Financial literacy spends made by banks under the Pradhan Mantri Jan Dhan Yojana (PMJDY) is all set to qualify as corporate social responsibility (CSR).
The Corporate Affairs Ministry has conveyed to the Finance Ministry that the financial literacy spends made by banks under PMJDY will be counted as CSR, Anurag Jain, Joint Secretary, Department of Financial Services (DFS), said at a seminar on financial inclusion, organised by Indo-American Chamber of Commerce here on Friday.
“We had already written to Corporate Affairs Ministry. They have actually given us one concession immediately that for financial literacy whatever banks are spending will be part of CSR. That explanation they have already given”, Jain said.
This spells some good news for banks, especially when the DFS efforts in getting them exempted from the mandatory 2 per cent CSR spend has proved futile.
While the DFS had written to the Corporate Affairs Ministry seeking exemption for banks from the mandatory 2 per cent CSR spend, the Corporate Affairs Ministry has reportedly rejected this request.
Aseem Chawla, Co-Chairman, Financial Services Committee, Indo-American Chamber of Commerce, said an enabling amendment has to be made in Schedule VII of the new company law and the related rules for banks to be able to claim the spend on financial literacy as CSR.
Anurag Jain said that all efforts are being taken by the banking system to ensure that the goals of PMJDY are achieved by January 26 next year.
“The main focus of the PMJDY is to ensure that villages of the country need to be benefited”
Chawla said that a great deal of improving and achieving sustainable livelihood for rural India depends on financial inclusion through the success of PMJDY.