The world was going through a rough phase when Covid induced Lockdowns were taking a toll on economies. People were advised to maintain distances between themselves to keep the pandemic in check. Yet the people facing the hardships the most were those who worked in unorganised sector and who were not part of the social security net provided by the government and organisations for the welfare of workers. The challenge at hand was big for those entrusted with administration of the country. But the financial inclusion initiatives of the country’s administration gave them the opportunity to connect with the masses and ensured passing down of the benefits to large masses as announced by the Prime Minister in his first economic package for the nation. All this went smoothly and people were able to reap benefits of DBT (direct benefits transfer) passed onto them by the government initiatives. It all became possible because a large segment of country’s population got connected with the financial system of the country due to successful implementation of PMJDY (i.e. Pradhan Mantri Jan Dhan Yojana).
PMJDY was launched by Prime Minister Sh. Narendra Modi on 28th August 2014 with an aim to improve Financial Inclusion in the country. It envisaged and carried out easier opening of people’s Savings bank account. It reduced the earlier required conditions which made it tough for people to go to bank and open their accounts. The renewed push by the Prime minister for the enhanced connection of country’s people with the economic and financial system indeed proved to be a big boost for the country’s growth. Following figures as released by PIB showcase the huge impact his PMJDY has made to country’s financial system.
Looking at the mind blowing number of PMJDY beneficiaries one gets curious as to why is the scheme a game-changer and what is the need for someone like a student or a commonman to have a savings bank account. So we are telling you the benefits of having a savings bank account.
- It connects the people with country’s financial system- This is the most important function that a bank account does with an account holder. An account holder can interact with other financial players and reap the offered benefits.
- A savings bank account grows your money- This is the most lucrative benefit that unbanked people having cash miss out upon. The cash in hand does not grow with time unless invested somewhere but the cash once deposited in a savings account gives you interest which increases with passing time. One lakh kept in a savings account becomes more than 1 lakh after a quarter year. This sounds rewarding. Isn’t it?
- People with bank account can get social security benefits- Government these days have improved e-governance worldwide and the interaction between people and government now takes place in an increased fashion electronically. So to reduce red-tapism and bring transparency governments have opted to pass on benefits to people via Direct benefits transfer into their bank accounts. Other initiatives include passing on insurance and pension benefits to people via bank accounts.
- A bank account helps you avail monetary services at distant places- Those who travel a lot understand the utility of availing bank services at distant places.
- It increases people’s confidence in your financial strength- People who transact frequently through banks also create their financial histories simultaneously. Bankers assess a person’s financial health by analysing their bank statements and offer them fiancial products at attractive rates accordingly.
These are perhaps the 5 general benefits that one gets to take advantage of after opening up a savings bank account. It is really critical for a country to achieve good amount of financial inclusion as is evident after the covid pandemic. PMJDY has proved to be structural foundation in country’s goal of Financial Inclusion. You can also be a part of this transformational initiative by opening yours and your friend’s account in banks by telling them about this initiative. This would certainly empower them as well as the Nation. See you in the next blog.
