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What is the need for Financial Inclusion? of financial services like availability of
basic savings bank account, access to
The world famous economist Dr.
need based credit, remittance facility,
Amartya Sen aptly said, "Poverty is
insurance and pension.
the deprivation of opportunity."
It covers both urban and rural areas
It clearly points towards the enormous
and those who open account get
significance of financial inclusion in a
indigenous debit cards (Rupay card).
vast and diverse country like India.
Account can be opened in any bank
Once the financially vulnerable
branch or Business Correspondent (or
segments of society are part of the
Bank Mitra) outlet at zero balance.
mainstream financial system, they
Every bank account is on Core
have access to microcredit to generate
Banking System (CBS) of banks.
additional income streams;
Mobile banking, using USSD facility
to channel their savings into
available on even basic feature phones
investments and create assets; to buy
is also being supported.
insurance products that protect them
financially in times of disease, A facility of call centre and toll-free
and to help fund their children's The main features of PMJDY include
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The Financial Inclusion mission also While introducing Pradhan Mantri
envisages extension of Direct Benefit Suraksha Bima Yojana in Budget
Transfer (DBT) under various 2015, all individual (single or joint)
government schemes through bank bank account holders in the age
accounts of the recipients. group of 18-70 years have been made
Kisan Credit Cards (KCC) have also eligible to join this scheme at a
been linked with the Rupay platform. nominal premium of Rs. 12 per
annum per member.
Micro insurance and unorganized
sector pension schemes like Recognizing the challenges, the
included for the second phase of the enterprises, the Stand Up India
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Government rightly took the initiative panchayats or Farmer Producer
of MUDRA Scheme with the motive of Organisations (FPO) on their barren or
bringing small business entities cultivable lands.
involved in trading, manufacturing The power generated will be
and service sectors in the ambit of purchased by the distribution
formal banking. company at feed in tariffs determined
by respective State Electricity
2. CLEAN AND RENEWABLE ENERGY Regulatory Commission.
INITIATIVES The scheme will open a stable and
Recently, the Government of India has rural land owners. Performance based
incentives at Rs. 0.40 per unit for five
launched Kisan Urja Suraksha evam
years to be provided to distribution
Utthaan Mahabhiyan - KUSUM with
the objective of providing financial companies.
This is a unique scheme in terms of saving of 1.2 billion liters of diesel per
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incentivize the installation of rooftop Rajasthan, Karnataka, Andhra
solar projects in India. SRISTI scheme Pradesh, Maharashtra, Gujarat,
aims to achieve a national solar Himachal Pradesh and Madhya
rooftop target of 40 GW till 2021- Pradesh.
2022.
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It provides cash transfer (conditional) age group of 0-6 years, Ministry of
for expecting and lactating women. Women and Child Development
The scheme fosters care and The aim of this mission was to
before the expected date of delivery. full immunization for women and
children.
In 2017, the law was amended
extending this period to 26 weeks and This immunization programme was
It pledges ante natal care services to (SBSV) initiative was launched by the
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The Mission also seeks to establish a It permits a woman to either use her
mechanism of monitoring toilet use. father's or mother's name on the
Under the PMAY the ownership of a Stand-Up India: Stand-Up India was
house is mandated to be in the name introduced to promote economic
of the woman of the family. security and entrepreneurship.
Passport Rules: Under the new rules, The aim of this programme is to
women do not have to produce such a extend helping hand in preparation of
certificate for processing of passport project plan to avail loans from the
application. bank between 10 lakh to 1 crore.
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Scheduled Caste (SC) or Scheduled economically weaker section of
tribe (ST) borrower and at least one society.
woman borrower per bank branch, for Keeping in mind the lower income
establishing a greenfield business. group, premium of these schemes
Sukanya Samridhi yojana: The have been kept fairly low, so that the
government introduced this new benefit of these schemes can reach far
scheme as a part of Beti Bachao Beti and wide to the unreached.
padhao campaign. What are the various schemes launched
This is a small deposit scheme by GOI in this regard?
exclusively for the welfare of the girl Pradhan Mantri Jan Dhan Yojana
child. (PMJDY), is financial inclusion
It is an incentive to the parents to program of Government of India which
create funds to meet the educational is applicable to 10 to 65 years age
need of their girl child. group, that aims to expand and make
the entrepreneurs who were women. the age group of 18 to 50 years at the
annual premium of Rs. 330.
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one lakh for permanent partial The scheme is compulsory for loanee
disability due to an accident. farmers and voluntary for non-loanee
It is available to the people in the age farmers for notified crops in notified
4,500 claims had been disbursed and Uniform maximum premium of only
provided financial relief to the families 2%, 1.5% and 5% of the sum insured
of affected persons. to be paid by farmers for all Kharif
5,000 from 60 years onwards to the scheme provides health coverage upto
scheme namely Pradhan Mantri Vaya to over 10.74 crore poor and
against non-preventable natural risks Under this Scheme, loan for unit cost
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rickshaw, Solar Pump and Solar The committee has identified several
energy powered implements, poly sources of income growth viz,
house etc. improvement in crop and livestock
The objective of the Credit productivity;
Enhancement Guarantee Scheme resource use efficiency or savings in
for the Scheduled Castes is to the cost of production;
promote entrepreneurship amongst
increase in the cropping intensity;
the scheduled castes and to facilitate
diversification towards high value
concessional finances to them.
crops;
A budget of Rs. 200 crores has been
improvement in real prices received by
allocated to IFCI Limited to facilitate
farmers;
the scheme.
shift from farm to non-farm
occupations.
5. EMPOWERING FARMERS
The committee is also looking into the
THROUGH INITIATIVES IN
investments in and for agriculture e.g.
AGRICULTURE
increasing public investments for
What is the need for reforms in
agriculture-rural roads, rural
Agriculture sector?
electricity, irrigation; the need for
The Government has set a target of
policy support to enable investments
doubling of farmers‟ income by the
by corporate sector in agriculture.
year 2022.
What are the measures taken by GOI in
The Government has constituted an
this regard?
Inter-Ministerial Committee under the
Initiating market reforms through
Chairmanship of Chief Executive
the State Governments by amending
Officer, National Rain fed Area
the agriculture marketing regime.
Authority, Department of Agriculture,
Encouraging contract farming through
Cooperation and Farmers Welfare to
the State Governments by
examine issues relating to doubling of
promulgating of Model Contract
farmers‟ income and recommend a
Farming Act.
strategy to achieve doubling of
farmers‟ income in real terms by the 22,000 Gramin Haats are to be
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agricultural commodities from the The Indian Forest Act, 1927 was
farmers. amended to exclude bamboo from the
farmers an electronic online trading bamboo grown outside forest area will
can be optimized. So far more than launched for development of the value
being developed as organic hub. crops. Giving a major boost for the
Mantri Fasal Bima Yojana (PMFBY)” approved the increase in the MSPs for
have been launched. The scheme all Kharif & Rabi crops for 2018-19
covers various types of risks from pre- season at a level of at least 150
farmers have to pay very nominal Bee keeping has been promoted under
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bovines and to make milk production current demand met, shortages if any,
more remunerative to the farmers. surplus power available and the
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auction facility to facilitate nation- Integrated Power Development
wide power procurement through a Scheme (IPDS) : IPDS Scheme aims
wider network so as to bring to provide quality and reliable 24x7
uniformity and transparency in the power supply in the urban area.
process of power procurement. So far, projects worth Rs. 26,910
Ash Track- linking fly ash users and crores covering 3,616 towns have
power plants for better ash utilization. been sanctioned by the Monitoring
Pradhan Mantri Sahaj Bijli Har Ghar envisaged in the scheme will not only
launched a scheme called "Pradhan area but will also help in improvement
Mantri Sahaj Bijli Har Ghar Yojana in billing and collection efficiency
deprivation on the basis of SECC data and address potential future losses.
in rural areas and economically poor The scheme also envisages reform
households in urban areas would be measures in all sectors – generation,
given. transmission, distribution, coal, and
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7. SKILLING INDIA THROUGH Establishing Academic Equivalence:
GOVERNMENT INITIATIVES Skill India aims to make skilling
What are the programs launched by GOI aspirational and bring vocational
to promote skilling among youth ? training in equivalence with the
Pradhan Mantri Kaushal Kendra all the skill institutes across country
Scheme (NAPS): The scheme is aimed Indian Institute of Skills (IIS): These
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experience or those trained informally. (NCVET):The Union Cabinet approved
Since 2016, the program has the merger of the existing regulatory
benefitted close to 8 lakh people institutions in the skills space –
across the country. National Council for Vocational
SANKALP: Skills Acquisition and Training (NCVT) and the National Skill
(STRIVE)” is aRs 2,200 crore – central education has been transferred from
Enterprises (MSMEs).
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