People deposit more in bank -> More saving in bank -> More Investment -> GDP GrowthThen PPC will shift rightward

Impact of Jan Dhan Yojana on PPC

Jan Dhan Yojana is a flagship financial inclusion scheme launched by the Indian government in 2014. The objective of the scheme is to provide access to basic banking services to the unbanked population of India. The scheme has had a significant impact on the country's economy, particularly on the Purchasing Power Parity (PPP).

Increased Financial Inclusion

One of the key impacts of Jan Dhan Yojana on PPP is an increase in financial inclusion. The scheme has helped millions of people in India to access formal financial services, such as bank accounts, credit, insurance, and pensions. This has increased the purchasing power of the people who were previously excluded from the formal financial system.

Increased Savings

Jan Dhan Yojana has also led to an increase in savings among the unbanked population. The scheme provides an incentive for people to save money by offering interest on deposits. This has led to an increase in the savings rate, which has contributed to the growth of the country's economy.

Reduction in Leakages

Jan Dhan Yojana has also helped in reducing leakages in the government's welfare schemes. The scheme has enabled the direct transfer of subsidies and other benefits to the bank accounts of the beneficiaries. This has helped in reducing corruption and leakages in the system, which has contributed to the growth of the economy.

Conclusion

In conclusion, Jan Dhan Yojana has had a significant impact on the PPP of India. The scheme has increased financial inclusion, led to an increase in savings, and reduced leakages in the government's welfare schemes. These factors have contributed to the growth of the country's economy and have helped in improving the standard of living of the people.