1 billion-1 billion-1 billion vision aims at connecting 1 billion bank accounts to 1 billion unique identity number and mobile number. JAM, Jan Dhan-Aadhar-Mobile, is a way the current government has envisioned to bring all the people in the country together into a common financial, economic and digital space. Therefore it is an important step towards achieving the above-said vision.
Through a facebook post today on account of the 3rd anniversary of Jan Dhan yojana, Union Finance minister posted “Just as GST created one tax, one market, one India, the PMJDY and JAM revolution can link all Indians into one common financial, economic, and digital space. No Indian will be outside the mainstream”. This ambitious mission aims at ending the exclusions poor in the country face. 30 crore families in India have deposited about 65,000 crores in their accounts, Prime Minister Narendra Modi said in Mann ki Baat today. The poor in the country are now able to make electronic payment, making it 7 crores successful payment per month. This ideally makes lives easier and convenient for people. Addition of deposits in the bank accounts strengthen the financial system and sets the motion of the economy at a faster rate.
JAM enables assimilation of people who earlier did not have access into the formal economy. It also helps in ensuring the efficiency of government schemes and subsidies by eradicating several layers of middlemen responsible for blocking the trickle down of finances to the lower levels. And in the long run, this will strengthen the financial system as well.
The Supreme Court’s verdict on ‘Right to Privacy’ as’ a fundamental right most probably would not affect JAM. The reasons being the schemes that have been running towards successful implementation of jam have included a substantial amount of people from the targeted population already as indicated can be understood from the above indices. Even when Aadhar had been voluntary, 88.2% of population have already been enrolled. Traditionally, access to government schemes have required people to register themselves with their identity proof. The only shift that has happened now is towards universal identity and registration.
There have been many initiatives for seeding mobile numbers with a bank account but their actual utilization would depend on the success of digital and financial literacy schemes. If accomplished this 1 billion-1 billion-1 billion vision would boost not just economic development but also the much needed human development of one of the most populous and mammoth economy.