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 Name | PMJJBY | PMSBY | APY |
Full Form | Pradhan Mantri Jeevan Jyoti Bima Yojana | Pradhan Mantri Suraksha Bima Yojana | Atal Pension Yojana |
Type of Scheme | Life Insurance | Accident Insurance | Pension |
Eligibility Age | 18 to 50 years | 18 to 70 years | 18 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 | ₹20 | Varies 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.