Jan Dhan, Aadhar and Mobile ( JAM ) vision, will serve as the bedrock of many initiatives to come. For me, JAM is about Just Achieving Maximum.
- JAM Trinity refers to-
- J- Jan Dhan Yojana bank account (PMJDY).
- A- Aadhar, a unique number to identify everybody with biometric details.
- M- Mobile phone number.
67 years after Independence and India still had a large part of the population who had no access to banking services. This meant that they had neither any avenues for Savings, nor any opportunity to get institutional credit. Pradhan Mantri Jan Dhan Yojana (PMJDY), one of the biggest financial inclusion initiatives in the world, was announced by Prime Minister, Shri Narendra Modi on 15th August 2014 from the ramparts of the Red Fort. While launching the programme on 28th August, the Prime Minister had described the occasion as a festival to celebrate the liberation of the poor from a vicious cycle.
PMJDY is a National Mission on Financial Inclusion which has an integrated approach to bring about comprehensive financial inclusion. Also to provide banking services to all households in the country. It ensures access to a range of financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension. PMJDY provides a platform for universal access to banking facilities with at least one basic banking account for every household. It also give access to credit, insurance and pension facility.
It covers both urban and rural areas and those who open account would get indigenous Debit Card (RuPay card). Anyone can open bank account in any bank branch. Within a matter of months, this scheme has radically transformed lives and futures of millions of Indians. In just over a year, 19.72 crore bank accounts were opened. 16.8 crore Rupay cards have been issued so far and there have been deposits worth Rs 28699.65 crores.
JAM trinity is the initiative by Government of India to link Jan Dhan accounts, Mobile numbers and Aadhar cards of Indians. So that,Government can directly transfer subsidies to intended beneficiaries and eliminate intermediaries and leakages. . While opening millions of bank accounts were a challenge, inducing a behavioural change to get people start using their bank accounts was another major challenge. It was successful because of the participation of both government and public.
While the bank accounts have given millions of Indians access to banking services and they have also played a major role in stopping corruption. Now, subsidies get deposited directly in the bank accounts in the form of direct benefit transfers, eliminating leakages and scope for any discretionary action. Once the basic banking facilities for people were in place, the NDA Government embarked on a historic move of providing an insurance & pension cover to the citizens. Furthermore ,the JAM social revolution offers substantial benefits for the government, the economy and especially the poor. The poor will have access to financial services and be cushioned against life’s major shocks. Government finances will be improved because of the reduced subsidy burden; at the same time, [the] government will also be legitimised and strengthened because it can transfer resources to citizens faster and more reliably and with less leakage.
Now, with the BHIM app and the Unified Payments Interface (UPI), the JAM can become fully operational. Finally, a secure and seamless digital payments infrastructure is present now. So that all Indians, especially the poor can become part of the digital mainstream. Just as the GST created one tax, one market, one India, the PMJDY and the JAM revolution can link all Indians into one common financial, economic, and digital space. No Indian will be outside the mainstream.