Challenges

♤ Dependency on unsecured debt- Access to bank accounts seems to have had little effect on the dependence on private moneylenders.

♤ Internet connectivity issues: The inadequate infrastructure base for internet facilities basically in tribal and hilly areas make it difficult for Business Correspondents to deliver the required basic banking services.

♤ Funds for Overdraft Facility: Clarity has still not emerged on where the funds would be diverted from to finance the overdraft facility.

♤ Increasing Cost of Business Correspondents: If these accounts have to be functional and not remain dormant then the density of banking correspondent has to be increased, which will increase the cost of delivering the banking services.

♤ Tackling Unaccounted Money Deposited During Demonetisation: After the announcement of

♤ Demonetization total deposits in 255 million Jan Dhan accounts have increased to Rs 642521 million by November 2016.