Account holder can get information
Through this Scheme, banks also got an opportunity to tap the saving potential of the common man. Apart from this, provision has also been made that accounts opened under this scheme are connected with mobile phones so that account holder can directly get information about transactions in their accounts.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) has proved to be a major job creator. Empowering people by financial inclusion, and creating self-employment by increasing the availability of credit is one aspect of the scheme. This Scheme also enabled banks to create jobs for more than 1.26 lakh Banking Correspondents who are delivering banking services to households at their door step. Banking Correspondents in many ways acts as ATM too for many people. They help people to open bank account, deliver their money and also in claiming insurance. In a very short span of time, Bank Correspondents/Bank Mitras have become very popular in the rural areas.
The objective of PMJDY is to bring common people within the sphere of social security. After Independence, the concept of welfare State has been talked about much but, how to take it to the common man has not been thought-out. As a result, lot of Government policies were formulated but their execution was poor. Money that had to reach to the masses from the Centre and State capitals used to remain unutilized or got evaporated midway somewhere.
The previously existing system was the cause of corruption where there was no provision to check whether the actual benefit of the scheme has reached to the intended beneficiary or not. A former Prime Minister's statement was much talked about when he said that only 16 paisa out of a rupee reaches to the actual beneficiaries of the Government funds released by the Centre for their welfare Schemes.
The Constitution, specifically, Article 41 of Directive Principles of State Policy, asks the State to “make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases within the limits of its economic capacity and development,.” As the Directive Principles are not binding on the Government, there has never been much emphasis on it in earlier regimes to ensure social security for citizens.
So, the fundamental change in the methods of carrying-out the schemes was needed. Even after six decades of independence, the Government schemes could not achieve the desired results in the area of social security. And millions of people have been left-out of the banking system. Therefore, there was a need to involve the people themselves, so that they can create their own future. At the same time, the need to include private sector was also felt. The Government is working on the very fundamental change and this transformation is indeed speedy.
Previously, poor people had to put in tiring efforts and many formalities had to be fulfilled just to open a bank account. Now they have got enough strength from the system and merely with an identity proof or self certification, an account can be opened and banking services can be availed.
With Jan Dhan, Aadhar and Mobile (JAM) technology, bank accounts are connected and middleman can no longer exploit the poor people. Social Welfare schemes were earlier more of a boon for middleman who used to siphon-off bulk of the funds by taking advantage of flaws/loopholes in the system. Ghost beneficiaries were also one of the facet through which middleman made profit. Now with Jan Dhan, Aadhar and Mobile (JAM) have eliminated the middleman altogether. Now the money is being transferred directly into the target beneficiary’s account. Such Schemes are definitely the need of the hour and play an important role in transforming the lives of people and the country at large. (PIB/Concluded)