Here i just want to share a news, A very good initiate of Indian Prime Minister, Instead of creating Publicity project. This is the real project for poor and for country as well.
Indian Prime Minister Narendra Modi is to launch a plan to provide a bank account for every household, in a landmark initiative to help the poor.
Nearly 40% of Indians have little access to financial services and are often at the mercy of moneylenders who charge extortionate interest. Mr Modi has told state and private banks to support the plan.
Correspondents say taking banking to the poor, who may have no identity papers, will be a challenge. "There are millions of families who have mobile phones but no bank accounts. We have to change this scenario," Mr Modi said in his first Independence Day speech on 15 August. Reports say Mr Modi's government aims to provide bank accounts to 75 million households by 2018, and to have two account-holders per household.
'Single disability'Under the banking scheme, account holders would receive a debit card and accident insurance cover of up to 100,000 rupees ($1,654; 996). They would also get an overdraft facility of up to 5,000 rupees. Mr Modi said there was an "urgency to this exercise as all other development activities are hindered by this single disability". Correspondents say increased financial inclusion will help the government pay welfare benefits directly into bank accounts and cut corruption.
Data provided by the World Bank shows that just 4% of Indians receive government payments through bank accounts. The scheme will also help diminish the influence of moneylenders and other informal lending agencies who operate outside the control of the country's central bank.
Vijay Advani, executive vice-president of Franklin Templeton Investments, told the AFP news agency that the plan was an "unique opportunity [for India] to re-invent its approach to financial inclusion". But one of the main impediments to the plan could be the lack of identity documents among the poor - people have to produce a number of papers, including birth certificates and proof of address, to open a bank account in India.
"For the common man, the opening of a bank account is a Herculean task," NSN Reddy, chief manager of the state-run Andhra Bank said.
But India's Central Bank Governor Raghuram Rajan has said the scheme will help the poor to gain "economic independence" by providing insurance and credit.
A very laudable effort launched by PM modi. I am seeing people avail this scheme and the response is tremendous. Other than this Modi has done away with notarization of documents and unnecessary affidavits requiring stamp papers. Documents can now be self-attested. He has already scrapped the planning commission and underlined several roadblocks to development of a business friendly atmosphere. Over all I am very happy with India's choice of PM. Way to go Mr.Modi. :) All Modi haters please excuse me with your comments. :)
This is the WORSE program ever designed by the PM to INDEBT the Indian people further enrich the Brahman ruling class who run these so called banks !! and then you will see even more suicides happen as the Indian farmers are doing so at the moment !
If they are really sincere they already have an ADHAR card and monetary help can be granted through those as opposed to Interest Yielding banks !
If you care to publish an article on this forum also take a few moments to read the comments below to guage what the opinion of the people is on that action !:biggthumpup:
Here are some comments from the indians about this initiative:
63.
Jay 9 MINUTES AGO
I have not seen or heard of any country in the world, in recent times or in the past, that mandated bank acc to alleviate poverty, facilitate govt schemes to reach needy people!
Probably this scheme is to benefit the usual big business houses like Ambanis & Adanis who get the most benefits from such Govt schemes. Govt probably will announce schemes where money will be siphoned through such acc!
0
Comment number62.
gary 31 MINUTES AGO@flipmode: "But when people don't have enough money to live day to day how are they supposed to fund these accounts or payback any loans ?"
61.
Jay 23 MINUTES AGOIn the past, such schemes failed miserably due to massive corruption in Govt &/or subversion of the policy to benefit rich people. Indian Govt gives 3 times more subsidy to rich than poor-middle class.
There is no reason it'll succeed this time in a country where any form of identification (even passport) & certificate (income/caste etc) can be easily obtained, while genuine ones are ignored.
+1
Comment number60.
V Siva 33 MINUTES AGO
Does anyone's basic need a toilet or a bank account?
India is a long way to go to any meaningful progress as Mohandas Gandhi failed to assess whether the Indian federation will last long. All people join hands in the freedom struggle against the British rule but not to lose their freedom under the Indian federation. Indian federation is a total failure.
This is not a ridiculous move. Because of lack of papers many displaced indians, mainly migrant workers do not have access to bank accounts although they live and work in cities. Consequently this class of people who can be termed as lower middle income group have not been able to save any money. Primarily hit are women who are employed as domestic workers or work in factories or in other small enterprises. Holding a bank account has so far been the domain of people who knew 2 other people who had bank accounts and residential proof. If you are migrant worker from where do you get all of this? This is a great move long overdue. The point is people who write comments on a website portal seldom know the travails of the common man on the street who is not so privileged as to have documents and papers to prove his bonafide existence. By bringing all these people in the banking system the govt. is also collecting valuable data and linking everything to aadhar. In the future there will be one click service available for all the services being integrated together.
A very laudable effort launched by PM modi. I am seeing people avail this scheme and the response is tremendous. Other than this Modi has done away with notarization of documents and unnecessary affidavits requiring stamp papers. Documents can now be self-attested. He has already scrapped the planning commission and underlined several roadblocks to development of a business friendly atmosphere. Over all I am very happy with India's choice of PM. Way to go Mr.Modi. :) All Modi haters please excuse me with your comments. :)
PM launches Jan Dhan Yojna, 1.5 crore bank accounts opened on Day 1
Here is your 10-point cheat-sheet to this story:
"If we want to eradicate poverty, we need to get rid of financial untouchability," the PM said today. He had announced the campaign in his Independence Day speech to the nation, stressing the importance of financial inclusion.
The PM urged state-owned banks in a recent letter to "try your best to ensure that no one is left without a bank account." Nearly two-fifths of the population does not have a bank account.
1.5 crore accounts are being opened on the first day. 7.5 crore people will be covered by the scheme by January 25, 2015, said Finance Minister Arun Jaitley.
The accounts are unique because they will stay open even if empty.
Under the Jan Dhan Yojana, or the Scheme for People's Wealth, account holders will get a debit card. Those who open accounts by January 26 will get life insurance cover ofRs. 30,000 in addition to accidental insurance for a lakh.
Account holders will also get an overdraft facility of up to Rs.5,000.
Some experts say the overdraft facility could end up swelling bad loans at banks as it does not spell out how the banks can collect debts.
By paying benefits directly into bank accounts, the scheme seeks to cut waste and corruption that inflate India's $43 billion or Rs. 2.58 lakh crore subsidy bill, equivalent to more than 2 percent of the GDP, for handouts of grain, fuel and fertiliser.
The push for greater financial inclusion will also diminish the influence of moneylenders and other informal financing channels who operate outside the ambit of the Reserve Bank of India (RBI), blunting its monetary policy tools.
Experts caution that taking banking to rural areas where many people have no identity papers will be a huge challenge. Would-be bank customers have to produce a host of documents from birth certificates to residence proofs that many poor Indians do not possess.
Leave all this aside. The woman who works at my place was so over the moon when i told her she can now open a bank account easily. She said i want one because i am unable to save any money. And last two days there is a ad running in the papers about this program and the banks are filled with people. This is the response on the ground. They have even opened minor accounts for their children. Other than financial and insurance benefits, people finally are now thinking about their security and saving. In India even the poorest of the poor have gold. Now they will have savings too. This was a big strike on the pariah nature of india's banking system. Thank God its ended finally!
PM launches Jan Dhan Yojna, 1.5 crore bank accounts opened on Day 1
Here is your 10-point cheat-sheet to this story:
"If we want to eradicate poverty, we need to get rid of financial untouchability," the PM said today. He had announced the campaign in his Independence Day speech to the nation, stressing the importance of financial inclusion.
The PM urged state-owned banks in a recent letter to "try your best to ensure that no one is left without a bank account." Nearly two-fifths of the population does not have a bank account.
1.5 crore accounts are being opened on the first day. 7.5 crore people will be covered by the scheme by January 25, 2015, said Finance Minister Arun Jaitley.
The accounts are unique because they will stay open even if empty.
Under the Jan Dhan Yojana, or the Scheme for People's Wealth, account holders will get a debit card. Those who open accounts by January 26 will get life insurance cover ofRs. 30,000 in addition to accidental insurance for a lakh.
Account holders will also get an overdraft facility of up to Rs.5,000.
Some experts say the overdraft facility could end up swelling bad loans at banks as it does not spell out how the banks can collect debts.
By paying benefits directly into bank accounts, the scheme seeks to cut waste and corruption that inflate India's $43 billion or Rs. 2.58 lakh crore subsidy bill, equivalent to more than 2 percent of the GDP, for handouts of grain, fuel and fertiliser.
The push for greater financial inclusion will also diminish the influence of moneylenders and other informal financing channels who operate outside the ambit of the Reserve Bank of India (RBI), blunting its monetary policy tools.
Experts caution that taking banking to rural areas where many people have no identity papers will be a huge challenge. Would-be bank customers have to produce a host of documents from birth certificates to residence proofs that many poor Indians do not possess.
PM launches Jan Dhan Yojna, 1.5 crore bank accounts opened on Day 1
Here is your 10-point cheat-sheet to this story:
"If we want to eradicate poverty, we need to get rid of financial untouchability," the PM said today. He had announced the campaign in his Independence Day speech to the nation, stressing the importance of financial inclusion.
The PM urged state-owned banks in a recent letter to "try your best to ensure that no one is left without a bank account." Nearly two-fifths of the population does not have a bank account.
1.5 crore accounts are being opened on the first day. 7.5 crore people will be covered by the scheme by January 25, 2015, said Finance Minister Arun Jaitley.
The accounts are unique because they will stay open even if empty.
Under the Jan Dhan Yojana, or the Scheme for People's Wealth, account holders will get a debit card. Those who open accounts by January 26 will get life insurance cover ofRs. 30,000 in addition to accidental insurance for a lakh.
Account holders will also get an overdraft facility of up to Rs.5,000.
Some experts say the overdraft facility could end up swelling bad loans at banks as it does not spell out how the banks can collect debts.
By paying benefits directly into bank accounts, the scheme seeks to cut waste and corruption that inflate India's $43 billion or Rs. 2.58 lakh crore subsidy bill, equivalent to more than 2 percent of the GDP, for handouts of grain, fuel and fertiliser.
The push for greater financial inclusion will also diminish the influence of moneylenders and other informal financing channels who operate outside the ambit of the Reserve Bank of India (RBI), blunting its monetary policy tools.
Experts caution that taking banking to rural areas where many people have no identity papers will be a huge challenge. Would-be bank customers have to produce a host of documents from birth certificates to residence proofs that many poor Indians do not possess.
point no. 7 - What did the experts have to say when rich and politicians take out billions which are in bad debt now, as they are now concerned individuals take out Rs. 5,000 as OD ? Kudos to Modi, who thinks that most of the Indian poor are not looters.
point no 10 - see post # 2 & 6 posted by @chandbibi - As for as me, the identity of the person to open a bank account is that he is alive and can come to bank to open the account !!!!
The only catch here is how to evolve a system to find out multiple bank accounts, if some one wants use this privilege ? I think solution will be found out in the next phase of this plan.
But overall, I am satisfied with the optimism shown by the top banker of India quote "India's Central Bank Governor Raghuram Rajan has said the scheme will help the poor to gain "economic independence" by providing insurance and credit."
