Aadhar, Jan Dhan and digital payments ensured transparency in India: PM Modi

Modi's formal economy: Prime Minister Narendra Modi, during an exclusive interview with Republic Media Network's Editor-in-Chief Arnab Goswami, highlighted the notable achievements of his government's Direct Benefit Transfer (DBT) scheme, emphasising the unprecedented reach of welfare funds to the underprivileged.

Addressing longstanding concerns regarding leakages in welfare schemes, Prime Minister Modi asserted, "We have facilitated a direct benefit transfer of approximately Rs 35-40 lakh crore to the underprivileged." 

He referenced former Prime Minister Rajiv Gandhi's observation that only a fraction of welfare funds reached the intended beneficiaries, stating, "Today, the entirety of the allocated funds, equivalent to one rupee, reaches its intended recipients, ensuring that the poorest amongst us receive their due."

 Jan Dhan integration efforts

Prime Minister Modi elucidated on the strategic initiatives that underpin the success of the DBT scheme, notably the inception of Jan Dhan accounts. He revealed the extensive efforts involved in establishing bank accounts for marginalised communities, requiring daily video conferencing with banks. The integration of Aadhar card, Jan Dhan, and Digital India, Prime Minister Modi emphasised, constitutes the foundational pillars of this transformative endeavour, conceived well in advance.

The interview shed light on the widespread adoption of digital transactions, with even street vendors equipped with QR codes, symbolising the burgeoning formal economy. Prime Minister Modi highlighted the significance of QR codes extending to religious institutions, signalling a profound shift towards transparency and accountability.

Banking system integrity

Prime Minister Modi also addressed the critical role of a robust banking system in building global confidence. PM Modi said, “Due to Phone Banking scams, the banking system of the country took a massive hit. When a nation's banking infrastructure falters, global trust in the nation diminishes rapidly. This loss of confidence not only impacts the Rupee's value but the whole world no longer wants to be associated with you.”

“When we came to power, 11 out of 21 banks were placed under the RBI's stringent daily monitoring, which indicates the state of banks’ precarious state. Our concentrated efforts on implementing the IBC code and injecting capital into these banks, sourced from taxpayers' funds, were key in safeguarding the integrity of the nation's banking system,” the Prime Minister added.

The PM said that addressing corruption and implementing robust banking practices helped him to achieve new highs for India’s banking system.

“Today, I am proud to announce that the collective profit of these banks has surged to over Rs 1 lakh crore, an unforeseen milestone in the history of our banking sector,” PM Modi remarked.

The Prime Minister also underlined strong improvement in banks' improving Non-Performing Assets (NPAs). PM Modi said, “The steady decline in banks' Non-Performing Assets (NPAs) is a prime example of our Reform, Perform, and Transform strategy in action.”