Several government schemes in India have been launched to broaden financial inclusion by providing insurance, credit, and pension to the underserved. These schemes aim to cover the population with essential financial services at low cost, ensuring that the benefits of formal finance reach every citizen.
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is the Government of India’s flagship financial inclusion programme, launched on 28 August 2014.
It aims to ensure universal access to basic banking by providing at least one bank account to every household, later expanded to every adult, thereby bringing the poorest sections into the formal financial system.
The scheme’s slogan, “Mera Khata, Bhagya Vidhata”, highlights the role of a bank account in improving economic opportunities.
PMJDY forms a key pillar of the JAM Trinity—Jan-Dhan, Aadhaar, and Mobile—which enables direct and efficient transfer of government benefits and services.
Pradhan Mantri Suraksha Bima Yojana (PMSBY, 2015)
A government-backed accident insurance scheme available to all bank account holders, especially targeting the poor and unorganized workers.
For a nominal premium of ₹20 per year (auto-debited from the account, updated from ₹12 earlier), a person gets an accidental death or disability cover of ₹2 lakh (₹1 lakh for partial disability).
If the subscriber dies or is permanently disabled in an accident, the insurance pays out the sum assured.
The low premium has led to enormous subscription – tens of crores of people are enrolled – making basic insurance accessible to those who never had any form of cover.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY, 2015)
A companion life insurance scheme that provides life cover to the masses at low cost. Any savings bank account holder aged 18-50 can enroll.
The premium is ₹436 per year (increased from ₹330 in 2022) for a life insurance cover of ₹2 lakh. If the insured person dies (from any cause) during the policy period, ₹2 lakh is paid to the nominee.
The cover is for one year at a time, renewable each year.
This scheme has brought life insurance within reach of low-income groups who previously would not afford or get access to life insurance. As of mid-2020s, over 20 crore people are enrolled in PMJJBY.
Atal Pension Yojana (APY, 2015)
APY is a government-backed pension scheme for workers in the unorganised sector such as labourers, vendors, and small traders.
Citizens aged 18–40 can join by making monthly contributions until 60.
Subscribers choose a guaranteed pension of ₹1,000–₹5,000 per month, payable for life after retirement. Contributions depend on entry age and pension amount, with younger entrants paying less.
The government guarantees payouts and initially co-contributed for low-income subscribers. Implemented through banks and post offices, APY has enrolled about 4–5 crore subscribers by 2025.
Pradhan Mantri Mudra Yojana (PMMY, 2015)
PMMY promotes credit access for micro and small enterprises through loans up to ₹10 lakh.
Loans are classified as Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), and Tarun (₹5–₹10 lakh).
These collateral-free loans are extended by banks, NBFCs, and MFIs to small entrepreneurs, many of whom are first-time borrowers.
The scheme aims to “fund the unfunded” through refinance and credit guarantees.
Since 2015, over 35 crore loans worth more than ₹15 lakh crore have been sanctioned, with a significant share going to women and SC/ST/OBC entrepreneurs.
Stand-Up India Scheme (2016)
This scheme promotes entrepreneurship among SC/ST and women by facilitating bank loans between ₹10 lakh and ₹1 crore for new (greenfield) enterprises in manufacturing, services, or trading.
Each bank branch is expected to support at least one SC/ST and one woman borrower.
Loans may be composite, with a maximum margin requirement of 15% and partial credit guarantee support.
The scheme also provides handholding for project preparation. By early 2025, loans worth tens of thousands of crore rupees have been sanctioned, supporting inclusive enterprise creation.
Kisan Credit Card (KCC) Scheme (1998)
KCC provides farmers with a flexible credit facility to meet agricultural and allied needs.
Based on landholding and cropping pattern, banks sanction a credit limit for 3–5 years, allowing withdrawals as needed and repayment after harvest.
The scheme offers low-interest credit with interest subvention for timely repayment and has been extended to fisheries and animal husbandry.
As of 2024, around 7.7 crore KCCs are active with credit outstanding exceeding ₹10 lakh crore, reducing farmers’ dependence on moneylenders.
Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi, 2020)
Launched after the COVID-19 lockdown, PM SVANidhi supports street vendors through collateral-free working capital loans.
Vendors receive an initial loan of ₹10,000, followed by ₹20,000 and ₹50,000 on timely repayment.
The scheme provides a 7% interest subsidy and incentives for digital transactions.
Implemented through urban local bodies and banks, it has benefited over 30 lakh vendors by 2023 and helped integrate them into the formal financial system.
Sukanya Samriddhi Yojana (SSY, 2015)
SSY is a small savings scheme for the girl child, allowing parents to open an account from birth until the child turns 10. Deposits range from ₹250 to ₹1.5 lakh annually for 15 years. The scheme offers high interest, tax benefits, and matures after 21 years or at marriage after 18. Widely adopted through banks and post offices, SSY promotes long-term savings, financial inclusion, and gender empowerment in line with the Beti Bachao, Beti Padhao initiative.
Other Measures
In addition to the above, the government and RBI have established funding mechanisms and programs to further inclusion:
The Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) were created to support innovative outreach by banks (like funding BC innovations, rolling out rural ATMs, etc.).
Special programs like “Swabhimaan” (2011) targeted opening banking outlets in larger unbanked villages before PMJDY took over with a broader scope.
The National Centre for Financial Education (NCFE) was set up in 2013 (supported by RBI, SEBI, IRDAI, PFRDA) to promote financial literacy nationwide, which indirectly supports inclusion by increasing effective demand for financial services.
Many state governments have their own schemes that complement inclusion, e.g., interest-free loan schemes for women SHGs, or state-level insurance schemes for the poor that piggyback on Jan-Dhan accounts.
Digital initiatives: UPI, AePS, and mobile wallets (though not exactly “schemes”) have been aggressively promoted by the government (with cashback incentives and awareness campaigns) as part of the push towards a less-cash economy that everyone can partake in.
The RBI’s Payments Bank and Small Finance Bank licensing also came on recommendation of the Nachiket Mor Committee to further inclusion through differentiated banking models.
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