The National Democratic Alliance (NDA) government’s ambitious Jan-Dhan Yojana, which aims to bring the excluded sections of the society under the ambit of the formal financial system, has been a roaring success since its launch three years ago.
A staggering 295 million accounts have been opened under the scheme, according to the latest data. Of these accounts, 60 per cent belong to those residing in rural and semi-urban areas. Roughly, Rs 65,000 crore has been deposited in these accounts so far. Ensuring that the poor have a bank account was only part of the strategy to deepen the financial inclusion.
Subsequently, to ensure greater engagement with the system, the government offered other financial products, such as life insurance. The government followed it up with the Mudra, which extended credit to micro enterprises. These initiatives too have made a significant headway.
Gross enrolment under the Pradhan Mantri Jeevan Jyoti Bima Yojana and the Pradhan Mantri Suraksha Bima Yojana has reached 34 million and 109 million, respectively. In 2016-17 alone, loans sanctioned under the Mudra reached a staggering Rs 1.8 lakh crore. As the government celebrates the third anniversary of the Jan-Dhan Yojana, Ishan Bakshi looks at various initiatives that are part of the NDA government’s financial inclusion strategy.