Modi's JAM

J (Jan Dhan Bank Account)   A (Aadhaar card)   M (Mobile governance)

What is the JAM trinity?

Chief Economic Advisor Arvind Subramanian coined this jargon “JAM trinity”— Jan Dhan Yojna, Aadhar card and Mobile governance. It is a “game changing reform” that will legitimize the channelization of benefits in a leakage-proof, well-targeted and cashless manner. It basically aims at delivering the benefits directed at public.

Prime Minister Narendra Modi pioneered the JAM initiative with a motive to deracinate poverty from the country by connecting the Jan Dhan Yojana bank accounts with the Aadhar cards and with Mobile governance.

How is JAM beneficial?

• The government aims to open bank accounts of each and every citizen, and then will directly transfer money into their accounts. This is decision is quite crucial for the nation because crores of rupees are spent on various welfare schemes but 50% leakage is conventional. Moreover, along with eliminating such a wastage , it will also enable the banks to provide overdraft facilities worth Rs.5000.
• Currently, there are only one crore beneficiaries to avail the direct facility transfer but with the introduction of JAM, this number will rise up to ten crores.
• People belonging to the lower income section or the underprivileged ones can now avail subsidies for products like rice, LPG, diesel, fertilizer, kerosene etc from the public distribution systems. Also, the problem of leakage of such subsidies can be reduced with the adoption of direct cash transfer.
• Moreover, these people can also use post offices to operate and transact on their aadhar cards and mobile linked accounts. This will ensure money transfer to people living in areas where no banking services are available.
• Prime Minister Narender Modi recently touched upon cooperative federalism, which basically aims at simplifying the central government’s stranglehold on the states because now, there was no need to tell the states how schemes should be initiated and executed. Thus, cooperative federalism was exercised for distribution of funds to the states and making their scheme implementation autonomous. 

Now what next?

JAM is truly a much needed initiative taken whose full benefits can be availed with efficient and effective execution and implementation. Moreover, the Modi government should work upon eliminating the flaws of Jan Dhan Yojna, Aadhar card and Mobile governance that have been brought to notice. Some of such drawbacks being:

- Paridhi Sharma