Download - Snapshots: PMJDY Wave I Assessments
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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
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Objectives of the Survey
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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?
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Coverage and Methodology
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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)
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Districts Surveyed
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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
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Key Results- I
Availability of Bank Mitrs, Branding, and Sustainability
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69% of the Bank Mitrs were available at their respective locations.
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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%
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More than 69% of the available BMs were ‘transaction ready’
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• 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
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Out of the BMs who were not found at their respective locations, 36% were not traceable.
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• 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.
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Branding is not proper at the majority of BM locations.
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• 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
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The average number of transactions per month per BM is 195 and only 53% of the BMs are receiving commission on time.
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• 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.
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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.
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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)
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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?
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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.
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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
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45% of the PMJDY account holders have Aadhaar number - of which 79% PMJDY accounts have been seeded with Aadhaar
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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
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Service Quality- Strengths and Areas for improvement
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●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
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Some common issues at the Bank Mitrs level
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●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
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Best practices
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●Use of e-KYC for account opening●Aadhaar based transactions●Database Management●Managing multiple SSAs●Capacity building of Bank Mitr
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Recommendations
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●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
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Annexure
Bank Wise Analysis
19For bank wise analysis, only those banks have been considered whose sample was 40 or more.
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Availability of Bank Mitr
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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.
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Can customer conduct transaction at Bank Mitr point?
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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
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Signage has not been installed at many places
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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.
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Average transaction per Bank Mitr per month has large variations
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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.
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And average monthly income of Bank Mitr also has large variations
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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.
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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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