Jana Small Finance Bank, previously Janalakshmi Financial Services, is one of the fastest-growing small finance banks in the country. The Bangalore-based bank is one of the financial institution working towards financial inclusion.
Banks play a significant role in increasing financial inclusion and helping individuals to avail the different benefits of banking solutions. However, the concentration of bank branches or the number of bank branches per 1 lakh of the population is very low. As per 2016 data* on the number of bank branches per 1 lakh person stood at 14.06. That means there were only 14 bank branches to cater to a lakh of the Indian population. India stood at 74th position out of 143 countries.
While urban centres may not face any scarcity of bank branches, the presence of banks in rural areas is thin. Small finance banks aim to fill the gap in these areas. In the last few years, few microfinance organisations received Reserve Bank of India(RBI) approval to set up a small finance bank.
In 2017, Janalakshmi Financial Services (JFS), a microfinance organisation also received approval from the RBI to open a small finance bank, Jana Small Finance Bank.
The parent organisation of Jana Small Finance Bank, Janalakshmi Financial Services was established in Bangalore in 2008. The presence of the bank is spreading fast across the different parts of the country.
As on September 2019, the bank had 270 banking outlets (including 25 business correspondence outlets) and 120 ATMs. 43% of their banking outlets are based in semi-urban and rural areas.
Jana Bank provides different types of financial products such as savings account, current account, loans, cards etc. A savings account is one of the basic products that are offered by Jana Small Finance Bank.
The savings account gives an attractive interest of up to 8% on their deposits. The bank uses two-tier interest rate structures for deposits above Rs.1 lakh. For balances above Rs. 1 lakh and up to Rs. 10 lakhs, the savings account offers 6% on the incremental balance between Rs. 1 lakh and Rs. 10 lakh while the balance up to Rs. 1 lakh will continue to receive 5% rate of interest.
| Savings Account Balance | Interest Rate Per Annum | Illustration |
| Up to Rs. 1 Lac | 4.5% | 4.50 % will be paid on balances up to Rs. 1 Lac |
| More than Rs. 1 Lac up to Rs. 10 Lacs | 5.50% | 5.50% will be paid on incremental balances above Rs. 1 Lac & up to Rs. 10 Lacs |
| More than 10 Lakhs and Upto 5 Crores | 6.50% | 6.50% will be paid on incremental balances above Rs. 10 Lacs& up to Rs. 5 Crores |
| More than 5 crores | 7.5% | 7.50 % will be paid on incremental balances above Rs. 5 Crores |
Currently, there are four different types of Jana Bank savings account. These are a regular savings account, savings plus, basic savings account and salary account. While regular savings account and savings plus account have minimum average balance, basic savings account and salary account are zero balance accounts.
This savings account can be opened in minutes in a completely digital way as the bank account can be opened through the eKYC process. Customers can undertake unlimited withdrawals from any Jana Small Finance Bank ATMs across India and use the bank app to carry out the fund transfers. The minimum average balance of this savings account is Rs.2,500.
Savings Plus Account is specially made for cricket fans. Customers of this savings account get Jana Bankable Debit Card with their favourite cricketers’ image. It also comes with attractive offers. The average minimum balance of the savings account is Rs.5,000.
Basic Savings Bank Deposit Account (BSBDA) is a ‘Zero Balance’ account that delivers the basic banking facilities. The objective of the bank account is to encourage financial inclusion by providing banking facilities to the unbanked population. It does not have a minimum balance and account holders receive a debit card to make transactions and withdrawals.
Salary account is meant for corporate employees. It is also a zero balance account and account holders can access their salary account anytime through the internet and mobile banking.
To open a Jana finance bank account, customers can fill the online application form. After filling the form, the customer representative will reach out to you to help you open a savings account.
You will have to add the type of savings account that you wish to open. Add your name, email id, contact number, your state, city, pincode. Tick the checkbox that authorises Jana Small Finance Bank representatives to contact you. Click on ‘Submit’.
Bank representatives will get in touch with shortly to explain the savings account and process.
*Source: www.theglobaleconomy.com
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