Case Study: JAM Trinity
Theme: Financial Inclusion
Launched date: February 28, 2015
Stakeholder: Ministry of Finance, Department of Expenditure
The key objective of the Government of India is to enforce direct benefit transfers (DBT) on a large scale. JAM, a model that involves integration of Jan Dhan Yojana, Aadhar and mobile technology, shall help the Government in implementing DBT on a large scale. India's mobile phone penetration is expected to rise to around 85-90% by 2020 (Omidyar Network), which makes the mobile an ideal medium for achieving this objective.
The Pradhan Mantri Jan Dhan Yojana was launched in 2014 to provide basic financial services like savings bank account, remittance facilities, insurance and pension to the underprivileged sections of society by leveraging technology. The beneficiaries are also provided a Rupay card with an accident insurance of Rs 1 lakh. As of August 1, 2018, the number of Jan Dhan Yojana beneficiaries had reached 32.25 crore with deposits in the accounts recorded at Rs 80,674.82 crore. Also, 24.27 crore Rupay cards had been issued to beneficiaries.
Moreover, 210 million Aadhaar cards were issued at an exponential rate of around 4 million cards per week. By March 2018, more than 1.19 billion Aadhaar enrolments had taken place. Aadhaar makes it easier for the government to identify the beneficiaries, to transfer the money to the beneficiaries' accounts and tackle the last-mile challenge of getting money from banks into the beneficiaries' hands.
DBT - Year- wise Fund Transfer
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Source : Source: Direct Benefit Transfer Mission, Government of India
Source: Direct Benefit Transfer Mission, Government of India
Last updated: August, 2018