Schemes For Financial Inclusion- By Ministry of Finance

Schemes For Financial Inclusion- By Ministry of Finance

Schemes Covered

Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Atal Pension Yojana (APY)
Pradhan Mantri Mudra Yojana (PMMY)
Aam Admi Bima Yojana (AABY)
Varishtha Pension Bima Yojana
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Stand Up India Scheme

1.Pradhan Mantri Jan Dhan Yojana (PMJDY)

Beneficiaries :

Weaker sections & low income groups

Objective & Key Features :

National Mission to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet.
Accounts opened under PMJDY are being opened with Zero balance.
However, if the account-holder wishes to get a cheque book, he/she will have to fulfill minimum balance criteria.

Special Benefits :

Interest on deposit.
Accidental insurance cover of Rs. 1 lac.
No minimum balance required.
The scheme provide life cover of Rs. 30,000/- payable on death of the beneficiary, subject to fulfillment of the eligibility condition.
Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
After satisfactory operation of the account for 6 months, an overdraft facility will be permitted.
Access to Pension, insurance products.
Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Beneficiaries :

People in the age group of 18 to 50 years ( life cover up to age 55) having a savings bank account who give their consent to join and enable auto-debit.

Features :

One-year life insurance scheme, renewable from year to year, offering coverage for death.
The cover is for a one-year period, starting June 1 to May 31.
The cover is for death only and hence benefit will accrue only to the nominee.
Life cover of Rs. 2 lakhs is available at a premium of Rs.330 per annum per member and is renewable every year.
In the case of a joint account, all holders of the said account can join the scheme provided they meet its eligibility criteria and pay the premium at the rate of Rs.330 per person per annum.
The scheme will be majorly implemented by Life Insurance Corporation of India. Other insurers can also join if willing.

3. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Beneficiaries :

All savings bank account holders in the age group of 18 to 70 years.

Objective & Key Features :

Renewable one-year accidental death cum disability cover of Rupees Two Lakh and Rupees One Lakh for partial permanent disability, to all savings bank account holders in the age group of 18 to 70 years for a premium of Rs. 12/- per annum per subscriber.
The scheme would be offered / administered through Public Sector General Insurance Companies (PSGICs) or other General Insurance companies willing to offer the product on similar terms on the choice of the Bank / RRB / Cooperative Bank concerned.
It aims to bring financial inclusion by increasing penetration of insurance down to the weaker sections of the society, ensuring their or their family’s financial security, who are otherwise unprepared any unexpected and unfortunate accident.

4. Atal Pension Yojana (APY)

Beneficiaries :

Unorganized sector workers such as personal maids, drivers, gardeners etc. between 18 and 40 years of age and having a bank account.

Objective & Key Features :

Launched in June 2015.
This social security scheme was introduced as a replacement to previous government’s Swavalamban Yojana NPS Lite, which wasn’t well accepted by people.
Aims to help these workers save money for their old age while they are working and guarantees returns post retirement.
The scheme also promises a co-contribution by Central Government of 50% of the total prescribed contribution by a worker, up to Rs. 1000 per annum.
APY is a periodic contribution based pension plan and promises a fixed pension of Rs 1000/ Rs 2000/ Rs 3000/ Rs 4000 or Rs 5000.

5. Pradhan Mantri Mudra Yojana (PMMY)

Beneficiaries :

Non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below ₹10 Lakh.

Objective & Key Features :

PMMY is a flagship scheme of GoI to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.
It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks (RRBs) and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance
Institutions (MFI) and Non-Banking Finance Companies (NBFC) for loans upto Rs 10 lakhs for nonfarm income generating activities.
Micro Units Development & Refinance Agency Ltd. (MUDRA), a new institution, has been set up to provide funding to income generating activities of such beneficiaries (micro and small enterprises) whose credit needs are below ₹10 Lakh.
Under PMMY, MUDRA has created 3 products as per the stage of growth and funding needs of the beneficiary micro unit. These schemes cover loan amounts as below:
Shishu: covering loans up to ₹50,000
Kishore: covering loans above ₹50,000 and up to ₹5,00,000
Tarun: covering loans above ₹5,00,000 and up to ₹10,00,000

6. Aam Admi Bima Yojana (AABY)

Beneficiaries :

Persons between the age group of 18 to 59 years, under 48 identified vocational/ occupational groups /rural landless households.

Objective & Key Features :

AABY is Social Security Scheme administered through Life Insurance Corporation of India (LIC) that provides Death and Disability cover to beneficiaries.
It is a group insurance scheme implemented through a Nodal Agency such as a Central Ministry/ Department; State Government /Union Territory or other institutionalized arrangements/ registered NGO.
Insurance cover provided for a sum of Rs 30,000/- on natural death, Rs. 75,000/- on death due to accident, Rs. 37,500/- for partial permanent disability (loss of one eye or one limb) due to accident and Rs. 75,000/- for total permanent disability (loss of two eyes or two limbs or loss of one eye and one limb) due to accident.
The Scheme also provides an add-on-benefit, wherein Scholarship of Rs 100 per month per child is paid on half-yearly basis to a maximum of two children per member, studying in 9th to 12th standard.
The total annual premium under the scheme is Rs. 200/- per beneficiary of which 50% is contributed from the Social Security Fund created by the Central Government and maintained by
LIC.
The balance 50% of the premium is contributed by the State Government / Nodal Agency /Individual, as the case may be.

7. Varishtha Pension Bima Yojana

Beneficiaries :

Senior citizens (above 60 years of age).

Objective & Key Features :

Post demonetisation banks were slashing interest rate on fixed deposits. Therefore, to guard the interest of the senior citizens (above 60 years of age) in case of falling interest rates.
The scheme will provide an assured pension based on a guaranteed rate of return of 8 percent per annum for ten years, with an option to opt for pension on a monthly/ quarterly/half yearly and annual basis.
The scheme was launched by Life Insurance Corporation of India.(LIC).
If there is a shortfall between LIC generated return and the guaranteed 8 per cent return, it would be borne by the government.
The scheme will remain open for subscription for one year from the date of launch.
The senior citizens will be able to make an investment of up to Rs 7.5 lakh in the scheme.
The scheme will provide an assured pension for ten years and was available for subscription only in 2017.

8. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Beneficiaries :

Beneficiaries Senior citizens aged 60 years and above which is available from 4th May, 2017 to 3rd May, 2018.

Objective & Key Features :

PMVVY is a Pension Scheme exclusively for the senior citizens aged 60 years and above with following benefits:
Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a.effective) for 10 years.
Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
The scheme is exempted from Service Tax/ GST.
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidised by the Government of India and reimbursed to the Corporation.

9. Stand Up India Scheme

Beneficiaries :

SC/ST and/or woman entrepreneurs, above 18 years of age.

Objective & Key Features :

Aims at promoting entrepreneurship among women and scheduled castes and tribes.
Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one-woman borrower per bank branch for setting up a greenfield enterprise.
This enterprise may be in manufacturing, services or the trading sector.
In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
source secureias