New Delhi: The government Tuesday said it's joining the United Nations' Better Than Cash Alliance as part of its efforts to widen its financial inclusion drive.
"The government of India is joining the UN's Better Than Cash Alliance," said an official release.
The announcement comes on the first anniversary of Prime Minister Narendra Modi's flagship financial inclusion programme Pradhan Mantri Jan Dhan Yojana (PMJDY), it added.
Under PMJDY, in one year, 175 million new accounts have been opened, with deposits totaling more than USD 3.4 billion (Rs 22,300 crore), it said.
"The new partnership with the Better Than Cash Alliance, which is made up of governments, companies, and international organisations, is an extension of the government's commitment to reduce cash in its economy," said the release.
Digital financial services lower the cost and make it more convenient for the poor to access accounts.
"The scale of ambition of Pradhan Mantri Jan Dhan Yojana has been much higher than any other financial inclusion initiative in the past.
The project has been instrumental in bringing almost all families of the country into the formal financial system and enabling citizens at grassroots level to perform financial transactions and keep their hard-earned money safe," said Finance Minister Arun Jaitley in the statement.
India's announcement comes ahead of the next month's United Nations special summit in New York, when Prime Minister Modi and other world leaders will launch the adopted Sustainable Development Goals (SDGs).
"India's leadership and progress are inspirational for countries around the world," said Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance.
"We have been recognized by the Guinness World Records for opening over 1.8 crore (10 million) bank accounts in a single week," Jaitley said further.
"As a next step, the aim is to utilise these accounts for extending insurance, pension, and credit facilities to those who are currently excluded from these benefits," he added.
Revenue Secretary Hasmukh Adhia said: "PMJDY has been a game changer in the country's financial inclusion efforts."
The fuel subsidy programme, the world's largest cash transfer programme, saved USD 2 billion (Rs 13,100 crore) by paying cooking gas consumers directly into their bank accounts, according to a new paper by Columbia University, said the release.
