Small finance banks lag in opening Jan Dhan Yojana accounts in Odisha

This is despite their strong branch network and plans to expand retail banking operations; PSB lead race, accounting for 70% of such accounts opened in the state

Small Finance Banks (SFBs) are yet to join in the growing call for opening accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) in Odisha.

This is despite the available branch network that key SFBs like Jana Small Finance Bank, Ujjivan Small Finance Bank, Suryodaya Small Finance Bank and Utkarsh Small Finance Bank have in the state, and their plans to expand their retail banking operations.

Data collated by the State Level Bankers Committee (SLBC) shows that public sector lenders have seized the lead by opening 11.9 million PMJDY bank accounts as on June 30, 2019, accounting for about 70 per cent of such bank accounts opened in the state. Public sector banks are followed by sponsored Regional Rural Banks (RRBs) and private sector banks. More than 70 per cent of accounts under PMJDY in Odisha have been opened in rural areas. 

While RRBs have set up 1.9 million accounts, private sector lenders have managed to open only 540,000.

“The SFBs are gradually expanding their footprint in Odisha. We are urging them to open bank accounts for people under PMJDY. Their participation will be significant in deepening financial inclusion in the state,” said an official source.

Nationwide under PMJDY, more than Rs one trillion has been parked in over 360 million bank accounts. PMJDY is the central government's financial inclusion programme that caters to those in the 20-65-year age group. The programme aims to expand and make affordable access to financial services such as bank accounts, remittances, credit, insurance and pension.

PMJDY accounts are opened at zero balance and don't become dormant even if deposits are not made into it.