This is the part 2 of the UPSC Economics notes blog on Financial Inclusion policies of Government of India. This blog gives you information about all the major schemes being run by the Government for Economic Empowerment and Financial development of all sections of the Indian population. The information provided in this blog is referenced from the Yojana Magazine. At the risk of repetition, we would like to say again that you should make UPSC Economics notes on the information provided in this blog which you can revise easily for UPSC Exam.
UPSC Economics Notes – Government Schemes for Financial Inclusion
1) Rashtriya Mahila Kosh (RMM)
- This is an apex and autonomous microfinance organisation under the Indian Government’s Ministry of Women and Child Development.
- RMM’s main objective is to bring about socio-economic development of women from poor sections of society by providing microcredit at concessional rates.
- The loans to poor women entrepreneurs are provided by RMM through inter-mediatory Organisations (IMO).
2) MUDRA Bank Yojana
- MUDRA Bank was launched by the PM in 2015 with the aim of providing loans up to ₹10 lakhs to non-corporate, non-farm small/micro enterprises.
- Under the scheme, loans are provided by commercial banks, RRBs, small financial banks, co-operative banks, MFIs and NBFCs.
- There are 3 types of loans under MUDRA Yojna – Shishu, Kishore and Tarun.
3) Stand up India Scheme
- Under this scheme, every bank branch has to facilitate a loan of ₹10 lakhs to ₹1 crore to at least 1 Scheduled Caste (SC) or Scheduled Tribe (ST) and one women borrower for setting up a greenfield enterprise.
- The Greenfield enterprise could be in the manufacturing, services or trading sector.
4) Venture Capital Fund Scheme
- This scheme’s objective is to promote entrepreneurship among the Scheduled Caste community of India by providing concessional finance to them.
- The scheme was launched by the Ministry of Social Justice and Empowerment.
5) Credit Enhancement Guarantee Scheme
- The scheme was announced by the Finance Minister in 2014.
- This scheme is aimed at promoting entrepreneurial spirit among the youth belonging to the Scheduled Caste of India.
- Funds are allocated to promote Startup by Scheduled Caste persons which would result in job creating and confidence building among this section of the society.
6) Prime Minister Jan Dhan Yojana (PMJDY)
- PMJDY is one of biggest Financial inclusion scheme launched in India.
- The scheme’s primary objective is to provide banking, insurance and pension facilities to the weaker sections of the Indian population.
- Under PMJDY, about 1.5 crore bank accounts were opened across the country.
That brings us to the end of this 2 part UPSC Economics notes series 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.