SBI study reveals drop in rural inflation due to Jan Dhan Yojana

NewsBharati    17-Oct-2017
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New Delhi, Oct 17: when Prime Minister Narendra Modi unveiled the mega financial inclusion drive called Jan DhanYojana, the financial policy mavens were divided on the pet project of Modi, even questioned the relevance of the ordinary activity... but here is some good news for government and policymakers. In a recent survey conducted by the research wing of the State Bank of India reveals that with the easy access of banking system villagers have managed to contain their expenses resulting in a significant drop in inflation.

As reported by Times of India, the study with reference to retail inflation data has pointed that 50% share of Jan Dhan accounts in villages had tone down the inflation effect. The study further ascertains the positive aftereffects of financial inclusion has proved its mettle. Apart from lower inflation rate in the rural area, the other side of the story is more interesting where the think tank of apex nationalize bank observed the decline in the consumption of intoxicants.

Soumya Kanti who is helming the post of chief economic adviser for SBI group opined that the plan might have worked with the drop in consumption of intoxicants such as alcohol and tobacco products in states after the opening of PMJDY accounts which indirectly embodies the natural instinct of saving which is instilled in the lifestyle of Indian society.

Jan Dhan Yojana SBI Narendra Modi