Delay in issue of RuPay debit cards enervates PMJDY

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The flagship financial inclusion scheme of the Centre, Pradhan Mantri Jan Dhan Yojana (PMJDY), has been able to expand its base rapidly, but the delay in the issue of RuPay Debit cards is obstructing the rollout of some benefits to the account holders.

Also, non-issuance of cards to Jan Dhan account holders will weaken the scheme, which has been billed as the world’s largest financial inclusion scheme, as the beneficiaries will not be able to make transactions without going to a bank. Certain other facilities like overdraft are linked to the usage of cards.

As of March 27, 2024, the number of beneficiaries or account holders of PMJDY almost reached 52 crore (51.95 crore to be exact) with a total balance of ₹2,32,505 crore. The women beneficiaries are at 29 crore while those from the rural and semi-urban branches are 34.58 crore. 

Mismatch

“The growth in the number of beneficiaries of Jan Dhan scheme has been quite impressive. There has been a net addition of about two to three crore new accounts per annum mainly due to the efforts of public sector banks and the enthusiasm of the people,’‘ a senior SBI official told businessline. 

However, there are some concerns. “There is a mismatch between the increase in the number of beneficiaries and the issue of RuPay Debit cards to them. The data shows that the gulf between the two is widening, especially for the last five years,’‘ an Executive Director of a public sector bank said, adding that the reasons for this discrepancy should be looked into. 

The RuPay PMJDY card, a product of the National Payments Corporation of India (NPCI), is issued to the people who open accounts under PMJDY no-frills basic bank account scheme to facilitate transactions. It also comes with a personal accidental death and total disability cover of up to ₹2 lakh.

“Jan Dhan accounts belong to the poor. The lack of cards defeats the purpose of the scheme, as one cannot expect a beneficiary to withdraw small amounts by going to a bank branch. Furthermore, credit facilities are not being extended to PMJDY holders. Financial inclusion is not just having a bank account but also providing access to credit lines so that the poor can build up credit ratings/scores,’‘ Yerram Raju, an economist, said.

About 20 per cent of the PMJDY accounts are inactive as of June 2023, as per government data.