Govt to launch new products to improve savings Oct 31, 2014 11:20 Hrs IST In a bid to enhance the thriftiness of the people, the government has asserted that it is committed to improve the savings rate and has planned to launch new products to achieve the objective. Joint Secretary of Department of Economic Affairs (DEA) Rajat Bhargava, has asserted that, two new products will be launched soon by the government which will be of tremendous significance in increasing the savings rate and giving more choices to small savers. Higher saving plays an important role to boost the economic growth as more money is deposited into the banks and thus allocated to finance the infrastructure projects. To bring unbanked sections of the society into the formal financial sector and promote the savings of people, the government launched ‘Pradhan Mantri Jan Dhan Yojana’ to help the poor open bank accounts. Under the Jan Dhan Yojana, the person opening the bank account will get a debit card and the family will get Rs 1 lakh insurance cover. The PMJDY has set an ambitious target of bringing in more than 7.5 crore un-banked families into India's banking system by opening more than 15 crore bank accounts. If the account remains active for 6 months the account holder will become eligible for an overdraft facility of up to Rs 2,500. This will further be enhanced by the bank to Rs 5000 over time.