Snapshots: PMJDY Wave I Assessments

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Assessment of Bank Mitr’s under
Pradhan Mantri Jan Dhan
Yojana (PMJDY)
Report from 9 states, 41 districts
New Delhi
19 December, 2014

Objectives of the Survey
2
a) Physically verify availability of BMs at the village/
SSA location as per contact details provided by banks
b) Assess the quality of service being provided to
account holders, and
c) Gather informational data of PMJDY account
holders on three aspects:
• Is the account opened under PMJDY their first account?
• Have the customers received RuPay card?
• Is the Aadhaar number available and has it been linked to the
PMJDY account?

Coverage and Methodology
3
9 states, 41 districts
2,039 SSA/bank mitr locations, 8,789 beneficiaries
Random sample of 20 percent SSAs, or 30, whichever is
higher
5 or more beneficiaries at each SSA/ BM location (under
quantitative survey)

Districts Surveyed
4
State
Districts
Surveyed
Andhra
Pradesh
4
Bihar 7
Chhattisgarh 2
Gujarat 4
Jharkhand 4
Madhya
Pradesh
6
Odisha 2
Rajasthan 5
Uttar
Pradesh
7
Total 41

Key Results- I
Availability of Bank Mitrs, Branding, and Sustainability
5

69% of the Bank Mitrs were available at their respective
locations.
6
Yes
69%
No
31%
BM Available - Average of 9 states covered
Sample size=2,039
Graph 1: Availability of Bank Mitrs at SSA location
Graph 2: Availability of Bank Mitrs: State-wise
• This is a welcome development
from previous studies, when the
availability was found to be 30-
40%.
• Moreover, if we include the
number of BMs who were working
at other locations (explained later)
but not at the location indicated in
the data available with DFS, the
figure for available BMs will be
close to 80%.
87% 83% 82%
76%
70% 67% 64%
59%
48%
0%
20%
40%
60%
80%
100%
AP Chattisgarh Gujarat Bihar Odisha UP Jharkhand MP Rajasthan
Sample size=2,039
69%

More than 69% of the available BMs were ‘transaction ready’
7
• Transaction ready for the purpose
of the study is defined as BMs who
were physically available at the
time of the visit and could carry
out transaction(s) for customer(s)
• This implies that customers will
not be able to conduct
transactions at almost 50% of the
BMs if they follow the list
provided by the banks.
69%
15%
16%
Transantion Ready
New BM/ Device Not Received
Technology Issue, Dormancy, Others
Sample size=1,413
84% 84% 82% 81%
65%
64% 61%
53%
36%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Chattisgarh Jharkhand AP MP Gujarat UP Bihar Rajasthan Odisha
Sample size=2039
Graph 4: BM transaction readiness by state

Out of the BMs who were not found at their respective
locations, 36% were not traceable.
8
• Not traceable for the purpose of the
study is defined as those BMs who are
not found at the address, could not be
contacted on the number provided and
no one know about them in the
village/SSA location
• Possible reasons for high percentage of
non-traceable BMs could be that the
list has not been updated and/or the
wrong contact details have been
provided.
36%
36%
17%
11%
Not Traceable
Working in Another Village
Stopped Working
Others
Sample size=626
• Working in other villages
Data inconsistency is also partly supported by the fact that a significant proportion (36%) of
BMs was found working in another village/location.
• Stopped working
Another reason for unavailability of BMs is that the BM has become dormant and has stopped
working.
• Other
Someone else is working in place of the BM or there are other exceptional reasons which led
the non-availability of BM.

Branding is not proper at the majority of BM locations.
9
• These observations have
been taken for both
available as well as not
available BMs during the
physical visit of the
enumerator to the
address.
• Though many BMs have
received PMJDY banner,
it is not displayed at the
outlet.
30%
48%
46%
27%
Timing Mentioned
Signage Installed
Bank Logo
PMJDY Logo
Sample size=2,039
Graph 6: PMJDY Branding Status of BMs

The average number of transactions per month per BM is 195
and only 53% of the BMs are receiving commission on time.
10
• The reason for low number of transactions in Rajasthan and Gujarat is primarily
due to involvement of BMs in account opening/sourcing for most of their time.
• In the states of Bihar and Jharkhand some of the BCNMS are paying high fixed
monthly amounts and variable incentives to the BMs while in many other states
they are paid on the basis of number of transactions.

Average revenue earned per month ranges from INR 1,450 in
Odisha to INR 5,616 in Jharkhand; whereas BMs average revenue
expectation ranges from INR 7,000 to INR 13,000.
11
82%
77%
66%
35% 35%
32%
25%
20%
15%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
AP Bihar Gujarat MP UP Jharkhand Chattisgarh Odisha Rajasthan
Sample size= 981
Graph 8: Receipt of commission in time
5,616
3,995
2,886
2,250
2,174 2,083 2,043 2,020
1,450
2,724
0
1000
2000
3000
4000
5000
6000
Jharkhand Bihar Rajasthan Chattisgarh AP MP Gujarat UP Odisha
Graph 9: Average revenue earned per month (in INR)

Key Results- II
Beneficiary Interviews:
i) Is the account opened under PMJDY their first account?
ii) Have the customers received RuPay card?
iii) Is the Aadhaar number available and has it been linked to
the PMJDY account?
12

Account opened under PMJDY scheme is the first account for
86% of the account holders. However, only 18% of the account
holders have received RuPay card.
13
Graph 11: Percentage of account holders who have received RuPay Card
94% 91% 90% 90%
82% 82%
75% 74% 71%
86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gujarat MP Odisha UP AP Bihar Jharkhand Rajasthan Chattisgarh
Sample size=8,789
Graph 10: PMJDY A/c first A/c- State-wise
44%
20%
18%
16% 16%
11% 11%
8% 7%
18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
AP Gujarat Bihar UP Jharkhand MP Chattisgarh Odisha Rajasthan
Sample size=8,789

45% of the PMJDY account holders have Aadhaar number - of
which 79% PMJDY accounts have been seeded with Aadhaar
14
100% 95%
75%
66%
56% 55%
29%
13%
8%
45%
0%
20%
40%
60%
80%
100%
120%
Jharkhand AP Odisha Gujarat Rajasthan MP Chattisgarh UP Bihar
Sample size=8,789
Graph 12: PMJDY account holders having Aadhaar number
92%
80%
47%
42%
36%
28%
12%
3% 2%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AP Jharkhand MP Gujarat Rajasthan Odisha UP Chattisgarh Bihar
Sample size=3,972
Graph 13: Aadhaar seeded PMJDY accounts

Service Quality- Strengths and Areas for
improvement
15
●Working hours for BMs are longer than a typical bank branch
●In most cases, transaction point in nearer as compared to other
options
●Waiting time is less – transaction is completed in less than ten
minutes (including waiting time)
●Standardised branding for easy identification and trust building
●Standard training of BMs across banks and BCNMs to ensure
basic knowledge of banking products to be able to answer
customer queries
●Grievance redress mechanism to ensure high customer service
levels and to build trust amongst target clients

Some common issues at the Bank Mitrs level
16
●Mapping of multiple SSA
●Connectivity
●Commission
●Delay in account activation
●Low level of monitoring by Bank/ BCNM
●Absence of customer complaint resolution system
●Absence of helpline facility for customer
●Lack of branding of pass books/accounts opened
under

Best practices
17
●Use of e-KYC for account opening
●Aadhaar based transactions
●Database Management
●Managing multiple SSAs
●Capacity building of Bank Mitr

Recommendations
18
●Standard format for data on BMs
●Sub service area (SSA) allocation has to be rationalised.
●Operational guidelines for Bank Mitr
●Monitoring by banks
●Capacity building
●Commission
●Financial Education
●Issuing passbooks
●Helpline facility

Annexure
Bank Wise Analysis
19
For bank wise analysis, only those banks have been considered whose
sample was 40 or more.

Availability of Bank Mitr
20
99%
88% 86%
83%
81%
75%
71%
64% 63% 62%
59%
56%
39%
0%
20%
40%
60%
80%
100%
Andhra
Bank
Dena Guj
GB
Dena
Bank
BOB UBGB Allahabad
Bank
CBI SBI PNB AUPGB SBBJ BOI MBGB
Bank Wise Availability of Bank Mitrs
Overall availability of Bank Mitrs has
improved. Low figure for few banks could be
the result of database not being updated.

Can customer conduct transaction at Bank Mitr point?
21
86%
65% 65%
61%
56%
49% 48% 48%
45%
37%
30%
24%
21%
0%
20%
40%
60%
80%
100%
Andhra
Bank
Dena
Bank
SBI BOB UBGB PNB BOI Dena Guj
GB
CBI Allahabad
Bank
SBBJ MBGB AUPGB
"Transaction Ready" Bank Mitr

Signage has not been installed at many places
22
76%
63%
60%
51%
45%
40%
38% 37%
34% 33%
31% 30%
12%
0%
20%
40%
60%
80%
100%
UBGB BOI SBI Dena
Bank
Andhra
Bank
PNB CBI BOB Allahabad
Bank
AUPGB Dena Guj
GB
MBGB SBBJ
Bank Wise Signage Installed
Branding and display of material needs
improvement. Bank’s logo and PMJDY logo
should be visible for easy identification and
consistent branding.

Average transaction per Bank Mitr per month has large
variations
23
272
192 190
175
169
142
138 136
129
77 76 73
43
0
50
100
150
200
250
300
SBI BOB AUPGB Allahabad
Bank
Andhra
Bank
BOI PNB CBI SBBJ UBGB Dena
Bank
MBGB Dena Guj
GB
Avg Transactions per Bank Mitr per Month
Remittance is still a big volume driver.
Location of the BM is primary
deciding factor for number of
transactions. However, non-
remittance BMs are also performing
well at many locations.

And average monthly income of Bank Mitr also has large
variations
24
3,298
3,167
2,967
2,904
2,370
2,303
2,049
1,967 1,954
1,881
1,591
875
699
0
500
1,000
1,500
2,000
2,500
3,000
3,500
BOI UBGB PNB Dena
Bank
BOB SBI Andhra
Bank
Allahabad
Bank
CBI Dena Guj
GB
AUPGB MBGB SBBJ
Avg. Monthy Income of Bank Mitr
Most banks are paying fixed plus
variable remuneration. However,
the amount of fixed monthly
remuneration also varies, leading
to high variations in monthly
income for BMs.

Few Bank Mitrs receive commissions on time
25
86%
72%
62%
47%
45%
36%
31%
24%
22%
10% 8% 7%
0%
0%
20%
40%
60%
80%
100%
UBGB Andhra
Bank
Dena
Bank
BOB SBI BOI PNB SBBJ CBI AUPGB Allahabad
Bank
Dena Guj
GB
MBGB
Comissions Received by Bank Mitr on Time
Payment of commissions is
erratic and usually does not
come with break-up or details.
Not being paid on time is a
serious concern for the majority
of BMs.

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