Waseem Ahmad BhatAIR 7 · CSE 2022 · 233 wordsTheir whole copy
Opening · a definition
Pradhan Mantri Jan Dhan Yojana (PMJDY) is a central government scheme to engender financial inclusion through banking system by including all the hitherto untouched sections by opening accounts, provide insurance, etc.
What was done? Opening of free bank accounts Provision of financial products e.g.: Insurance, Pension, etc Awareness about finance - financial literacy & education
This has created both Transformational & directional change.
⇒ Transformational change
⊙ Number of bank have increased immensely to reach 80 crore adult Indians (World Bank)
⊙ Operativeness of accounts has increased.
⊙ Increase in savings — Around 5 times increase since 2015.
⊙ Insurance coverage — More than 10 crore have taken life insurance & accident insurance
⊙ Inclusion of marginalised
Body · points
→ 58% accounts opened by women. → 60% are of rural people.
⇒ Directional change & challenges
⊙ Operativeness of the accounts has been only increased slightly to 86% of accounts.
⊙ Only a marginal increase in use of financial products like insurance, etc. as insurance penetration remains low.
⊙ lack of social security measures for the most with accounts.
⊙ Use is infrequent - only about once a year.
⇒ Measures needed
⊙ Use of digital technology to further financial inclusion e.g: UPI model, etc
⊙ Focus on marginalised sections and areas e.g: Aspirational districts, etc
Close · a way forward
⊙ Use of Fintech revolution to reach all the people. This will help in achieving inclusive growth.
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