BANK SAKHIS ENABLING DIGITAL PAYMENTS ADOPTION IN RURAL INDIA

The female banking or business correspondent (BC) concept, introduced in 2015-16 by the National Rural Livelihood Mission (NRLM) and sponsored by the World Bank, has quickly acquired traction in rural India. This concept, known as the ‘Bank Sakhi’ model, is a gender-focused modification of traditional rural banking practices. Members of self-help groups, often women, provide financial services in places where there are no actual bank branches.

The reasoning for employing women as BCs was sound, given that women make up more than half of Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders in rural and semi-urban areas. Despite this, the majority of BC agents were men. To address this disparity, the Bank Sakhi Program was established to assist first-time female customers in navigating the sometimes difficult banking market.

Over 100,000 women have been trained to work as mediators for public and commercial banks in 20 states since the program’s inception. These ladies perform secure digital transactions on behalf of their customers using cutting-edge technology and instruments such as Micro-ATM machines and smartphones. These Bank Sakhis, in addition to providing traditional financial services, educate their customers on the benefits of digital payments, provide training on the capabilities of digital payment platforms, and handle their concerns in the event of transaction failures.

THE EXPERIENCES OF BIHAR AND ODISHA

Bank Sakhis’ success has been especially noteworthy in low-income regions such as Bihar, Odisha, and Madhya Pradesh. Recent research by the Asia Competitiveness Institute underscores the critical role played by Bank Sakhis in developing these states’ digital payment capabilities. Despite their low digital competitiveness, these nations jumped ahead in digital transactions after the epidemic, owing mostly to the success of the Bank Sakhi program. According to data from a private sector bank in Bihar, 33 out of every 40 Bank Sakhis conducted at least one transaction daily between March and July 2020. Meanwhile, in Odisha, 90 of 126 Bank Sakhis of a public sector bank made at least one transaction per day.

PIVOTAL IN THE DIGITAL TRANSFER OF COVID-19 RELIEF PACKAGES

During the pandemic-induced lockdowns, SHG members operating as Bank Sakhis took the lead in promoting awareness and allowing doorstep access to cash transfers through the Pradhan Mantri Garib Kalyan Yojana (PMGKY) and other Direct Benefit Transfer initiatives. More than 200 million women account holders under the PMJDY were able to collect Rs 1500 apiece over the course of three months as a result of this effort.

The Indian government chose digital transfers to channel cash to PMJDY accounts as a deliberate move to reduce leakages inside the Direct Benefit Transfer scheme. Recognizing the importance of BC agents’ services in increasing awareness and adoption of these digital transfers, particularly during lockdowns, Bank Sakhis were provided special identification cards known as Lockdown Passes to ensure uninterrupted banking operations.

ROADBLOCKS FACING THE EXPANSION OF THE BANK SAKHI NETWORK

Although the number of female BCs has increased in India, their percentage is still dismal, accounting for less than 10% of the overall BC network as of April 2022. The NRLM-introduced ‘One Gram Panchayat One BC Sakhi’ program intends to alleviate this inequality by assuring the deployment of at least one Bank Sakhi in each Gram Panchayat by the end of the 2023-24 timeframe.

Several factors contribute to Bank Sakhis’ low representation. Bank Sakhis have mobility issues as well as safety problems. These women face higher transportation costs and safety issues than their male BC counterparts since they are frequently dependant on male family members for things such as visiting bank branches for cash deposits or withdrawals. Bank Sakhis receives no formal financial assistance to rectify such issues.

Bank Sakhis face tremendous time constraints as a result of cultural expectations that they fulfill domestic chores in addition to being a BC, resulting in efficiency losses. Male agents execute twice as many transactions as Bank Sakhi representatives, while working an extra 3-4 hours per day.

Another barrier to recruiting Bank Sakhis, particularly in neglected rural areas, is the minimal certification requirement. The current RBI criterion is a minimum of a tenth pass. However, numerous banks have raised the eligibility hurdle to the 12th pass, potentially making it difficult to attract talent to serve as BCs in isolated rural areas.

WAY FORWARD

Moving forward, various viable options to addressing Bank Sakhis’ difficulties could be pursued. These include providing liquidity support, boosting social security payments, and ensuring risk coverage for individual travels to and from the bank. Banks could also raise the limit on working capital loans made to BCs. Most critically, banks must mitigate technical issues on the backend. Bank Sakhis must have a stable financial infrastructure in order to provide a smooth banking experience in rural areas.

During the recent launch of the ‘Samarth Campaign’ to promote digital transactions in 50,000 gram panchayats, Minister for Rural Development and Panchayati Raj Giriraj Singh recognized the critical role performed by Bank Sakhis in encouraging digital transactions. Given the benefits of the female BC model, Bank Sakhis are critical in advancing India’s digital financial inclusion.

Also read :- ESAF Small Finance Bank IPO: Check Issue Size, Date and Price Band

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Atal Pension Yojana Rules 

To assist you in developing a thorough understanding, we have divided the Atal Pension Yojana guidelines into several areas, including eligibility criteria, age restriction, and account opening specifics, among others: 

Eligibility for APY  

If you are a citizen of India, between the ages of 18 and 40, and have a valid savings bank account linked to your Aadhar card and Pan card mobile number, you are eligible for Atal Pension Yojana benefits.

Individuals who are or have been income taxpayers will be ineligible to benefit from this plan as of October 1, 2022, according to a recent revision dated 10 August 2022 by the Department of Financial Services. Existing subscribers may continue to participate in the scheme; however, ineligible investors who joined on or after October 1 will be refunded.

APY account opening 

One of the primary Atal Pension Yojana guidelines that people frequently have questions about is the one about opening an account. The APY system is open to all citizens with verified bank accounts. They can donate to the initiative using an auto-debit facility. To avoid penalty costs, subscribers must keep the required balance in their savings bank accounts on the set due date.

The Aadhaar card is the key KYC document used to identify spouses, beneficiaries, and nominees. In the long run, this will prevent pension rights and entitlement-related issues. Contributions can be made on a monthly, quarterly, or semi-annual basis via auto-debit from a savings bank account or a post office savings account. After joining APY, each subscriber will be sent an acknowledgement slip that will invariably include the guaranteed pension amount, the due date of contribution payment, PRAN, and other information.

Pension Withdrawal

A subscriber shall be eligible to receive a monthly pension starting from the age of 60, as stipulated by the Atal Pension Yojana. Subsequent to the subscriber’s demise prior to the scheme’s maturity, regrettably, the benefits of the scheme shall pass to the subscriber’s spouse. The registered designee will also inherit the invested corpus in the event that both the subscriber and their spouse pass away.

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Penalty for Delayed Contributions

If a subscriber is unable to contribute on a monthly basis, a penalty will be assessed beginning on the due date and continuing every day thereafter. The first day of the month or any other day in the calendar month can be utilized as the due date for each subscriber to recover the monthly contribution.

The monthly contribution will be refunded in addition to the monthly penalty amount. Banks or post offices will handle this process internally. The penalty will be recovered as soon as funds become available in the account.

Premature Withdrawal

When you reach the age of 60, the APY plan will mature. You would be eligible for a monthly pension after maturity.

In extraordinary circumstances, such as death or terminal illness, the spouse of a subscriber will have the option of continuing the existing account or receiving the corpus amount even before the term’s maturity. The nominee would get the accrued pension funds if both the subscriber and spouse died. 

Features of the Atal Pension Scheme 

The following are some of the Atal Pension Scheme aspects that you should be aware of: 

Fixed pension

According to the provisions of the Atal Pension Yojana, this is a social security pension system that guarantees you a fixed pension after the age of 60. Based on your monthly membership, this sum is disbursed in the range of Rs. 1,000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, and Rs. 5,000 per month. 

Periodic payments

Depending on the amount of monthly pension you choose and the age at which you start your pension scheme, you will receive a periodic monthly pension under this scheme.

The gist, however, is that there is a provision for a periodic payment after maturity, which gives you financial security.

The below contribution chart will help you understand the matrix of your pension amount and age:

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Discontinued payments

In case you discontinue your payments towards the Scheme, the bank shall:

• After six months, freeze the account
• After 12 months, deactivate the account
• After 24 months, close the account

APY tax benefit

The Atal Pension Yojna also provides tax advantages. Section 80CCD of the Income Tax Act of 1961 applies to the Atal Pension Yojana (APY) tax benefit.

Please keep in mind that the maximum deduction allowed under Section 80CCD(1) of the Income Tax Act, 1961 is 10% of the subscriber’s gross total income up to Rs. 1.5 lakhs. Furthermore, Section 80CCD(1B) of the Income Tax Act, 1961 provides for extra exemptions on contributions up to Rs. 50,000 every fiscal year.

Please keep in mind that APY subscribers who joined the plan before October 1, 2022, can continue to invest and benefit from the tax breaks. These deductions are subject to the requirements established in the Income Tax Act of 1961. Unexpected changes to tax laws occur. Readers are reminded to consult with their tax professionals before making any choices or acting in any way, as this is not legal nor tax advice.

APY PRAN number

The AYP PRAN is a unique 12-digit number assigned to APY program users. Please keep in mind that your NPS and APY PRANs will differ. PRAN information is given to your mobile number and, if applicable, your email address upon registration. This APY PRAN is available through this NSDL website. 

Takeaways

The Atal Pension Yojana is a noteworthy initiative by the Government of India, particularly for poor people who, due to the unorganized nature of their work, are not covered by insurance or pension. This can undoubtedly aid in the creation of a suitable pension corpus from tiny recurring contributions. It is preferable to enroll if you are eligible for the scheme. 

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Frequently Asked Questions 

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Pradhan Mantri Jan Dhan Yojana (PMJDY) is India’s National Mission on Financial Inclusion. It was launched in 2014 with the objective of providing access to banking services to all Indian citizens. PMJDY is one of the world’s largest financial inclusion programs, and it has achieved significant success in its mission.

Key features of PMJDY:

Universal access: PMJDY is open to all Indian citizens, regardless of their income or social status.

Zero-balance accounts: PMJDY accounts can be opened with a zero balance. This makes it accessible to even the poorest of the poor.

RuPay debit card: All PMJDY account holders are issued a RuPay debit card. This card can be used to withdraw cash, make payments, and access other banking services.

Accident insurance: All PMJDY account holders are covered by an accidental insurance policy of up to ₹1 lakh.

Overdraft facility: Eligible PMJDY account holders can avail of an overdraft facility of up to ₹10,000. This can be used to meet unexpected financial needs.

Achievements and Impact

The Pradhan Mantri Jan Dhan Yojana has achieved remarkable success since its inception, with numerous positive impacts:

Massive Account Opening: Within a short span of time, PMJDY led to the opening of millions of bank accounts, bringing marginalized sections of society, particularly in rural areas, into the formal banking system.

Empowering Women: The scheme has been instrumental in promoting gender equality by encouraging the opening of bank accounts in the name of female family members. This not only empowers women but also enhances their financial independence.

Financial Inclusion: By extending banking services to the previously unbanked, the scheme has contributed significantly to reducing financial exclusion and fostering economic growth.

DBT Efficiency: The scheme’s integration with various government benefit programs has led to the direct transfer of subsidies, reducing intermediaries and leakages, and ensuring that the intended beneficiaries receive the full benefit.

Boost to Small Enterprises: PMJDY has facilitated easier access to credit for small-scale businesses and entrepreneurs, thereby fostering entrepreneurship and boosting local economies.

Challenges and Future Prospects

While the PMJDY has been largely successful, certain challenges remain:

Financial Literacy: Despite efforts to promote financial education, there’s a need for continued emphasis on enhancing the financial literacy of account holders to ensure they understand the benefits and responsibilities of having a bank account.

Active Use of Accounts: Encouraging account holders to actively use their accounts for savings, investments, and transactions is crucial for the long-term success of the scheme.

Cybersecurity and Technology: With the increasing reliance on technology for banking services, ensuring robust cybersecurity and digital literacy among account holders is essential.

Deepening Services: Expanding the range of financial products and services available to PMJDY account holders, such as insurance, pension plans, and investment options, can further improve their financial well-being.

Conclusion

The Pradhan Mantri Jan Dhan Yojana stands as a shining example of a government initiative aimed at transforming the lives of millions by providing them with access to formal banking services. By bringing the unbanked population into the financial mainstream, PMJDY has not only contributed to economic development but has also empowered individuals, especially women, and improved their overall quality of life. As India moves forward, it is imperative to build upon the successes of this scheme and address its challenges to ensure a more financially inclusive and prosperous society.

Also read :- How to Set Financial Goals

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“Unmanned flight trials for the Gaganyaan mission will be initiated by ISRO.” “Preparations are underway for the Crew Escape System-demonstrating Flight Test Vehicle Abort Mission-1 (TV-D1),” the space agency announced in an X post alongside the crew module images.

What is Gaganyaan mission?

The main goal of the Gaganyaan mission is to send a crew of three people into orbit 400 kilometers above Earth’s surface for a three-day journey. They will then safely return to Earth by landing in the Indian Ocean. Next year is when this mission is set to happen.

What is the crew module?

With the Crew Module (CM), the astronauts’ safety and comfort are very important during the Gaganyaan mission. For the project, ISRO says that the CM is moving through different stages of development.

For TV-D1, the Test Vehicle Abort Mission-1, an unpressurized version of the CM has finished being put together and tested, and it is now ready to be taken to the launch site. This form of the CM is the same size and weight as the real Gaganyaan CM, and it has all the systems needed to slow down and recover.

The Crew Module will be brought back to shore by a special ship and a group of swimmers from the Indian Navy after it lands in the Bay of Bengal.

The last steps in making the first Test Vehicle (TV-D1) have been taken. This liquid rocket with only one stage was made just for the escape mission. The packages on board are the CM fairing (CMF) and interface adapters, as well as the Crew Module (CM) and Crew Escape Systems (CES) with solid-state motors that work quickly.

If this important test flight goes well, it will set the stage for later qualification tests and unmanned trips, which will eventually lead to the first Gaganyaan mission with Indian astronauts.

ISRO chose people from the Indian Air Force to be part of this historic journey. They are currently being trained at the Astronaut Training Facility in Bengaluru.

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The training includes a lot of different areas, such as classroom teaching, fitness training, training in a simulator, and training in a flight suit, according to the space agency.

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On Friday, Shaktikanta Das, governor of the Reserve Bank of India (RBI), will announce the outcomes of the three-day Monetary Policy Committee (MPC) meeting that began on Wednesday.

In August, the MPC resolved to maintain the policy repo rate at 6.50 percent. In fact, in its previous three interest rate policies, including August’s, the panel maintained the status quo. It is widely anticipated that the repo rate will remain unchanged once again.

The repo rate has increased by 250 basis points (bps) since May of 2017.

Follow all the updates here:

RBI Monetary Policy Live Updates: Where to watch Shaktikanta Das’ address?

The live webcast of RBI governor Shaktikanta Das’ press conference is available here. Additionally, you can monitor this live blog for the most recent updates.

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Since last month, the Consumer Affairs Ministry has asked the National Cooperative Consumers’ Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to sell tomatoes at a lower price.

At first, the subsidy rate was set at 90 per kilogramme. As prices went down, the subsidy rate went down, too, so that consumers would get the most advantage.

“The last change to the retail price was on August 15, when it went down to 50/- per kg. As of August 20, the price has gone down even more, to 40 per kg,” a government statement said on Friday.

It said that so far, the two agencies have bought more than 15 lakh kilogrammes of tomatoes, which are being sold to retail customers in the country’s big consumption centres.

ALSO READ:Centre cuts price of subsidised tomato to Rs 70 per kg.

These places are Delhi-NCR, Rajasthan (Jaipur and Kota), Uttar Pradesh (Lucknow, Kanpur, Varanasi, and Prayagraj), and Bihar (Patna, Muzaffarpur, Arrah, and Buxar). NCCF and NAFED buy tomatoes from mandis in Maharashtra, Karnataka, and Andhra Pradesh.

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According to officials, Kejriwal postponed the meeting till Thursday.

The Aam Aadmi Party (AAP) said that BJP-affiliated members turned the meeting into a “political battleground,” despite BJP leader Kuljeet Chahal, who is also a council member, claiming that the CM was questioned about the Delhi government’s failure to host a meeting of the top committee on flood management.

Conflicts between the two parties have caused the interruption of Council meetings before. Similar instances happened in May of this year and September of last year. In both instances, Kejriwal left the gathering in the middle because, according to the AAP, he was heckled.

The CM postponed the meeting and left after we questioned him about flood control and for not focusing on women’s and Dalit’s security issues in hostels, schools, and RWAs.If the CM had called the committee’s meetings for it in a timely manner, the Yamuna flood crisis might have been managed.Delhi has suffered greatly as a result of the CM’s carelessness, Chahal told The Indian Express.

Chahal also slammed Kejriwal for travelling to Patna and Bangalore amid the floods to attend coalition meetings with members of other political parties. The Chief Minister has previously been observed fleeing NDMC Council sessions, and today was no different, he continued.

However, the AAP said in a formal statement that BJP politicians were bringing up matters that had no bearing on the city. “It is regrettable that the BJP has no concern for the wellbeing of residents of the NDMC area. The meeting’s agenda included a number of crucial subjects. However, BJP members brought up topics such as the tukde gang, surgical strikes, and the abuse of women in Rajasthan. Are these problems connected to the well-being of NDMC residents? No. The statement claimed that this was dishonest and cheap politics.

The appointment and promotion of personnel and the NDMC’s Solar Energy Policy 2022 were two of the significant laws that were planned for discussion.

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According to a circular issued by the retirement organisation Employees Provident Fund Organisation (EPFO) on July 24, 2023, the declared interest rate is 8.15 percent. The EPFO has instructed all filing offices to credit the interest on EPF for the fiscal year 2022–2023 at a rate of 8.15 percent into the corresponding accounts of its members.

To credit interest at 8.15% for the year 2022–2023 to the accounts of each member of the EPF Scheme in accordance with the provisions under Paragraph 60 of the EPF Scheme, 1952, the Ministry of Labour and Employment, Government of India, has received approval from the Central Government under Paragraph 60(1) of the Employees’ Provident Fund Scheme, 1952. In order to credit the aforementioned interest to the members’ accounts, you are thus instructed to issue the necessary instructions to all parties involved, according to the circular.

The directive was issued following approval of the EPF rate of interest by the EPFO trustees in March of this year by the finance minister. According to the circular, the EPFO field offices will begin the process of crediting the interest to the accounts of the subscribers.

The Employees’ Provident Fund Organisation (EPFO) reduced the interest rate on EPF deposits for the fiscal year 2021–2022 to 8.10% in March 2022, which was a decrease from 8.5% in 2020–2021 and represented the lowest rate in forty years.

Since 1977–1978, when the EPF interest rate was 8%, this was the lowest interest rate ever observed.

A crucial social security and retirement benefit programme, the EPFO-managed EPF fund strives to give workers financial security after retirement.

An employee makes a monthly contribution to their EPF account equal to 12% of their salary, with the entire amount going to the EPF account. Employer contributions to the EPF account total just 3.67 percent, with the remaining 8.33 percent going to the Employees Pension Scheme (EPS).

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• international investors ask Modi to reconsider the 28% gaming tax.
• which puts $4 billion in investments at risk.
• Investors are shocked by the government’s decision on the gaming tax.

Tiger Global, Peak XV, and Steadview Capital, among other international investors, have signed a letter to Prime Minister Narendra Modi pleading with him to reconsider the recently enacted 28% Goods and Services Tax (GST) on online games using real money.

According to the letter obtained by news agency Reuters, the investors contend that this tax may have a negative effect on potential investments worth $4 billion in the online gambling industry.

The levy on money collected from clients by online gambling companies was recently revealed by the government. Fantasy cricket games have become extremely popular, but there are also concerns about player addiction.

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The decision to implement the tax was met with shock and dismay by the investors, who said in their letter that it would “substantially and meaningfully erode investor confidence in the backing of this or any other sunrise sector in the Indian tech ecosystem.”

The letter emphasised the possible negative implications, emphasising that the tax decision might prevent future investments from growing in India by at least $4 billion over the following three to four years.

The office of Prime Minister Narendra Modi has not yet responded to the investors’ request. The tax plan is presently pending Parliament’s approval.

It should be mentioned that prominent investors in Indian gaming firms like Dream11 and Mobile Premier League include Tiger Global and Peak XV, formerly Sequoia Capital India.

Despite requests from the gaming industry, a majority of ministers on the government’s tax panel believe that wagers on online gaming sites are a “social evil” and that there is no need for further dialogue with the gaming industry on the issue.

In a recent letter to the finance ministry, more than 100 online gaming companies shared the same worry, stating that the levy will deter international investment and jeopardise the $2.5 billion already committed to the industry.

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However, Justice Gaurang Kanth then changed his mind and declared he didn’t want to take action against the security officers. According to Delhi police officers on Saturday, he had sent a letter to a senior city police official asking for the suspension of security guards stationed at his home since they were allegedly negligent in failing to lock the gates of his house, which resulted in the death of his pet dog.

It was unclear whether the puppy was crushed under a car or got lost in the city’s chaotic traffic.

Recently, Justice Kanth was moved to the Calcutta High Court.

“I am in great pain and anguish as I write this letter. I lost my pet dog because the security guards at my official home weren’t committed to their jobs and were incompetent.

“The security personnel assigned to my home have regularly ignored my instructions to keep the door shut and ignored my requests for them to perform their official duties. In the letter to Delhi police, he said that such neglect of duty and ineptitude “needs immediate attention as the same can cause grave danger to my life and liberty.”

“I fear for my security because the aforementioned security employees have been so callous in doing their duties at my home. It is intolerable to not be manning the gate and to show a lack of commitment to monitoring traffic entering and leaving my residence, the man declared.

Social media users have been sharing Kanth’s letter, which he sent to the Joint Commissioner of Police (Security) on June 12.

He asked Delhi police to suspend the officers right away because their behaviour was improper for government employees while also conducting a thorough inquiry.

Kanth wrote the letter to them last month, according to a senior police officer who wished to remain unnamed. However, Kanth later told them that he does not want any action taken against the posse of police officers stationed at his home.

Days prior to the incident, Chief Justice of India D.Y. Chandrachud wrote letters to the chief justices of the high courts stating that judges should not use protocol facilities in a way that is “likely to cause inconvenience to others or to bring public criticism of the judiciary.”

The Allahabad High Court registry’s request for an explanation from the railways on the “inconvenience” caused to a judge who was denied pantry facilities on a late train was strongly resented by Justice Chandrachud.

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