Banks see mixed response of Modi government schemes in Gujarat

A total of 43.35 lakh people have been enrolled under the PMSBY and about 18.31 lakh under the PMJJBY in Gujarat.

Written by Avinash Nair | Ahmedabad | Updated: September 23, 2016 7:44 pm
Modi, narendra modi, banks, bank schemes, Stand Up India, Pradhan Mantri Suraksha Bima Yojana, MUDRA yojana, news, latest news, India news, national news While schemes like “Stand Up India” have begun well, there is a “poor off-take” in others offering social security and solar pumpsets to farmers. (Express photo)

Banks in Gujarat are seeing a mixed response to several schemes offered by the Narendra Modi government. While schemes like “Stand Up India” have begun well, there is a “poor off-take” in others offering social security and solar pumpsets to farmers.

Enrollment under the social security schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is seeing a decline in the state, stated the latest report of State Level Bankers’ Committee (SLBC) released on Friday. A total of 43.35 lakh people have been enrolled under the PMSBY and about 18.31 lakh under the PMJJBY in Gujarat.

“The total enrollment under insurance schemes, PMJJBY and PMSBY has declined as many of accounts are not renewed due to unavailability of balance and also non-willingness of many customers to continue the scheme,” stated the SLBC report without divulging the quantum of decline.

When quizzed, SLBC convenor Vikramaditya Singh Khichi said, “There has been a steady increase in enrollment under both these schemes. However, when the time for renewals approached, 93 percent of the people enrolled under PMSBY renewed, while 95 percent of those enrolled under PMJJBY went for renewals. So the decline is marginal. We will catch up when the new enrollments happen.”

“The progress in enrollment under Atal Pension Yojana (APY) is still below satisfactory level,” the report added asking banks to make special efforts to create awareness about the benefits of the scheme. Currently, 1.71 lakh people have been enrolled under APY in Gujarat. Similarly, another scheme offered by the Union Ministry of New and Renewable Energy (MNRE) for providing solar pumpsets to farmers for irrigation is not getting the desired response.

“In Gujarat, the progress was not up to the desired level and cumulative only 65 units (around 10 percent) have been supported by bank finance as the end of 2015-16, as against the target of 600 units,” stated the report. The secretary, MNRE has urged bankers in the state to achieve at least an average of one solar pumpset per rural branch during the current year.

However, there are other schemes that are doing well. For instance, the Stand up India launched on April 5, 2016 to facilitate banks loans between Rs 10 lakh to Rs one crore to SC/ST and women borrowers has seen the banks sanctioning fresh loans worth Rs 95 crore to 343 beneficiaries in Gujarat as on August 30, 2016. Similarly under the Pradhan Mantri MUDRA Yojana (PMMY), banks in Gujarat have disbursed around Rs 1100 crore in 88,847 accounts as on August 26.

Under the Pradhan Mantri Jan Dhan Yojana (PMJDY) a total of 84.74 lakh accounts have been opened of which 19.51 lakh (or 23 percent) are zero balance accounts. About 46 percent of these PMJDY accounts have Aadhar seeding. The Chief Secretary of Gujarat had held a meeting in June 2016 to review the progress of banks under PMJDY, social security schemes and MUDRA yojana.