The State Bank of India report analysed the impact of PM Modi’s scheme on rural and urban consumer price index.
Little did the Government know that the launch of one of its flagship schemes, Pradhan Mantri Jan-Dhan Yojna (PMJDY) would inspired so many to cut down their intake of alcohol and tobacco.
A recent study by the State Bank of India’s economic research wing has stated that a number of people from rural areas, who opened their bank accounts under PMJDY scheme had reduced consumption of alcohol and tobacco in order to save money.
This may have led to the slowdown of inflation in rural areas of the country, the report stated.
There was a significant drop in inflation in the states where villages had over 50 per cent Jan Dhan accounts.
The State Bank of India report analysed the impact of PM 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 quoted by the Times of India stated.
"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," it said.
According to the latest data, there are currently around 30 crore active Jan Dhan accounts in the country.
The scheme is a National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner, the government's official website read.
Under PMJDY, accounts can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. Accounts opened under PMJDY are being opened with Zero balance.
However, if the account-holder wishes to get cheque book, he/she will have to fulfil minimum balance criteria.
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