The combination of JAM [Jan Dhan + Aadhar + mobile] has enabled government fund transfer to beneficiaries. The cash transfers have reduced leakages and removed ghost beneficiaries. However last mile service delivery is still a problem in rural areas. The bank to beneficiary link is still the weakest in the JAM cycle.

Changes or improvements in JAM Operations:

1.      Direct transfer of funds from center to Panchayat level by removing intermediaries like district, state or block.

2.      The funds should be transferred in real time as expenses occur and for individuals instead of aggregate payments done post expenditure. These often lead to excess expenditure as the money has to be borrowed by government in advance.

3.                                                                                                                                                                         Fig 1: JAM Trinity

If   If funds are allocated in advance and the expenditure doesn’t occur then the resources are wasted. This might happen during forecast errors.

4.   Problems encountered with JAM are identifying the beneficiaries in real time, maintain beneficiary database, intergovernmental coordination for efficient transfers, and supply chain interest groups that oppose this technology, beneficiary financial inclusion and beneficiary vulnerability.

JAM can best be implemented in sectors where government agencies can coordinate better and where leakages are high like fertilizer subsidy and within government fund transfer.

JAM can also be implemented by two methods like D.B.T. and Bio-metrically Authenticated Physical Uptake i.e. once identity is authenticated by Bio-metric means physical goods can be claimed at subsidy.

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