Master10
Government Schemes & Programmes Module

Financial Inclusion & Pension Schemes

Financial inclusion and universal social security schemes form the foundation of direct benefit transfers and economic empowerment in India. Flagship initiatives include the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014 to ensure universal banking access with zero-balance accounts and RuPay debit cards. For insurance and retirement security, the Jan Suraksha suite features the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY). Concurrently, micro-credit programs like the Pradhan Mantri Mudra Yojana (PMMY) and PM SVANidhi provide collateral-free loans to micro-enterprises and street vendors.

Key Concepts & Examination Highlights

  • Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on August 28, 2014, with the slogan 'Mera Khata, Bhagya Vidhata', establishing over 50 crore basic savings bank deposit accounts.
  • Pradhan Mantri Mudra Yojana (PMMY) was launched in April 2015, categorizing loans into three tiers: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
  • Atal Pension Yojana (APY), administered by the Pension Fund Regulatory and Development Authority (PFRDA), provides a guaranteed minimum monthly pension of ₹1,000 to ₹5,000 for subscribers joining between 18 and 40 years.
  • PM SVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) was launched in June 2020 by the Ministry of Housing and Urban Affairs to provide affordable working capital loans to street vendors.
  • Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability cover of Rs 2 lakh for people aged 18 to 70 at an annual premium of Rs 20.
  • Under PMJDY accounts, beneficiaries receive a RuPay debit card with an inbuilt accidental insurance cover of up to Rs 2 lakh and an overdraft facility of up to Rs 10,000.
  • The Stand-Up India Scheme, launched in April 2016, facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one SC/ST borrower and one woman borrower per bank branch.
  • Under Pradhan Mantri Mudra Yojana, loan limits are categorized into Shishu (up to Rs 50,000), Kishore (Rs 50,001 to Rs 5 lakh), and Tarun (Rs 5,00,001 to Rs 10 lakh).
  • The PM SVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) scheme was launched in June 2020 by the Ministry of Housing and Urban Affairs to provide micro-credit to street vendors.
  • The National Pension System (NPS) is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) established under the PFRDA Act, 2013.
  • Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) guarantees a minimum monthly pension of Rs 3,000 to unorganized workers with a monthly income up to Rs 15,000 upon reaching 60 years.
  • The PM Vishwakarma Scheme was launched in September 2023 with a financial outlay of ₹13,000 crore to support traditional artisans and craftspeople across 18 trades.
  • The National Pension System (NPS) was introduced in January 2004 for new government employees and opened to all Indian citizens in 2009, regulated by PFRDA.
  • The Unified Pension Scheme (UPS) was approved by the Union Cabinet in August 2024, assuring central government employees an assured pension of 50 percent of their last drawn basic pay.
  • The Mahila Samman Savings Certificate (MSSC) was launched in the 2023 Union Budget, offering a 7.5 percent fixed interest rate for women investors for a two-year tenure.
  • The Senior Citizens Savings Scheme (SCSS) allows individuals aged 60 and above to deposit up to ₹30 lakh with quarterly compounding interest and sovereign guarantee.
  • The Sovereign Gold Bond (SGB) Scheme was launched in November 2015 by the Reserve Bank of India on behalf of the Government to reduce physical gold demand.
  • The Gold Monetisation Scheme (GMS) replaced the Gold Deposit Scheme (1999) to mobilize idle gold held by households and trusts into productive economic channels.
  • The PM Laghu Vyapari Maan-Dhan Yojana provides a minimum assured pension of ₹3,000 per month to self-employed shopkeepers and retail traders with annual turnover below ₹1.5 crore.
  • The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was set up jointly by the Ministry of MSME and SIDBI to provide collateral-free credit guarantees.
  • The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May 2020 under the Atmanirbhar Bharat package to provide 100 percent credit guarantee coverage to MSMEs.
  • The Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI) and launched in April 2016, revolutionized retail digital payments across India.
  • The JAM Trinity (Jan Dhan, Aadhaar, Mobile) serves as the foundational direct benefit transfer (DBT) infrastructure, eliminating intermediary leakages in central subsidies.
  • The Pradhan Mantri Vaya Vandana Yojana (PMVVY), managed by LIC, provided senior citizens aged 60 and above an assured monthly pension based on a guaranteed rate of return.
  • The Kisan Credit Card (KCC) scheme was introduced in 1998 on the recommendations of the R.V. Gupta Committee to provide timely and adequate short-term credit to farmers.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) provides zero-balance basic bank accounts, RuPay debit cards, and an inbuilt accident insurance cover of Rs 2 lakh for accounts opened after August 2018.
  • The Pradhan Mantri Mudra Yojana (PMMY), launched on April 8, 2015, provides collateral-free loans up to Rs 10 lakh to micro and small enterprises across Shishu, Kishore, and Tarun categories.
  • Under the PMMY framework, Shishu loans cover up to Rs 50,000, Kishore loans cover Rs 50,000 to Rs 5 lakh, and Tarun loans cover Rs 5 lakh to Rs 10 lakh.
  • The Stand-Up India Scheme, launched on April 5, 2016, facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one SC/ST borrower and one woman borrower per bank branch for greenfield enterprises.
  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a life insurance cover of Rs 2 lakh for death due to any cause to persons in the age bracket of 18 to 50 years at an annual premium of Rs 436.
  • Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accidental death and disability cover of Rs 2 lakh for persons aged 18 to 70 years at an annual premium of Rs 20.
  • Atal Pension Yojana (APY), launched on May 9, 2015, provides a guaranteed minimum monthly pension ranging from Rs 1,000 to Rs 5,000 after attaining the age of 60 years for unorganized sector workers.
  • The PM SVANidhi scheme (PM Street Vendor's AtmaNirbhar Nidhi), launched in June 2020, provides collateral-free working capital micro-credit to urban street vendors with interest subsidy on prompt repayment.
  • The National Pension System (NPS), introduced on January 1, 2004, for government employees and opened to all citizens in 2009, is a voluntary defined-contribution retirement savings scheme managed by PFRDA.
  • Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), launched in February 2019, provides an assured monthly pension of Rs 3,000 to unorganized workers with monthly income up to Rs 15,000 upon reaching 60 years.
  • Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMDY) ensures a monthly pension of Rs 3,000 to small and marginal farmers owning up to 2 hectares of cultivable land on attaining 60 years of age.
  • Pradhan Mantri Laghu Vyapari Maan-dhan Yojana provides an assured monthly pension of Rs 3,000 to small shopkeepers and retail traders with annual turnover not exceeding Rs 1.5 crore.
  • The Mahila Samman Savings Certificate (MSSC), introduced in Budget 2023, is a two-year deposit scheme offering a fixed interest rate of 7.5 percent per annum for women and girls.
  • Sukanya Samriddhi Yojana (SSY), launched in January 2015 under the 'Beti Bachao Beti Padhao' campaign, provides a high-interest tax-exempt savings account for girl children up to age 10.
  • The Direct Benefit Transfer (DBT) mission, rolled out nationwide on January 1, 2013, transfers welfare subsidies directly into beneficiaries' bank accounts using Aadhaar-linked payment bridges.
  • The Unified Payments Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, revolutionized mobile real-time financial inclusion and digital micropayments.
  • The PM Vishwakarma Scheme, launched on September 17, 2023, provides holistic end-to-end support including collateral-free loans at 5 percent subsidized interest, toolkits, and skill training to traditional artisans.
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY), managed by LIC, is a retirement pension scheme offering guaranteed monthly returns for senior citizens aged 60 and above.
  • The Emergency Credit Line Guarantee Scheme (ECLGS), launched under the Atmanirbhar Bharat Abhiyan in 2020, provided 100 percent credit guarantee support to MSMEs during economic shocks.
  • The Kisan Credit Card (KCC) scheme, introduced in 1998 on the recommendations of the R.V. Gupta Committee, provides timely short-term credit to farmers for crop cultivation and post-harvest expenses.
  • KCC facilities were extended to animal husbandry, dairy, and fisheries farmers in 2018-19 to meet their working capital requirements.
  • The Interest Subvention Scheme for short-term crop loans ensures farmers receive agricultural credit up to Rs 3 lakh at an effective interest rate of 4 percent per annum on prompt repayment.
  • The Gold Monetization Scheme (GMS) was launched in November 2015 to mobilize idle gold held by households and institutions and put it into productive economic circulation.
  • Sovereign Gold Bonds (SGBs), issued by the Reserve Bank of India on behalf of the Government, pay an annual fixed interest of 2.50 percent and are denominated in grams of gold.
  • The PM-DevINE (Prime Minister's Development Initiative for North East Region) scheme finances infrastructure and social development projects across the North Eastern states.
Curriculum & Reference Sources: Department of Financial Services (DFS), Ministry of Finance, PFRDA, and Ministry of Housing and Urban Affairs.

Sample Solved Questions & Concept Explanations

8 Verified Concept Questions
Q1.EASY

What is the entry age bracket for subscribing to the Atal Pension Yojana (APY) to receive guaranteed pension after reaching 60 years?

Q2.EASY

Under the Pradhan Mantri MUDRA Yojana (PMMY), what is the maximum loan limit permitted under the 'Shishu' category?

Q3.EASY

What is the maximum age of a girl child at the time of opening an account under the Sukanya Samriddhi Yojana (SSY)?

Q4.EASY

Which statutory regulatory authority regulates the National Pension System (NPS) and Atal Pension Yojana (APY) in India?

Q5.EASY

What is the life insurance cover amount provided under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in case of death of the insured?

Q6.MEDIUM

Under the Stand-Up India scheme, bank loans are facilitated to greenfield enterprises in which credit range per bank branch?

Q7.MEDIUM

What is the revised annual premium payable by an individual subscriber for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) effective from June 2022?

Q8.MEDIUM

Under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) pension scheme, unorganised workers must have a monthly income of not more than what amount?