JAM (short for Jan Dhan-Aadhaar-Mobile) trinity is the initiative by Government of India to link Jan Dhan accounts, Mobile numbers and Aadhar cards of Indians to directly transfer subsidies to intended beneficiaries and eliminate intermediaries and leakages. The JAM trinity was first proposed in the Economic Survey 2014-15. Finance Minister, Arun Jaitley said that the database of 1.2 billion bank accounts, when linked with 900 million mobile phones and about 1 billion Aadhaar numbers, would effectively ensure that the subsidies reach only to those who actually need them.
PM Modi wished that every individual living in the country would enjoy a Zero Balance Account. So he launched the Pradhan Mantri Jan Dhan Yojana on 28th August to address this fundamental issue and within a few months the lives and future of millions of Indians changed. While the bank accounts have given millions of Indians access to banking services, they have also played a major role in stopping corruption.
Ingredients of JAM
1. Government → Beneficiary: the challenge of identification
To identify beneficiaries, the government needed databases of eligible individuals. In this direction, the step of creating Aadhar card of all the individuals was initiated.
2. Government → Bank: the challenge of payment
After identifying beneficiaries, the government had to transfer money to them. For that every beneficiary needs a bank account and the government needs their account numbers. This constraint was significantly eased by the Pradhan Mantri Jan Dhan Yojana opening zero balance accounts.
3. Bank → Beneficiary: the last-mile challenge of getting money into people’s hands
To get the money into people’s hands, greater use of mobile payments technology is to be done. Mobiles can not only transfer money quickly and securely, but also improve the quality and convenience of service delivery.
Various Government schemes under JAM
• Pratyaksh Hanstantarit Labh (PAHAL) Yojna
Under PAHAL Yojna, LPG subsidies are directly deposited into the bank accounts. At present, more than 14.62 crore people are receiving direct cash subsidies. It has also helped identify and block around 3.34 crore duplicate or inactive accounts, helping save thousands of crores. PAHAL Yojana, recently entered the Guinness Book of World Records for being the world’s largest direct cash transfer scheme.
• Pradhan Mantri Suraksha Bima Yojna
Under this scheme, accident insurance worth Rs. 2 Lakh is being provided. The premium is just Rs.12 p.a. for each member that means even the poorest of poor Indian can afford it.
• Pradhan Mantri Jivan Jyoti Bima Yojna
This scheme provides life insurance at just Rs. 330 per year payable to the family of the member in case of his death due to any reason. Almost 3 crore people have joined Pradhan Mantri Jivan Jyoti Bima Yojana.
• Atal Pension Yojana
Being a guaranteed pension scheme, it provides a pension of upto Rs. 5000 a month depending on the contribution. Around 15.85 lakh people have registered for the Atal Pension Yojana.
Milestones achieved by JAM Vision
Guinness World Record for most bank accounts opened in one week -1,80,96,130
19.72 crore bank accounts opened
16.8 crore RuPay cards issued
28k crore Cash Deposits
131 crore Overdraft
Despite huge success of this mission, considerable work needs to be done to fully implement the game-changing JAM. The JAM Vision will serve as the basis of many initiatives to come.