The banks have been instructed by the Finance Ministry to make sure that in the next six months at least one person from every family has a savings bank account, all through the country.
After attending a meeting held for the same purpose, the Additional Secretary of the department of financial services, Mr. Sunil Soni said, "During the meeting between Finance Minister (Pranab Mukherjee) and heads of public sector banks on June 12 it was decided to ensure that there is a bank account in every family in the next six months".
According to the 2011 census, in India, just three out of five families have an account, which results to 40% of the families not being included in the banking system.
The government thinks that the banks are capable of achieving the target, following the success of the financial inclusion programme. In the financial inclusion programme, a targeted 73,000 villages with a population of over 2,000 people were brought under the banking system in a period of two years.
Bringing the entire population within the purview of banking system will be very helpful to the government. The government can, then do internet based electronic fund transfer of wages & salaries directly, which will reduce leakage from the system.