an in in ndia      12.41
     The government has recently launched an                projects in these sectors had become quite difficult
     effective scheme to promote the cause of financial     for the banks. These sectors constitute the major
     inclusion—the PMJDY:                                   portion of banks’ non-performing assests.
                                                                  Banks have been seeking permission for
     PrADhAn mAntri jAn-DhAn yojAnA                         longer tenor amortisation of the loan with periodic
     To achieve the objective of financial inclusion by     refinancing of balance debt. Banks have been raising
     extending financial services to the large hitherto     resources in a significant way, issuance of long-
     unserved population of the country and to              term bonds for funding loans to infrastructure
     unlock its growth potential, the Pradhan Mantri        sector has not picked up at all. Infrastructure and
     Jan-DhanYojana (PMJDY) was launched on 28              core industries projects are characterised by long
     August 2014. The Yojana envisages—                     gestation periods and large capital investments.
           (i) Universal access to banking facilities with  The long maturities of such project loans consist of
               at least one basic banking account for       the initial construction period and the economic
               every household,                             life of the asset/underlying concession period
                                                            (usually 25–30 years).
          (ii) Financial literacy, access to credit and
               insurance.                                         In pursuance of the Union Budget 2015–16, the
                                                            RBI announced ‘eased’ norms in July 2015 for the
        (iii) The beneficiaries will receive a RuPay
                                                            banks to take care of the Asset–Liability Management
               Debit Card having inbuilt accident
                                                            issues of the banks, which are as follows:
               insurance cover of Rs1 lakh.
                                                                  (i) Banks allowed to raise fund through
         (iv) In addition, there is a life insurance cover
                                                                      long-term bonds (with maturity period
               of Rs. 30,000 to those who opened their
                                                                      of not less than 7 years),
               bank accounts for the first time between
               15 August 2014 and 26 January 2015                (ii) Such bonds exempted from the
               and meet other eligibility conditions of               mandatory regulatory norms such as the
               the Yojana.                                            CRR, SLR and PSL.
           The Yojana has entered the Guinness World            (iii) Such funds to be used to finance long-
     Records for opening most bank accounts during                    term projects in infrastructure, core
     the week starting 23 August, 2014 as part of                     sector and affordable housing. Affordable
     the financial campaign. As on 28 January 2015,                   housing means loans eligible under the
                                                                      priority sector lending (PSL), and loans
     12.31 crore bank accounts have been opened, of
                                                                      up to Rs.50 lakh to individuals for houses
     which 7.36 crore are in rural areas and 4.95 crore
                                                                      costing up to Rs.65 lakh located in the six
     inurban areas. Under the PMJDY, 67.5 per cent
                                                                      metropolitan centres. For other areas, it
     of the accounts as on January 28, 2015 are with
                                                                      covers loans of Rs.40 lakh for houses with
     zero balance.
                                                                      values up to Rs.50 lakh.
        alM oF Banks                                            (iv) Banks can extend long term loans with
                                                                      flexible structuring to absorb potential
     Banks have been faced with Asset-Liability                       adverse contingencies, known as the 5/25
     Management (ALM) problems in recent times                        structure. Under the 5/25 structure, bank
     due to their existing long-term loans forwarded to               may fix longer amortisation period (25
     certain sectors, viz., infrastructure, core sector and           years) with periodic refinancing (every 5
     real estate sector. Again, raising new funds for new             years.