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Exercises · Q18

Q.“Jan-Dhan-Yojna helps in the rural development.” Do you agree with this statement? Explain.

Sikkim CbseNCERTSubjective· 3mImportance★★★★★
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Yes — Jan-Dhan Yojana advances rural development by giving the poor bank accounts, drawing them into formal finance, promoting saving, giving access to credit, insurance and pension, and enabling direct benefit transfers that cut out middlemen and leakages.

What Jan-Dhan Yojana is

The Pradhan Mantri Jan-Dhan Yojana is a national mission for financial inclusion. Its aim is to ensure that every household, especially the poor and the unbanked, has access to a bank account and to basic financial services.

How it helps rural development

Rural development depends on the poor having access to credit and finance instead of depending on exploitative moneylenders. Jan-Dhan Yojana helps in several ways:

  • Financial inclusion — it opens bank accounts (often zero-balance) for the rural poor and unbanked, bringing them into the formal banking system for the first time.
  • Encourages saving — with an account, poor households are encouraged to save even small amounts safely, building financial security.
  • Access to credit — account-holders gain access to institutional credit at fair rates, reducing dependence on moneylenders who charge exploitative interest.
  • Access to insurance and pension — the scheme provides accident and life insurance cover and access to pension, giving the poor a safety net.
  • Direct Benefit Transfer (DBT) — government subsidies and welfare payments are transferred directly into these accounts, which cuts out middlemen, reduces leakages, and prevents corruption.
  • Women's empowerment — accounts in the names of women improve their control over household finances.

Conclusion …

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