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PMS facilitates Financial Inclusion Home>> Achievements
Financial Inclusion is an important measure for inclusive growth of a society and its economy. Generally, the weaker sections of the society are not part of the formal financial institutions as there are larger complexities involved in providing finance to the disadvantaged or lower income groups of the society.

However, under ‘Pre Matric Scholarship (PMS) Scheme’ financial inclusion is becoming a reality. The Pre Matric Scholarship Scheme is being implemented in the state of Odisha for the SC and ST boys and girls studying on classes 9 and 10. Under the scheme, the day-scholar boys and girls are entitled for an annual scholarship of Rs. 2250 rupees and Rs.3200 respectively. Hostel students receive a higher amount.

This scholarship is disbursed directly to the bank account of the students. In the year 2013-2014, about 4.07 lakh students of classes 9 and 10 were registered under the scheme and their bank accounts were opened. In the year 2014-2015, additional bank accounts were opened for 2.09 lakh students who got admitted in class 9. All these students have opened ‘no frills’ or zero balance account. These bank accounts have been opened across more than 2300 branches of 40 banks across the 30 districts of Odisha.

The technical assistance team appointed by the Department for international Development (DFID), UK supporting the ST&SC Development Dept., Govt of Odisha for the implementation of the Pre-matric Scholarship (PMS) scheme in Odisha has helped the students to open the bank accounts by assisting them in filling of the account opening forms and submitting the documents required for Know Your Customer (KYC) compliance.

The opening of accounts in large numbers also required liasioning with the banks for opening of such huge number of accounts for the students who did not have proper documents, such as,identity proof, address proof, etc.

Once, the bank accounts were opened and students got their passbooks, the technical assistance team organized financial literacy sessions in the high schools for the students. During these sessions they talked about savings, budgeting, opening of bank accounts, banking terminologies, KYC norms, withdrawal of money, interest and safety processes and procedures amongst other things.

About 8 lakh students studying in classes 8 to 10 in govt. or govt. aided high schools across Odisha were oriented about banking transaction processes. This ensured that that the students are aware of their scholarship and are self dependant to operate their bank accounts.

The feedback from the teachers, parents and headmasters during visits by the technical team reveals that the financial literacy sessions have raised the confidence level of the students and they are now operating their accounts on own and even saving money for higher studies.

This was linked with strengthening the scholarship delivery systems and providing the scholarship on time to the students thus empowering them to continue their studies.
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