look news india
‘Pradhan Mantri Jan Dhan Yojana’ (PMJDY), launched with the resolve to connect every citizen of the country with the banking system and to extend the formal financial system to the last person of the society, has completed 12 glorious years of its journey. This National Financial Inclusion Mission, launched by Prime Minister Narendra Modi on August 28, 2014, has today become the biggest model of economic empowerment not only for India but for the entire world. In a country where till a decade ago crores of poor, rural and deprived people were hesitant to go to the doors of banks, today more than 53 crore citizens of the same India have their own bank account, RuPay debit card and a strong shield of financial security.
Jan Dhan Yojana was started with the inspiring slogan of ‘Mera Khata, Bhagya Vidhaata’. In the initial phase, when accounts were being opened at zero balance, many financial experts had expressed apprehension about these accounts remaining active for a long time. However, 12 years of data have completely refuted all these doubts.
At present, the total deposits in Jan Dhan accounts have crossed Rs 2.3 lakh crore, which shows that the scheme is not limited to opening nominal bank accounts but has developed a permanent habit of savings and banking among the poorest of the poor in the country. The average deposit amount per account in these accounts has increased by more than four times in the last 12 years, which is a direct evidence of the growing purchasing power and financial stability of the lower strata of the country.
The biggest achievement of Pradhan Mantri Jan Dhan Yojana has been the economic empowerment of rural India and women. More than 55 percent of the total open Jan Dhan accounts are in the name of women. Apart from this, about 67 percent accounts have been opened in rural and semi-urban areas.
This scheme has made women direct participants in the financial decisions of the family. Having bank accounts in the name of women has not only increased their financial independence, but has also completely eliminated middlemen and exploitation as government assistance reaches their accounts directly. Jan Dhan accounts have also served as the backbone for the expansion of Self Help Groups (SHGs) and micro finance schemes.
The ‘JAM Trinity’ of Jan Dhan Yojana, Aadhaar and mobile connectivity has brought about a paradigm shift in India’s public distribution and welfare structure. Money from hundreds of welfare schemes of the Central and State Governments is reaching the Jan Dhan accounts of the beneficiaries directly through ‘Direct Benefit Transfer’ (DBT) without any middleman or leakage.
Schemes like PM-Kisan Samman Nidhi, MNREGA wages, LPG subsidy (Pahal), old age pension and emergency cash assistance given during the Corona crisis were implemented in a transparent manner directly through Jan Dhan accounts. Global institutions like the World Bank and the International Monetary Fund (IMF) have also considered India’s DBT model as a unique example of transparent governance.
Jan Dhan Yojana is not limited to deposit accounts only, but it has provided protection to the poor at many levels. So far, more than 35 crore account holders have been issued free ‘Rupay Debit Cards’ with in-built accident insurance cover of up to Rs 2 lakh.
Additionally, overdraft (OD) facility of up to Rs 10,000 is provided to eligible account holders, which provides quick help in times of emergency financial needs without any paperwork. The scheme has also made micro insurance and pension schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) simple and accessible to the general public.
Today India has become the world leader in terms of digital transactions and Unified Payments Interface (UPI), and the real foundation of this unprecedented digital revolution was laid by Jan Dhan Yojana. Only when crores of villagers and small shopkeepers had bank accounts and digital identities, such wide spread of digital payments in the country became possible. Jan Dhan Yojana has proven in 12 years that when economic reforms are implemented with the right vision and strong political will, they can bring real and lasting change in the lives of the last man in the society.