Financial inclusion has many social benefits 2022

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Jan Dhan Financial Inclusion: A total of 43.76 crore beneficiaries have opened Jan Dhan accounts so far. This number is more than the total population of America and Germany. Without a doubt, financial inclusion is a major accomplishment of this administration. Jan Dhan accounts, or savings accounts launched in government and commercial banks for impoverished families, have been its major weapon. So far, a total of 43.76 crore people have created Jan Dhan accounts. This amount exceeds the combined populations of the United States and Germany.

Approximately two-thirds of these accounts were established in remote locations where branch presence is extremely low. Furthermore, these individuals have access to insurance, enhancing the quality of their financial inclusion.

Financial inclusion may take numerous forms. Millions of Indians utilize digital payments such as UPI and bank applications to pay even little amounts. Approximately two-thirds of the accounts are opened in rural regions, where there are few bank offices. In addition, the recipients receive insurance coverage, which improves the level of financial inclusion. They can conduct cashless purchases with the debit cards provided to Jan Dhan recipients. Only 72.37 percent of the recipients, however, have received these cards. There is a discrepancy amongst the states in this regard. There are however some states where coverage is significantly lower than 50%.

The number of mobile and online banking transactions per thousand persons rose from 183 to 13,615 between 2015 and 2020. The number of bank branches per lakh inhabitants grew from 13.6 to 14.7 during this time. This figure is greater than that of Germany, China, and South Africa.

The most crucial of them is that crime rates have decreased in states where Jan Dhan account holders have more money in their accounts. The relationship between reduced alcohol and cigarette usage has also been found in the SBI research from states where more Jan Dhan accounts have been established. It’s worth noting that individuals who have the financial resources to save are kicking poor habits.