Govt allows 5 PSU banks to raise Rs950 crore from market

Govt tells Parliament that it has allowed 5 banks— Allahabad Bank, Bank of India, United Bank of India, Central Bank of India, UCO Bank— to raise Rs949.27 crore from markets via preferential shares


Govt says the Jan Dhan accounts which fulfil KYC requirements can be converted into savings bank accounts at the request of the account holders. Photo: Hemant Mishra/Mint
Govt says the Jan Dhan accounts which fulfil KYC requirements can be converted into savings bank accounts at the request of the account holders. Photo: Hemant Mishra/Mint

New Delhi: The government has permitted five public sector banks to raise about Rs950 crore from markets, Parliament was informed on Wednesday. “Government has allowed five banks— Allahabad Bank, Bank of India, United Bank of India, Central Bank of India and UCO Bank— to raise Rs949.27 crore from markets via preferential shares,” minister of state for finance Santosh Kumar Gangwar said in written reply to the Rajya Sabha.

Replying to another question, Gangwar said that total accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) in the country were 27.83 crore as on 1 March.

“The balance of deposits in PMJDY accounts as on 9 November 2016 was Rs45,636.60 crore and as on 4 January was Rs70,070.79 crore,” he said.

Jan Dhan accounts which fulfil Know Your Customer (KYC) requirements may be converted into savings bank accounts at the request of the account holders, and such conversion is not linked to deposit of more than Rs50,000, he said.

In a separate reply Gangwar said, the number of customers who have opened e-insurance account with four insurance repositories as on 7 March is 9.70 lakh. The Insurance and Regulatory Development Authority of India (IRDA) has permitted crediting of electronic insurance policies to the electronic insurance accounts and not the funds, he said.

More From Livemint