“AN ASSESSMENT OF RECENT INITIATIVES TAKEN FOR BANKING THE UNBANKED (NAGPUR DISTRICT)”

1. PROJECT REPORT ON
“AN ASSESSMENT OF RECENT INITIATIVES TAKEN FOR
BANKING THE UNBANKED (NAGPUR DISTRICT)”
SUBMITTED TO
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY,
NAGPUR
FOR THE PARTIAL FULFILLMENT OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SPECIALIZATION
FINANCIAL MANAGEMENT
SUBMITTED BY
MUHAMMAD MEHDI
MBA (II Year)
2014-2015
UNDER THE GUIDANCE OF
PROF. SHIVAJI S. DHAWAD
CENTRAL INSTITUTE OF BUSINESS MANAGEMENT
RESEARCH AND DEVELOPMENT, PAWANBHOOMI, NAGPUR

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ACKNOWLEDGEMENT
It is true that I have taken efforts in this project. However, it would not
have been possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to "PROFESSOR M. I. RAHIM KHAYYAM"
and "PROFESSOR SHIVAJI S. DHAWAD" for their guidance and constant
supervision as well as for providing necessary information regarding the project
& also for their support in completing the project.
I would like to express my gratitude towards my parents & member of
"CENTRAL INSTITUTE OF BUSINESS MANAGEMENT RESEARCH
AND DEVELOPMENT COLLEGE, NAGPUR"for their kind co-operation
and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to Lead Bank i.e.
"BANK OF INDIA" and Lead District Manager of the same for Financial
inclusion "MR. MOHAN B. MASHANKAR" for giving me such attention
and time.
My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities
specially "DR. SUKHBIR KAUR", for suggesting such a wonderful topic and
helping throughout the project preparation.
Place: Nagpur MUHAMMAD MEHDI
Date: 30-03-2015 Name & Sign of Student

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DECLARATION
I, the undersigned (MUHAMMAD MEHDI) honestly declare that, this
Project Report entitled “AN ASSESSMENT OF RECENT INITIATIVES
TAKEN FOR BANKING THE UNBANKED (NAGPUR DISTRICT)” is a
genuine and bonafide project prepared by me in partial fulfilment of degree of
"MASTER OF BUSINESS ADMINISTRATION" of "RASHTRASANT
TUKDOJI MAHARAJ NAGPUR UNIVERSITY, NAGPUR".
The Project work is original and the conclusions drawn herein are based
on the data collected and analyzed by me.
To the best of my knowledge, the matter presented in this project has not
been submitted and awarded for any degree, diploma or membership either to
this or any other Institute or University.
Place: Nagpur MUHAMMAD MEHDI
Date: 30-03-2015 Name & Sign of Student

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CERTIFICATE
This is to certify that the project entitled, “AN ASSESSMENT OF
RECENT INITIATIVES TAKEN FOR BANKING THE UNBANKED
(NAGPUR DISTRICT)” submitted by "MUHAMMAD MEHDI GHULAM
HASNAIN" in partial fulfilment of the requirements for the award of
"MASTER OF BUSINESS ADMINISTRATION" in "FINANCIAL
MANAGEMENT" at the "CENTRAL INSTITUTE OF BUSINESS
MANAGEMENT RESEARCH AND DEVELOPMENT,
PAWANBHOOMI, NAGPUR" is an authentic work carried out by him under
my supervision and guidance.
To the best of my knowledge, the matter embodied in the project has not
been submitted to any other University / Institute for the award of any Degree or
Diploma.
Place: Nagpur
Date: 30-03-2015
Signatures: Guides
DR. AMISHI ARORA PROF. SHIVAJI S. DHAWAD
Director
CIBMRD College PROF. M. I. RAHIM KHAYYAM

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INDEX
Chapter Particulars Page No.
List of Figures 06
List of Appendix 06
Acronyms Used 07
01. Introduction
 Financial Inclusion
 Facts & Figures (India & Nagpur)
 Brief about Initiatives
08
02. About Study
 Objectives of the Study
 Limitations of the Study
 Importance of the Study
15
03. Review of Literature 17
04. Research Methodology
 Data Collection (Primary & Secondary Method)
 Sample Size & Selection
 Sample Area (Nagpur District)
 Sample Period
 Assessment Indicators/ tools
20
05. Data Presentation, Interpretation & Analysis
 Banking Scenario of Nagpur District
 Branch Penetration in Nagpur District
 Swabhimaan (Targeted & Implemented)
 Extended Swabhimaan (Targeted & Implemented)
 PMJDY (Targeted & Implemented)
 Coverage under different initiatives
25
06. Findings & Conclusion 36
07. Suggestions 39
Bibliography 41
Appendix 43

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List of Figures
Sr. No Particulars
1 Definition of Financial Inclusion
2 Nagpur District in CRISIL Inclusix
3 Financial Inclusion Initiatives
4 Brief Description of financial Inclusion Initiatives
5 List of Banks operating in Nagpur District
6 Nagpur at a Glance
7 Bank Branches in Nagpur District
8 Shares of Different Banks
9 Facts regarding Nagpur District
10 Branch Penetration
11 Targeted Villages Population > 2000
12 Achieved Results Under Swabhimaan
13 Allotted villages under Extended Swabhimaan
14 Achieved Result under Extended Swabhimaan
15 Household under PMJDY Mission
16 Total Coverage Under Different Initiatives
17 Difference between Swabhimaan & PMJDY
List of Appendix
Sr. No. Particulars
1 Questionnaire to LDM
2 Swabhimaan Vision document
3 PMJDY Frequently Asked Questions

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List of Acronyms
Particulars
FI Financial Inclusion
GOI Government of India
RBI Reserve Bank of India
PMJDY Pradhan Mnatri Jan Dhan Yojana
Popul. Population
LDM Lead District Manager
BC Business Correspondent
BF Business Facilitator
PSB Public Sector Banks
Pvt. Private Sector Banks
COOP Co-Operative Banks
RRB Regional Rural Banks
BA Business Associate
BOI Bank of India
SBI State Bank of India
BOM Bank of Maharashtra
SLBC State Level Banker's Committee
LB Lead Bank
Nagpur (R) Nagpur (Rural)
Nagpur (U) Nagpur (Urban)
CBI Central Bank of India
IP India Post
KYC Know your Customer
E- Banking Electronic Banking

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Introduction:
Finance is very essential for every economic activity. Without adequate finance no
activity can be undertaken. Finance is also required by the every section of the society. But
from the beginning of the civilization, only the financial needs of the upper section of the
society were catered. Access to finance by the poor and weaker groups is very difficult. This
is due to the various reasons such as lack of banking facilities for this section, unawareness
about the schemes available for them, lack of a regular or substantial income etc. Moreover,
banks also give more importance to meeting their financial targets. So they focus on larger
accounts. It is not profitable for banks to provide small loans and make a profit. Hence, the
need for financial inclusion is felt.
In regards with this need, the concept of Financial Inclusion is not a new one and it
has become a catchphrase now and has attracted the global attention in the recent past. Lack
of accessible, affordable and appropriate financial services has always been a global problem.
It is estimated that about 2.9 billion people around the world do not have access to formal
sources of banking and financial services. In India a significant proportion of our 6,50,000
odd villages does not have a single bank branch to boast of, leaving swathes of the rural
population in financial exclusion. RBI has reported that the financial exclusion in India leads
to the loss of GDP to the extent of one per cent. (RBI, Working Paper Series (DEPR):
8/2011)
Financial Inclusion Defined
In simple terms, Financial Inclusion means ensuring that the poorest of poor, the most
disadvantaged sections of society, those living in the remotest corners of the country—all
these have free access to formal financial services, be they loans, deposits, payments,
insurance or pensions. And these services should be available at an affordable cost.
The Rangarajan Committee (2008) defines it as
"The process of ensuring access to financial services and timely and adequate credit,
where needed, by vulnerable groups such as weaker sections and low income groups at an
affordable cost". (Report of the Rangrajan Committee on Financial Inclusion)

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According to the Planning Commission (2009)
" Financial inclusion refers to universal access to a wide range of financial services at
a reasonable cost. These include not only banking products but also other financial services
such as insurance and equity products".
According to Chakraborty (2011)
"Financial inclusion is the process of ensuring access to appropriate financial products
and services needed by all sections of society including vulnerable groups such as weaker
sections and low income groups at an affordable cost in a fair and transparent manner by
mainstream institutional players".
Figure 01. Definition of Financial Inclusion

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As someone put it simply but beautifully, it is ensuring financial access to those at the
bottom of the pyramid, in the deepest of geographies, at the last mile stone, in the remotest of
the country’s corners, in the most unreachable of villages, across un-travelled roads and
across the most underprivileged of social segments.
Objectives of Financial Inclusion
1. Extending formal banking system among less privileged in urban and rural India.
2. Saving them from unorganized money markets and moneylenders.
3. Equipping them with the confidence to make informed financial decisions.
Facts & Figures
India is place of the largest unbanked population where, only 35 percent adults having
an account in financial institutions which shows that percentage of account penetration in
India just below rest of the developing world. About 50 percent of adults reports in Andhra
Pradesh and Delhi NCR and 40 percent in Gujarat, Kerala, and Maharashtra having a formal
account but Bihar, Orissa, and Rajasthan reports less than 30 percent account penetration.
As per data available from Census 2011, India is having population of around 1.22
billion and 65 per cent of adults across the country are excluded from the formal financial
system.
As per the report of World Bank, In India, only 35.2 percent adults above the age of
15 years have an account at formal financial institutions. 55 percent population has deposit
accounts and only 9 percent population have credit accounts with formal financial
institutions.
Reports show that there is one bank branch per 14,000 persons. Just 18 percent are
debit card holders and less than 2 percent are credit cards holders.

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In India, despite expansion of bank branches post reform period, the total branches of
commercial banks including RRB‟s and SCB‟s has still stood only 48000 in a country to
provide service to 6 lakh villages. So there is only one bank branch over the 12.5 villages.
As per CRISIL Inclusix Results, CRISIL Inclusix at an all-India level stood at a relatively
low level of 40.1 for 2011 (on a scale of 100). In 2011, the all-India index level did improve
marginally (from 37.6 for 2010), indicating progress on financial inclusion goals.
Nagpur District according to CRISIL Inclusix
Particulars 2009 2010 2011 2012
CRISIL Inclusix Scores
(in terms of Branch, Credit &
Accounts Penetration)
36.9 39.1 44.2 48.5
CRISIL Inclusix Rank
(Total 638 Districts)
213 216 195 178
Figure 02. Nagpur District in CRISIL Inclusix
Brief about Initiatives:
In India, various measures taken by banks, GOI and RBI for financial inclusion plan.
Following figure highlights financial inclusion approaches under various heads,

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Figure 03. Financial Inclusion Initiatives
To understand about the steps that are taken from Government of India and Reserve
Bank of India and various public and private sector banks, this figure will explain in brief
under different heads.
Initiatives Particulars
Government
Initiatives
 Nationalization of Banks in 1969
 Swabhimaan in 2010, then it was extended in 2012
 Pradhan Mantri Jan Dhan Yojana at 28 August 2014
 Various Schemes like National Rural Livelihood Mission,
National Urban Livelihood Mission
 Changes in Approach (From Village covering to Household
Coverage)

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Regulator Led
Initiatives
 Lead Bank Scheme in 1969
 Simplification in KYC Norms (Various notifications last one is E-
KYC)
 Simplification in Branch Authorization norms in 2012
 AADHAR as proof of Identity and Address both
Bank Led
Initiatives
 Business Correspondent Model
 Individual and Not for Profit Organizations in 2006
 SHG - Bank Linkage
 Inclusion of For Profit Organizations in 2009
 Micro Finance institutions - Bank Linkage
 Inclusion of Non Banking Financial Companies in 2014
 Decisions Regarding Radius ( to increase outreach)
 Ultra Small Branches (USB) to remove deficiencies of BC/BFs
Product Led
Initiatives
 No Frills Account in 2005
 Kisan Credit Card (KCC) for Farmers
 General Purpose Credit Cards (GCC) for Rural, Semi Urban and
Urban non Farmers in 2013
 Basic Saving Bank Deposit Accounts in 2012
 Insurance Facility (Under PMJDY)
 Rupay Debit Card (Under PMJDY)
 Overdraft Facility (Under PMJDY)
Technology
Based Initiatives
 Mobile Banking in 2008
 Web Kiosk
 Direct Benefit Transfer in 2011
 PAHEL in 2015
Initiatives  Financial Stability and Development Council (FSDC) in 2008
 Financial Literacy and Credit Council Centre (FLCC) in 2012
Figure 04. Brief Description of financial Inclusion Initiatives

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Objectives of the study
 To find out the meaning of financial inclusion.
 To highlight Central Government and Reserve bank of India’s initiatives to achieve
financial inclusion and its policy structure.
 To explore financial inclusion scenario particularly in Nagpur District.
 To assess the level of implementation in Nagpur District of recent initiatives
(Swabhimaan and PMJDY).
 To study various challenges faced by banks in implementing financial inclusion
Limitation of the study
 The study will be limited to Nagpur District only.
 The study will be conducted for a limited time frame.
 The result of the study will depend totally on information collected through survey,
from the lead bank manager and different banks.
In spite of these limitations, an honest attempt has been made to arrive at fairly objective
conclusions.
Importance of the Study
With the progress of the Indian economy, especially when the focus is on the
achievement of sustainable development, there must be an attempt to include maximum
number of participation from all the sections of the society thus assessing those initiatives
which are taken in this regard also important.
The concept of examining financial access became important immediately after the
All-India Rural Credit Survey that was completed in the 1950s. The results of the survey
revealed that farmers relied heavily on money-lenders in the year 1951-52. and that patterns
continues till now.

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Review of Literature
"Financial Inclusion in India – A Review of Initiatives and Achievements" by
Sonu Garg and Dr. Parul Agarwal which was published in IOSR Journal of Business and
Management (IOSR-JBM), Volume 16, Issue 6. Ver. I (Jun. 2014), PP 52-61.
In this paper, the researcher attempts to understand financial inclusion and its
importance for overall development of society and Nation’s economy. And this study also
focuses on approaches adopted by various Indian banks towards achieving the ultimate goal
of financial inclusion for inclusive growth in India.
“Financial Inclusion And Banks – Issues And Perspectives” is an Address by Dr.
K C Chakrabarty, (Deputy Governor of the Reserve Bank of India), at The Federation of
Indian Chambers of Commerce & Industry (FICCI) Seminar.
The paper states the policy measures of financial inclusion by Reserve Bank of India
and its effectiveness throughout the years. It also states about the challenges which are going
to face in the near future by banks.
"Measuring Financial Inclusion: Explaining Variation in Use of Financial
Services across and within Countries "by Asli Demirguc-kunt and Leora Klapper in Findex
notes ; no. 8., The World Bank,2013,1-6.
This paper summarizes the first publicly available, user-side data set of indicators that
measure how adults in 148 countries save, borrow, make payments, and manage risk. It uses
the data to benchmark financial inclusion in countries around the world, and to investigate the
significant country- and individual-level variation in how adults use formal and informal
financial systems to manage their day-to-day finances and plan for the future.
"Role of Banks In promoting Financial Inclusion In India" by Shahana Khan
which was published in ASM's International E-Journal of Ongoing Research in Management
and IT.
This paper examines the level of financial inclusion achieved by banks in India in
India. It is found that in spite of various efforts by the government financial inclusion has still
remained a distant reality.

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"CRISIL Inclusix" an initiative developed by CRISIL with support from Ministry of
Finance, Government of India and Reserve Bank of India published at June 2013.
It is an index to measure India's progress on Financial Inclusion. CRISIL Inclusix is
India’s first comprehensive measure of financial inclusion in the form of an index. It is a
relative index that has a scale of 0 to 100, and combines three very critical parameters of
basic banking services
 Branch Penetration (BP),
 Deposit Penetration (DP),
 Credit Penetration (CP) together into one single metric.
CRISIL evaluates financial inclusion at the national, state, district level vis-à-vis a
defined ideal. A CRISIL Inclusix score of 100 indicates the ideal state for each of the three
parameters.

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Sample Size & Selection
All the banks (Public, Private and Regional) which are responsible for the
implementation of Swabhimaan and Pradhan Mantri Jan Dhan Yojana (PMJDY) in Nagpur
District, (22 PSBs and 7 Pvt. and 3 RRB) as allotted by SLBC Maharashtra and they are:
Public Sector Banks
1 Allahabad Bank
2 Andhra Bank
3 Bank of Baroda
4 Bank of India
5 Bank of Maharashtra
6 Canara Bank
7 Central Bank of India
8 Corporation Bank
9 Dena Bank
10 IDBI Bank
11 Indian Bank
12 Indian Overseas Bank
13 Oriental Bank of Commerce
14 Punjab & Sind Bank
15 Punjab National Bank
16 State Bank of Hyderabad
17 State Bank of India
18 Syndicate Bank
19 UCO Bank
20 Union Bank of India
21 United Bank of India
22 Vijaya Bank
Private Sector Banks
1 Axis Bank
2 Federal Bank
3 HDFC Bank

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4 ICICI Bank
5 ING Vysya Bank
6 Karnataka Bank Ltd.
7 Ratnakar Bank
Regional Rural Banks
1 Maharashtra Gramin Bank
2 Vidarbha Kshetriya Gramin Bank
3 Wainganga Krishna Gramin Bank
Figure 05. List of Banks operating in Nagpur District
Sample Period
1. Till 31th March 2011 ( Before implementation of Swabhimaan)
2. From April 2011 to March 2012 (Under Swabhimaan period).
3. From April 2012 to 27th August 2014 (Under Extended Swabhimaan period)
4. From 28th August 2014 to 26th January 2015 (Under PMJDY Period).
Assessment Tools
All analysis is done by using basic mathematical terminologies.

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Sample Area (Nagpur District)
Nagpur district is one of the nine districts of Vidarbha Region of Maharashtra State. It
is situated on the eastern part of the State. It is bounded by Wardha and Amravati districts in
the west, Bhandara district in the east and Chandrapur district in the south. The district
headquarters is located at Nagpur Town
 Geographical Area: 9897 Sq. Km.
 Total Population: 46,53,171 (As per Census 2011)
 Administrative Divisions: 14
 Total Villages: 1658
Nagpur at a Glance:
Name of Tahsils No. of Villages No. of Households Sum of Population
Bhiwapur 109 19990 81519
Hingna 133 58928 242198
Kalameshwar 100 28573 122363
Kamptee 78 50307 238870
Katol 164 37710 163808
Kuhi 151 28791 123977
Mauda 119 31730 139776
Nagpur (Rural) 146 70781 302195
Nagpur (Urban) 1 527634 2405665
Narkhed 130 34398 147907
Parseoni 110 30605 143019
Ramtek 147 35249 158643
Savner 130 51327 229450
Umred 140 35521 154180
Grand Total 1658 1041544 4653570
Figure 06. Nagpur at a Glance

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Data Collection
Primary Method
 District Lead Banks (Bank of India) for overall allotted villages or households, It's
implementation level through all banks (PSU, RRB and Co-operative societies)
 State SLBC Convener (Bank of Maharashtra)
 Lead District Manager and Business Associates of lead bank to find out challenges
faced while achieving the target.
Secondary Method
 Websites
 Global Findex of World Bank
 Ministry of Finance ( Department of Financial Services)
 Reserve Bank of India
 Pradhan Mantri Jan Dhan Yojana
 Bank of Maharashtra (SLBC Convener)
 Bank of India ( Lead Bank)
 Nagpur District Collector Office
 Research Papers
 Journals

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1) Nagpur Banking Scenario:
Bank Branches In Nagpur District
Public Sector Banks 383
Pvt. Sector Banks 46
Regional Rural Banks 9
Co-Operative Banks 86
Grand Total 524
Figure 07. Bank Branches in Nagpur District
Figure 08. Shares of Different Banks

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Data Interpretation
 Public Sector Banks Have the Highest Share in Nagpur District Banking.
 Only one RRB was allotted financial inclusion initiative in Nagpur District
 The share of cooperative society bank is second highest after bublic sector banks in
Nagpur District.
2) Branch Penetration in Nagpur District
Nagpur District
Total Tahsil 14
Total Village 1,658
Total Population 46,53,171
Total Household 10,41,544
Total Area 9,897
Figure 09. Facts regarding Nagpur District
From the above data, we can calculate these which are describes in the following table.
Branch Penetration
Area Wise 19 Sq. Km per Branch
Tahsil Wise 37 per Tahsil
Population Wise 8,880 per Branch
Household Wise 1,988 per Branch
Village Wise 3 per Branch
Figure 10. Branch Penetration

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Data Interpretation:
 In Nagpur District, there is only one branch to cover the 19 Sq. Km. Area.
 In every Tahsil of Nagpur District, there is 37 Branches of Banks.
 For three villages of villages of Nagpur District, there is only one branch.
 On an average one branch is doing business of 1988 households.
3) Swabhimaan
Reserve Bank of India on the basis of recommendations of High Level Committee on
Lead Bank Scheme directed lead banks to draw a road map by March 2010 to provide
banking services through a banking outlet in every village having a population of over 2000,
and further stated that such banking services may not necessarily be through a brick and
mortar branch but can be provided through any of the various forms of ICT-based
models with the help of hand held machines, smart card & Business Correspondents, this
initiative is called Swabhimaan.
In Maharashtra State As per census 2001, there are 7312 villages in the state having
population above 2000, of which 4292 villages have been identified as unbanked in the state.
Out of which, in Nagpur District number of villages having population above 2000 was 127,
total 65 of them were banked so 62 villages were identified as unbanked villages. Following
table illustrate about these villages along with the population and to whom it is allotted
Targeted Villages Population > 2000
Sr. No. Block Village Bank Population
1 Bhiwapur Tas BOI 2011
2 Hingna Sawangi (devali) BOM 2172
3 Hingna Wagdara Allahabad bank 2603
4 Hingna Isasani UCO Bank 4033
5 Hingna Waddhamana BOI 4174

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6 Hingna Nagalwadi BOI 4245
7 Hingna Turkmari Allahabad bank 4687
8 Hingna Raipur UCO Bank 7809
9 Kalmeshwar Ghorad BOI 2616
10 Kalmeshwar Ubali BOI 2751
11 Kalmeshwar Bamhni BOI 8400
12 Kamptee Mahalgaon CBI 2309
13 Kamptee Ajani BOI 2439
14 Kamptee Ranala BOI 2509
15 Kamptee Bina SBI 3269
16 Katol Kohali UCO Bank 2307
17 Katol Ridhora SBI 3642
18 Kuhi Silli BOM 2100
19 Mouda Mohadi SBI 2008
20 Mouda Gowari SBI 2035
21 Mouda Dahegaon BOB 2284
22 Mouda Marodi BOB 2314
23 Mouda Niharwani BOB 2434
24 Mouda Mathani BOB 2534
25 Mouda Chirwha SBI 2646
26 Mouda Rewaral BOM 3096
27 Nagpur Ruikhairi BOI 2124
28 Nagpur Khadgaon Syndicate Bank 2133
29 Nagpur Kharabi SBI 2284
30 Nagpur Shiwa BOI 2519
31 Nagpur Linga BOI 2699
32 Nagpur Lava Syndicate Bank 3634
33 Nagpur Rengapar BOI 3843
34 Nagpur Borkhedi Allahabad bank 4675
35 Nagpur Bhokara IDBI 4704
36 Nagpur Narsala SBI 5127
37 Narkhed Rohana BOI 2034
38 Narkhed Mendhala SBI 2154

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39 Narkhed Kharsoli SBI 2543
40 Narkhed Khairgaon BOI 4932
41 Narkhed Belona BOI 5895
42 Parseoni Juni Kamptee Indian bank 2062
43 Parseoni Naikund SBI 2356
44 Parseoni Karanbhad SBI 2526
45 Parseoni Sihora SBI 3896
46 Ramtek Khairi Syndicate Bank 2055
47 Ramtek Bhondewada BOI 2402
48 Ramtek Kachurwahi SBI 2623
49 Ramtek Patgowari Syndicate Bank 3504
50 Savner Khairi (Dhalgaon) BOI 2031
51 Savner Takali BOI 2147
52 Savner Malegaon BOI 2213
53 Savner Pota UCO Bank 2215
54 Savner Mangsa SBI 2268
55 Savner Umari (Bharatpur) BOM 2507
56 Savner Wakodi Dena bank 3380
57 Savner Dahegaon ( Rangari) SBI 3754
58 Savner Pipla (da-b) SBI 4258
59 Savner Wagoda BOI 5811
60 Savner Bhanegaon Dena bank 6003
61 Savner Chandkapur UCO Bank 9485
62 Umrer Wayagaon (rt) SBI 3848
Figure 11. Targeted Villages Population > 2000

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Achieved Result:
Villages Population > 2000
Bank No. of Allotted Covered Villages (BR + BC) % of Coverage
Allahabad Bank 3 3 100%
Bank of Baroda 4 4 100%
Bank of India 20 20 100%
Bank of Maharashtra 4 4 100%
Central Bank of India 1 1 100%
Dena Bank 2 2 100%
IDBI Bank 1 1 100%
Indian Bank 1 1 100%
State Bank of India 17 17 100%
Syndicate Bank 4 4 100%
UCO Bank 5 5 100%
Grand Total 62 62 100%
Figure 12. Achieved Results Under Swabhimaan
Data Interpretation:
Out of 127 villages having above the population of 2000 (As per Census 2001), 65
Villages were already Banked before the initiation of Swabhimaan. In the span of one years
remaining 62 villages were equipped with financial access and services.
4) Extended Swabhimaan
From the success of Swabhimaan (the villages above 2000 population, government of
India decided to extend the initiative to villages below the population of 2000 as per 2001
Census. Details regarding that is illustrated in the following table.

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Villages < 2000 Population
Sr. No. Banks No. of Allotted Village
1 Allahabad Bank 47
2 Andhra Bank 2
3 Bank of Baroda 48
4 Bank of India 598
5 Bank of Maharashtra 165
6 Canara Bank 2
7 Central Bank of India 63
8 Dena Bank 42
9 IDBI Bank 28
10 Indian Bank 3
11 Punjab National Bank 40
12 State Bank of India 263
13 Syndicate Bank 11
14 UCO Bank 91
15 Union Bank of India 70
16 ICICI Bank 12
17 Vidarbha Konkan Gramin Bank 8
Total 1493
Figure 13. Allotted villages under Extended Swabhimaan
Achieved Result
Villages < 2000 Population
Banks No. of Allotted Village Achieved % of Achievement
Allahabad Bank 47 10 21.3%
Andhra Bank 2 2 100.0%
Bank of Baroda 48 48 100.0%
Bank of India 598 598 100.0%

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Bank of Maharashtra 165 19 11.5%
Canara Bank 2 2 100.0%
Central Bank of India 63 63 100.0%
Dena Bank 42 42 100.0%
IDBI Bank 28 28 100.0%
Indian Bank 3 3 100.0%
Punjab National Bank 40 40 100.0%
State Bank of India 263 263 100.0%
Syndicate Bank 11 11 100.0%
UCO Bank 91 91 100.0%
Union Bank of India 70 7 10.0%
ICICI Bank 12 10 83.3%
Vidarbha Konkan Gramin Bank 8 5 62.5%
Total 1493 1242 83.2%
Figure 14. Achieved Result under Extended Swabhimaan
Data Interpretation
In extended Swabhimaan, villages which are having the population between 1600 to
2000 were identified and targeted by the different banks as per allotment of SLBC
Maharashtra. In the extended Swabhimaan period, the target which is achieves is 83.2 %., it
means till now 251 villages are not having any model of reaching to the excluded people.
5) PMJDY
As per the estimation of Public Sector Banks (PSBs) including RRBs out of the 13.14
crore rural households which were allocated to them for coverage, about 7.22 crore
households have been covered (5.94 crore uncovered). It is estimated that 6 Crore households
in rural and 1.5 Crore in urban area needs to be covered. so for including the excluded people

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Prime Minister Narendra Modi with the help of Ministry of Finance, Department of Financial
Services and Reserve bank of India initiated a mission called Pradhan Mantri Jan Dhan
Yojana.
Following table illustrate the schme of financial inclusion in Nagpur Region through
PMJDY.
Household Under PMJDY
Name of Tahsils No. of Villages No. of Households
Bhiwapur 109 19990
Hingna 133 58928
Kalameshwar 100 28573
Kamptee 78 50307
Katol 164 37710
Kuhi 151 28791
Mauda 119 31730
Nagpur (Rural) 146 70781
Nagpur (Urban) 1 527634
Narkhed 130 34398
Parseoni 110 30605
Ramtek 147 35249
Savner 130 51327
Umred 140 35521
Grand Total 1658 1041544
Figure 15. Household under PMJDY Mission
Achieved Result:
According to PMJDY Progress report on the website, the coverage is 100% in Nagpur
District of Maharashtra State.

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6) Total Covered Villages:
Covered Villages
By Swabhimaan 127
By Extended Swabhimaan 1242
By PMJDY 316
Total Villages 1685
Figure 16. Total Coverage Under Different Initiatives
Data Interpretation:
It is observed that, though the PMJDY mission has completed the target of 100
percent achievement but in reality it has covered remaining 316 villages which was left after
Swabhimaan and Extended Swabhimaan initiatives. It may be said that most of the accounts
which are opened in PMJDY initiative already has its own account in banks.
It has been observed that the actual households which is covered under PMJDY
initiative cannot determined because the policy change of government. Earlier it was
covering of villages and it was successful at some extent but this mission was covering of
households and includes those households which are covered by earlier initiatives too.

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Findings:
 There are a lot of Initiatives which are taken for banking the banked and some of them
are quite successful.
 Out of 127 villages having above the population of 2000 (As per Census 2001), 65
Villages were already Banked before the initiation of Swabhimaan. In the span of two
years remaining 62 villages were equipped with financial access and services.
 In extended Swabhimaan, the target which is achieves is 83.2 %., it means till now
251 villages are not having any model of reaching to the excluded people.
 According to PMJDY Progress report on the website, the coverage is 100% in Nagpur
District of Maharashtra State.
 PMJDY has covered only 316 villages to complete the financial inclusion
achievements.
 Public Sector Banks Have the Highest Share in Nagpur District Banking.
 The share of cooperative society bank is second highest after public sector banks in
Nagpur District.
 Only one RRB was allotted financial inclusion initiative in Nagpur District.
 The share of Private sector banks in promoting financial inclusion is less than public
and Co-operative banks.
 There is only one branch to cover the 19 Sq. Km. Area of Nagpur District.
 In every Tahsil of Nagpur District, there is 37 Branches of Banks.
 For three villages of Nagpur District, there is only one branch of bank.
 On an average one branch is doing business of 1988 households.

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 Differences between Swabhimaan and PMJDY
Sr. No. Swabhimaan PMJDY
1 Villages with population greater than or
lessor than 2000 covered; thus limited
geographical coverage
Focus on household; Sub Service Area
(SSA) for coverage of the whole
country.
2 Only rural Both rural and urban
3 Bank Mitr (Business Correspondent)
was visiting on fixed days only
Fixed point Bank Mitr (Business
Correspondent) in each SSA comprising
of 1000-1500 households (3 to 4 villages
on an average) to visit other villages in
the SSA on fixed days
4 Focus on account opening and large
number of accounts remained dormant
Account opening to be integrated with
DBT, credit, insurance and pension
5 Inter-operability of accounts was not
there
Inter-operability through RuPay Debit
Card, AEPS etc.
6 Cumbersome KYC formalities Simplified KYC/e-KYC in place as per
RBI guidelines
7 No guidelines on the remuneration of
the Bank Mitr (Business
Correspondent). Banks went generally
with Corporate BCs who used to be
least expensive to them
Minimum remuneration of the Bank
Mitr (Business Correspondent) to be
5000/-( Fixed + Variable)
8 No brand visibility of the Programme &
Bank Mitr (Business Correspondent)
Brand visibility for the programme &
Bank Mitr (Business Correspondent)
proposed
9 Providing credit facilities was not
encouraged
OD limit after satisfactory operations /
credit history of 6 months
10 No grievance re-dressal mechanism Grievance redressal at SLBC level in
respective states
Figure 17. Difference between Swabhimaan & PMJDY

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Suggestion
 Though the target of covering 100 percent is achieved, but problem is about the
dormancy of account. so there is need of those initiative which will helpful in keeping
operationlisation of accounts opened.
 Still there are some scope of expansion in branches so it is suggested that share of
private sector banks can be expanded.
 To increase the outreach of banks to the excluded people, there is need of certain
brick and mortar type models and that can be fulfilled by using post offices as a
counter for banks and also railway platform used as fixed location for providing
financial services. it means banks can tie-up with India Post to utilize their extensive
network by setting up small banking counters at each of their post offices, especially
rural branches. The government owned post offices have sufficient space in the post
offices to set up such a counter with a computer and printer, to be operated by a
commercial bank employee. With existing arrangements at the post offices, these can
be converted into extended banking counters.
 Financial literacy needs to be given importance in schools education, and student
small saving programs, where bankers visit schools and collect small deposits, need to
be revived.
 Methods of financial literacy need to be changed from distributing printed literature to
audio and visual media such as radio and TV programs, especially in local languages.
 There is a need to have granular schemes, preferably different schemes for rural and
urban areas, different product for rural and urban citizen of Nagpur District. Further,
distinct schemes and products can be made on the basis of nature of employment of
different people and the village atmosphere.
 As discussed with LDM of Nagpur District, it is suggested to increase of individual
village boy as BC or BF instead of Corporate business correspondent or facilitator.
 The possibility of appointing house-wives as well as people with limited handicap as
BCs could also be considered as that might reduce the attrition rate and in increasing
the confidence level

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42. 42
Bibliography
1) Research Papers
 "Financial inclusion for Banks in India" by Archana V Rao in International Indexed
& Referred Research Journal , ISSN 2250-2556; Volume. I *ISSUE-1, April 2012.
 "An Empirical Study of Financial Inclusion and its strategic approach in the slums of
Mumbai" by Ramraj T. Nadar in Indian Journal of Management IT and
Engineering, Volume 3, Issue 2 ISSN: 2249-0558.
 "Challenges to financial Inclusion in India: the case of Andhra Pradesh" By S
Ananth, T Sabri Oncu in EPW, Economics and political weekly, February 16,2013.
 "Opportunities & Obstacles to financial inclusion" by Prof. Gayathri Band, Dr.
Kanchan Naidu, Ms. Tina Mehadia in Arth Prabhand, A journal of Economics and
Management, Volume 1 Issue 1, April 2012.
 "Financial Inclusion in India: an Appraisal" by Reena Malik & Sarika Yadav in
International Journal of Research (IJR) Vol-1, Issue-4, May-2014. ISSN 2348-6848.
 "Role of Bank of Maharashtra in Promoting Financial inclusion in India" by Dr.
Sunil Ram Gaikwad in Global Online Electronic International Interdisciplinary
Research Journal (GOEIIRJ) Volume-I, Issue-II October 2012 ISSN: 2278-5639.
 "Including the excluded through financial inclusion" by Dr. B. C. M. Patnaik, Dr.
Ipseeta Satpathy, Nageshwar Patnaik, Aroop Kumar Mohapatra in International
Journal of Physical and Social Science, Volume 2 Issue 7, ISSN: 2249-5894.
 "Financial Inclusion in India: Challenges and Opportunities" By Ms. Richa
Aggrawal in International Journal of Research (IJR) Vol-1, Issue-4, May 2014. ISSN
2348-6848.
2) Websites
 Global Findex of World Bank: www.worldbank.org
 Ministry of Finance ( Department of Financial Services): www.finmin.nic.in
 Reserve Bank of India: www.rbi.org.in
 Pradhan Mantri Jan Dhan Yojana: www.pmjdy.gov.in
 Bank of Maharashtra (SLBC Convener): www.bankofmaharashtra.in
 Bank of India ( Lead Bank): www.bankofindia.com
 Nagpur District Collector Office: www.nagpur.nic.in

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