DMPQ- What do you understand by the term JAM Trinity?

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JAM stands for Jan Dhan Yojana, Aadhaar and Mobile number. The government intends to use these three modes of identification to implement one of the biggest reforms in independent India – direct subsidy transfers to the poor.

Current subsidy schemes take an indirect route to reach the poor of the country. Examples are the PDS, the MGNREGA, etc. These kind of subsidies are more costly to the exchequer,

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and also cause a lot of corruption, as there are a lot of intermediaries before the actual benefit reach the poor. With Aadhaar helping in direct biometric identification of disadvantaged citizens and Jan Dhan bank accounts and mobile phones allowing direct transfers of funds into their accounts, it may be possible to cut out all the intermediaries.

 

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