Glossary of financial inclusion and other welfare schemes in India

Financial Inclusion refers to the process of financial access to all including those hitherto un-served poor population of the country. The major financial schemes launched by Government of India are Jan Dhan (PMJDY), Mudra loans (PMMY), Stand-up India, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY), and Pradhan Mantri Vaya Vandana Yojana (PMVVY).
PMJDY (Pradhan Mantri Jan Dhan Yojana): Pradhan Mantri Jan-Dhan Yojana (PMJDY) is an initiation of the National Mission for Financial Inclusion of the underprivileged section of our society who is so far excluded from financial products. Implementation of the PMJDY scheme shall be based on the guiding principles of banking the unbanked, securing the unsecured, funding the unfunded and serving un-served and under-served areas. Effective from 15.8.2018 the original principle of the opening of bank accounts shifted from “every household” to “every unbanked adult”.
Under the scheme, an unbanked individual can have facilities in banks such as opening Savings & Deposit Accounts with other financial facilities available to the general public, in an affordable manner. An account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet even with Zero balance. No need to maintain minimum balance as per the Bank’s policy. Nevertheless, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria. An individual who fulfills eligibility criteria opened the account under the scheme will be provided with a life cover of Rs.30000/-. After satisfactory operation of the SB account for 6 months, an overdraft facility up to Rs.10000/- is available to only one account per household, preferably lady of the household. In addition to the above, a free Rupay card will be issued to the account holder. The Rupay cardholder will be eligible for Personal Accidental Insurance cover of Rs.2 lakh. Read more……….

Pradhan Mantri Mudra Yojana(PMMY):
MUDRA is an acronym to Micro Units Development & Refinance Agency Ltd. The MUDRA loan scheme was launched on 8th April 2015 which provides loans to non-farming and non-corporate micro and small enterprises. These enterprises in rural, urban & metro areas can avail collateral-free loans up to Rs.10 Lakh under the scheme. There are three categories of loans depending upon the size of the loan amount namely as under:
(i) The loan amount up to Rs.50000/- is classified under Shishu category.
(ii) The loan amount exceeding Rs.50000/- and up to Rs.5.00 Lakh is classified under Kishore category and;
(iii) The loan amount exceeding Rs.5.00 Lakhs and up to Rs. 10.00 Lakh is classified under Tarun Category. Read more…………..

Stand Up India Scheme:
The government of India launched the Stand-Up India scheme on 5th April 2016. The Scheme facilitates bank loans to Scheduled Caste/ Scheduled Tribe borrowers. The loan amount varies between Rs.10 lakh and Rs.1crore for setting up Greenfield enterprises. As per the scheme guidelines, per the bank branch of scheduled commercial banks, there should be at least one Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower. To enable banks to provide collateral-free loans to borrowers, the Government of India has set up the Credit Guarantee Fund for Stand-Up India (CGFSI) which will provide credit guarantee to those loans. Apart from providing credit facility, Stand-Up India Scheme also envisages extending handholding support to the potential borrowers. Read more……

PMSBY (Pradhan Mantri Suraksha Bima Yojana):
PMSBY scheme offers risk coverage of Rs.2 lakh for accidental death or full disability and Rs.1 lakh for partial disability of the insured person. The premium payable is as low as Rs.12/- per year. A person between the age of 18 and 70 years is eligible to subscribe to this scheme. To be eligible for subscribing to the scheme, the policyholder must have a bank account and he/she must give consent to join /enable auto-debit on or before 31st May for the coverage period June 1st to May 31st. Read More………

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
PMJJBY scheme offers risk coverage of Rs.2 lakh in case of death of the insured, due to any reason. The premium payable is Rs.330/- per year. A person between the age of 18 and 50 years is eligible to subscribe to this scheme. The policyholder must have a bank account and he/she must give consent to join /enable auto-debit on or before 31st May for the coverage period June 1st to May 31st. : Read more…….

APY (Atal Pension Yojana):

Atal Pension Yojana (APY) was launched on 9th May, 2015. The Savings Bank account holder in the age group of 18 to 40 years in any bank or post office is eligible to subscribe Atal Pension Yojana (APY). The subscriber has to make monthly contributions of defined amount till he or she is 60 years of age, and after that, he or she would receive the guaranteed minimum monthly pension of Rs.1,000 or Rs.2,000 or Rs.3,000 or Rs.4,000 or Rs.5,000 at the age of 60 years. The assured minimum pension is guaranteed by the Government of India. It is mandatory to provide nomination and spouse details in APY account. The nominee has to be someone else other than the spouse of the subscriber. The pension fund accumulated in the name of the subscriber up to 60 years of age would be paid to the nominee after the death of the subscriber. In the event of unfortunate  death of the subscriber before the age of 60 years, the spouse of the subscriber is eligible to continue contributing to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber is eligible to receive the same pension amount as that of the subscriber until the death of the spouse.

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PMVVY (Pradhan Mantri Vaya Vandana Yojana):

The ‘Pradhan Mantri Vaya Vandana Yojana ’ has been launched by the Government of India on May 4, 2017, with an intention to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age. This policy under the scheme was open for a short period and was then extended to 31 March 2020. LIC of India has been given the sole privilege to operate this scheme. The scheme provides an assured return of 8% per annum for 10 years. Mode of pension payment under the Yojana is on a monthly, quarterly, half-yearly or annual basis depending on the option exercised by the subscriber. Minimum entry age for this scheme is 60 years. There is no maximum age limit. The minimum investment allowed is Rs.1.5 Lakh and maximum investment allowed per person is Rs 15 lakh. Minimum pension per month is Rs.1000/- and maximum pension is Rs.10000/ per month. Read more….…..