Jan Dhan costs banks capex of Rs 2,000 cr

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Banks have so far made capital expenditure (capex) of around Rs 2,000 crore for opening accounts under the Pradhan Mantri Jan Dhan Yojana, T M Bhasin, chairman, Indian Banks' Association, said on Monday. Bhasin, also the managing director of Indian Bank, added: "Opening one account incurs a cost of Rs 140, against the estimation of Rs 80 per account."

The financial inclusion programme was launched at the end of August last year.

"All banks put together, it (Pradhan Manti Jan-Dhan Yojana) incurred a cost of around Rs 2,000 crore," said Bhasin, adding that the government was informed about this in a meeting two days ago.

"We have to provide the core banking solution service. There are at least 1.5 lakh banking correspondents in the country. Even if you calculate a cost of Rs 1,000 per month, it comes to that cost," Bhasin said. "There are also costs for connectivity, and Rupay cards costing Rs 20 each and PIN activation - all of which the bank has to pay for."