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Assessment of Bank Mitr’s under Pradhan Mantri Jan DhanYojana (PMJDY)

Report from 9 states, 41 districts

New Delhi19 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

StateDistricts 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

Yes69%

No31%

BM Available - Average of 9 states coveredSample size=2,039

Graph 1: Availability of Bank Mitrs at SSA location

Graph 2: Availability of Bank Mitrs: State-wise

• This is a welcome developmentfrom previous studies, when theavailability was found to be 30-40%.

• Moreover, if we include thenumber of BMs who were workingat other locations (explained later)but not at the location indicated inthe data available with DFS, thefigure for available BMs will beclose 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 purposeof the study is defined as BMs whowere physically available at thetime of the visit and could carryout transaction(s) for customer(s)

• This implies that customers willnot be able to conducttransactions at almost 50% of theBMs if they follow the listprovided 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 thestudy is defined as those BMs who arenot found at the address, could not becontacted on the number provided andno one know about them in thevillage/SSA location

• Possible reasons for high percentage ofnon-traceable BMs could be that thelist has not been updated and/or thewrong contact details have beenprovided.

36%

36%

17%

11%

Not Traceable

Working in Another Village

Stopped Working

Others

Sample size=626

• Working in other villagesData inconsistency is also partly supported by the fact that a significant proportion (36%) of BMs was found working in another village/location.• Stopped workingAnother reason for unavailability of BMs is that the BM has become dormant and has stopped working.• OtherSomeone 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=8,789Graph 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

19For 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%

AndhraBank

Dena GujGB

DenaBank

BOB UBGB AllahabadBank

CBI SBI PNB AUPGB SBBJ BOI MBGB

Bank Wise Availability of Bank MitrsOverall availability of Bank Mitrs hasimproved. Low figure for few banks could bethe 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%

AndhraBank

DenaBank

SBI BOB UBGB PNB BOI Dena GujGB

CBI AllahabadBank

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 DenaBank

AndhraBank

PNB CBI BOB AllahabadBank

AUPGB Dena GujGB

MBGB SBBJ

Bank Wise Signage Installed

Branding and display of material needsimprovement. Bank’s logo and PMJDY logoshould be visible for easy identification andconsistent branding.


Average transaction per Bank Mitr per month has large variations

23

272

192 190

175169

142 138 136129

77 76 73

43

0

50

100

150

200

250

300

SBI BOB AUPGB AllahabadBank

AndhraBank

BOI PNB CBI SBBJ UBGB DenaBank

MBGB Dena GujGB

Avg Transactions per Bank Mitr per MonthRemittance is still a big volume driver.Location of the BM is primarydeciding factor for number oftransactions. However, non-remittance BMs are also performingwell at many locations.


And average monthly income of Bank Mitr also has large variations

24

3,298

3,167

2,9672,904

2,3702,303

2,0491,967 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 DenaBank

BOB SBI AndhraBank

AllahabadBank

CBI Dena GujGB

AUPGB MBGB SBBJ

Avg. Monthy Income of Bank Mitr

Most banks are paying fixed plusvariable remuneration. However,the amount of fixed monthlyremuneration also varies, leadingto high variations in monthlyincome 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 AndhraBank

DenaBank

BOB SBI BOI PNB SBBJ CBI AUPGB AllahabadBank

Dena GujGB

MBGB

Comissions Received by Bank Mitr on Time

Payment of commissions iserratic and usually does notcome with break-up or details.Not being paid on time is aserious concern for the majorityof BMs.


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assessment of bank mitr’s under pradhan mantri jan …€¦ · · 2016-03-31assessment of bank...

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