Prime Minister Narendra Modi’s flagship programme Pradhan Mantri Jan Dhan Yojana is not only helping in financial inclusion but is also reducing the crime rate in the country. State Bank of India’s research suggests that the rate of criminal activities and consumption of alcohol and tobacco products have decreased in states where there are more Jan Dhan accounts.

The report states that government subsidies have been efficiently channelised because of Jan Dhan-Aadhaar-mobile (JAM) trinity. It has also helped to curb the expenditure of alcohol and tobacco expenses in rural areas.

The report estimates suggest that with an increasing number of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts and account balance there has been a drastic decline in crimes.

“India is now ahead of China in financial inclusion metrics,” the SBI report said. “However, it is important to finetune non-branch BC (business correspondent) models.”

Although PSBs have been at the forefront of financial inclusion, they are now net payers of interchange fees due to the lack of a level playing field in the infrastructure offered by all banks, according to the report.