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The Ministry of Finance, often known as the Indian Treasury, is a ministry within the Indian government that is responsible for the country’s economy. It focuses on taxation, financial laws, financial institutions, capital markets, federal and state budgets, and the Union Budget in particular.
The Indian Revenue Service, the Indian Audit and Accounts Service, the Indian Economic Service, and the Indian Civil Accounts Service are all under the administration of the Ministry of Finance.
1. Pradhan Mantri Jan Dhan Yojana (PMJDY)
The Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion in his Independence Day address on August 15, 2014, with the goal of ensuring comprehensive financial inclusion for all the Indian households in the country by providing universal access to banking facilities. A person who does not have a savings account can open one without a minimum balance requirement, and they can open a modest account if they self-certify that they do not have any of the officially approved papers required to start one.
As a consequence, through financial literacy programs, PMJDY offers unbanked people with easy access to banking services as well as financial product knowledge.
They also get a RuPay debit card with a built-in Rs. 2 lakh accident insurance coverage and, after six months of excellent account or credit history, access to an overdraft facility. In addition, all eligible account holders can use their bank accounts to access personal accident insurance under the Pradhan Mantri Suraksha Bima Yojana, life insurance under the Pradhan Mantri Jeevan Jyoti Bima Yojana, and a guaranteed minimum pension to subscribers under the Atal Pension Yojana, which were all launched by the Hon’ble Prime Minister on May 9, 2015.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The PMJJBY is open to those between the ages of 18 and 50 who have a bank account and agree to join / enable auto-debit. Aadhar is the most basic form of KYC for a bank account. The Rs. 2 lakh life insurance policy has a one-year period from June 1 to May 31 and is renewable. In the case of the insured’s death for whatever reason, this insurance offers risk coverage of Rs. 2 lakh. The annual premium is Rs. 330, which is deducted from the subscriber’s bank account in one payment on or before the 31st May of each year’s coverage period under the plan, at his option. The programme is offered by the Life Insurance Corporation and any other life insurers with the necessary approvals and bank partnerships that want to sell the product on equivalent terms. The PMJJBY has a total enrollment of roughly 12.77 crore persons as of 30.04.2022.
3. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Persons between the ages of 18 and 70 who have a bank account and sign up for or activate auto-debit on or before May 31st for the coverage period of 1 June to 31 May on an annual renewal basis are eligible for the Scheme. Aadhar would be the primary form of identification for the bank account. Risk coverage for accidental death and total disability is Rs. 2 lakhs, while risk coverage for partial impairment is Rs. 1 lakh. The yearly premium of Rs.12 will be deducted from the account holder’s bank account in a single payment using the ‘auto-debit’ feature.
The plan is available from Public Sector General Insurance Companies (PSGICs) or any other general insurance firm willing to sell the policy on the same terms as PSGICs, as long as they have the necessary approvals and bank relationships. The PMSBY has a total enrolment of roughly 28.37 crore persons as of 30.04.2022.
4. Atal Pension Yojana (Atal Pension Scheme) (APY)
On May 9, 2015, Prime Minister Narendra Modi announced the Atal Pension Yojana (APY). All savings bank/post office account holders between the ages of 18 and 40 can participate in the APY programs, with contributions varied based on the amount of pension chosen. Subscribers will get a guaranteed minimum monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 at the age of 60. The subscriber’s monthly pension would be available to him first, then to his spouse, and after their deaths, the subscriber’s pension corpus would be returned to the subscriber’s designee.
The government would guarantee the minimum pension, which implies that if the accumulated corpus based on contributions generates a lower-than-expected return on investment and is inadequate to provide the minimum guaranteed pension, the deficit would be covered by the Central Government. Subscribers, on the other hand, will receive bigger pension payments if investment returns are higher.
Conclusion
The Ministry of Finance is a crucial ministry in the Indian government, as it is in charge of the country’s economy. It is in charge of taxation, financial institutions, financial law, capital markets, provincial finances, and the Union Budget, among other things. The Ministry is divided into five departments, which are Economic Affairs Department, Expenditure Department, Revenue Department, Department of Investment and Public Asset Management, Department of Financial Services.
