Page 17 - NIS English 16-31 Aug, 2026

Years
Jan Dhan Yojana
Cover
Story

5
Jan Dhan Yojana has
Reduced dependence on local moneylenders charging
high interest rates helped break the debt cycle. been paramount in

n The poor and marginalised gained access to banking through boosting financial
PMJDY; opening accounts enabled access to overdraft inclusion and giving
facilities and loans. dignity to crores of

n Approximately 84 lakh street vendors received collateral-free people, especially
loans totalling over ₹17,000 crore under the PM SVANidhi women, youth, and
scheme by March 2026. the marginalised
communities.
6
Formalisation of the Economy Narendra Modi,
Prime Minister

n Cash-based informal transactions were brought into
the formal banking system.

n The opening of zero-balance Jan Dhan accounts
enabled individuals who previously kept their money self-confidence of the poor.
at home to deposit it in banks. The third impact was ensur-
ing social security for ordinary
n While moneylenders used to exploit cash transactions, citizens and ushering in a new
online payments have now made record-keeping easier. era of inclusive growth. It was

through Jan Dhan accounts that
people gained access to social se-
curity schemes like the Pradhan
7 Mantri Jeevan Jyoti Bima Yojana,
The financial data trail is proving instrumental
in the credit scoring and future loan eligibility Pradhan Mantri Suraksha Bima
of poor citizens. Yojana, and Atal Pension Yojana.
When the Pradhan Mantri Jan
Dhan Yojana was launched, many
n Previously, those in the informal sector or from poor wondered what would happen or
backgrounds lacked credit scores, preventing them from how it would work; yet, over time,
obtaining bank loans; Jan Dhan has paved the way for this. successive schemes benefiting
n Increased access to loan facilities has improved the standard the poor were integrated into it.
of living for the poor and marginalised; they are now able to This laid the foundation for so-
finance their children's education through loans. cio-economic empowerment—a
foundation that continues to
expand. While some people in
the country receive government
pensions, consider the meager
amounts many—around 35
lakh people—used to receive
previously: seven rupees, twenty

Aug 16-31, 2026 || NEW INDIA SAMACHAR 15