DMPQ: What is JAM Trinity? How it is beneficial?

An abbreviation for Jan Dhan Yojana, Aadhaar and Mobile number. The government is pinning its hopes on these three modes of identification to deliver direct benefits to India’s poor.

Benefits of JAM:

  1. Ensure minimum leakages and direct benefit transfer.
  2. Remove the bottleneck of exclusion error.
  3. Will bring efficiency in implementation of scheme.
  4. Will help in giving valuable inputs in designing of schemes and revamping of existing schemes.
  5. Will help in digitalisation of the country
  6. Opening up of accounts will open the window of financial credit to the needy ones.

 

According to economic survey, 4.2% of GDP is currently spent on subsidies. Of which most of the subsidy is misdirected and government ends up delivering unintended benefits to the rich.  Hence JAM can improve this mismatch and help to bring efficiencies in the delivery of schemes.

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