Govt mulls steps to encourage use of Jan Dhan accounts

PM Modi Jan Dhan Yojana
PM Modi Jan Dhan Yojana

The government is mulling over ways to encourage use of Jan Dhan accounts, including through POS transactions and the Business Correspondents.

A meeting has been called by the Finance Ministry representatives who can help in last-mile implementation of the inclusion efforts.

The scheme offers free zero-balance bank account with a debit card, a Rs one lakh accident insurance policy and Rs 30,000 free medical insurance cover for the poor.

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Prime Minister Narendra Modi urged the Reserve Bank of India (RBI) to encourage financial institutions to set concrete targets for financial inclusion over the next 20 years.

He has emphasised that that along with economic and social parameters, there is need to think of a geographical parameter as well for financial inclusion. “Eastern India has immense economic potential, and the banking sector should recognise and plan for this.”