The government said it’s joining the United Nations’ Better Than Cash Alliance as part of its efforts to widen its financial inclusion drive.The government of India is joining the UN’s Better Than Cash Alliance,” said an official release.
Highlights of Partnership
- Under PMJDY, in one year, 175 million new accounts have been opened, with deposits totaling more than $3.4 billion (223 billion Rupees), as revealed by the Government of India.
- The new partnership with the Better Than Cash Alliance, made up of governments, companies, and international organizations, 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 project has been instrumental in bringing almost all families of the country into the formal financial system and enabling citizens at grassroots level to perform financial transactions and keep their hard-earned money safe.
- Dr. Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance said by making the digitization of payments to achieve financial inclusion a top priority, the Indian Government is showing its commitment to improving the lives of its people and driving inclusive growth.
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 United Nations Capital Development Fund serves as the secretariat.
Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Jan Dhan Yojana is National Mission for Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
This financial inclusion campaign was launched by the Prime Minister of India Mr. Narendra Modi, on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.
Under the scheme:
- Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh(to be given by ‘HDFC Ergo’).
- Those who open accounts by January 26, 2015 over and above the 1 lakh ₹ accident, they will be given life insurance cover of ₹ 30,000(to be given by LIC).
- After Six months of opening of the bank account, holders can avail 5,000 ₹ overdraft from the bank.
- With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.
- Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.
Expected Questions
1.Who is Secretary for the Department of Financial Services of the Government of India?
–Dr. Hasmukh Adhia
2.Who is the Managing Director of the Better Than Cash Alliance?
–Dr. Ruth Goodwin-Groen
