FinMin to Review Progress of Financial Inclusion Schemes with Bank: Budget 2025

In preparation for the upcoming Union Budget 2025, the Finance Ministry called for a meeting with the heads of Public Sector Banks ( PSBs ) on Wednesday (Jan 15, 2025). According to Press Trust of India (PTI), the meeting chaired by Financial Services Secretary M. Nagaraju will include representatives from private sector banks. The primary focus will be to review and evaluate the progress of important financial inclusion schemes such as Jan Suraksha, Mudra Yojana, and PM SVANidhi, among others.

The meeting aims to assess the government’s efforts to ensure broader financial inclusion and address any challenges banks face in implementing these schemes. Important programs like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), StandUp India, and PM SVANidhi will be reviewed in detail.

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• Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, this flagship program aims to provide universal access to banking services. The scheme has helped millions of unbanked individuals open bank accounts and access financial services, fostering economic inclusion.
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): This life insurance scheme offers a Rs. 2 lakh cover to individuals aged 18-50 years with a bank or post office account. The premium is affordable, and payments are auto-debited for convenience.
• Pradhan Mantri Suraksha Bima Yojana (PMSBY): Designed to provide accident insurance, the scheme covers 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 years.
• Mudra Yojana: This initiative aims to provide affordable loans to micro and small enterprises, enabling them to expand and create jobs.
• StandUp India Scheme: Launched on April 5, 2016, the scheme encourages banks to provide loans to SC/ST and women entrepreneurs to establish greenfield enterprises. With a focus on economic empowerment, it has been extended until 2025.

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• M SVANidhi Scheme: Introduced in June 2020 during the COVID-19 pandemic, this scheme supports street vendors by offering collateral-free micro-loans to help them recover from financial losses. The government recently approved its continuation until December 2024.

With the Union Budget 2025 around the corner, this review meeting is very important in assessing how well these schemes have performed and identifying areas that need improvement. The information and insights from this meeting are likely to help shape the policy decisions and budgetary allocations for the upcoming financial year.

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