1. Home
2. Letters

Simplify savings-accounts in banks

Kashmir Times. Dated: 9/8/2018 2:27:52 PM

Dear Editor,
Union Cabinet on 06.09.2018 decided to further encourage scope of Pradhan Mantri Jan Dhan Yojna -PMJDY earlier aimed to target every household, now aiming for every adult to open bank-accounts under the scheme. It is indeed necessary that more and more citizens may be attached with banking-network with ultimate aim to have a bank-account by every adult citizen.
But instead of encouraging unsecured loans like freebies under PMJDY, an aspect likely to be misused by opening multiple bank-accounts by an individual in different banks to avail multiple loans under the scheme, government should better simplify normal savings-accounts in all banks by abolishing requirement of minimum bank-balance and providing free insurance-covers in all savings-accounts thus abolishing concept of Jan-Dhan accounts altogether. Existing Jan-Dhan accounts can be converted in normal savings-accounts. However it should be ensured that free insurance-cover may not be misused by claiming multiple times from different bank-accounts of an individual. Such simplified rules should be for even private-sector banks. Free insurance-covers can be provided by banks under provisions of Corporate Social Responsibility -CSR.
--Subhash Chandra Agrawal
1775 Kucha Lattushah
DELHI 110006 (India)