Is the PMs Jan Dhan Yojana a fight against poverty?

Is the PMs Jan Dhan Yojana a fight against poverty?


Introduction
Prime Minister Narendra Modi has launched one of the biggest Financial Inclusion Programmes called the ‘Jan Dhan Yojana’ on 28th Aug’14 calling this to be an end to the ‘Financial Untouchability’. The plan aims at connecting every Indian with the financial system which indirectly joins him to the economic mainstream. In his style of extempore speech, Modi compared the works of Mahatma Ghandhi towards the social untouchability to the currently launched plan against financial untouchability. He has emphasized this plan to be a step to fight against poverty. Modi has initiated the spark and this need to catch fire to get implemented in its complete extent and provide the desired result. Though the plan is to connect every person with the bank account, is that by any means helpful in fighting the poverty prevailing on a grand scale in our country? Is the PM’s Jan Dhan Yojana an actual fight against poverty?

Yes

- The plan aims at connecting every household, be it in urban or rural sector and wrap them with the financial cover. This is definitely a step to encourage every citizen to start thinking wisely and plan the finances for the future. A properly planned future w.r.t. the finances would be a big step towards eradicating poverty.

- The programme provides many benefits viz. life cover of Rs. 30,000, RuPay debit card, with an in-built accident insurance cover of Rs 1 lakh and an overdraft facility of Rs. 5,000, subject to satisfactory operations of the account for at least six months. These could be hardly dreamt by any poor in the country.

- For the debit card, a fee of 50 paisa will be charged per transaction, which is very nominal and affordable even by those under the lower socio-economic strata.

- The insurance cover is free for the account holders which imply that the poor class can have the insurance cover and secure the future of their family members and kids.

- This mega financial inclusion programme is a way to teach the financial discipline to all sections of the society. The economic status of the country will have a sound hand with the rise of the poor sections and their joining hands in the financial loops to share the economic burden.

No

- Planning the future and opening a bank account is upto the earnings and expense in the family. These things vary from family to family and we cannot impose the requirement of the bank account to every person.

- A person needs to be literate enough to manage the bank account. Opening an account for an illiterate may lead to some unfair play with the savings of the concerned person. Instead of fighting poverty, this might make the poor person bankrupt without the knowledge of the happenings.

- Government has induced many additional benefits to the opening of the bank account. The government is planning to reimburse banks for these. The amount spent on such plans is nothing but the taxes levied from the common man. This is highly unfair and mis-guiding to spend the hard-earned money of the common man to provide the unwanted lucrative offers.

- The life cover of Rs.30,000 is just for the bank accounts opened by January 26. The poverty can’t have a deadline. With the limited time offer, the administrators have clearly emphasized their intention of attracting their potential customers, and this is no fight against poverty.

- The life cover to the account holder may result in some fatal crimes. People already dying hard in their poverty might dare to lose their life to provide the amount of life cover to protect their family. Conversely, there could be incidences where the family members might kill the account holder in lure for money.

Conclusion

Every new approach finds some hard rocks to show its determination and attitude towards the success path. This plan might be accompanied by some risk factors, but we need to dare to fight against the evil cause. Poverty is like a termite, and very correctly stated, it is the root cause of ‘financial untouchability’. We need such plans to include the poor class into the financial stream and guide them regarding the benefits for the same. Handling a bank account and the insurance cover doesn’t demand the person to be educated, it just requires the basic knowledge which could be explained by the bank officials or anybody else. Again, if the funds the government is utilizing is the one from the taxes, then it is really wise to create the balance in the economic status. A bold step in indeed required to withstand the heat of economic downsurge and fight poverty, and the Jan Dhan Yojana is definitely a good fighting mechanism to check the poverty.
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    Discussion

  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Mukteshwar (09/07/14)
  • There are many other schemes running for the poor people but not a single person came up and said that yes this scheme helped me to survive in poverty . The main cause why all these schemes are not working is because of the disloyal behaviour of the employees that are involved in the various schemes meant for the poor people . According to me scheme should be made such that if the related employee is not loyal then also it should not have any impact on the poor people instead it will come as profit to the poor people .
    A/c to me there should be a direct number to PM's office regarding any corruptions for everyone and this has to be ensured that necessary actions will be taken on the complaints within 48 hours, this will implicitly increase the vacancies for the literate persons , and on the other side it will help the scheme to have a positive impact on the poor families as well .
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Mukteshwar (09/07/14)
  • According to me this new scheme of PM Narendra Modi has more disadvantages than the benifits . As it is said that the account that are being provided to the poor person contains the implicit life insurance cover , i think when the poor person don't have any way to earn the food for his/her family he will try to commit suicide for this insurance cover in the way to proof it as an accident so that his/her family can get that money for the survival . No one knows in how many days they will get that amount or whether his/her family will get that or not it is not sure .
    according to me PM should utilize this amount for creating new jobs,for creating new vacancies in the existing department for such kind of poor people who are not literate, this money should be used so as to make people eligible to earn money , bank account will come into picture when they wil have money to deposit . Today scenario is such that poor families is not having money to buy food for them for one time how can they save money .
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -akanksha singh (09/07/14)
  • i think it is a welcome step toward financial inclusion. people will feel a type of financial security as life insurance and accidental covers are there in this programme and hving bank account will prompt him to save more n that is good for economy. this project along with skill development programme if implemented effectively can be a milestone against poverty. but gov must ensure these programmes free from corrupt practices.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -simran (09/06/14)
  • i thnk narendra modi's shiuld try to impriv the condition fr d jod.in india's there is lack of job.if theyvdont hav any job what they should dopsit in their bank acount.now a days increasing unemployment people hav not money to fullfill their need so wat they deposit un their bank acount.i think jan dhan yojna is not a fight against poverty.
    if modi g want to remov poverty they should try to remove unemployment.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -akash singh (09/05/14)
  • jan dhan yojna : i appreciate to govt to launch a new scheme for poor people , but post independence many poverty allievation scheme came but what happen this scheme every one know ....for starts a good scheme its a good idea but they have to reform because most of the needy people don,t know about these kinds of scheme... the govt should tranparency and regular communicate with poor peolple about these scheme they can do via NGO service local news paper or radio channel and village sarpanch can also give these kinds of information . Because start a any new program is not a very big deal but implementation is a very big deal . for jan dhan yojna definately help to pooor people they understand about bank's procedure or they became more educated....
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -nisha singh (09/03/14)
  • By the launch of jan dhan yojna by our prime minister ,Mr. Modi has tried to eradicate poverty by using d tool of financial inclusion. In my view..modi govt shud provide and pay more focus towards providing n creating jobs in d country so that ppl hv sufficient balance to deposit money in banks.poor ppl who do not hv excess to food n sources of income how would they b able to deposit money even when they hv acount in bank .
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Priya (09/03/14)
  • Jan Dhan Yojana is a financial inclusion program mes whose sole aim is to provide banking facilities to people especially poor who doesnt have any accounts in banks.It can help in eradicating poverty by directy providing cash transfer benefits in the beneficiaries account which was not possible earlier due to corruption prevailed at each stage of transfer of money.In the way of eradicating povert it will also to the some extent reduce corruption.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Gaurav (09/02/14)
  • Definitely yes ,the JAN DHAN YOGNA by Mr. Modi is a step ahead towards a better and secure India where every citizen can take a tensionless breathe and have a relief that their family is secured and by the government with an unbelievable cover of Rs.100000 which is a dream for a poor , cherry over the top is that this account will make them a better invester for their future in the form of artful thinker for the money that they have with them.
    Rest all ca be covered with a Idiom "Money makes Money".
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -deep chandra pathak (09/01/14)
  • jan dhan yojna is an ambitious programme of modi ji but i think not thoroughly well planned & not an ultimate solution for rooting out poverty.
    jan dhan yojna boast of providing over draft facility of Rs 5000 after satisfactory running of accounts for six months. is this mere amount of rs 5000 in the form of liabilty and interest levied on them will not result in increasing tension of repaying it by the beneficiaries of this particular scheme?...anybdy whose situation is so worse that he is forced to take this OD would hav the capability of repaying it?, it is going to increase NPA"s further which is already a point of big concern for our financial thinkers,,!!..any poverty stricken youth would be able to set up his own business with this mere amount?...what is the ultimate outcome of this OD?..this jan dhan sceme has been able to add vigour n curosity among disadvantaged people but is not the ultimate solution for rooting out poverty
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Teena Bhatia (09/01/14)
  • Before we discuss the Jan Dhan Yojana in light of poverty issue, it is important to understand what the Jan Dhan Yojana is all about? The new scheme offers the flexibility to the masses of opening a bank account with all the latest facilities and the additional advantages like insurance cover, overdraft facility and others. The new scheme is said to be an innovative step to achieve financial freedom. IS it really so?

    Jan Dhan Yojana is an unnecessary expense on the finances of nation. How can the scheme be a way to financial freedom? PM Narendra Modi in his speech said that common masses own mobile phones but don’t have the bank accounts. How are the two different aspects related? Mobile phones are the necessity of people whereas the bank account can be opened only when there is money and a need to deposit money. Until and unless, people don’t have proper job, proper source of earnings, financial stability, how will a bank account change the miserable condition. It is really hilarious to say that Jan Dhan Yojana is a fight against poverty. The only visible benefit as of now is the insurance cover which will also face a lot more implications while actual implementation. Therefore, MPs Jan Dhan Yojana is in no way connected to the fight against poverty.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Vishal Vishwanathan (08/31/14)
  • Yes, I think PMs Jan Dhan Yojana is having both positive and negative side like every thing. The first thing which we need to understand is that whether the government is having fund for this, if they are implementing this from a borrowed fund it will add up to the liability of the country. Later they may be forced to stop it. On the positive side it will be an easy way for people to receive government grants which they deserve, It will help them to increase their savings and keep something for the future. Along with this there are people who are involved in this,i.e the government officials who implement this for the people. This people should be committed and should ensure that the system is free from corruption or else this will be a major source of money making for a few corrupted government officials. The system implemented should be capable of overcoming all this hassles.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -deepak kumar (08/31/14)
  • as we know that now a days some people suffering form some think or the other like that in future for getting higher education and suddenly accident cases so we can say that we can take benefit form JAN DHAN YOJANA.
  • RE: Is the PMs Jan Dhan Yojana a fight against poverty? -Ram Bahadur Thakur (08/31/14)
  • ofcourse, linking each and every section of people with this yojana will enable people to transact in a fair way.
    They can easily apply for government loans and subsidies. The insurance cover given to deceased family in case of any accidental death is yet another cause for its validness. It will also help in connecting people with technology and removal of middlemen and informal loan lenders from the market which will surely lead to the financial untouchability to all citizens of Bharat