PM to launch financial inclusion plan with 10 mn accounts on Thursday

76 mega functions will be held throughout the country to mark the launch of scheme

Public sector banks will open around 100,000 accounts on Thursday to mark the launch of government's financial inclusion programme Pradhan Mantri Jan Dhan Yojana.

Prime Minister Narendra Modi will formally launch the scheme, estimated to include 75 million households, at a function in the national capital. Simultaneous launch functions will also be held in state capitals and other major centres of states or union territories and all district headquarters.

"About 76 mega functions will also be organized at prominent places throughout the country to mark the launch of scheme which will be attended by the Union ministers and the state chief ministers along with other dignitaries," the finance ministry said in a statement today.

Different branches of state-owned banks will organize more than 60,000 camps in rural and urban areas on that day. The Prime Minister had already sent about 725,000 emails to all bank officers to make financial inclusion a priority and open at least one bank account for each household in the country.

"It is estimated that about one crore accounts will be opened on this day. These camps will be successful because preparatory camps have already been organized in order to get the required information from the new account openers," the statement said.

Financial literacy has been accorded priority under the scheme. A standardized financial literacy material has also been prepared in vernacular languages to create awareness about it.

With a bank account, every household will gain access to banking and credit facilities. In the first phase, every account holder will get a RuPay debit card with a Rs 1,00,000 accident cover. In the second phase, which will start from August 2015, they will also be covered by insurance and pension products.

"This will enable them to come out of the grip of moneylenders, manage to keep away from financial crises caused by emergent needs, and most importantly, benefit from a range of financial products," the finance ministry said.

It will also give customers an overdraft facility of up to Rs 5,000 to Adhaar-enabled accounts after satisfactory operation in the account for six months. The mission envisages expansion of direct benefit transfer under various government schemes through bank accounts of the beneficiaries.