Report Says PM Narendra Modi’s ‘Jan Dhan’ Yojana is Making People Cut Down on Tobacco And Alcohol Consumption
New Delhi, Oct 16: The ‘Jan Dhan’ scheme launched by Prime Minister Narendra Modi is inspiring people to cut down on their tobacco and alcohol consumption, a report published by the economic wing of the State Bank of India (SBI) said. The report further said that people in rural areas have started saving more as they now have a bank account.
The SBI report further said that the inflation in rural areas also dropped due to Modi’s ambitious scheme. It was expected that due to higher circulation of money, the inflation would rise. However, there was a significant drop in inflation in the states where villages had over 50 per cent Jan Dhan accounts.
The SBI report analysed the impact of Modi’s scheme on rural and urban consumer price index. “The analysis confirms that besides formalisation of the economy, financial inclusion has had tangible benefits which are visible in the inflation data,” the report was quoted by TOI.
“We observed that there is both statistically significant and economically meaningful drop in consumption of intoxicants such as alcohol and tobacco products in states where more PMJDY accounts were opened.
“This could be because of behavioural changes like less spending after demonetisation,” the study said.
There are around 30 crore active Jan Dhan accounts in the country. Out of these, 10 states have 23 crore accounts, which is 75 per cent of the total accounts opened. India’s most populous state Uttar Pradesh tops the list with 4.7 crore accounts, followed by Bihar (3.2 crore) and West Bengal (2.9 crore).
Prime Minister Narendra Modi and his ministers count the Jan Dhan scheme as their government’s major achievement.