Jan Dhan Yojna has surpassed pre-set target: Jaitley

Prime Minister Narendra Modi's promise to end "financial untouchability" with a scheme to ensure that a majority of households in the country of nearly 1.3 billion people have a bank account has almost been fulfilled, claims Finance Minister Arun Jaitley.

Jaitley announced that the scheme called Pradhanmantri Jan Dhan Yojna (PJDY) or Prime Minister's National Mission on Financial Inclusion, has achieved its target well before its set deadline.

The government, at first, had planned to open 7.5 crore (75 million) bank accounts under the scheme before country's Republic Day on January 26 this year, but due to steady response, the goal was extended to 10 crore (100 million).

According to the finance ministry, by January 17, 2015 a record number of 115 million bank accounts have been opened across the country.

"Although the scheme will continue till January 26, but till 17th January, 115000000 (115 million) crore accounts have been opened. We have far exceeded the target," said Jaitley.

The scheme, to a great extent, can help in mending strained state finances by better targeting billions of dollars in welfare spending as well as relieving poverty in a country where about 40 percent of the population has no access to banking.

The government said nearly 15 million people across the country opened bank accounts on the first day of the programme itself.

Jaitley acknowledged the role of bank employees in achieving this ambitious target.

"Even the international experts and NGOs (Non-governmental organisation) who have worked in this field consider this to be the biggest financial inclusion scheme. This was possible since we had a great target reach due to such a big population and hence they think that this was probably an unprecedented scheme," the minister said.

The scheme has been conceived as a national mission on financial inclusion with the objective of which covered all households in the country with banking facilities and having a bank account for each household.

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.

Under the scheme, the government has given various incentives to the account holders like a debit card and accident insurance cover of up to 100,000 rupees. Good customers would also be eligible for an overdraft facility of up to 5,000 Indian rupees after six months.