Financial Services secretary M Nagaraju is set to meet the heads of Public Sector Banks (PSBs) on Wednesday to assess the progress of key financial inclusion schemes.
The review meeting will focus on schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY).
The total balance in no-frills PMJDY accounts reached Rs 2.43 lakh crore as of January 1. Initially seen as a mechanism to channel government benefits, these accounts have also emerged as a significant source of low-cost funds for PSBs.
Pradhan Mantri Jan Dhan Yojana provides life insurance coverage of Rs 2 lakh for individuals aged 18-50 with a bank or post office account. Coverage applies in case of death due to any reason, with enrollment requiring consent and auto-debit of premiums.
On the other hand, the PMSBY offers Rs 2 lakh for accidental death or total permanent disability and Rs 1 lakh for partial permanent disability. It is available to individuals aged 18-70, with similar enrollment criteria.
The StandUp India Scheme, launched on April 5, 2016, to promote economic empowerment and job creation, has been extended until 2025. The initiative mandates all bank branches to extend loans to Scheduled Caste (SC), Scheduled Tribe (ST), and women borrowers for establishing greenfield enterprises.
The government also approved the continuation of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme until December 2024. Launched in June 2020 as a response to the Covid-19 pandemic, PM SVANidhi provides affordable, collateral-free micro-loans to street vendors, enabling them to recover from pandemic-related losses.