Sunday, August 31, 2014

Implications of 1.5 Crore New Bank Accounts for the Economy

In his independence day speech on 15-Aug-2014, Prime Minister Narendra Modi announced an ambitious plan to ensure Financial Inclusion for all Indians. He has announced the Jan-Dhan-Yojana under which one bank account would be opened for every Indian family, that currently does not have a bank account.

On Thursday 28-Aug-2014, in under 2 weeks, a campaign was launched across India where the officials from all the banks set out to open accounts. It is estimated that on this single day about 1.5 crore new bank accounts where opened by the different banks across the length and breadth of the nation.This was coupled with an equal number of accident insurance policies.

In six months, each of these accounts will have an overdraft facility of Rs. 5000/-.

Just imagine the total amount that will come into circulation. If this entire amount is used by the account holders, Indian markets will have about Rs. 7500 crore within each of these account holders that could be used by them after six months for retail purchases.

1 comment:

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