The New Jan-Dhan: Why Is a Makeover Necessary?

Abstract

Abstract

The Jan-Dhan programme has garnered consistent policy attention across two national governments. Started in February 2011, this programme has gone on to mobilise ₹ 81,203.59 crore (US$12.4 billion approximately) by May 2018 through 31.6 crore ( 316 million) savings accounts. These accounts, spread over thousands of branches and operating in diverse conditions, include banks from the public sector, private sector and rural sector (Regional Rural Banks). The central question this paper tries to address is how we can ensure sustained gains from the programme. This article recommends that a new version of the programme be launched. The justification for this new version arises from evidence of substantive difference among banks already in outreach, product success and service quality. Using available data, this paper identifies banks that have done better than others in mobilising deposits and opening of the accounts. The next phase, this article suggests must direct resources and policy attention to the successful banks and support them by policy and regulatory incentives.