ET GBS: New financial architecture will be a game changer, says Jayant Sinha

The government is developing a new financial architecture for India that will be a game changer, minister of state for finance Jayant Sinha said at the summit, outlining the threephase plan that seeks to provide financial security and make life better for the disadvantaged.

“We want to make sure that we create more opportunities for every Indian,” Sinha said during a discussion on ‘Banking a Billion,’ while pointing out that India’s growth will climb to over 8% with a good monsoon this year.

Sinha said that phase one of the JAM ( Jan Dhan-Aadhaar-Mobile) trinity was about vision, the second was establishing a range of simple financial products and the third was all about making sure it’s easy for people to access them. He was referring to the combination of the Jan Dhan Yojana financial inclusion programme, the Aadhaar card and the mobile aimed at ensuring that benefits go to those who deserve them without any leakages on the way. He said the first phase was complete, the second phase was being worked on and the third would follow.

“In 100 days, we have made banking services available to every Indian,” Sinha said. The second phase was creating an array of products, such as the RuPay debit card, along with a Rs 5,000 overdraft and Rs 30,000 accident insurance.

“We tried to take this Jan Dhan account and add certain features to it that make it very attractive so that people have an incentive to sign up,” he said, pitching it as a basic savings and credit solution that laid the foundation for more products such as insurance and pension. In the third phase, the government wants to make sure that it’s easy for people to access these financial products.