What is Jam Trinity?

What is it?

• Jam Trinity, an abbreviation for Jan Dhan Yojna, Aadhaar and Mobile is concerned with direct subsidy transfers.
• The three modes of identification would help deliver direct benefits to India’s poor.

How?

• The Aadhaar would help in direct biometric identification of disadvantaged citizens.
• Jna Dhan Bank accounts and mobile phones will help direct transfer of funds into their accounts.

Rationale for JAM Trinity

• Previously, the government operated a large number of subsidy schemes to ensure a minimum standard of living for the poor.
• These schemes took complicated routes to deliver affordable products or services to the poor.
• For example THE MNREGA operating through the panchayat pays minimum wages to rural workers.
• The Centre and States supply rice, wheat, pulses, cooking oil, sugar and kerosene at heavily subsidised prices through the PDS.
• Finally, other sectors such as power, fertilisers and oil sell their products to people below market prices.
• Such a complicated system is riddled with the presence of intermediaries, leakages, corruption and efficiency.
• As a result, a large amount of money is wasted the inefficient distribution and the poor does not benefit properly from these subsidies.
• The government expects the JAM Trinity would help in this regard.
• The Aadhaar would help in direct biometric identification of disadvantaged citizens and Jan Dhan bank accounts and mobile phones would allow direct transfers of funds into their accounts.
• This process is expected to cut all intermediaries and ensure efficiency.