1. Pradhan Mantri Jan Dhan Yojana (PMJDY)
Launched on 28th August 2014, the PMJDY is one of India’s most ambitious financial inclusion programs. Its objective is to ensure that every Indian citizen, especially those in rural and semi-urban areas, has access to basic banking services such as a savings account, credit, insurance, and pension.
Key Features and Objectives
- To provide universal access to banking facilities for all households.
- Encourage savings by offering interest-bearing accounts even with zero balance.
- To integrate low-income households into the mainstream financial system.
- Enable Direct Benefit Transfer (DBT) of subsidies, pensions, and scholarships.
Benefits of PMJDY
| Feature | Details |
|---|---|
| Type of Account | Basic Savings Bank Deposit Account (BSBDA) |
| Minimum Balance | Zero balance account (No minimum requirement) |
| Accident Insurance | ₹2 lakh under RuPay Debit Card |
| Life Insurance | ₹30,000 for eligible accounts opened during the launch period |
| Overdraft Facility | Up to ₹10,000 after account operation for 6 months |
| Transfer Benefits | Linked to DBT and government subsidies |
Recent Updates (2025)
- Integration with UPI Lite and Aadhaar-enabled Payment Systems (AePS).
- Enhanced overdraft eligibility and simplified e-KYC norms for rural customers.
- Automatic micro-insurance linkage for account holders maintaining ₹5,000+ balance for 6 months.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
This is a life insurance scheme aimed at providing financial protection to families in case of the unfortunate demise of the earning member. Introduced in May 2015, it targets the working population who otherwise cannot afford expensive insurance.
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Details of PMJJBY
| Parameter | Details |
|---|---|
| Eligibility | Indian residents aged 18–50 years with a bank account |
| Coverage Amount | ₹2 lakh on death (natural or accidental) |
| Annual Premium | ₹436 per annum (auto-debited) |
| Renewal Period | Automatically renewable up to age 55 |
| Implementing Agencies | LIC and other public/private insurers |
New Developments (2025)
- Introduction of digital enrollment using Aadhaar e-KYC.
- Faster claim settlement through NPCI-linked verification.
- Option for nominee update through mobile app and online portals.
3. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
PMSBY provides accidental insurance coverage to individuals at extremely low premium rates. It’s primarily meant for lower-income segments who face higher vulnerability to accidents.
Coverage and Benefits
| Eligibility | 18–70 years having a savings account |
|---|---|
| Premium | ₹20 per annum (auto-debited from account) |
| Coverage | ₹2 lakh (accidental death/full disability), ₹1 lakh (partial disability) |
| Renewal | Auto-renewed every year till age 70 |
Recent Enhancements (2025)
- Claims are now settled digitally through DigiLocker integration.
- Insurance certificate auto-generated via SMS and Email.
- Enhanced awareness through bank-mela drives and social media campaigns.
4. Atal Pension Yojana (APY)
The APY ensures old-age security by offering a fixed pension amount after retirement. It’s especially designed for the unorganized sector workers such as laborers, street vendors, and self-employed individuals.
Scheme Details
| Eligibility | 18–40 years with a savings bank account |
|---|---|
| Pension Range | ₹1,000 to ₹5,000 per month (after age 60) |
| Contribution Period | Minimum 20 years |
| Government Contribution | 50% or ₹1,000 per year (whichever lower, for eligible subscribers) |
| Exit Rules | Withdrawal permitted due to death or terminal illness |
New Features (2025)
- Introduction of auto-escalation option: pension amount can increase by 10% annually.
- Facility to check contribution status through mobile app and SMS alert.
- Inclusion of pension portability across banks using APY-Connect framework.
5. Pradhan Mantri Awas Yojana (PMAY)
PMAY was launched to achieve the dream of Housing for All by 2025. It provides interest subsidy on housing loans to eligible beneficiaries under different income categories — EWS, LIG, MIG-I, and MIG-II.
Detailed Benefits
| Category | Annual Income Limit | Interest Subsidy |
|---|---|---|
| EWS | Up to ₹3 lakh | 6.5% on loans up to ₹6 lakh |
| LIG | ₹3–6 lakh | 6.5% on loans up to ₹6 lakh |
| MIG-I | ₹6–12 lakh | 4% on loans up to ₹9 lakh |
| MIG-II | ₹12–18 lakh | 3% on loans up to ₹12 lakh |
Implementation Framework
- PMAY-Urban (PMAY-U): Focuses on housing in cities and towns.
- PMAY-Gramin (PMAY-G): Targets rural areas through housing subsidies and direct financial assistance.
Latest Updates (2025)
- Revised carpet area for MIG-II increased to 200 sq. meters.
- Co-ownership made mandatory for women to promote gender equity.
- Online application system linked with DigiLocker and UIDAI.
Atal Pension Yojana Explained – Full Details, Benefits, Eligibility & Death Rules
6. Education Loan Scheme (Vidya Lakshmi Portal)
The Vidya Lakshmi Portal was launched to provide students with easy access to multiple education loan options. Managed by NSDL e-Governance, it acts as a single-window platform connecting students with banks and government subsidy schemes.
Features
- Students can apply to up to 3 banks simultaneously using a single form.
- Transparent status tracking and response timelines.
- Integrated with the Central Sector Interest Subsidy Scheme (CSIS) for EWS category students.
Loan Details
| Course Type | Loan Limit |
|---|---|
| Studies in India | Up to ₹10 lakh |
| Studies Abroad | Up to ₹20 lakh |
| Moratorium | Course period + 1 year |
| Interest Subsidy | Available for EWS students up to annual income of ₹4.5 lakh |
Update (2025)
- AI-based loan recommendation engine for personalized options.
- Instant eligibility check via Aadhaar-based verification.
- Collaboration with fintech companies for faster disbursement.
7. Deendayal Antyodaya Yojana – National Rural and Urban Livelihood Missions (DAY-NRLM & NULM)
These schemes aim to create sustainable livelihood opportunities for rural and urban poor through skill training, entrepreneurship development, and microfinance linkages.
DAY-NRLM (Rural)
- Implemented by the Ministry of Rural Development.
- Promotes Self-Help Groups (SHGs) and women empowerment through credit linkage.
- Interest subvention up to 7% on loans for eligible SHGs.
- Revolving Fund assistance up to ₹25,000 for each group.
DAY-NULM (Urban)
- Implemented by the Ministry of Housing and Urban Affairs.
- Provides self-employment loans and skill development programs for urban poor.
- Special focus on vendors, artisans, and urban SHGs.
Recent Improvements (2025)
- Mandatory financial literacy training for all new SHG members.
- Launch of Digital SHG Portal for credit tracking and analytics.
- Increased subsidy ceilings for micro-enterprises to ₹3 lakh.
Key Insights
- All these schemes are aligned under the National Financial Inclusion Strategy 2025.
- Banks serve as the core implementing agencies ensuring outreach and monitoring.
- Digital integration has transformed operations, making benefits easily accessible to citizens even in remote locations.
- Women, farmers, students, and low-income groups are the major beneficiaries under these flagship programs.
Conclusion
The Government Sponsored Schemes in India collectively contribute to inclusive economic growth. As of 2025, they have undergone major digital upgradations—making processes transparent, fast, and beneficiary-centric. For bankers, understanding these schemes is crucial for financial literacy drives, rural outreach programs, and exam preparation for professional certifications like JAIIB and CAIIB. These schemes not only empower individuals but also strengthen India’s mission of equitable and sustainable financial development.
