Here’s a snapshot of social security schemes in India

Here’s a snapshot of social security schemes in India

The Indian government has several social security schemes in order to boost the financial security for the citizens and support the economic development of the country.
Here is an overview of a few important social security schemes currently operating in India.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

Announced by the Prime Minister on 15th August 2014, Pradhan Mantri Jan Dhan Yojana aims at the comprehensive financial inclusion of all households in the country. The aim of the scheme is to facilitate universal access to banking facilities for all households. The scheme wishes to ensure at least one bank account to every household besides promoting financial literacy, pension facility, insurance and access to credit.
PMJDY provides unbanked individuals easy access to banking services combined with an awareness regarding financial products by creating financial literacy programs. The additional facilities these bank accounts carry are RuPay debit card, accident cover of Rs 1 lakh, overdraft facility to those showing up satisfactory credit history over six months.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

The PMJJBY is provided for persons in between 18 and 50 years with a bank account. Aadhaar is the primary KYC for the bank account. The persons consenting to benefit from this scheme must enable auto debit from their account. This scheme provides Rs 2 lakh risk coverage in the event of the death of the individual on any reason. The annual premium for this scheme is Rs 330 which will be auto-debited from the subscriber’s bank account before 31st May of every year during the coverage period.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Available to people between the age group 18 and 70 years, the individuals must have a bank account to benefit from this program. This scheme provides a risk coverage of Rs 2 lakh for accidental death and Rs 1 lakh for partial disability. The annual premium of Rs 12 per year is auto debited from the individual’s bank account through auto debit facility.

Atal Pension Yojana (APY)

APY is available for all persons with a savings bank or post office savings bank account between the age group of 18 and 40 years. The subscribers to this program will get a guaranteed monthly pension of Rs 1,000 or Rs 2,000 or Rs 3,000 or Rs 4,000 or Rs 5,000. In the event of his death before 60 years, the pension will be given to his spouse till the original subscriber would have otherwise attained the age of 60.

Pradhan Mantri Mudra Yojana

There are three sub-schemes under this program. Shishu gives a loan of Rs 50,000; Kishore gives a loan anywhere between Rs 50,000 and Rs 5 lakhs and Tarun gives a loan anywhere between Rs 5 lakhs to Rs 10 lakhs. These loans do not need collaterals. This scheme intends to create the first generation of aspiring entrepreneurs and existing small businesses that wish to expand.

Stand Up India Scheme

The Stand Up India scheme provides a bank loan between Rs 10 lakh and Rs 1 crore to at least one borrower from the scheduled caste or scheduled tribe category and at least one woman borrower per bank branch for the purpose of setting up greenfield enterprises in any one of the sectors including manufacturing, services or trading.

Pradhan Mantri Vaya Vandana Yojana

This scheme is aimed at benefiting persons beyond the age of 60 against a full fall in their income due to some unexpected market conditions. Under this scheme an initial lump sum payment of any amount between Rs 1,50,000 to Rs 7,50,000 will entitle the individual for a monthly pension of Rs 1,000 per month to Rs 5,000 per month depending on the payment made. A guaranteed return of 8% per annum will be paid to the individual on a monthly basis.