New Delhi, September 11: While addressing at Conclave on Financial Inclusion by United Nations in New Delhi, Finance Minister Arun Jaitley mentioned how Pradhan Mantri Jan Dhan Yojana has played a significant role in India’s financial inclusion sector. The scheme was not merely a half-hearted one with improper implementation but with a prominent goal. He also mentioned demonetization, the volume of cash has been reduced and tax base witnessed an increase.
Oppositions and critics made negative comments when the scheme was initiated. They told the accounts are merely ornamental being zero balance account. But now zero balance accounts under PM Jan Dhan Yojana have come down to 20 per cent from 77 per cent in 3 years. He said India has succeeded to bring financial inclusion which never previously had an economic/political imperative to focus. To make the financial inclusion more enhanced, Rupay card has also been linked to the zero balance accounts.
“We announced two important insurance schemes and a pension scheme that would be linked to these bank accounts. These insurance schemes where you pay Re 1 a month and get Rs 2 lakh accident insurance. At a slightly higher premium, you get a life insurance,” he said.
Praising the UPA government’s idea of Aaadhar card, he also pointed out the loopholes. He said the full potential of Aadhaar was not realized when it was brought in. Initially, it was an evolving idea. But now 12-digit unique identification number Aadhaar has become an inseparable part of life. “I am sure the Aadhaar legislation will stand the test of constitutionality,” he added.
While the decision of demonetization has been widely criticized by oppositions, he said due to the decision volume of cash has reduced, the tax base has increased. “Resource of a state as a subsidy must reach those segments of the population against for whom it is specifically targeted,” Jaitley said.