Jan Dhan to boost banking sector in India, says banker

Hailing the Pradhan Mantri Jan Dhan Yojana, a top official of Axis Bank today said that the scheme is beneficial for both people and the banking sector.
Axis Bank alone has opened about two lakh accounts under the scheme till date, its Group Executive and Head of Retail Banking Rajiv Anand told reporters here today on the occasion of opening a branch in the city.
On the question of how private banks perceive this scheme, Anand said that it would bear fruits in the long run for the banking sector.
"We have also participated in the Jan Dhan Yojna and opened around 2 lakh accounts till date. It is good for customers. It may not be good for banks today, but in the long run, it will help the banking sector, as those customers will begin to trust banking and we will be able to sell micro-finance to them in future," Anand said.

Anand also believes that the subsidy transfer by the government into these accounts is a huge saving for the country and would strengthen the economy in the long run.
"This system will stop leakages of that funds, while government would save 20 per cent to 25 per cent. This would ultimately improve the fiscal deficit. Thus, government will have more money to spend, which will help banks to do more business," Anand said.