Convergence of welfare schemes strengthening financial health in India: NITI Aayog
New Delhi, June 26
NITI Aayog Member Dr. R. Balasubramaniam on Friday highlighted India's integrated approach to financial inclusion and financial health during an interaction with Queen Maxima of the Netherlands, the United Nations Secretary-General's Special Advocate for Financial Health.
Dr. Balasubramaniam shared that India's financial inclusion journey began with the JAM trinity -- Jan Dhan accounts, Aadhaar and mobile connectivity -- which laid the foundation for achieving financial inclusion at a population scale. Over the last decade, this framework has enabled the creation of an integrated social protection architecture that has substantially improved financial health for a large section of the population.
Drawing upon his experience of working with rural and tribal communities, Dr. Balasubramaniam said financial health should be viewed in the broader context of economic and social security. He noted that access to financial services alone is insufficient unless supported by essential social protection mechanisms.
He explained that financial inclusion, combined with health security initiatives such as Ayushman Bharat and the Ayushman Bharat Health Account (ABHA), food security through the Public Distribution System, energy access under the PM Ujjwala Yojana, and the expansion of Direct Benefit Transfers and pension schemes, has strengthened household resilience across the country.
The NITI Aayog member emphasised that these interconnected welfare interventions have contributed to improved financial health outcomes by reducing vulnerabilities and enhancing social security for millions of households.
The interaction with Queen Maxima provided an opportunity for India to share its experience of how financial health can be strengthened through the convergence of financial inclusion with health, food, energy and social security measures, creating a more resilient foundation for households and communities.
— IANS
Reader Comments
Good to see NITI Aayog highlighting this. The Direct Benefit Transfer system has eliminated middlemen and saved crores of rupees. PM Ujjwala Yojana gave LPG connections to poor women - that's real financial and health security combined. But there should be more focus on financial literacy alongside these schemes.
The connection between financial health and social security is crucial. Ayushman Bharat + ABHA cards + DBT = a holistic safety net. My mother got her cataract surgery free under Ayushman Bharat. That's not just health coverage - it saved us from a major financial setback. Well done India! 👏
While the schemes are good on paper, implementation varies drastically across states. In my district in UP, many still don't have their Aadhaar linked properly for DBT. The convergence idea is sound but needs stronger administrative coordination. Also, pension coverage for informal workers remains patchy.
As someone who works with SHGs in rural Andhra, I can vouch for this. The integration of bank accounts + Aadhaar + mobile has empowered women financially. Our self-help group members now get pensions and subsidies directly. But we need more awareness about ABHA health IDs in villages.
Interesting to see an Indian perspective being shared at the UN level. The JAM trinity approach is genuinely impressive - it's a scalable model other developing nations should study. But I wonder about data privacy concerns with Aadhaar linking everything. There's a trade-off between efficiency and privacy.
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