In a transformative revelation, Union Home Minister Amit Shah, citing a recent World Bank report, lauded India’s spectacular journey towards achieving 80% financial inclusion. This monumental accomplishment has been achieved under the sagacious leadership of Prime Minister Narendra Modi.
Taking to the digital sphere, Mr. Shah proclaimed, “The World Bank takes cognizance of the fact that, under the visionary guidance of PM @narendramodi Ji, our nation has, in a mere span of six years, attained the remarkable feat of 80% financial inclusion. This is a stark contrast to the conventional trajectory of 47 years it might have taken under normal circumstances.”
The G20 report by the esteemed financial institution underscores the pivotal role played by the Jandhan, Aadhar, and Mobile Trinity (JAM Trinity) infrastructure masterminded by Prime Minister Modi. This robust framework has not only empowered millions but has also paved the way for immense financial savings.
The report further illuminates India’s accomplishment in saving a staggering $33 billion through the Direct Benefit Transfer (DBT) system. Every rupee conserved through this mechanism is a momentous stride towards India’s aspiration of achieving full-fledged development during the Amrit Kaal.
The World Bank document elucidates that India’s Digital Public Infrastructure (DPI) has yielded far-reaching transformations, extending its impact beyond mere financial inclusion. This achievement in six years, which would otherwise have required half a century, stands as a testament to India’s prowess in digital infrastructure development.
The JAM Trinity—a fusion of universal bank accounts, the Aadhaar biometric identification system, and ubiquitous mobile connectivity—has been instrumental in propelling the financial inclusion rate from a mere 25% in 2008 to an astounding 80% within the past six years. Such rapid progress, shortened by nearly five decades, can be attributed to the brilliance of DPIs.
“While DPIs have played an indisputable role in this leapfrogging,” notes the World Bank document, “equally pivotal have been other ecosystem variables and policies that capitalize on the availability of DPIs. These encompass interventions for creating an enabling legal and regulatory framework, national strategies for augmenting account ownership, and the strategic leveraging of Aadhaar for identity authentication.”
Since its inception in 2014, the number of PM Jan Dhan Yojana accounts has witnessed an astonishing tripling, soaring from 147.2 million in March 2015 to an impressive 462 million by June 2022. Significantly, over 56% of these accounts are owned by women, amounting to more than 260 million—a testament to the program’s far-reaching impact.
The Pradhan Mantri Jan Dhan Yojana (PMJDY), a national crusade for financial inclusion and banking the unbanked, has now completed its ninth year of implementation. This visionary initiative, unveiled by PM Modi in his inaugural Independence Day address from the iconic Red Fort in 2014, has not only integrated the unbanked into the financial system but has also expanded India’s financial architecture to encompass almost every adult.
The World Bank also acknowledges India’s innovative use of technology in directly transferring benefits to citizens, alongside the adoption of the Unified Payments Interface (UPI) for retail transactions.
Moreover, the DPIs in India have substantially enhanced efficiency for private organizations by streamlining operational complexity, reducing costs, and expediting business processes—a boon for India’s burgeoning economy.
In summation, India’s astonishing journey towards financial inclusion is an exemplar of what can be achieved through visionary leadership and a strategic approach to digital infrastructure. This achievement, hailed by the World Bank, not only signifies financial inclusion but also underscores India’s global leadership in digital transformation—a remarkable milestone in the nation’s journey towards economic prosperity and equitable growth.
ANI