Important Points to know about Deepak Mohanty Committee on financial inclusion

    Important Points to know about Deepak Mohanty Committee on financial inclusion
    Important Points to know about Deepak Mohanty Committee on financial inclusion:
    Important points that we have to know aboutDeepak Mohanty Committee on financial inclusion were given here, which will be more helpful for the candidates those who are preparing for the upcoming exams.

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    RBI constitutes Deepak Mohanty Committee on financial inclusion:
    The RBI, in July 2015, constituted a committee to prepare a 5 year action plan to spread the reach of financial services across country to unbanked population. The committee will be headed by RBI executive director Deepak Mohanty and comprise total of 14 members.

    Deepak Mohanty Committee:
    Members of the Committee:
    Members of the committee include: Ashok Gulati, Infosys Chair Professor for Agriculture, Indian Council for Research on International Economic Relations; AP Hota, MD and CEO, National Payments Corporation of India; PareshSukthankar, Deputy Managing Director, HDFC Bank; Kishor P Kharat, Executive Director, Union Bank of India.
    Term of References of the committee:
    • It will review the existing policy of financial inclusion, including customer protection framework and supportive payment system.
    • In this regard it will take into account the recommendations made by various committees set up earlier.

    Objectives:
    • Work out a medium-term or five-year measurable action plan for financial inclusion.
    • Suggest a monitorable medium-term action plan for financial inclusion. It will cover various components including payments, credit, deposit, social security transfers, pension and insurance.
    • Articulate the underlying institutional and policy framework for financial inclusion. Cover financial literacy and consumer protection, as well as delivery mechanism of financial inclusion.
    • For this the committee will encompass both households and small businesses, with more emphasis on rural inclusion including group-based credit delivery mechanisms.
    • It is expected that the Committee is expected to submit its report in four months from the date of its first meeting. It should be noted that, for promoting financial inclusion, Union government had launchedPradhan Mantri Jan Dhan initiative (PMJDY)in August 2014.

    What is Financial Inclusion?
    Financial inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general, and vulnerable groups such as weaker sections and low-income groups in particular, at an affordable cost in a fair and transparent manner by mainstream institutional players.
    Financial Inclusion Schemes:
    The Government is pushing financial inclusion through four schemes-
    ·        PradhanMantri Jan Dhan Yojana(PMJDY),
    ·        PradhanMantriJeevanJyotiBima Yojana (PMJJBY),
    ·        PradhanMantriSurakshaBima Yojana (PMSBY)
    ·        Atal pension Yojana (APY).
    • According to Financial Ministry data, banks had opened 16.73 crore basic savings bank deposit accounts under the PMJDY, which was launched in August 2014, up to July 8. The outstanding balance in these accounts aggregated Rs. 19,990.52 crore.
    • About 51 percent of these accounts have zero balance. PMJDY’s benefits include a RuPay debit card, Rs. 1 lakh accident insurance cover, and an additional Rs. 30,000 life insurance cover.
    • It is a platform forDirect Benefits Transfer (DBT)which, in turn, will help plug leakage in subsidies.
    • The gross enrollment under the PMJJBY, which offers life insurancecoverage of Rs. 2 lakh for savings bank holders in the age group of 18-50 years on payment of Rs. 330 year, stood at 2.71 crore as on July 14.
    • The gross enrollment under the PMSBY, which provides insurance coverage of Rs. 2 lakh on payment of Rs. 12 per annum, was at 7.87 crore. The gross enrolment under the APY, which will provide a fixed minimum pension Rs. 1,000- Rs. 5,000 a month (depending on the monthly contribution and age at which the subscription starts), beginning from the age of 60, was at about five lakhs.

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