SSC-CGL (TIER-III) - Jan Dhan Yojna
Category : SSC
Jan Dhan Yojna
Key Points:
What it is
Position
Challenges
Way ahead
THE ESSAY BEGINS...
Launched in 2014, Jan Dhan yojana is a flagship scheme of the government of India to promote financial inclusion. The scheme ensures financial services to '-he unbanked by providing zero-balance bank accounts, thus mobilizing savings in the society
Providing banking to the unbanked, this scheme, when coupled with Aadhar and mobile connectivity, creates JAM trinity, which the government mentions as a panacea for all problems ranging from subsidy to connectivity. The direct benefit transfer (DBT) scheme has already proved successful in curbing leakages, and improving transparency and accountability.
The major challenge faced by Jan Dhan yojana is that of exclusion, Many people still stay outside the banking net, mainly due to unavailability of last" mile connectivity. Banking Correspondent model that was experimented in many other countries is not showing much success in India. Poor awareness and literacy levels of the country is creating obstacle in converting quantity of accounts to quality of service. The immense pressure on public sector banks created by the sheer magnitude of accounts being opened is yet another problem,
Jan Dhan yojana or any other financial inclusion schemes wont succeed unless financial literacy is provided, and this should be provided through NGOs and inclusion of local governments. The political will shown by the government to take such a decisive step needs to be appreciated, and with the demonetization scheme announced in. November 2016, these accounts have gone from dormant to active. The promotion of internet banking and mobile payment is sure to take Jan Dhan to its ultimate goal of a cashless economy.
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