Thursday, August 24, 2017

COMMENTS NO: YEAR/2014/896

"HERMIT:'Modi Government may make RBI's dream come true as due to the launch of Pradhan Mantri Jan Dhan Yojana, the Banking Sector will be able to reach out to the customers of Untapped Banking Areas (UBAs) of India. This time, the concept of Financial Inclusion has been modernized by the Modi Government.' KING:'There are 2 flaws in this Scheme. One is KYC and another one is the OD Limit of Rs. 5000. KYC problem can be resolved later on also. But, in case of OD Limit, there must be a Bank Circular to hold Rs. 2000 in the OD Account. Once the disbursed Rs. 3000 comes back in the OD Account with interest, then only disburse the remaining limit of Rs. 2000 by holding another Rs. 2000 in the OD Account. This strategy will never allow the OD Account to fall under PNPA or NPA category.'"-Arindam Sain

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