Pradhan Mantri Jan Dhan Yojana

Source: Indian Express

Pradhan Mantri Jan Dhan Yojana (PMJDY) completed 11 years on August 28, 2025, and has emerged as the world’s largest financial inclusion programme.

What is Pradhan Mantri Jan Dhan Yojana?

• Launched in 2014, the scheme was designed to provide universal access to banking for people without bank accounts.
• Its objectives include zero-balance accounts, RuPay debit cards, insurance, pensions, and Direct Benefit Transfers (DBT).
• The scheme has reduced dependence on moneylenders and informal credit networks, which historically trapped the poor.

Progress in 11 Years

1. Massive Account Growth
   • So far, 56.2 crore accounts have been opened, compared to about 15 crore in 2015.
   • It represents the largest financial inclusion drive in the world.
2. Gender Inclusion
   • 56% of accounts are held by women, reflecting women’s participation in financial decision-making.
3. Rural Outreach
   • 37.5 crore accounts belong to rural/semi-urban areas.
   • Over 16.2 lakh “Bank Mitras” have extended banking services to remote villages.
4. Expansion of Deposits
   • The total balance has reached ₹2.68 lakh crore, 17 times higher than in 2015.
   • This shows a shift from mere account opening to actual savings behaviour.
5. Digital Ecosystem
   • Over 38.7 crore RuPay cards issued.
   • Boosted UPI-based transactions and strengthened India’s digital economy.

Impact of PMJDY

• Direct Benefit Transfers (DBT): LPG, pensions, and Covid-19 relief payments reached beneficiaries without intermediaries, reducing corruption and leakages.
• Crisis Response: During demonetisation (2016) and the Covid-19 pandemic, Jan Dhan accounts enabled quick cash transfers to millions of poor households.
• Financial Security: Linked with micro-insurance (PMJJBY, PMSBY) and pension schemes (Atal Pension Yojana), providing a basic social safety net to the unorganised sector.
• Banking Access: Today, 99.9% of villages have access to a bank branch, a Bank Mitra, or an India Post Payments Bank outlet within 5 km.

Challenges

1. Dormant Accounts
   • Many Jan Dhan accounts remain inactive, used only for opening and not for transactions.
2. Credit Gap
   • Many account holders still lack access to formal credit facilities, relying on moneylenders or microfinance.
3. Digital Divide
   • In Tier 4 & Tier 5 towns, low smartphone penetration and poor digital literacy limit digital banking benefits.
4. Financial Literacy Deficit
   • Many beneficiaries are unaware of insurance and pension schemes, restricting long-term empowerment.
5. Overdependence on DBTs
   • Accounts are mostly used for subsidy inflows rather than savings, investments, or productive activities.

Way Forward

• Revive Dormant Accounts: Conduct awareness drives and incentivise regular transactions.
• Expand Credit Access: Link PMJDY with microcredit and small loans to promote entrepreneurship.
• Promote Financial Literacy: Spread awareness about savings, insurance, and pensions through local languages and community campaigns.
• Leverage Technology: Develop voice-based and AI-driven banking tools for low-literacy populations without smartphones.
• Deepen Social Security: Expand Jan Suraksha schemes to bring more informal workers under insurance and pension coverage.
• Encourage Savings & Investments: Connect growing balances in Jan Dhan accounts with small savings, mutual funds, and other financial products.

Project Aarohan

Source: Press Information Bureau (PIB)

Context: The National Highways Authority of India (NHAI) has launched Project Aarohan to support the education of children of toll plaza workers.

About Project Aarohan

What is it?
• A scholarship and mentorship programme aimed at fulfilling the educational aspirations of toll plaza employees’ children, especially those from economically weaker sections.

Launched by: National Highways Authority of India (NHAI) in collaboration with Vertis Infrastructure Trust.

Implemented by: Bharat Cares of SMEC Trust.

Objectives

• To remove financial barriers to education.
• To ensure equal access to quality education.
• To nurture the talent of toll plaza workers’ children and reduce socio-economic divides.

Key Features

1. Coverage: 500 students from Class 11 up to the final year of graduation.
2. Scholarship: ₹12,000 annually (FY 2025–26) for each selected student.
3. Higher Education Support: ₹50,000 each for 50 meritorious students pursuing post-graduation or above.
4. Beyond Financial Aid:
   • Mentorship
   • Career guidance
   • Skill development workshops
   • Structured progress tracking
5. Fund Allocation: ₹1 crore for the first phase (July 2025 – March 2026).
6. Application Process: Online portal; requires academic records, income certificate, caste certificate, ID proof, etc.
7. Inclusivity: Priority will be given to—
   • Girls
   • First-generation learners
   • Students from EWS, SC, ST, OBC, and minority communities.

National Designated Authority (NDA) for Carbon Markets

Source: The Hindu
Context: The central government has finalized the formation of a 21-member National Designated Authority (NDA) to enable the carbon market in India.

• This is a mandatory step under Article 6 of the Paris Agreement (2015).

What is the National Designated Authority for Carbon Markets?

• A statutory requirement under Article 6, established by the Ministry of Environment.
• It is the nodal body responsible for regulating, approving, and monitoring carbon market activities in India.

Structure

• A 21-member committee chaired by the Environment Secretary.
• Includes representatives from the Ministry of External Affairs, Ministry of Steel, Ministry of New and Renewable Energy, Ministry of Power, and NITI Aayog.
• The multi-sectoral composition ensures alignment between domestic priorities and international obligations.

Functions of the NDA

1. Project Approval: Evaluate and approve projects that generate Emission Reduction Units (ERUs).
2. National Criteria: Recommend tradable activities aligned with India’s sustainable development goals.
3. Monitoring: Update and revise eligible activities in line with national priorities and climate commitments.
4. Carbon Credit Utilization: Permit the use of ERUs to meet India’s Nationally Determined Contributions (NDCs).
5. International Role: Represent India in Article 6 frameworks and facilitate credit transfers with other countries.

Importance of NDA for India

• Support to NDCs: Will help India achieve its commitment to reduce emissions intensity by 45% from 2005 levels by 2030.
• Promotion of Clean Energy: Will boost investment in renewable and low-carbon projects.

Article 6 of the Paris Agreement

• What it is: Article 6 defines the rules of the international carbon market, allowing countries to trade emission reduction credits.
• Establishment: Finalized after long negotiations at COP29 (Baku, 2024).
• Objective: To help countries achieve their NDCs in a cost-effective manner by reducing emissions through market-based mechanisms.
• Provides frameworks for bilateral trading, credit authorization, and sustainable development goals.