August 30, 2024
Prime Minister Narendra Modi praises the scheme for advancing financial inclusion and providing dignity, empowerment, and opportunity, especially to marginalised communities
The scheme eliminated pilferage by ensuring that welfare funds reach intended beneficiaries directly through bank accounts
PMJDY played a crucial role in the Direct Benefit Transfer system, aiding various schemes like MNREGA, PM-KISAN, and Ayushman Bharat
The initiative helped protect beneficiaries from exploitative practices by promoting savings and direct remittances
The Pradhan Mantri Jan Dhan Yojana (PMJDY), the first major scheme launched by the NDA government in 2014, has reached an impressive ten-year milestone, transforming financial inclusion across India. The scheme has served as a foundation for disbursing monetary benefits to many beneficiaries, including women, farmers, and entrepreneurs in the informal sector. It has also facilitated affordable housing, crop insurance, medical insurance, life insurance, and more.
Despite initial challenges, PMJDY has successfully covered 531 million beneficiaries, effectively ending the pilferage of welfare funds. Prime Minister Narendra Modi marked this significant achievement on Wednesday, extending his compliments to the beneficiaries and the individuals who contributed to the scheme’s success. He stated that the Jan Dhan Yojana has been “paramount in boosting financial inclusion and giving dignity to crores of people, especially women, youth, and marginalised communities,” on social media platform X.
Describing the scheme, Modi highlighted its role in providing “dignity, empowerment, and opportunity” to the people of India. PMJDY has been a transformative pillar in reshaping financial inclusion by ensuring access to formal banking services for all segments of society. This universal banking service enabled the direct transfer of welfare funds to the bank accounts of the intended beneficiaries, eliminating cuts previously taken by corrupt officials and intermediaries.
The scheme’s Direct Benefit Transfer (DBT) mechanism has helped disburse wages and funds across various government initiatives, including MNREGA, PM-KISAN, and Ayushman Bharat. The scheme proved to be particularly useful during the COVID-19 pandemic by aiding the poor and integrating women and weaker sections, especially those from rural areas, into the banking system.
Government sources noted that this initiative has empowered individuals by promoting savings and remittances and freed them from exploitative moneylenders. “One in every two accounts opened between March 2014 and March 2020 was a PMJDY account,” highlighting the scheme’s widespread impact. Jan Dhan accounts have ensured the immediate and full transfer of funds to those covered under Direct Benefit Schemes, reinforcing its role in supporting India’s most vulnerable populations.
Source: Economic Times