Jan Dhan accounts surge by Rs5,928-cr to Rs73,258 crore in 2 months

The Prime Minister's Jan Dhan Yojan (PMJDY) accounts have seen inflows of Rs5,928 crore since November 2017, which took the total balance in these no-frills accounts to Rs73,258 crore.

As of 10 January, the total balance in the 309 million Jan Dhan accounts stood at Rs73,258 crore. This is perhaps the largest inflow into these accounts, barring the brief post-demonetisation surge.

The total balance in these accounts at end-October stood at Rs67,330 crore. The cumulative balances between July and October 2017 had risen by Rs2,554 crore, which was substantially higher than the Rs400 crore added between mid-May and mid-July.

Along with the increase in the amounts deposited in these Jan Dhan accounts, the number of such deposits also increased substantially during the second half of 2017. The past two months alone saw addition of 4.8 million new PMJDY accounts.

Bankers attribute the increase in the number of accounts opened under the PMJDY and the surge in balances to the current push being given to Aadhaar linkage.

In signs that these accounts are also coming active, the National Payments Corporation of India (NPCI) has disbursed about 235 million RuPay Debit cards so far.

With the increased focus on Aadhaar and digitisation, new accounts are still being opened in rural areas. The increased use of RuPay cards, which offer many advantages, is also incentivising the rural population to keep balances in their accounts, say bankers.

Bankers also see a trend of some customers closing fixed deposits and transferring that money into Jan Dhan accounts on concerns that the Financial Resolution and Deposit Insurance Bill may be lead to instability in FD accounts.