What will be the impact of Jan-Dhan Yojana on the money supply of India????

According to jan dhan yojana every household must have atleast one bank account . Due to this public start saving in their bank accounts instead of their houses. So this raises the initial deposits of banks and banks now have more money to lend to investors for production purpose . This increases credit creation capacity of commercial banks and hence raises money supply in the economy also.

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