7 Government schemes to aid economic development and financial stability

that you can benefit

Over the years, the Indian government has introduced several schemes that have
not only helped Indian citizens improve their financial situations, but have also
contributed to the country’s economy. Listed below are 7 initiatives set up by the
government, post-independence.

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1. Pradhan Mantri Jan Dhan Yojna (PMJDY)

PMJDY is a National Mission for Financial Inclusion, particularly to provide access to

financial services such as savings and deposit accounts, remittance, credit, insurance,
pension, etc. at affordable rates. The scheme was announced on the eve of Independence Day,
in 2014 by Prime Minister Narendra Modi.
1 lakh accident insurance cover, and Rs. 30,000 life insurance cover for those who opened
bank accounts before January 26th

- 4% interest per annum on money deposit

- No criteria for minimum balance

- Money can be transferred to any account in India

- You can get money of government schemes directly in your bank account

- Overdraft facility upto Rs. 5,000 is available after operating bank account for 6 months

2 . Sukanya Samriddhi Yojna (SSY)

Narendra Modi launched the Sukanya Samridhi scheme, under the ‘Beti Bacho, Beti Padhao’
campaign on 22nd January 2015. The aim of this scheme is to meet the education and
marriage expenses of a girl child.

What are the features?

- It permits opening of one account per girl child. A family can have a maximum two
accounts, if there are 2 girl children.

- However, a third account can also be opened, provided the first or second delivery
results in twins or triplets

- Minimum Rs. 1,000 and maximum of Rs. 1.5 lakh can be deposited during one
financial year

- Deposits in the account can be made until the completion of 14 years, from the
date of openin ing of the account.
- The account can be closed only when the girl turns 21. If the account is not closed
and the money is not withdrawn even after turning 21, interest can still be earned on
the amount

- Birth Certificate must be submitted at the time of opening the account

Benefits

- The account can be opened and operated by a parent or guardian as soon as a girl child turns
10

- Up to 50% of the balance can be withdrawn to meet educational requirements of the girl
after she turns 18

- Money can be transferred from one authorised bank to another or from post office to any
authorised bank and vice versa

- Offers an interest rate of 8.6% and provides income tax benefits

3 . Rajiv Gandhi Jeevandayee Arogya Yojana

Launched as a pilot project in 2012, this scheme is a universal health scheme for the
economically backward in Maharashtra. Anyone holding one of the four cards issued by the
Maharashtra government- Antyodaya card, Annapurna card, yellow ration card or orange
ration card is eligible for this.

Benefits

- It provides free access to medical care in 488 government hospitals

- Free treatment for 971 types of of diseases surgeries and therapies

- Free treatment that costs up to Rs 1.5 Lakh, per year, per family (Rs 2.5 Lakhs only for
renal transplants)

What has changed?

- As of 17 January 2016, 7.13 lakh beneficiary families

- 11.81 lakh procedures amounting to Rs 1827 crores

- 7.27 lakh surgeries and therapies

4. Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)

Announced by Finance Minister Arun Jaitley during Budget 2015, the uniqueness of the
PMJJBY is that it is a renewable insurance scheme, offering life insurance coverage of Rs. 2
lakhs on death. Two other schemes – Pradhan Mantri Suraksha Bima Yojana and Atal
Pension Yojna were launched alongside it.
Who can avail this?

- Any savings bank account holder, aged between 18 and 50 years can avail this scheme

- Aadhar linking with the account is mandatory to obtain benefits offered in this scheme

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Benefits

- The death benefit will be received by the nominee

- The cover is for one year. (From June 1 to May 31). It can be renewed every year

- Life cover of Rs. 2 lakhs is available at just Rs. 330 per annum

What has changed?

As of May 8, 2017, nearly 3.11 crore people have applied for this scheme, and around 65,083
claims were made.

5. Rashtriya Swasthya Bima Yojana (RSBY):

This scheme was introduced in 2008. Its main motto is to provide health insurance coverage
to people belonging to the BPL (Below Poverty Line) category.

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Benefits

It provides health insurance coverage to unorganised sectors, such as construction, that are
registered under Welfare Boards, Street Vendors, Licensed Porters (railway, MNREGA
workers, mine workers, auto or taxi drivers etc.

Covers up to Rs. 30,000 on a floater basis for family consisting of 5 members

Provides cover for transportation charges of Rs. 100 per visit to the hospital with the
maximum limit of Rs. 1,000.
The premium is just Rs. 30 per annum, and BPL families can get an RSBY smart card, which
allows holders to claim medical care expenses of up to Rs. 30,000 per annum.
6. National Social Assistance scheme

Launched in 1995, this is a centrally sponsored scheme aimed at providing financial

assistance to the elderly, widows, and people with disabilities in the form of social pensions.

Who can avail?

- Anyone above 60 years and below the poverty line (BPL)

- BPL widows who fall in the age group of 40 to 64

- BPL people with more than 80% disability and are above 18 years

7. Pradhan Mantri Mudra Yojana

Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new initiative designed
for non-corporate, non-form sector, micro and small enterprises whose credit needs are below
Rs. 10 lakhs. This scheme was announced by the Finance Minister during the Union Budget
2016. Under PMMY there are three products available:

a. Shishu: Offers loans of up to Rs. 50,000

b. Kishore: Offers loans of up to Rs. 5,00,000

c. Tarun: Offers loans of up to Rs. 10,00,000

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Benefits

- Mudra loans can be availed for vehicles (Commercial vehicle loan, car loan and two-
wheeler loan

- Business Instalment Loan (BIL): Loan for working capital requirement, buying plant and
machinery, renovating offices etc.

- Business Loans Group Loans (BLG) and Rural Business Credit (RBC): Drop line overdraft
facility and working capital loans

- Repayment of the loan is as high as 7 years

Apart from these, there several are schemes that the government is implementing at grassroot
level for businesses, agriculture, education and others.