Question

A government of India has recently launched 'Jan-Dhan Yojana' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect the national income of the country.

Answer 1

Jan Dhan Yojana is a national mission which was implemented to ensure access to numerable financial services such as opening savings bank accounts and availing of credit facilities. This plan gave all households of the country access to universal banking facilities. Many individuals opened their savings account in the bank. This paved the way to commercial banks to provide loans for investment activities. Thus, an economy increases the production level which leads to an increase in the level of national income.