Jan Dhan 2.0: Consider a universal basic income

We have a platform in place for direct cash transfers and may have sufficient funds within a decade to put everyone but the well-off on a monthly payroll. It's time to evaluate the idea

India now has over half a billion Jan Dhan accounts, a truly staggering count of basic banking relationships created by the government in less than a decade under its Pradhan Mantri Jan Dhan Yojana. As finance minister Nirmala Sitharaman said this week, over 55.5% of these bank accounts are held by women. The scheme, she added, stood out as a "pivotal initiative" for financial inclusion. With digital identities proven by Aadhaar as its base, it has served as a channel for the direct transfer of cash benefits to various beneficiaries. By making formal credit accessible, it has also helped many of our most needy escape the clutches of moneylenders.