the biggest democracy is known for highest percentage of financial exclusion. A country having the major percentage of global population also has a vast number of people outside the formal financial system as per Global Findex Report of 2012. The formal financial system in India has a huge capacity to provide financial services to the excluded population. The banking system in India has implemented different approaches to make the dream of Universal financial inclusion a reality but remained unsuccessful. Initially regional rural banks were formed in 1969 to promote banking in rural sector; later NABARD was launched for enabling microfinance to name a few. A shimmering ray hope has rekindled with the Pradhanmantri Jan-Dhan Yojana (PMJDY) and under this scheme about 1.5 crore accounts were opened on the first day, August 28th 2014, through thousands of camps across the country..........................
1 Hitesh Chavda, “Gujarat milkmen get their own bank accounts, ATM cards”, http://timesofindia.indiatimes.com/india/Gujratmilkmen-get-their-own-bank-accounts-ATM-cards/articleshow/41645341.cm, September 14th 2014