To what extent, the JAM TRINITY can help India to make a suitable, efficient and transparent Subsidy Delivery System? Examine.
JAM number trinity refers to Jan Dhan Yojana bank account number, Aadhaar number and Mobile phone number, respectively. The application process for a bank account under the Jan Dhan Yojana would take note of Aadhaar number as identity proof. Aadhaar enrolment requires the applicant to produce his/ her mobile number. In this way the trinity is getting linked. Once the linking is complete, every poor person can be uniquely identified.
This would help the government to identify the intended beneficiaries of a welfare scheme and directly send them the cash without the need of involving any middle persons for administering the benefit.
JAM Trinity would enable government to provide subsidies in a more inclusive and targeted way. India being a welfare state cannot shy away from responsibility and therefore we need subsidies for the disadvantaged. JAM Trinity could be a good solution.
Therefore, ever tear from every eye will positively be wiped and a fiscal discipline in the form of JAM trinity will usher financial inclusion.
Challenges are however associated with its success-
- Lack of infrastructure
- Creating awareness
Overall, it could be a “game changing reform” as said by Arun Jaitley. It will enable transfer of benefits in a leakage-proof, well-targeted and cashless manner. (206 words)