JAM Trinity and Digital Revolution

Syllabus: GS3/Growth & Development; Financial Inclusion

Context

• The JAM (Jan Dhan, Aadhar, Mobile) TRINITY has revolutionized the way government services are delivered and has empowered millions of citizens.

Financial Inclusion Through JAM Trinity in India

• Financial Inclusion is broadly defined as both access to and usage of appropriate, affordable, and accessible financial services.
• The JAM Trinity has been a cornerstone of India’s digital revolution, transforming the landscape of governance and financial inclusion.
• It was launched as part of the government’s broader vision for a Digital India, and has set new benchmarks globally in leveraging technology for public service delivery.

Significance and Impact of JAM Trinity

• Pradhan Mantri Jan Dhan Yojana (PMJDY): It was launched in 2014 with the goal of providing every household in India with access to banking services.
  • There are over 54 crore Jan Dhan accounts, with a total deposit balance of approximately ₹2.39 lakh crore.
  • It has been particularly successful in rural, semi-urban areas, and among women, with around 66% of accounts coming from these regions.
  • Mudra Loans by providing collateral-free, affordable loans to small businesses and entrepreneurs.
• Aadhaar: It is the world’s largest biometric ID system, and has played a crucial role in ensuring that government benefits reach the intended beneficiaries.
  • By providing a unique identification number to every resident, Aadhaar has streamlined the process of Direct Benefit Transfers (DBT), eliminating intermediaries and reducing leakages.
• It facilitated the transfer of ₹33 trillion across 312 government programs, ensuring that government benefits reach the intended recipients without any middlemen.
• Mobile Connectivity: It has enabled seamless access to government services and financial transactions, making it easier for citizens to engage with the digital ecosystem.
  • In FY 2023-24, Unified Payments Interface (UPI) transactions reached ₹200 lakh crore, a 138% increase from 2017-18.
  • More than 40% of the global real-time payment transactions are happening in India.
• Social Security Schemes that include life insurance, accident insurance, and pension schemes, reaching over 50 crore people.
  • Ayushman Bharat, the world’s largest health scheme, has been made possible through the JAM Trinity, providing healthcare coverage to millions of citizens.

Source: PIB