The nation is about to experience its greatest celebration, which occurs every five years which is the general elections. The last ten years of Prime Minister Narendra Modi’s administration are nearly over. He is currently contending for a third term. PM Modi is vying for the public’s support considering the effectiveness of his policies. OpIndia in the next few days will inform you about the extent to which the government has succeeded in implementing the initiatives. The Pradhan Mantri Jan Dhan Yojana (PMJDY) is the first one in the series.
Furthermore, there is a rationale behind the initial selection of the Pradhan Mantri Jan Dhan Yojana. The reason is that shortly after assuming office, Prime Minister Narendra Modi launched this enormous endeavour. He unveiled the scheme on 15th August 2014, from the Red Fort’s ramparts.
On 28th August 2014, the program was formally introduced. Its objective was to guarantee that every household in the nation had at least one bank account. In light of this, the government intended to roll out additional measures which also proved beneficial.
Why was PM Jan Dhan Yojana introduced
Prime Minister Modi was aware that reducing corruption would need direct government assistance to the populace and bank accounts were required to fulfil this objective. Many people still lacked access to banking services even after the nation’s independence for over seven decades and the nationalization of institutions. According to a World Bank estimate, around 70% of Indians lacked access to a bank account as of 2011.
A significant proportion of the populace was unable to open an account because they lacked the required minimum deposit. This was the largest challenge along this route. Individuals in the country did not have even accounts, let alone access to facilities like ATMs. Our nation lagged well behind the rest of the world’s emerging markets in this regard as well.
Things began to change gradually
The Modi administration started the Jan Dhan Yojana on 28th August 2014, with the intention of addressing all of these issues with a single program. It was also remarkable that a plan materialized in the span of two weeks after it was announced. Public sector banks established their camps in villages for this purpose. ‘Bank Mitras’ (friends) were tasked with opening accounts and educating the impoverished and disadvantaged about the matter.
The government eliminated the obligation to have a minimum amount to open an account under the system. Banks only utilised Aadhaar and other identity cards to open accounts. The Jan Dhan Yojana was instantly successful. Villages started to witness the impact of the camps. According to Jan Dhan Yojana reports, within a month after the program’s introduction, over 3.3 crore accounts were created. More than 1.8 crore of these accounts were opened in rural regions.
The Jan Dhan Yojana enabled the inception of 17.9 crore accounts in just one year. The fact that 60% of these accounts were set up in rural regions makes them even more productive. One crore people in the country received Rupay ATM cards in less than a month. Approximately 18 crore accounts were generated in the country under the aforementioned scheme by the end of the first year. Around 11 crore of these accounts were opened in rural regions.
At present, the Jan Dhan Yojana has resulted in the debut of around 51 crore accounts throughout the nation. A sizable portion of the citizens in the nation now own bank accounts and ATMs. More than 35 crore Rupay ATMs have been issued nationally under this program. Common people no longer have to pay annual fees for these cards which renders them unique compared to previous cards issued by foreign firms that required annual costs.
Direct support is available upon account opening
The country’s common people have benefited most from Jan Dhan accounts by receiving government incentives. The government’s direct deposit of benefits into their accounts has grown dramatically during the past ten years. Only 10.8 crore people, per the report, were directly benefited by Direct Benefit Transfer (DBT) from 2013 to 2014. This amount also reached 98 crores during the COVID-19 period at the same time. Guidance was provided under various schemes to 98 crore recipients. It only became possible because now they all had a bank account.
Jan Dhan Yojana improved the condition of banks
Pradhan Mantri Jan Dhan Yojana has not only prospered the people but also the banks. The small savings that customers are making in the banks is bringing in more capital. According to the data, the nation’s citizens have deposited over Rs 2 lakh crore into accounts founded under the Jan Dhan Yojana. The ability of banks to function has been facilitated by the arrival of the funds.
This program not only helps individuals save more money and brings them into banks, but also allows them access to numerous other programs including the Toilet Yojana, Kisan Samman Nidhi and Pradhan Mantri Awas Yojana. It has been largely responsible for India’s financial revolution.
