Page 56 - economic review

MACRO ECONOMIC PROFILE28

1.81 Deposit mobilization is an inevitable activity of all banks for augmenting credit flow to the
development and priority sectors of the state. Overall Bank deposits in Kerala increased by18.67%
from `2,34,217 crore in March 2013 to `2,77,940 crore in March 2014. Scheduled Commercial Banks
in Kerala accounted for 3.46 % of deposits of the country (Appendix 1.42). As on June 2014, Bank
Deposits have increased to `2,81,194 crore. As on March 2014, deposits in Kerala grew by 22.04 per
cent from `2,29,148 crore to `2,79,655 crore (SLBC).

1.82 As on March 2014, there has been 9.62 per cent increase in disbursement of advances to
`1,88,243 crore from `1,71,712 crore compared to the previous year. Maharashtra is the topmost
state in disbursing advances in the country while Kerala stands at 8th position (Appendix 1.43).
The major advances financed by Scheduled Commercial Banks increased by 10.98 per cent from
`1,75,087 crore to `1,92,010 crore as on March 2014(SLBC). In real terms, the advances dropped in
2013-14 compared to the previous fiscal. That is the percentage of advances disbursed decreased
from 3.12 percent to 3.01 percent in 2013-14.

Pradhan Mantri Jan-Dhan Yojana

1.83 Financial inclusion is an inherent aspect of inclusive growth, and a top national priority. A
multi-prolonged approach has been launched to achieve financial inclusion for all our citizens. The
Pradhan Mantri Jan Dhan Yojana (PMJDY) is a powerful instrument for financial mainstreaming of
all citizens. PMJDY aims at providing universal access to banking facilities with at least one basic
banking account for every household, access to credit, insurance and pension facility. Through this,
the Government seeks to provide to all people, universal access to all services of a modern financial
system, ranging from banking to credit for economic activities and insurance, pension etc. for social
security. This will facilitate, direct and more efficient transfer of various benefits and subsidies. The
beneficiaries of the flagship programmes of Rural Development viz. MGNREGA, NRLM, NSAP and
IAY are the major stakeholders of the Mission. Under PMJDY, in a record time, bank accounts have
been provided to 11.08 crore households with 100% coverage in 601 districts.

Box 1.2
RBI – Recent Announcements

Payments Banks
The objectives of setting up of Payments Banks will be to further financial inclusion by providing
(i) small savings accounts and (ii) payments/remittance services to migrant labour workforce,
low income households, small businesses, other unorganised sector entities and other users.

Small Finance Banks
The objectives of setting up of small finance banks will be to further financial inclusion by
(a) provision of savings vehicles, and (ii) supply of credit to small business units; small and
marginal farmers; micro and small industries; and other unorganised sector entities, through
high technology-low cost operations. The small finance bank shall primarily undertake basic
banking activities of acceptance of deposits and lending to unserved and underserved sections
including small business units, small and marginal farmers, micro and small industries and
unorganised sector entities.

Kerala State Planning Board