A future of financial health for every Indian

Source: The post “A future of financial health for every Indian” has been created based on “A future of financial health for every Indian” published in “The Hindu” on 6th July 2026.

UPSC Syllabus: GS  3 – Indian Economy

Context: Financial health refers to ensuring that individuals have access to the right financial policies, products and services to manage daily expenses, remain resilient during financial shocks, save and invest for future goals, and achieve long-term financial security. As India moves towards Viksit Bharat 2047, the focus should shift from merely opening bank accounts to improving the overall financial well-being of every citizen.

About Financial Health

1. Financial health enables people to manage day-to-day expenses effectively.
2. It helps individuals remain financially resilient during unexpected shocks such as disasters or medical emergencies.
3. It encourages saving and investing for both short-term and long-term goals.
4. It provides confidence and financial security for the future.
5. Financial health goes beyond owning a bank account by ensuring access to insurance, pensions, responsible credit and investments.

Importance of Financial Health Important for India

1. India has witnessed remarkable progress in financial inclusion, with adult account ownership increasing from 56% to 89% within ten years (World Bank Global Findex).
2. Financially healthy households contribute to resilient economic growth and national prosperity.
3. It supports the vision of transforming “welfare to wealth creation” under Viksit Bharat 2047.
4. It strengthens trust in financial institutions and improves household financial stability.

Examples Highlighted in India

1. Informal workers have started saving for retirement through the National Pension System (NPS).
2. Informal workers in Delhi are benefiting from retirement accounts supported by Universal Pensions.
3. Nurses in Mumbai have improved financial stability through workplace financial products such as responsible credit, financial health scores and insurance.
4. Regulators and banks are using Artificial Intelligence (AI) to improve financial decision-making, increase savings, expand insurance coverage and tackle fraud.

Steps to Strengthen Financial Health

1. Develop Jan Dhan 2.0

1. The Pradhan Mantri Jan Dhan Yojana (PMJDY) should evolve from a basic bank account scheme into a comprehensive household financial resilience platform.
2. PMJDY should be integrated with Direct Benefit Transfers (DBTs), PM-KISAN, MGNREGA wage payments, e-Shram, Atal Pension Yojana (APY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
3. Linking multiple schemes through a single account will strengthen household financial security.
4. Women, who hold the majority of PMJDY accounts, along with migrants, informal workers and gig workers, will benefit significantly.

2. Leverage Digital Public Infrastructure

1. India should utilise its strong Digital Public Infrastructure to improve financial health.
2. Platforms such as MahaVISTA, Account Aggregator, Unified Lending Interface (ULI), DigiLocker and AI-based applications should be expanded.
3. These technologies can strengthen financial capability, improve access to credit and increase consumer choice.

3. Use Data for Better Policymaking

1. Household surveys, administrative databases and digital platforms should be used to generate financial health data.
2. This information can improve policymaking, strengthen consumer protection and enhance accountability in the financial sector.

4. Strengthen Public-Private Collaboration

1. Government, regulators, financial institutions, employers and fintech companies should work together.
2. Public-private partnerships can expand financial services, promote innovation and improve financial well-being.
3. Countries such as the Netherlands and Indonesia demonstrate the benefits of such collaboration.

Conclusion: India’s next leap should focus on ensuring financial health for every citizen, rather than merely financial inclusion. By strengthening Jan Dhan 2.0, digital public infrastructure, data-driven policymaking and public-private partnerships, India can build financially resilient households and achieve the vision of Viksit Bharat 2047.

Question: Financial health is emerging as the next stage of financial inclusion in India. Discuss the concept of financial health and suggest measures to strengthen it for achieving the goal of Viksit Bharat 2047.

Source: The Hindu