Financial Inclusion Schemes in India

What is Financial Inclusion?

Financial Inclusion means ensuring access to financial services (like savings, credit, insurance, remittances) to every section of society, especially the weaker and low-income groups, at an affordable cost.

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Major Financial Inclusion Schemes in India

1️⃣ Pradhan Mantri Jan Dhan Yojana (PMJDY)

• Launched: 28th August 2014

• Ministry: Department of Financial Services, Ministry of Finance

• Objective: To provide universal access to banking facilities to all households.

• Features:

  • Zero balance Basic Savings Bank Deposit Account (BSBDA).

  • RuPay Debit Card issued.

  • Accidental Insurance cover: ₹2 lakh (₹1 lakh for accounts opened before 28 Aug 2018).

  • Life Insurance cover: ₹30,000 (for accounts opened before Jan 26, 2015).

  • Overdraft facility: Up to ₹10,000 (after satisfactory operation of 6 months).

  • Direct Benefit Transfer (DBT) for government subsidies.

• Slogan: “Mera Khata, Bhagya Vidhata.”

• Achievements: Over 50 crore accounts opened with deposits exceeding ₹2 lakh crore (as of 2025).

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2️⃣ Pradhan Mantri Mudra Yojana (PMMY)

• Launched: 8th April 2015

• Implementing Agency: MUDRA Bank Ltd. (Micro Units Development & Refinance Agency Ltd.)

• Objective: To provide loans to micro/small business units and promote entrepreneurship.

• Loan Categories:

  • Shishu: Up to ₹50,000

  • Kishore: ₹50,001 to ₹5 lakh

  • Tarun: ₹5 lakh to ₹10 lakh

• Target Group: Non-corporate, non-farm small/micro enterprises.

• Interest Rate: Determined by lending institutions.

• Security: No collateral required.

• Tagline: “Fund the Unfunded.”

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3️⃣ Stand-Up India Scheme

• Launched: 5th April 2016

• Objective: To promote entrepreneurship among SC/ST and women.

• Loan Amount: ₹10 lakh – ₹1 crore

• Purpose: For setting up new enterprises in manufacturing, services, or trading sectors.

• Eligibility: One SC/ST or woman borrower per bank branch.

• Bank Type: All Scheduled Commercial Banks.

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4️⃣ Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Launched: 9th May 2015

• Age Group: 18–50 years

• Premium: ₹436 per annum (auto-debited from bank account).

• Coverage: ₹2 lakh on death (any reason).

• Implementing Agency: Life Insurance Corporation (LIC) and other life insurers.

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5️⃣ Pradhan Mantri Suraksha Bima Yojana (PMSBY)

• Launched: 9th May 2015

• Age Group: 18–70 years

• Premium: ₹20 per annum.

• Coverage:

  • ₹2 lakh for accidental death/full disability.

  • ₹1 lakh for partial disability.

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6️⃣ Atal Pension Yojana (APY)

• Launched: 9th May 2015

• Administered by: Pension Fund Regulatory and Development Authority (PFRDA).

• Target Group: Unorganized sector workers.

• Age Limit: 18–40 years.

• Pension Range: ₹1,000 – ₹5,000 per month (after age 60).

• Government Contribution: 50% of the subscriber’s contribution or ₹1,000 (whichever is less) for eligible subscribers (initial years).

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7️⃣ Pradhan Mantri Vaya Vandana Yojana (PMVVY)

• Launched: 2017

• For: Senior citizens (60 years and above).

• Administered by: LIC.

• Pension Rate: 7.4% (varies with revision).

• Term: 10 years.

• Maximum Investment: ₹15 lakh.

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8️⃣ Financial Literacy and Credit Counselling Centres (FLCCs)

• Purpose: To spread financial literacy and educate people about banking, credit, and savings.

• Implemented by: RBI and Scheduled Commercial Banks.

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9️⃣ Small Finance Banks (SFBs) & Payment Banks

• Objective: To provide banking to unserved and underserved areas.

• Examples:

  • SFBs: AU Small Finance Bank, Ujjivan SFB, Equitas SFB, Jana SFB, etc.

  • Payment Banks: India Post Payments Bank, Paytm Payments Bank, Airtel Payments Bank, etc.

• Function: Accept deposits (up to ₹2 lakh per customer for Payments Banks) and promote digital transactions.

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Impact of Financial Inclusion Schemes

• Increased access to formal banking in rural areas.

• Boosted savings habits and digital transactions.

• Enhanced DBT (Direct Benefit Transfer) efficiency.

• Encouraged entrepreneurship among small traders and women.

• Supported the government’s vision of a “Digital and Inclusive India.”

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Quick Revision Table

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Exam Pointers

• PMJDY → Overdraft up to ₹10,000 (after 6 months).

• PMMY → No collateral required; 3 categories: Shishu, Kishore, Tarun.

• Stand-Up India → Loan ₹10L–₹1Cr for SC/ST/Women.

• PMSBY → Accidental insurance ₹2 lakh, premium ₹20.

• PMJJBY → Life insurance ₹2 lakh, premium ₹436.

• APY → Administered by PFRDA.

• PMVVY → Administered by LIC, for 60+ years.