UNGA Hails India's Digital Leap: Key Insights into Modi's JAM Initiative Which Has Uplifted 800 Million People

Dennis Francis, the President of the United Nations General Assembly (UNGA), has applauded India for keeping up with its promise of digital revolution and expanding bank services to rural areas. Mr Francis noted that the use of smartphones has alleviated poverty significantly in India, uplifting 800 million in the last five to six years. He weighed on how people who previously had zero access to banking or payment systems, could now take care of their payments and collect money as well through the use of smartphones.

For the past 10 years, digitisation has remained a key focus of the Narendra Modi-led government. Digital payment transactions have witnessed a surge following the demonetisation of Rs 500 and RS 1000 notes. UPI has been the major contributor to digitalisation in India.

Prime Minister Narendra Modi has successfully promoted digitisation through his JAM initiative, which stands for Jan Dhan-Aadhar-Mobile. This scheme has helped millions of people, especially those from rural areas, to open bank accounts.

In this regard, let’s take a deeper look at PM Modi’s JAM initiative and understand how it benefits the common people of the nation.

Jan Dhan- Aadhar- Mobile (JAM) Initiative

An Indian government initiative, JAM has been crafted to merge Aadhar cards, Jan Dhan accounts and mobile numbers for facilitating the direct transfer of subsidies to beneficiaries. By such means, the initiative aims to reduce intermediaries and leakages. The concept was first launched in the 2014-15 Economic Survey. Those in genuine need of subsidies can benefit from linking 1.2 billion bank accounts with 900 million mobile phones and around 1 billion Aadhar numbers, as highlighted by ex-Finance Minister Arun Jaitley.

The Pradhan Mantri Jan Dhan Yojana was launched on the 28th of August following PM Modi’s proposal for every citizen to have a Zero Balance Account. This initiative brought a significant change in the lives of millions of people, who are now getting access to banking services, thus being able to curb corruption.

Ingredients of JAM 

1. From Government to Beneficiary: Identification Challenge

• A thorough database of eligible individuals was needed by the Government to identify beneficiaries.
• To address this, the creation of an Aadhar card was initiated.

2. From Government to Bank: Payment Challenge

• Following the identification of beneficiaries, the government had to initiate the transfer of money to their accounts.
• This issue was addressed by the Pradhan Mantri Jan Dhan Yojana after they opened zero-balance accounts for beneficiaries.

3. From Bank to Beneficiary: Last-Mile Challenge

• An increased application of mobile payment technology was required to ensure the beneficiaries received their money.
• Mobile Payments aid in quick and secure transfer of money. They also enhance the quality and the ease with which the service is delivered.

The Government Schemes Under JAM

Pratyaksh Hanstantarit Labh (PAHAL) Yojana

• Direct deposition of LPG subsidies into bank accounts.
• Direct cash subsidies are availed by more than 14.62 crore citizens.
• Thousands of crores are saved following the identification and blocking of around 3.34 crore duplicate or inactive accounts.
• Marked its name in the Guinness Book of World Records as the world’s largest direct cash transfer scheme.

Pradhan Mantri Suraksha Bima Yojana

• Accident insurance worth 2 lakhs is provided.
• Premium has been made affordable to the poorest with just Rs 12 per year.

Pradhan Mantri Jivan Jyoti Bima Yojana

• Life insurance of Rs. 330 per year is offered
• In case of death, this money is payable to the member’s family.
• Around 3 crore people have enrolled in this scheme.

Atal Pension Yojana

• Based on contribution, a guaranteed pension scheme provides Rs. 5000 per month.
• Almost 15.85 lakh people have registered for the scheme.

Despite the mission’s considerable success rate, significant efforts are still required for the full implementation of the game-changing JAM scheme. Numerous future initiatives will be underpinned by this JAM mission.