Topic: Inclusive growth and issues arising from it
Q5. Assess the role of Pradhan Mantri Jan Dhan Yojana (PMJDY) in transforming India’s subsidy delivery architecture. How has it helped curb leakages? (10 M)
Difficulty Level: Medium
Reference: IE
Why the question
Because PMJDY has become the backbone of India’s DBT-led subsidy system, transforming governance by reducing leakages and ensuring direct credit to beneficiaries.Key Demand of the question
The question demands an assessment of how PMJDY has reshaped subsidy delivery mechanisms and a critical analysis of its effectiveness in curbing leakages and corruption.Structure of the Answer:
Introduction
Brief context on PMJDY’s launch in 2014 and its role in building JAM trinity for subsidy reforms.
Body
- Transformation of subsidy delivery architecture – institutional mechanisms like universal account coverage, Aadhaar integration, last-mile outreach.
- Curbing leakages – outcomes such as ghost beneficiary elimination, reduction in corruption, timely transfers, transparency.
Conclusion
PMJDY has redefined welfare delivery as a rights-based entitlement; future reforms must deepen account usage and financial literacy.
