[Answered] Jan Dhan has deepened financial literacy among poor women, and in rural areas. Analyze the statement.

Pradhan Mantri Jan Dhan Yojana is a national mission on financial inclusion under the Ministry of Finance. It aims to ensure that low-income groups and weaker sections have access to financial services, including a basic savings bank account, need-based credit, low-cost insurance and pension etc. The scheme also visions a financial literacy programme to enable the beneficiaries adopt digital technology and internet-based banking.

The following points make it clear that Jan Dhan has deepened financial literacy among poor women and in rural areas:

• Increased share in bank accounts: Of the nearly 44 crore Jan Dhan bank account holders, more than 55 per cent are women account holders and 67% Jan Dhan accounts are in rural and semi-urban areas. The gender gap in account ownership has also shrunk from 20 % three years ago, to 6% today.
• Access to banking amenities: it aimed to improve access to banking amenities such as ATM transactions, overdraft facility, short-term credit and insurance, among others.
• Financial literacy program: Jan Dhan promotes savings, use of ATMs, credit availability, availing insurance and pensions and using basic mobile phones for banking. Thus, giving more opportunities to rural people.
• Formal channel: Jan Dhan provides an opportunity for the poor to bring their savings into the formal financial system and to remit money to their families. It has brought the unbanked into the banking system and brought financial inclusion.
• Financial security in difficult times: In today’s COVID-19 times, it has provided remarkable swiftness and empowered Direct Benefit Transfer (DBTs) for providing financial security to the vulnerable sections of society.
• An important aspect is that DBTs via PM Jan Dhan accounts have ensured every rupee reaches its intended beneficiary and prevented general leakages.

Way forward:

• should step in for improving access of PMJDY account holders to Micro-credit and micro investment.
• The banks should make more effort in creating awareness on zero balance account and should campaign for such schemes.