Government Sponsored Schemes

Government Sponsored Schemes are special programs launched by the Government of India to promote financial inclusion, social security, and self-employment among the economically weaker sections of society. Banks play a crucial role as the primary channel for implementing these schemes.


1. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)

A major poverty alleviation program focused on promoting self-employment and organising the rural poor.

  • Target Group: Poor rural households, especially women.
  • Key Concept: The scheme revolves around forming Self-Help Groups (SHGs).
    • An SHG is a small group of 10-20 women who save money together and give small loans to their members.
    • Banks provide loans to these SHGs, which are then used by the members to start small businesses (e.g., tailoring, cattle rearing).
  • Bank’s Role: To provide loans to eligible SHGs. The loans are given without collateral.

2. Pradhan Mantri Jan Dhan Yojana (PMJDY)

A national mission for financial inclusion.

  • Main Goal: To ensure every household in the country has at least one basic bank account.
  • Key Features:
    • Opening of a Basic Savings Bank Deposit (BSBD) Account.
    • Zero minimum balance required.
    • Comes with a free RuPay debit card.
    • Provides an overdraft facility of up to ₹10,000.
    • Includes a built-in accident insurance cover.

3. Social Security Schemes (The Jan Suraksha Schemes)

These are very low-cost insurance and pension schemes designed to provide a safety net for the poor and unorganized sector.

Scheme NamePMJJBYPMSBYAPY
Full FormPradhan Mantri Jeevan Jyoti Bima YojanaPradhan Mantri Suraksha Bima YojanaAtal Pension Yojana
Type of SchemeLife InsuranceAccident InsurancePension
Eligibility Age18 to 50 years18 to 70 years18 to 40 years
Benefit₹2 lakh on any cause of death.₹2 lakh on accidental death/disability. ₹1 lakh on partial disability.Guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60.
Annual Premium₹436₹20Varies with age of entry and pension amount.


4. PM-SVANidhi Scheme

  • Full Form: Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi.
  • What it is: A special micro-credit facility for street vendors.
  • Purpose: To provide affordable working capital loans to street vendors to help them restart their livelihoods.
  • Loan Details:
    • A collateral-free working capital loan of up to ₹10,000 is given for the first time.
    • On timely repayment, the vendor can get a second loan of ₹20,000 and a third loan of ₹50,000.

Summary

Government schemes are a critical part of a bank’s function, directly contributing to national objectives like poverty alleviation and financial inclusion. Key schemes include DAY-NRLM for promoting self-employment through SHGs, PMJDY for providing basic bank accounts, the Jan Suraksha trinity (PMJJBY, PMSBY, APY) for providing low-cost social security, and PM-SVANidhi for supporting street vendors. Banks act as the delivery mechanism for these schemes, ensuring the benefits reach the intended population.

Quick Revision Points

  • DAY-NRLM: Focuses on Self-Help Groups (SHGs), especially women.
  • PMJDY: For financial inclusion; provides a zero-balance account with an OD facility.
  • PMJJBY: Life insurance for ₹2 lakh (death by any cause). Premium: ₹436/year.
  • PMSBY: Accident insurance for ₹2 lakh (accidental death). Premium: ₹20/year.
  • APY: Pension scheme for the unorganized sector.
  • PM-SVANidhi: Working capital loan for street vendors, starting with ₹10,000.