Banks reach out to BSBDA and PMJDY customers for linking mobile numbers

Posted on by

Mumbai

Bank branches have embarked on an exercise to reach out to Basic Saving Bank Deposits Account (BSBDA) and Pradhan Mantri Jan-Dhan Yojana (PMJDY) customers, whose accounts were opened in the initial years when the schemes were introduced, for updating/seeding their accounts with mobile numbers.

This comes in the wake of BSBDA and PMJDY customers (legacy accounts) facing difficulties in undertaking Aadhaar enabled Payment System (AePS) transactions as some banks have put a check, whereby such transactions are allowed only if their accounts have been updated/seeded with the mobile number.

So, banks are taking steps to ensure seeding/updation of mobile number in the accounts of customers, especially in respect of those accounts where at least one Direct Benefit Transfer (DBT) transaction has been undertaken.

Dormant accounts

However, the challenge lies in seeding of legacy accounts more particularly in respect of inoperative/dormant accounts.

Banks are not keen on utilising the BC (business correspondent) channel for seeding/updating mobile number due to risks involved in the process. So, they want to undertake this exercise on their own.

A BSBDA does not have a minimum balance, but the maximum account balance that can be maintained is ₹50,000. The account holder will get an ATM-cum-debit card. He will also get passbook services for free and not be charged for a non operative account. The bank allows a certain number of deposits and withdrawals in the month that are free of cost.

A PMJDY account ensures access to financial services such as banking/savings and deposit accounts, remittance, credit, insurance and pension in an affordable manner for all households.

BSBDA and PMJDY were introduced in 2012 and 2014, respectively. “No-frills account”, which was introduced in 2005, was converted into BSBDA in 2012.

At recent industry meetings, it was highlighted that while most of the bank accounts opened recently had mobile numbers seeded at the bank’s end, in the case of legacy BSBDA and PMJDY accounts, either mobile number was not available or it may have changed or not updated in the bank account.