The Pradhan Mantri Jan Dhan Yojna has created an awareness among the poorest of the country regarding the importance of holding your own bank account. This financial inclusion plan has allowed every Indian household to open a free zero-balance bank account. With its aim of increasing financial literacy within the poor class of society, the Jan Dhan Yojna has fairly succeeded.
This scheme’s effects have been widespread all across the nation. At the micro level, it provides people with social security as now they will not be subject to any practices of extortion which is common in banking in the informal sector. Now, people would not turn to the notorious and exploitative loan sharks. Investments will never be like before as people will be connected to the economy directly. The government’s means of giving welfare to the people in need will also be straightforward, eradicating the corruption that is possible when delivering welfare by the cash-in-hand process.
At the macro level, Jan Dhan Yojna will have major impact on economic development. It will help to formalise industries, making their income and tax-collection system more efficient, leading to greater transparency in the economy. Jan Dhan Yojna has helped the government to invest more in development of infrastructure by increase the revenue generated by taxes. Since more bank accounts will be present, the number of loans taken out would also expand along with the amount of investments done. These both factors are major components of the GDP, thus a strong and uniform economic situation can prevail in the country.
With the implementation of Jan Dhan Yojna, the higher inflation rates existing in India can be considerably reduced as more people with bank accounts are available, hence interest rates will also be high. Overall, the Jan Dhan Yojna is a valiant effort towards improving the financial system and making a more developed India.
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