Schemes under Ministry of Finance

  1. Introduction
  2. Eligibility
  3. Objectives
  4. Loan details
  5. Performance


  • The Stand up India scheme aims at promoting entrepreneurship among women and scheduled castes and tribes.
  • The scheme is anchored by Department of Financial Services (DFS), Ministry of Finance, Government of India.
  • Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
  • This enterprise may be in manufacturing, services or the trading sector.
  • In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.

Stand Up India


The objective of the SUI scheme is to facilitate bank loans between Rs.10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.


  1. SC/ST and/or woman entrepreneurs, above 18 years of age.
  2. Loans under the scheme is available for only green field project.
  3. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
  4. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
  5. Borrower should not be in default to any bank/financial institution.

Loan details

Nature of Loan –

Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.

Purpose of Loan –

For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

Size of Loan –

Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.

Interest Rate –

The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).


Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.


The loan is repayable in 7 years with a maximum moratorium period of 18 months.

Working Capital –

For drawal of Working capital upto 10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower. Working capital limit above 10 lakh to be sanctioned by way of Cash Credit limit.

Margin Money –

The Scheme envisages upto 15% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.

Performance of the scheme:

  • Five years ago the Stand Up India scheme was launched by the government to promote entrepreneurship among women, Scheduled Castes (SC) & Scheduled Tribes (ST).
  • So far:

Banks have sanctioned more than ₹25,000 crore to over 1.14 lakh accounts. Women-led enterprises have dominated the sanctions so far under the scheme, which has now been extended till 2025.

  1. Introduction
  2. Benefits
  3. Eligibility
  4. Beneficiaries
  5. Components
  6. Health care workers



  • Eligibility for availing the PMUY scheme is

an adult woman belonging to a poor family not having LPG connection in her household, is an eligible beneficiary under the expanded scheme in addition to existing categories (viz. SECC 2011 list or in seven identified categories i.e. SC/ST households, beneficiaries of Pradhan Mantri Awas Yojana (PMAY) (Gramin), Antyodaya Anna Yojana (AAY), Forest dwellers, Most Backward

Classes (MBC), Tea and Ex-Tea Garden Tribes, People residing in river Islands)


Benefit to farmers:

  • The first instalment of Rs 2,000 due in 2020-21 will be front-loaded and paid in April 2020 itself under the PM KISAN Yojana.
  • It would cover 8.7 crore farmers

Cash transfers Under PM Garib Kalyan Yojana:

Help to Poor:

A total of 20.40 crores PMJDY women account-holders would be given an ex-gratia of Rs 500 per month for next three months.

Gas cylinders:

Under PM Garib Kalyan Yojana, gas cylinders, free of cost, would be provided to 8 crore poor families for the next three months.

Help to low wage earners in organized sectors:

  • Wage-earners below Rs 15,000 per month in businesses having less than 100 workers are at risk of losing their employment.
  • Under this package, government proposes to pay 24 percent of their monthly wages into their PF accounts for next three months.
  • This would prevent disruption in their employment.

Support for senior citizens (above 60 years), widows, and Divyang:

  • There are around 3 crore aged widows and people in Divyang category who are vulnerable due to economic disruption caused by COVID-19.
  • Government will give them Rs 1,000 to tide over difficulties during next three months.
  • MNREGA Under PM Garib Kalyan Yojana, MNREGA wages would be increased by Rs 20 with effect from 1 April, 2020.
  • Wage increase under MNREGA will provide an additional Rs 2,000 benefit annually to a worker.
  • This will benefit approximately 13.62 crore families.

Self-Help groups:

  • Women organised through 63 lakhs Self Help Groups (SHGs) support 6.85 crore households.
  • Limit of collateral free lending would be increased from Rs 10 to Rs 20 lakhs.

Other components of PM Garib Kalyan package-

Organised sector:

  • Employees’ Provident Fund Regulations will be amended to include Pandemic as the reason to allow non-refundable advance of 75 percent of the amount or three months of the wages, whichever is lower, from their accounts.
  • Families of four crore workers registered under EPF can take benefit of this window.

Building and Other Construction Workers Welfare Fund:

  • Welfare Fund for Building and Other Constructions Workers has been created under a Central Government Act.
  • There are around 3.5 Crore registered workers in the Fund. State Governments will be given directions to utilise this fund to provide assistance and support to these workers to protect them against economic disruptions.

District Mineral Fund :

The State Government will be asked to utilise the funds available under District Mineral Fund (DMF) for supplementing and augmenting facilities of medical testing, screening and other requirements in connection with preventing the spread of CVID-19 pandemic as well as treating the patients affected with this pandemic.

Insurance Scheme for Health Workers Fighting COVID-19

  • As per the announcement made under the Pradhan Mantri Garib Kalyan Package, the launch of ‘Pradhan Mantri Garib Kalyan Package: Insurance Scheme for Health Workers Fighting COVID-19’ has been approved with the following conditions:
  • It will provide an insurance cover of Rs. 50 lakh for ninety (90) days to a total of around 22.12 lakh public healthcare providers, including community health workers, who may have to be in direct contact and care of COVID-19 patients and who may be at risk of being impacted by this.
  • It will also include accidental loss of life on account of contracting COVID-19;
  • On account of the unprecedented situation, private hospital staff/ retired/volunteer/ local urban bodies/contract/daily wage/ ad-hoc/outsourced staff requisitioned by States/ Central hospitals/autonomous hospitals of Central/States/UTs, AIIMS & INIs/ hospitals of Central Ministries can also be drafted for COVID-19 related responsibilities.
  • These cases will also be covered subject to numbers indicated by Ministry of Health & Family Welfare;
  • The insurance provided under this scheme would be over and above any other insurance cover being availed of by the beneficiary.

Aam Admi Bima Yojana

  • Admi Bima Yojana (AABY) and Janashree Bima Yojana (JBY).
  • The merged scheme is renamed “Aam Admi Bima Yojana” and has come into effect from 01.01.2013.

Eligibility Criteria

  • The members should be aged between 18 years completed and 59 years nearer birthday.
  • The member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line under identified vocational group/rural landless household.

Nodal Agency

“Nodal Agency” shall mean the Central Ministerial Department/State Government / Union Territory of India/any other institutionalized arrangement/any registered NGO appointed to administer the Scheme as per the rules. In the case of “Rural Landless Households”, the nodal agency will mean the State Government/Union Territory appointed to administer the Scheme.

Age Proof

  • Ration Card
  • Extract from Birth Register
  • Extract from School Certificate
  • Voter’s List
  • Identity card issued by reputed employer/Government Department.
  • Unique Identification Card (Aadhar Card)


  • The premium to be charged initially under the scheme will be 200/- per annum per member for a cover of Rs.30,000/-, out of which 50% will be subsidized from the Social Security Fund .
  • In case of Rural Landless Household (RLH) remaining 50 % premium shall be borne by the State Government/ Union Territory and in case of other occupational group the remaining 50% premium shall be borne by the Nodal Agency and/or Member and/or State Government/ Union Territory

Natural death

Upon death of a member, during the period of insurance cover the Sum Assured of Rs.30,000/- under assurance, then in force, shall become payable to the nominee.

Accidental death / Disability benefits

The following benefits are provided to members in case of accident, during the period of insurance cover

  • On death, due to accident 75,000/-
  • Permanent Total Disability, due to accident 75,000/-
    • Loss of 2 eyes or 2 limbs OR
    • Loss of one eye & one limb, in an accident
  • Loss of one eye or one limb, in an accident 37,500/-

Scholarship benefits

Scholarship as a Free Add-on benefit will be provided to a maximum of two children of the beneficiary studying between 9th to 12th Standard @ Rs.100/= per month for each child payable half yearly – on 1st July and on 1st January, each year.

Pradhan Mantri Suraksha Bima Yojana

  1. Eligibility
  2. Premium
  3. Payment mode
  4. Risk coverage
  5. Implementation
  6. Govt contribution


Rs. 12 per annum.

Pradhan Mantri Suraksha Bima Yojana

Payment Mode:

  • Pradhan Mantri Suraksha Bima Yojana will be directly auto-debited by the bank from the subscribers account on or before 1 st June of each annual coverage period under the scheme.

Risk Coverage:

  1. Death – Rs 2 Lakh
  2. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot – Rs 2 Lakh
  3. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot – Rs.1 Lakh.

Eligibility :

  • Available to people in age group 18 to 70 years with bank account.
  • Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme.
  • Name of nominee to be given in the form.

Terms of Risk Coverage :

  • A person has to opt for the scheme every year. S/He can also prefer to give a long-term option of continuing in which case his/her account will be auto-debited every year by the bank.

Who will implement this Scheme?

  • The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various Ministries can co-contribute premium for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money. This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by the Government.

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY – Scheme 2 - for Life Insurance Cover)

  1. Eligibility
  2. Premium
  3. Payment mode
  4. Risk coverage
  5. Implementation
  6. Govt contribution

Eligibility :

  • Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.

The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY – Scheme 2 - for Life Insurance Cover)

Premium :

  • 330 per annum. It will be auto-debited in one installment.

Payment Mode:

  • The payment of premium will be directly auto-debited by the bank from the subscribers account.

Risk Coverage :

  • 2 Lakh in case of death for any reason.

Terms of Risk Coverage :

  • A person has to opt for the scheme every year.  He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.

Who will implement this Scheme?

  • The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.

Government Contribution:

  • Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money.
  • This will be decided separately during the year.
  • Common Publicity Expenditure will be borne by Government.

Atal Pension Yojana

  1. Benefits of APY
  2. Eligibility for APY
  3. Age of joining and contribution period
  4. Focus of APY
  5. Enrollment and Subscriber Payment
  6. Enrollment agencies
  7. Operational Framework of APY
  8. Funding of APY
  9. Status


  • Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers in unorganised sector.
  • It encourages the workers in unorganised sector to voluntarily save for their retirement.
  • The Government had launched the scheme with effect from 1st June, 2015.
  • The scheme replaces the Swavalamban Yojana / NPS Lite scheme.

About APY:

The Atal Pension Yojana became operational from June 1, 2015 and is available to all the citizens of India in the age group of 18-40 years.


  • Under the scheme, a subscriber would receive a minimum guaranteed pension of Rs 1,000 to Rs 5,000 per month, depending upon his contribution, from the age of 60 years.
  • The same pension would be paid to the spouse of the subscriber and on the demise of both the subscriber and the spouse, the accumulated pension wealth is returned to the nominee.
  • The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, that is, from 2015-16 to 2019-20, to those who join the NPS before 31st December, 2015 and who are not members of any statutory social security scheme and who are not Income Tax payers.

Benefits of APY

  • Fixed pension for the subscribers ranging between Rs.1000 to Rs. 5000, if s/he joins and contributes between the age of 18 years and 40 years.
  • The contribution levels would vary and would be low if subscriber joins early and increase if s/he joins late.
  • The same pension is payable to Spouse after death of Subscriber.
  • Return of indicative pension wealth to nominees after death of spouse.
  • Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS).
  • The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1).

Eligibility for APY

  • Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.
  • Any individual who is eligible to receive benefits under the APY will have to furnish proof of possession of Aadhaar number or undergo enrolment under Aadhaar authentication.
  • An APY subscriber will have to get the Aadhaar number recorded in his or her APY pension account and also in his/ her savings account where the periodic pension contribution instalments are debited and government co-contribution is to be credited.

Age of joining and contribution period

  • The minimum age of joining APY is 18 years and maximum age is 40 years.
  • Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.

Focus of APY

Mainly targeted at unorganised sector workers.

Enrollment and Subscriber Payment

All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges.

Enrollment agencies

All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enroll subscribers through architecture of National Pension System.

Operational Framework of APY

  • It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority.
  • The Institutional Architecture of NPS would be utilised to enroll subscribers under APY.

Funding of APY

  • Government would provide
  • fixed pension guarantee for the subscribers;
  • Under the APY, the Central Government’s co-contribution of 50% of the subscriber’s contribution upto Rs. 1000 per annum, was available to each eligible subscriber, for a period of 5 years, i.e. from 2015-16 to 2019-20, who join APY before 31st March, 2016 and who is not a beneficiary of any social security scheme and is not an income tax payer.
  • Government would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.
  • Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers
  • The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below.
  • For example, to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years.
  • For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.


  • Atal Pension Yojana has added over 1 crore subscribers since its launch in May 2015, the Pension Fund Regulatory and Development Authority (PFRDA) said recently.
  • Atal Pension Yojana (APY) was launched in May 2015 and current number of subscriber stands at 1.10 crore.
  1. Introduction
  2. About the Scheme
  3. Advantages of NPS
  4. Models under NPS
  5. All citizen model
  6. Eligibility
  7. eNPS – Online Subscriber Registration and Contribution Facility under NPS
  8. Government model
  9. Corporate model
  10. Who can join
  11. Changes
  12. Implications


  • National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life.
  • NPS seeks to inculcate the habit of saving for retirement amongst the citizens.
  • It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
  • Under the NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
  • These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
  • At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a PFRDA empanelled life insurance company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so.
  • The limit of deduction u/s 80CCD of the Income-tax Act on account of contribution by the employee to National Pension Scheme (NPS) has been increased from Rs. 1 lakh to Rs. 1.50 lakh.
  • A deduction of Rs. 50,000/- over and above the limit of Rs. 1.50 lakh to any individual who makes contribution to NPS has been allowed.

What is National Pension System (NPS)?

  1. It is a government-sponsored pension scheme.
  2. It was launched in January 2004 for government employees.
  3. However, in 2009, it was opened to all sections.
  4. The scheme allows subscribers to contribute regularly in a pension account during their working life.
  5. On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
  6. This system is managed by PFRDA (Pension Fund Regulatory and Development Authority).

Advantages of NPS

Flexible- NPS offers a range of investment options and choice of Pension Fund Manager (PFMs) for planning the growth of your investments in a reasonable manner and see your money grow.

Individuals can switch over from one investment option to another or from one fund manager to another subject, of course, to certain regulatory restrictions.

The returns being totally market-related.

Simple – Opening an account with NPS provides a Permanent Retirement Account Number (PRAN), which is a unique number and it remains with the subscriber throughout his lifetime.

The scheme is structured into two tiers:

Tier-I account:

This is the non-withdrawable permanent retirement account into which the accumulations are deposited and invested as per the option of the subscriber.

Tier-II account:

This is a voluntary withdrawable account which is allowed only when there is an active Tier I account in the name of the subscriber.

The withdrawals are permitted from this account as per the needs of the subscriber as and when claimed.

Portable- NPS provides seamless portability across jobs and across locations, unlike all current pension plans, including that of the EPFO. It would provide hassle-free arrangement for the individual subscribers.

Regulated- NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust.

Models under NPS

To cater to various categories of people, there are several models of NPS.

They are

  1. All citizen model
  2. Government sector model
  3. Corporate model
  4. Atal Pension Yojana


  1. A citizen of India, whether resident or non-resident, subject to the following conditions:
  2. Applicant should be between 18 – 65 years of age as on the date of submission of his/her application to the Point of Presence – Service Providers (POP/ POP-SP).
  3. Applicant should comply with the Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form.
  4. All the documents required for KYC compliance need to be mandatorily submitted.

Government model

  • An employee is mandatorily covered under National Pension System (NPS) if

S/he has joined the services of Government of India on or after 01-01-2004 (except Armed Forces) OR

  • S/he is an employee of a Central Autonomous Body who has joined on or after 01-01-2004.

Corporate model

Corporate Model is available to any of the entities as under:-

  1. Entities registered under Companies Act
  2. Entities registered under various Co-operative Acts
  3. Central Public Sector Enterprises
  4. State Public Sector Enterprises
  5. Registered Partnership firm
  6. Registered Limited Liability Partnership (LLPs)
  7. Any Body incorporated under any act of Parliament or State legislature or by order of Central / State Government
  8. Proprietorship Concern
  9. Trust/Society

The employees of the corporate entity, enrolled by the employer having Indian Citizenship between the age of 18-65 years and complying with the KYC norms, are eligible to be registered as subscribers under NPS.

National Pension Scheme

Who can join NPS?

  1. Any Indian citizen between 18 and 65 years can join NPS.
  2. An NRI can join NPS.
  3. However, the account will be closed if there is a change in the citizenship status of the NRI.
  4. Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years.

National Pension Scheme

Changes approved in the National Pension System:

  • Mandatory contribution by the Central Government enhanced by 4 percent from the existing 10 percent to 14 percent for employees covered under NPS Tier-I
  • Central government employees will be provided with freedom of choice for selection of Pension Funds and pattern of investment.
  • Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012
  • Contribution by Government employees under Tier-II of NPS will now be covered under Section 80 C for deduction up to Rs 1.50 lakh for the purpose of income tax at par with schemes such as General (PF), Contributory PF, Employees PF and Public PF, with lock-in period of 3 years.
  • The entire withdrawal will now be exempt from income tax as the tax exemption limit for lump sum withdrawal on exit has been enhanced to 60 percent.


  • The move is set to benefit around 36 lakh subscribers, including approximately 18 lakh Central government employees covered under NPS.
  • It will cost the exchequer Rs 2,840 crore in the current financial year.

Can a Non Resident Indian (NRI) join NPS?

Yes, an NRI can join NPS. However, the account will be closed if there is a change in the citizenship status of the NRI.

National Pension Scheme

Pradhan Mantri Vaya Vandan Yojana (PMVVY)

  1. Benefits of the scheme
  2. Eligibility Conditions and Other Restrictions
  3. Payment of Purchase Price
  4. Mode of pension payment
  5. Surrender Value
  6. Loan
  7. Free Look period
  8. Exclusion


  • Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above which was available from 4th May, 2017 to 31st March, 2020.
  • The scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020.

About PMVVY:

  • It is a Pension Scheme exclusively for the senior citizens aged 60 years and above.
  • The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme.
  • Maximum investment
  • One can invest a maximum amount of ₹15 lakh under Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme. The tenure of the policy is set at 10 years.

Key features of the scheme:

  1. Scheme provides initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
  2. Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
  3. The scheme is exempted from GST.
  4. On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
  5. Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs).
  6. Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
  7. The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse.
  8. On such premature exit, 98% of the Purchase Price shall be refunded.
  9. On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.

Benefits of the scheme

Following are the major benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY):

  • The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
  • The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.

Eligibility Conditions and Other Restrictions

  • Minimum Entry Age: 60 years (completed)
  • Maximum Entry Age: No limit
  • Policy Term : 10 years
  • Investment limit : Rs 15 lakh per senior citizen
  • Minimum Pension: Rs. 1,000/- per month
  • 3,000/- per quarter
  • 6,000/- per half-year
  • 12,000/- per year. Inve
  • Maximum Pension: Rs. 12,000/- per month
  • 30,000/- per quarter
  • 60,000/- per half-year
  • 1,20,000/- per year
  • The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme.

Mode of pension payment

  • The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
  • The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.

Surrender Value

The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.


  1. Loan facility is available after completion of 3 policy years.
  2. The maximum loan that can be granted shall be 75% of the Purchase Price.
  3. The rate of interest to be charged for loan amount shall be determined at periodic intervals.
  4. For the loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.
  5. Loan interest will be recovered from pension amount payable under the policy.
  6. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension.
  7. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.

Free Look period

  • If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.
  • The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.



There shall be no exclusion on count of suicide and full Purchase Price shall be payable


  • The Union Cabinet has given its approval to the Extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY) and other changes for the welfare of and to enable old age income security for Senior Citizens.

Changes for the Welfare of the aged:

  • Extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY) up to 31st March, 2023.
  • Revised rate of returns of Senior Citizens Saving Scheme (SCSS).
  • Approval for expenditure to be incurred on account of the difference between the market rate of return generated by LIC.

The minimum investment has also been revised to Rs.1,56,658 for pension of Rs.12,000/- per annum and Rs.1,62,162/- for getting a minimum pension amount of Rs.1000/- per month under the scheme.

Pradhan Mantri MUDRA Yojana

  1. Introduction
  2. About the Scheme
  3. Types of loans
  4. Objectives
  5. Eligibility
  6. Sectors covered
  7. Implementation
  8. Significance
  9. Concern
  10. Need of hour


  • Cabinet has approved 2% Interest Subvention approved on prompt repayment of Shishu Loans under Pradhan Mantri MUDRA Yojana for a period of 12 months.
  • The estimated cost of the Scheme would be approximately Rs. 1,542 crore which would be provided by the Government of India.
  • This Scheme is for implementation of one of the measures relating to MSMEs, announced under the Atma Nirbhar Bharat Abhiyan.

About the Pradhan Mantri MUDRA Yojana (PMMY) Scheme:

  • Launched in April, 2015.
  • The scheme’s objective is to refinance collateral-free loans given by the lenders to small borrowers.
  • Banks and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA.
  • Mudra Loans are available for non-agricultural activities upto Rs. 10 lakh and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
  • Mudra’s unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines.

There are three types of loans under PMMY:

  1. Shishu (up to Rs.50,000).
  2. Kishore (from Rs.50,001 to Rs.5 lakh).
  3. Tarun (from Rs.500,001 to Rs.10,00,000).

Objectives of the scheme:

Fund the unfunded:

  • Those who have a business plan to generate income from a non-farm activity like manufacturing, processing, trading or service sector but don’t have enough capital to invest can take loans up to Rs 10 lakh.

Micro finance institutions (MFI) monitoring and regulation:

  • With the help of MUDRA bank, the network of microfinance institutions will be monitored.
  • New registration will also be done.

Promote financial inclusion:

  • With the aim to reach Last mile credit delivery to micro businesses taking help of technology solutions, it further adds to the vision of financial inclusion.

Reduce jobless economic growth:

  • Providing micro enterprises with credit facility will help generate employment sources and an overall increase in GDP.

Integration of Informal economy into Formal sector:

  • It will help India also grow its tax base as incomes from the informal sector are non-taxed.


  • The scheme will be extended to loans which meet the following criteria – outstanding as on 31stMarch, 2020; and not in Non-Performing Asset (NPA) category, as per Reserve Bank of India (RBI) guidelines, on 31st March 2020 and during the period of operation of the Scheme.
  • The interest subvention would be payable for the months in which the accounts are not in NPA category including for the months that the account becomes a performing asset again, after turning NPA.

Sectors covered

  • To maximize coverage of beneficiaries and tailor products to meet requirements of specific business activities, sector / activity focused schemes would be rolled out.
  • To begin with, based on higher concentration of businesses in certain activities / sectors, schemes are proposed for:

Land Transport Sector / Activity –

Which will inter alia support units for purchase of transport vehicles for goods and personal transport such as auto rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger cars, taxis, etc.

Community, Social & Personal Service Activities

Such as saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.

Food Products Sector

Support would be available for undertaking activities such as papad making, achaar making, jam / jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.

Textile Products Sector / Activity –

To provide support for undertaking activities such as handloom, powerloom, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.

Implementation strategy:

The Scheme will be implemented through the Small Industries Development Bank of India (SIDBI) and will be in operation for 12 months.


  • The Scheme has been formulated as a specific response to an unprecedented situation and aims to alleviate financial stress for borrowers at the ‘bottom of the pyramid’ by reducing their cost of credit.
  • It will incentivize people who will make regular repayments of loans.

Why the concern?

  • Non-performing assets ratio or bad loans as a percentage of MUDRA loans were at 2.68% in 2018-19, up 16 basis points from 2.52% in the previous year.
  • These loan NPAs were at 2.89% in 2016-17.
  • Of the 182.60 million MUDRA loans sanctioned, 3.63 million accounts defaulted as on 31 March.

Need of the hour:

  • Banks need to focus on repayment capacity at the appraisal stage and monitor the loans through the lifecycle much more closely.
  • The application of technology in finance has its own share of risks and challenges for regulators and supervisors.
  • Early recognition of these risks and initiating action to mitigate the related regulatory and supervisory challenges is key to harnessing the full potential of these developments.
  • Microfinance institutions must broaden their client outreach to reduce the concentration risk in their own interest and to serve a wider clientele base.
  • From a financial inclusion perspective they should also critically review their operations so other regions don’t remain underserved.

Pradhan Mantri Jan Dhan Yojana


The National Mission of Financial Inclusion named as the Pradhan Mantri Jan Dhan Yojana seeks to integrate the poorest of the poor with bank accounts.

About PMJDY:

Announced on 15th August 2014, PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.


  • To ensure access of financial products & services at an affordable cost.
  • Use of technology to lower cost & widen reach.

Basic tenets of the scheme:

Banking the unbanked –

  • Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.

Securing the unsecured –

  • Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.
  • Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

Salient features of the scheme

  • All households across the country – both rural and urban are to be covered under the scheme.
  • Bank accounts will be opened for 15 crore poor persons.
  • All bank accounts opened under the scheme are to have an overdraft facility of Rs 5,000 for Aadhar-linked accounts after satisfactory operation in the account for 6 months.
  • Issuance of RuPay Debit Card with inbuilt Rs 2 lakh personal accident insurance cover.
  • The increased coverage amount of Rs. 2 lakh is for PMJDY accounts opened after 28.08.2018.
  • A minimum monthly remuneration of Rs 5,000 to business correspondents who will provide the last link between the account holders and the bank.

Implementation of the scheme

  • The mission will be implemented in two phases, the details of which are as follows.
  • Phase I – 15 August 2014 – 14 August 2015
  • Universal access to banking facilities for all households across the country through a bank branch or a fixed point Business Correspondent (BC) within a reasonable distance.
  • To cover all households with atleast one basic banking account with RuPay Debit Card with inbuilt Rs 1 lakh accident insurance cover.
  • Financial literacy programme to be taken to the village level.
  • Expansion of Direct Benefit Transfer under various government schemes through bank accounts of the beneficiaries.
  • Issuance of Kisan Credit Card is also proposed
  • Phase II – 15 August 2015 – 14 August 2018
  • Providing micro-insurance to the people.
  • Unorganised sector pension schemes like Swavalamban through the Business Correspondents.
  • Phase III – beyond 14 August 2018
  • The flagship financial inclusion program (PMJDY) will focus on opening accounts from “every household to every adult”.
  • Existing Over Draft (OD) limit of Rs 5,000 to be raised to Rs 10,000.
  • There will not be any conditions attached for OD upto Rs 2,000.
  • Age limit for availing OD facility to be revised from 18-60 years to 18-65 years.
  • Under the expanded coverage from “every household to every adult”, accidental insurance cover for new RuPay card holders to be raised from Rs 1 lakh to Rs 2 lakh to new PMJDY accounts opened after 28.8.18.

The scheme is Based upon the following 6 pillars:

Universal access to banking services –

  • Branch and Banking Correspondents.
  • Basic savings bank accounts with overdraft facility (OD) of Rs. 10,000/- to every household.

Financial Literacy Program–

Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking.

Creation of Credit Guarantee Fund –

To provide banks some guarantee against defaults.

Insurance –

Accident cover up to Rs. 1,00,000 and life cover of 30,000 on account opened between 15 Aug 2014 to 31 January 2015.

Pension scheme for Unorganized sector.

Pradhan Mantri Jan Dhan Yojana

Extension of PMJDY with New features:

  • Focus shift from Every Household to Every Unbanked Adult.
  • RuPay Card Insurance –
  • Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs for PMJDY accounts opened after 28.8.2018.
  • Enhancement in overdraft facilities –
  • OD limit doubled from Rs 5,000 to Rs 10,000; OD upto Rs 2,000 (without conditions). Increase in upper age limit for OD from 60 to 65 years.

Pradhan Mantri Jan Dhan Yojana

Key facts:

  • According to the latest data, the total balance in these basic bank accounts stood at ₹99,752 crore with 35.50 crore beneficiaries.
  • Public sector banks have the lion’s share in total balance at ₹79,177 crore, followed by regional rural banks and private sector banks maintaining ₹17,648 crore and ₹2,926 crore, respectively.
  • The scheme focusses on rural areas with primacy given to women. Of the 35.50-crore account holders, those from rural and semi-urban regions were 21 crore. Female beneficiaries were 18.88 crore.
  • Total balance under the scheme, launched on August 15, 2014, grew faster in the last there years, which was boosted by demonetisation in November 2016.
  • It gathered momentum last year and gained rapid pace in the last six months, leading to scepticism on the possible link between elections and spurt in balances.
  • The average balance in PMJDY accounts has also been going up.

Pradhan Mantri Jan Dhan Yojana