Prime Minister’s Jan Dhan Yojna – the financial inclusion programme opened with 1.5 crore accounts with a target of 7.5 crore by 26th Jan 2015 with a slew of incentives of insurance and overdraft and with an aim of direct cash transfer. The direct cash transfer scheme was propounded by the previous UPA govt with Aadhaar card. Ironically the new NDA govt tried to disband the Aadhaar card which was initiated by the previous govt, but deferred the decision, because it found some sense in it.
Some of the account holders have opened fresh accounts and as such multiple accounts is bound to cause serious problems as many of them may remain inoperative. The overdraft facilities which are promised may amount to burden as they run the risk of multiplying bad debts and NPAs thus weakening the health of the banks.
If we recall the recent economic crisis, Indian banks did not go bust as some of the American or European banks, but political interference may risk its normal functioning and ruin public faith, trust and cause loss of deposits in our financial institutions.
We may recall a few decades back the Congress government had forced the bankers to dole out loans via loan melas when Janardhan Poojary and Eduardo Faleiro were Union ministers. Most of those loans were written off as the recipients did not pay back , as they assumed that they were doles.
Financial inclusion does not mean robbing Peter to pay Paul but rather give people gainful employment. Let them earn their money by the sweat of their brow, then only will the level of poverty come down. Giving doles make people inefficient, thieves, drunkards, drug edicts and lazy with the only expectation of more doles.
If people earn their livelihood they will become happy and prosperous and we will have a happy, healthy and peaceful nation. Governments should keep their hands off the bank and let RBI do their work without any political interference.
