Since the Modi government has come to power, there has been a torrent of various schemes ranging from financial inclusion to better health care, with devotion to the welfare of all sections of our society, like any democratically elected government is believed to have. In their consecutive tenures, this government has established hundreds of minute and outsized social welfare schemes and even though each and every one of them did not reach the exact beneficiaries, some of these mentioned below have brought significantly positive changes in the lives of many families across the nation. In this article, we have a list of 5 of the most important of such schemes and everything you need to know about them.
1. PRADHAN MANTRI JAN DHAN YOJNA (PMJDY)
PMJDY, launched on 28th August, 2014, has an integrated approach to bring about financial inclusion by ensuring availability to a range of services like insurance, pension, saving bank accounts, access to need based credit and remittances facility. Recognized by the World Guinness Record, it has almost reached a hundred percent coverage with a 51% share of female bank account holders. As part of the second phase of the programme, Swavalamban (pension scheme through business correspondent), or micro-insurance to people from unorganized sector has been included. The indigenous RuPay debit card has inbuilt accident insurance of Rs. 1 Lakh along with an overdraft of up to Rs. 10,000 available with an activity of over six months. Moreover, no conditions are attached to OD up to Rs. 2,000 and the age limit for availing it has been increased to 65 years, as of 2018 (phase 3, post 14 August 2018).
Upon passing of the 7th pay commission report by the centre, an increase in the quantum of minimum pension took place, which has been raised to Rs. 9,000 from Rs. 3,500 and the minimum pay of central government employees has been raised to Rs. 18,000 from Rs. 7,000 after applying the 2.57 times fitment factor.
PMMY, a scheme launched on April 8, 2015, provides loans up to Rs. 10 Lakh to micro-enterprises. They are classified as MUDRA loans and are given by NBFCs, small finance banks, cooperative banks, MFIs, RRBs and commercial banks. Lenders can be approached directly or through online portals by the borrowers. To create a reference point for next phase of growth, three products have been created namely “Shishu” (covering loans up to 50,000 Rupees), “Kishor” (covering loans up to 5 Lakh Rupees) and “Tarun” (covering loans up to 10 Lakh Rupees). These loans can be availed by any Indian citizen who plans to generate income from non-agricultural sources. There is no fixed interest on these loans. They are usually charged at base rate plus 1-7%. These small scale industries gthat come under PMMY employ approximately 12 crore people in our country.
This scheme is implemented by National Skill Development Corporation with the objective of providing exposure to the unemployed graduates, post graduates and engineering diploma holders (3 years). It reaches approximately forty thousand of the youth of Jammu and Kashmir over a period of five years. It helps make companies aware of the talent pool existing in the state and creates a system to bridge the gap between the corporate and the youth unaware of the financial opportunities. There is exponential support to travel, train and transit to work under this particular scheme.
Advantages of PMDJY:
- Zero balance requirements: opening a Jan Dhan account is free of cost and no money needs to be deposited initially.
- Provision of life insurance: upon fulfilling the eligibility conditions, Rs. 30,00 life cover is payable to the beneficiary upon the death of the account holder.
- Aadhar linked account: it ensures transparency and prevents fraud while opening accounts. Benefits from schemes like LPG subsidy can be received directly in PMDJY accounts.
- Loan and overdraft facility: reduces dependency of farmers on local lenders, thereby preventing the vicious cycle of debt resulting from fraudulent transactions.
2. 7th PAY COMMISSION
Advantages of 7th pay commission:
- It is a move that benefits 1.1 Crore central government employees and pensioners, the Centre has hiked the Dearness Allowance by 3 per cent to 12 per cent.
- It brings uniformity into retirement age, which has increased to 60 years from 57 years for the constable to commandant (senior superintendent of police).
- Rates of honorarium of guest faculty in universities and colleges hiked with immediate effect to Rs 1,500 per lecture, up to a ceiling of Rs 50,000 per month.
- Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.
- The gratuity ceiling has been enhanced from Rs. 10 to 20 Lakhs. The ceiling on gratuity will be increasing by 25 % whenever DA rises by 50 per cent.
3. MUDRA BANK YOJANA (Micro Unit Development and Refinance Agency Bank)
Advantages of PMMY:
- Credit guarantee is offered to the borrowers under this loan scheme which improves the efficiency and receptiveness of the product.
- Customers are provided with various promotional and developmental services like financial and entrepreneurial literacy, skill and sectoral development, etc.
- Due to increased liquidity and access to funds, landless and vulnerable sections can make significant gains.
- Provision of hassle free services with easy clearances along with elimination of the need of collaterals majorly helps the targeted sector.
- Further mobilization of INR 1 Lakh directed towards Shishu category.
4. THE UDAAN PROJECT
This scheme is implemented by National Skill Development Corporation with the objective of providing exposure to the unemployed graduates, post graduates and engineering diploma holders (3 years). It reaches approximately forty thousand of the youth of Jammu and Kashmir over a period of five years. It helps make companies aware of the talent pool existing in the state and creates a system to bridge the gap between the corporate and the youth unaware of the financial opportunities. There is exponential support to travel, train and transit to work under this particular scheme.
Advantages of Udaan Scheme:
- It covers incidental expenses such as boarding and lodging, travel, administration cost, medical insurance cost for trainees, etc.
- Corporate are eligible for partial reimbursement of training expense.
- Assistance in preparation of IIT-JEE during class 11th and 12th for deserving female candidates aspiring for higher education in engineering.
- 5000 placement offers made along with 75 corporate partners.
- 600 successful drives with 11,000 young trainees.
5. SKILL INDIA
Advantages of Skill India Programme:
- It increases productivity of the existing workforce and benefits one million of the youth at an approximate cost of ten billion Rupees.
- It encourages standardization of the certification procedure and characters a registry of skills.
- Provides average monetary reward of Rs. 10,000 per student.
- Courses offered under the programme take into consideration various factors such as financial status, age, geographical location, native language, etc while providing vocational trainings.
- India has partnered with various countries and foreign educational institutions so that the training provided to the youth conforms to international standards.
After completion of another month in the office as second term, the government has taken and implemented many promising decisions in the form of several schemes. This year, BJP’s election manifesto promised to make India a five trillion dollar economy, hence, these schemes have become extremely necessary to spur investment and create employment opportunities. Modi Sarkar 2.0 bids to root out corruption, structurally reform the agricultural sector and grow our world stature altogether and we can all only hope for the same.
Hi. My name is Apoorva Vardhan. I am an undergraduate student of economics at the University of Delhi. I am very interested in writing as well as debating. I am also very passionate about numbers and how markets work. As an economics major, I plan to pursue an advanced degree and become an economic consultant to conduct research and build strategies to solve economic issues and to interpret markets. Lastly, I am a firm believer of personal accountability as well as commitment and I enjoy creating and managing original compelling work.
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