State-owned banks are now increasingly targeting JanDhan accounts, which so far were primarily being used for distributing government schemes, to mobilise deposits as they face growing pressure to attract deposits to manage credit growth amid an increasing shift of household savings towards higher-yielding financial instruments.
Both the Reserve Bank of India (RBI) and the finance ministry have expressed concerns on numerous occasions over the sluggish pace of deposit growth compared to credit growth, which is creating a divergence that may lead to asset-liability management problems for banks. Additionally, they have instructed banks to employ innovative methods to accrue
