PM Launches Schemes for Financial Inclusion

The practise of offering banking and financial solutions and services to all members of society, regardless of their socioeconomic standing, is known as financial inclusion. Its main purpose is to integrate everyone into society by providing them with basic financial services regardless of their income or savings. Financial inclusion is primarily concerned with providing trustworthy financial solutions to economically disadvantaged people without regard for their status. Its mission is to provide inequitable financial solutions. It is also committed to being open and honest when giving financial assistance with no hidden costs or fees.

PM Launch some Schemes for Financial Inclusion are:

1. Pradhan Mantri Jan Dhan Yojana(PMJDY)

In his Independence Day address on August 15, 2014, the Hon’ble Prime Minister announced Pradhan Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion, with the goal of ensuring comprehensive financial inclusion for all 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 create a small account if they self-certify that they do not have any of the officially acceptable documentation necessary for creating a savings account.

As a result, PMJDY provides unbanked people with simple access to banking services as well as financial product information through financial literacy programmes. They also get a RuPay debit card with a huge two lakh accident insurance policy built in, as well as access to an overdraft facility after six months of good account or credit history. Furthermore, all eligible account holders can access personal accident insurance cover under Pradhan Mantri Suraksha Bima Yojana, life insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana, and guaranteed minimum pension to subscribers under Atal Pension Yojana through their bank accounts, which were launched by the Hon’ble Prime Minister on May 9, 2015.

From Jan Dhan to Jan Suraksha

On May 9, 2015, the Hon’ble Prime Minister inaugurated three Social Security Schemes in the Insurance and Pension sectors in order to create a universal social security system for all Indians, particularly the poor and underprivileged.

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. The Two 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 policy provides risk coverage of Two 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 discretion.

This policy provides risk coverage of a total two lakh in the event of the insured’s death for any reason. The yearly premium is Rs. 330, which is auto-debited in one installment from the subscriber’s bank account on or before the 31st May of each annual coverage term under the programme, as per his discretion. The programme is being provided by the Life Insurance Corporation and any other life insurers wanting to offer the product on comparable conditions with the requisite approvals and bank partnerships. As of 30.04.2022, the PMJJBY has a total enrollment of about 12.77 crore people.

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 Two Lakh, and risk coverage for partial impairment is Rs. 1 lakh. The annual 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 offered by Public Sector General Insurance Companies (PSGICs) or any other general insurance company willing to offer the product on identical conditions with the requisite approvals and bank partnerships. As of 30.04.2022, the PMSBY has a total enrollment of around 28.37 crore people.

4. Atal Pension Yojana (APY)

The Prime Minister introduced the Atal Pension Yojana (APY) on May 9, 2015. APY is available to all saving bank/post office account holders between the ages of 18 and 40, with contributions varying depending on the amount of pension selected. At the age of sixty, one who applies will get a guaranteed minimum monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000. 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 restored to the subscriber’s designee. The government would guarantee the minimum pension, which means 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.

Conclusion

Financial inclusion is a significant priority for the administration. Financial Inclusion aims to extend financial services to the country’s large, previously unserved population in order to harness the country’s economic potential. The National Mission for Financial Inclusion (NMFI), also known as the Pradhan Mantri Jan Dhan Yojana (PMJDY), was launched by the government in August 2014 with the goal of providing universal banking services to every unbanked household, based on the guiding principles of banking the unbanked, securing the unsecured, funding the unfunded, and serving underserved and unserved areas. In order to further strengthen financial inclusion efforts, PMJDY has been extended beyond 14.8.2018.