Jan Dhan Yojana and JAM Trinity: Promoting Financial Inclusion and Direct Benefit Transfers in India

Jan Dhan Yojana and JAM Trinity:-

The Jan Dhan Yojana accounts, which give basic banking services to low-income individuals, Have nearly 486 million beneficiaries and are approaching a balance of Rs 2 trillion. The continued growth in Jan Dhan deposits, around 8% in FY23, indicates the scheme's effectiveness in promoting financial inclusion. 

Also, the JAM Trinity, which includes Jan Dhan, Aadhaar, and mobile, has been instrumental in implementing technology-enabled direct benefit transfers (DBTs) to improve the economic lives of low-income individuals. The transfer of subsidies and sops through DBT has resulted in savings of Rs 2.73 trillion between FY15 and FY21.

Data released as part of the different Indicator Survey 2020-21 also shows progress in financial inclusion, with about 90% of Individuals in India having a bank account. The PMJDY was launched in 2014 to increase banking penetration and provide at least one bank account per household across the country. 

The growth rate in these accounts has slowed, but the growth in Jan Dhan deposits was 17.5% in FY23, up from 14.5% in FY22. More women now have access to banking channels, with 55% of the total PMJDY accounts opened belonging to women beneficiaries. 

However, concerns have been raised about the possible diversion of funds by third parties into PMJDY accounts and the need for more Focus on opening branches in unbanked areas.

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