Prime Minister Narendra Modi’s first major step towards alleviating poverty especially by looking at that segment of the population which may not even have the ability to have an opening balance, is laudable (“PM banks on mega plan to fight debt,” Aug.29). Facilitating a record all-India 1.5 crore bank accounts to mark the launch of the Pradhan Mantri Jan Dhan Yojana has been a stupendous task fulfilled. Mr. Modi’s personal appeal to 7.25 lakh bank employees to achieve this target is commendable. This process will certainly make a difference as the benefits will now directly go into the accounts of beneficiaries and eliminate middlemen.
E. Sivasankaran,Coimbatore
The way the scheme has been accepted reveals the failure of previous dispensations at the Centre that failed to gauge the aspirations of crores of Indians. Officials should not stop with the mere opening of a bank account but must continue the momentum by encouraging the new account- holders to utilise all the benefits of the banking system. The much debated Direct Benefit Transfer Scheme must also be given a push.
Kiran Jose,Pala, Kerala
The success of this scheme depends on the active participation of the masses in banking. For this to happen, banks must operate in a people-friendly manner, where the use of the local language is the key. However, banks are mandated by the RBI to use only English and Hindi, while regional languages are optional. This has created enormous difficulties for non-Hindi-speaking Indians and has kept them out of much-needed financial inclusion.
Hariprasad Holla,Bangalore
PMJDY will now complete the unfinished agenda of bank nationalisation that was initiated decades ago. More than this, it is the add-ons that will make it extremely beneficial for the user. This is an illustration of the fact that the state, if it has the political will and visionary leadership, can achieve quantum leaps in terms of socio-economic development. PMJDY must not fall victim to tokenism, which has undermined many a well-intentioned state-sponsored scheme over time. The scheme can achieve greater heights by spreading financial literacy and ensuring that the new bank customers are empowered to operate their accounts in a trouble-free and productive manner.
V.N. Mukundarajan,Thiruvananthapuram
Though the scheme shows that it has the potential to become a grand success, the fact is that lakhs of people in rural India are still unaware of banking facilities. The Modi government has proved that development can still be attained through the reconstruction, refinement and revival of the last rung of the ladder, and not from frenetic investments in IT parks and smart cities.
Shilpa P. Babu,Ernakulam
A study says that if all the money spent for social welfare schemes since Independence were distributed among the targeted population, every such household in India would get a dividend of Rs.17 lakh. It will, when completely implemented, help deliver the benefits of such schemes to those who deserve them. Universal banking is a positive move towards the distant dream of a bank transaction tax, which will in turn prevent tax invasion and the accumulation of black money.
Gadha Madhav,Thiruvananthapuram
The scheme shows that the BJP is no different from the Congress in promoting populist schemes. While time will show how successful the scheme is, it is quite certain that it will contribute to harming banks, especially those in the public sector. Non-performing assets of PSU banks are already mounting thanks to political populism. If a Rs.37,000-crore plus (Rs.5,000 x 7.5 crore families) overdraft facility without any security is allowed under the scheme, NPAs will grow further.
Kshirasagara Balaji Rao,Hyderabad
It is a fact that PSU bank staff are under tremendous pressure to burn the midnight oil in making this scheme a success. And what is the purpose served by opening a bank account with zero balance? Instead of addressing the core issues of poverty, the government appears to be offering the public a bank account as a seeming panacea.
V. Rajagopalan,Chennai
Mr. Modi will do well to verify how many such non-frill accounts were opened by PSU banks during the UPA regime in the name of financial inclusion, and how many of them remain in operation today. After reporting the numbers, banks closed most of them. Were the accounts under PMJDY opened from specific target groups? Or was it a mad scramble for numbers by the bankers to satisfy their new political masters? Has there been any specific fund allocation for the scheme to justify the grandiose vision?
There is nothing in sight other than rhetoric, to convince us that the programme will truly deliver.
Manohar Alembath,Kannur
