UPSC Economics Notes for UPSC 2019 – Financial Inclusion policies in India (Part 1)

Check out the part 1 of the UPSC Economics Notes on Financial Inclusion policies in India. This part has covered all the Finance and development corporations set up by the government of India for Financial inclusion and economic empowerment of various sections of the society. We would recommend that you make your notes on the information provided in this UPSC economics notes blog for your revision rounds.

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UPSC Economics Notes – Government FDC’s for Financial Inclusion and Development

1) National Scheduled Castes Finance and Development Corporation (NSCFDC) –

  • It was set up in Feb 1989, under section 25 of Companies Act 1956.
  • Economic Empowerment of the Schedule Caste communities living below the Double the Poverty Line (DPL) Limit is the main aim of NSCFDC.
  • NSCFDC provides loans at concessional rates (Term loans, Educational loans, Micro Finance) through RRBs and State Channelizing Agencies, assistance for skill development to achieve its aim of uplifting Scheduled caste communities.

2) National Scheduled Tribes Finance and Development Corporation (NSTFDC) –

  • This is a not for profit Government company established in 2001.
  • The purpose of NSTFDC is to help with the economic empowerment of the Scheduled Tribes community.
  • Economic Empowerment is achieved by extending financial assistance to Self Help groups (₹25 lakhs), individual members (up to ₹50,000), concessional loans to Tribal artisans, Term loans, loans under Adivasi Mahila Shashaktikaran Yojana to Tribal women, etc.

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3) National Safai Karamcharies Finance and Development Corporation (NSKFDC) –

  • NSKFDC was set up in 1997 as a not for profit company by the government with a share capital of ₹600 crores.
  • Funds are disbursed by NSKFDC to the RRBs, Nationalised Banks, State Channelizing agencies from where the actual beneficiaries (Safai Karamcharies) receive the funds.
  • NSKFDC provided the Financial assistance of ₹25 Lacs under Swach Udayami Yojana and ₹15 lacs for general scheme.

4) National Backward Classes Finance and Development Corporation (NBCFDC) –

  • NBCFDC was set up in 1992 as a not for profit company by the government with the authorised share capital of ₹1500 crores.
  • Economic Development of Backward classes through economic assistance, skill development, etc. is the main goal of this corporation.
  • Until 2017, NBCFDC has disbursed loans ₹3575.52 crores to persons from Other backward classes.

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5) National Minorities Finance and Development Corporation (NMFDC) –

  • NMFDC was set up in 1994 under section 25 of Companies act, 1956 Acta not for profit company by the government.
  • The Primary objective of NMFDC is to provide concessional finance to persons from Minority communities for self-employment and employment generation activities.
  • The NMFDC would work for the economic development of Muslim, Christian, Sikh, Buddhist, Parsi and Jain communities which are notified minority communities as per the Government.

6) National Handicapped Finance and Development Corporation (NHFDC) –

  • NHFDC was set up in 1997 by the government under the section 25 of Companies Act, 1956 with a share capital of ₹400 crores.
  • This is the apex corporation which works for the economic development of Persons with Disabilities (PwDs) – Divyangjan in India.
  • Financial assistance through concessional loans are provided to Handicapped persons for setting up income generating activities, higher education, etc.

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That is all from us in this part of the UPSC Economics notes on Financial Inclusion in India. We hope you found the information provided here is a valuable addition to your UPSC Economics notes. All the best for your UPSC Exam preparation.

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