Indian Government on 1 September 2015 partnered with the United Nations’ (UN) Better Than Cash Alliance to share success stories from the financial inclusion programme Pradhan Mantri Jan-Dhan Yojana (PMJDY).
By joining the Better Than Cash Alliance, the Indian Government will have a research, technical, and policy partner as it continues to create a digital financial economy.
The partnership is an extension of Indian Government’s commitment to reduce cash in its economy. Digital financial services lower the cost of providing financial services and make it more convenient for poor people to access their accounts.
The Better Than Cash Alliance is made up of governments, companies and international organizations.
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
- PMJDY was launched in 2014 with a goal of covering every household with a bank account in less than five months’ time. The programme focuses on citizens excluded from the formal financial sector, including women, small farmers, and labourers.
- PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country.
- Under PMJDY in one year, 175 million new accounts have been opened, with deposits totaling more than 3.4 billion US dollars (223 billion Rupees).
- To ensure that these accounts are actively used, the Government is delivering financial products, such as credit for economic activity, as well as remittance facilities, insurance, and pension directly into the accounts.
- There have been many success stories since the launch of PMJDY. For example, Canara Bank opened 12 million accounts and delivered financial literacy and educational tools to poor people in rural areas.
- Similarly, Union Bank of India has also prioritized financial inclusion in rural areas, with a particular focus on women by providing weekly education trainings in villages and garment factories.
About Better Than Cash Alliance
- The Better Than Cash Alliance is a partnership of governments, companies, and international organizations that accelerates the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.
- The Better Than Cash Alliance was launched in September 2012 in response to public and private sector demand for more strategic advocacy, research and guidance on digitizing these cash payments.
- The UN Capital Development Fund (UNCDF) serves as the Secretariat of the alliance.
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