Question

Government of India has recently launched "Jan-Dhan Yojna" aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect national income of the country.

Answer 1

The deposits made under the plan are going to affect the national income of the country in the following way:
- Opening more bank accounts means more bank deposits.
- More deposits means an increase in the lending capacity of the commercial banks.
- More lending by banks means more investment in the country.
- More investment means more national income.