Narendra Modi to unveil ambitious financial inclusion scheme on I-Day

The scheme will provide bank accounts to 15 crore poor Indians and accident insurance of Rs 1 lakh.

By: Press Trust of India | New Delhi | Updated: August 14, 2014 3:51 pm
mod The main features of the scheme include Rs 5,000 overdraft facility for Aadhar-linked accounts, Ru Pay Debit Card with inbuilt Rs 1 lakh accident insurance. (Source: PTI)

Prime Minister Narendra Modi is expected to announce an ambitious financial inclusion scheme on Independence Day tomorrow that will provide bank accounts to 15 crore poor Indians, with an overdraft facility of Rs 5,000, and accident insurance of Rs 1 lakh.

The-two phase Financial Inclusion Mission, which has been approved by the Cabinet, will be formally launched by Modi here at the end of this month, sources said.

The government is gearing up to operationalise the scheme across the country on August 28 or 29, they added.

The scheme, to be pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore identified households by August 2018.

The main features of the scheme include Rs 5,000 overdraft facility for Aadhar-linked accounts, Ru Pay Debit Card with inbuilt Rs 1 lakh accident insurance cover and minimum monthly renumeration of Rs 5,000 to business correspondents who will provide the last link between the account holders and the bank.

The new scheme, sources said, is a significant improvement over the UPA’s financial inclusion programme.

The earlier scheme had no focus on households and no emphasis was given on urban financial inclusion, according to some experts. Besides, they maintained that there was a cumbersome Know Your Customer formality, restricting account opening.

Other deficiencies cited included lack of credit disbursement and 47 per cent of business correspondents being untraceable, resulting in inactive accounts.

The new scheme, sources said, has tried to address all the possible deficiencies and its monitoring would be done at state and district levels.

The ‘mission mode’ approach has been envisaged with the Finance Minister as head of the mission.

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  1. I
    Indian
    Sep 15, 2014 at 6:36 am
    It's a Real... Somebody say he told to lie.. Which one i accept
    Reply
    1. J
      James Whitaker
      Aug 14, 2014 at 12:35 pm
      Another neta playing poker with tax payers money! What a sham! Modi is out to prove that he is no different from the rest of the "neta cl". India is doomed!
      Reply
      1. B
        Business Wolf
        Sep 16, 2014 at 12:49 pm
        Prime Minister Narendra Modi launched his pet project on Thursday, ‘Pradhan Mantri Jan Dhan Yojana’ (PMJDY), one of the mega financial inclusion plans under which everyone will be provided with bank accounts.Prime Minister Narendra Modi launched his pet project on Thursday, ‘Pradhan Mantri Jan Dhan Yojana’ (PMJDY), one of the mega financial inclusion plans under which everyone will be provided with bank accounts.:businesswolf/modis-financi...
        Reply
        1. R
          Rakkan
          Aug 14, 2014 at 12:40 pm
          Great Leader, Great idea to uplift poor.
          Reply