Govt to meet PSBs to review financial inclusion schemes: Check details

Ahead of Budget 2024, the Finance Ministry will meet state-owned banks and financial institutions on Tuesday to assess advancements in key financial inclusion schemes. Three key schemes explained

The Ministry of Finance has scheduled a meeting on Tuesday with the leaders of state-owned banks and financial institutions to assess the advancements made in the government’s key financial inclusion schemes such as the Jan Dhan Yojana, Jan Suraksha Yojana, and Mudra Yojana, in preparation for the upcoming Union Budget. Here’s more about these schemes:

Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014 under the leadership of Prime Minister Narendra Modi, has transformed financial inclusion in India. This national initiative aims to include all segments of Indian society into the formal financial system, including services such as banking, savings, remittances, deposits, insurance, credit, pensions, and loans.

 

Eligibility criteria

The eligibility criteria for the Jan Dhan Yojana is as follows:

-Beneficiary must be a citizen of India

-Should be above the age of 10

-Should not have a bank account

PMJDY features

-Individuals without a pre-existing bank account are permitted to open one account per person

-No minimum balance is required to be maintained in the account

-A RuPay debit card is offered with the account to the beneficiary

-All PMJDY account holders are eligible for life and accidental insurance coverage

PMJDY benefits

-Beneficiary gets a basic savings bank account  

-No need to maintain any minimum balance in accounts

-Beneficiary earns interest on the deposit in PMJDY accounts

-Beneficiary is provided with a Rupay Debit card

-Accident insurance cover of Rs 1,00,000 (upgraded to Rs 2,00,000 for new PMJDY accounts opened after August 28, 2018) is available with RuPay card issued to the PMJDY account holders

-An overdraft (OD) facility up to Rs 10,000 to eligible account holders is available

-PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme

Pradhan Mantri Suraksha Bima Yojana

Under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) launched in 2015, accident insurance plans cost very little each year.

Eligibility criteria

The eligibility criteria for the Suraksha Bima Yojana is as follows:

-Individuals should be between the age group of 18 (completed) and 70 (age nearer birthday) on the enrollment date

-An individual must have a valid savings account with a participating bank or post office in India

PMSBY benefits

The Yojana provides an annual premium of only Rs 12 (subject to change) and offers a payout of Rs 2,00,000 in the event of accidental death. The Yojana also includes coverage for disabilities.

Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana allows small borrowers to obtain loans up to Rs 10,00,000 from banks, microfinance institutions (MFIs), and non-banking financial companies (NBFCs) for non-agricultural income-generating activities. This initiative provides financial support to micro and small entities in the non-corporate, non-agricultural sector through Member Lending Institutions.

These micro and small entities include millions of proprietorship and partnership firms operating as small manufacturing units, service sector units, shopkeepers, fruit and vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors, and more.

Benefits

The program is divided into three categories: Shishu, Kishore, and Tarun, which represent the stages of growth and the funding requirements of the beneficiary micro unit or entrepreneur.

Shishu: Covering loans up to Rs 50,000

Kishore: Covering loans above Rs 50,000 and up to Rs 5 lakh

Tarun: Covering loans above Rs 5 lakh and up to Rs 10 lakh