Government Sponsored Schemes | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE B: FUNCTIONS OF BANKS
Government Sponsored Schemes
1. Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
Launched in 2011 by the Ministry of Rural Development, DAY-NRLM aims to alleviate rural poverty by organizing poor households into Self Help Groups (SHGs) and providing them access to financial services, skill development, and livelihood opportunities.
Key Features:
- Universal social mobilization and promotion of SHGs
- Financial inclusion through access to bank credit
- Training and capacity building
- Support for livelihood activities
Example: A rural woman forms a SHG with 10 members and receives a loan of ₹2,00,000 under DAY-NRLM for starting a dairy business.
2. Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)
Launched in 2014, DAY-NULM focuses on the urban poor by enhancing their livelihood opportunities through skill training, self-employment, and access to affordable credit.
Key Features:
- Self-Employment Programme (SEP)
- Skill Training for Employment (ESTP)
- Support for Urban Street Vendors
- Social Mobilization and Institution Development
Example: An urban youth receives a ₹50,000 interest-subsidized loan under SEP to set up a tailoring unit.
3. Pradhan Mantri Jan Dhan Yojana (PMJDY)
Launched in 2014, PMJDY aims to promote financial inclusion by ensuring access to banking services for every household in India.
Key Features:
- Zero-balance savings bank accounts
- RuPay debit card with accident insurance
- Overdraft facility up to ₹10,000
- Direct Benefit Transfer (DBT) enablement
Mathematical Illustration:
Suppose a bank opens 10,000 PMJDY accounts in a rural block and 60% of account holders activate their RuPay cards. Then,
Total Activated Accounts = 10,000 × 60% = 6,000 accounts
4. MUDRA Loans
MUDRA (Micro Units Development and Refinance Agency) was launched in 2015 to provide loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises.
Loan Categories:
- Shishu: Loans up to ₹50,000
- Kishor: Loans between ₹50,001 and ₹5 lakh
- Tarun: Loans between ₹5 lakh and ₹10 lakh
Example: A vegetable vendor borrows ₹40,000 under the Shishu category to purchase a new cart and inventory.
5. Khadi and Village Industries Commission (KVIC)
KVIC is a statutory body under the Ministry of MSME that promotes khadi and village industries to create self-reliant rural employment.
Key Schemes:
- Prime Minister’s Employment Generation Programme (PMEGP)
- Interest Subsidy Eligibility Certificate (ISEC) Scheme
- Khadi Reform and Development Programme (KRDP)
Mathematical Illustration:
If a PMEGP unit is sanctioned for ₹2,50,000 with a subsidy of 25%, then:
Subsidy Amount = ₹2,50,000 × 25% = ₹62,500
Beneficiary Contribution = ₹2,50,000 - ₹62,500 = ₹1,87,500
Multiple Choice Questions (MCQs)
- What is the main objective of DAY-NRLM?
a) Urban sanitation
b) Rural employment
c) Rural livelihood promotion through SHGs
d) Free health care
Answer: c - Which category of MUDRA loan provides funding up to ₹50,000?
a) Shishu
b) Kishor
c) Tarun
d) Nano
Answer: a - PMJDY offers which type of insurance with the RuPay card?
a) Health insurance
b) Accident insurance
c) Life insurance
d) Pension
Answer: b - DAY-NULM is focused on:
a) Rural women
b) Small farmers
c) Urban poor
d) Bank employees
Answer: c - Which body implements PMEGP?
a) RBI
b) NABARD
c) KVIC
d) SIDBI
Answer: c - Overdraft limit in PMJDY is up to:
a) ₹5,000
b) ₹7,000
c) ₹10,000
d) ₹20,000
Answer: c - Interest subsidy under ISEC scheme is provided to:
a) Private companies
b) SHGs
c) Khadi institutions
d) MFIs
Answer: c - What is the maximum limit under the Tarun category of MUDRA loans?
a) ₹1 lakh
b) ₹5 lakh
c) ₹7.5 lakh
d) ₹10 lakh
Answer: d - DAY-NULM includes support for:
a) Irrigation pumps
b) Animal husbandry
c) Urban street vendors
d) Fishing nets
Answer: c - Subsidy percentage under PMEGP for general category in urban areas is:
a) 10%
b) 15%
c) 25%
d) 35%
Answer: b
Comments