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Government Schemes related to Banking

Published on Monday, December 25, 2023

Sukanya Samridhi Account

Eligibility:

  • The account can be opened by the natural or legal guardian for a girl child of age below 10 years.
  • A depositor can open and operate only one account in the name of a girl child under the scheme rules.
  • Natural or legal guardian of a girl child are allowed to open the account for two girl children only.

Features:

  • Authorised by ministry of finance, it is a Government of India backed savings scheme
  • Attractive interest rate of 7.6%, that is fully exempt from tax under section 80C.
  • Minimum Rs. 250 can be invested in one financial year
  • Maximum investment of Rs. 1,50,000 can be made in one financial year
  • If the minimum amount of Rs 250 is not deposited in any financial year , a penalty of Rs 50/- will be charged
  • Triple Tax Benefit - Principal invested, the interest earned as well as the maturity amount is tax free.
  • Deposits in an account can be made till completion of 14 years, from the date of opening of the account
  • The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage

Withdrawal Facility

  • To meet the financial requirements of the account holder for the purpose of higher education and marriage, account holder can avail partial withdrawal facility after attaining 18 years of age.
  • If the beneficiary is married before maturity of account, account has to be closed.

Pradhan Mantri Suraksha Bima Yojana

  • Accident Insurance Scheme that offers accidental death and disability cover for death or disability on account of an accident.
Highlights of the Pradhan Mantri Suraksha Bima are:
  • Eligibility: The Scheme is available to people in the age group 18 to 70 years with a bank account who give their consent to join/enable auto-debit on or before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would be the primary KYC for the bank account.
  • Policy period: The cover shall be for one year, starting from June 1 to May 31 of next year. For the Saving Account holder joining on or after June 1, the cover shall commence from the date of premium debit and end on May 31 of the next year.
  • Premium: Rs.20 per annum per member
  • Payment Mode: The premium will be directly auto-debited by the Bank from the subscriber’s savings account held with the bank. This is the only mode available. For renewal of the policy, it will be auto-debited between May 25 and May 31, unless the customer has sent a cancellation request to the Bank for the policy.
  • Risk Coverage: The risk coverage under the scheme is Rs.2 lakh for accidental death and full disability and Rs. 1 lakh for partial disability. 

Table of Benefits  Sum Insured


I.

 Death

Rs. 2 lakh

II.

Total and irrecoverable loss of both eyes, or loss of use of both hands or feet, or loss of sight of one eye, and loss of use of one hand or one foot

Rs. 2 lakh

III.

Total and irrecoverable loss of sight of one eye, or loss of use of one hand or one foot

Rs. 1 lakh

*The total amount that can be claimed under the policy is INR 2 lakh only

Atal Pension Yojana (APY)

Eligibility Criteria :

  • Age between 18 and 40 years
  • Must own savings bank account and mobile phone number.

Features:

  • Pension benefit
  • Get a guaranteed pension of Rs.1,000 to Rs.5,000 per month after 60 years – depending on your contributions now.

Age limit:

  • Age at entry: minimum 18 years; maximum 40 years
  • Pension will start at the age of 60

Pradhan Mantri Jeevan Jyoti Bima Yojana

The PMJJBY is available to people in the age group of 18 to 50 years having a bank account who give their consent to join / enable auto-debit.

Death benefit

  • The life cover of Rs. 2 lakhs shall be for the one year period stretching from 1st June to 31st May and will be renewable.

Maturity benefit

  • No maturity benefit or surrender benefit is available with this policy

Premiums

  • Pay a premium of Rs.436 per annum per member - deducted automatically from savings bank account, with facility for auto-debit instructions

National Pension System (NPS)

  • National Pension System (NPS) is a retirement benefit Scheme introduced by the Government of India to facilitate a regular income post retirement to all the subscribers. PFRDA (Pension Fund Regulatory and Development Authority) is the governing body for NPS.

Salient Features & Benefits

  • National Pension System (NPS) is based on unique Permanent Retirement Account Number (PRAN) which is allotted to every subscriber. In order to encourage savings, the Government of India has made the scheme reassuring from security point of view and has offered some attractive benefits for. NPS account holders.
  • Eligibility: Any Indian citizen between 18 and 70 years of age can open the Tier 1 account, where the applicant will be given a Permanent Retirement Account Number (PRAN). On the other hand, to be eligible for an NPS Tier 2 account, you must be a member of NPS Tier 1.
  • Lock-in Period: In the case of NPS Tier 1, this period lasts till the subscriber is 60 years old. The Tier 2 account does not have any lock-in period, which is why you can withdraw the funds anytime you want.
  • Contributions: As mentioned before, the minimum contribution to open a Tier 1 account is Rs.500, and Rs.1000 for a Tier 2 account.
  • Tax Benefits: NPS offers triple tax benefits which are as follows: *Employer contribution benefit is capped upto 7.5 lakhs for NPS, PF & Superannuation.
Tax benefits for Salaried Individual
Tax Benefits for Self Employed Individual
You can claim tax exemption upto Rs. 50,000 under section 80CCD (1B). This benefit is over an above limit of Rs. 1,50,000 under section 80C.
You can claim tax exemption upto Rs. 50,000 under section 80CCD (1B). This benefit is over an above limit of Rs. 1,50,000 under section 80C.
You may invest upto 10% of your basic salary + dearness allowance and claim tax exemption on the invested amount under section 80CCD(1). This tax exemption is subject to a limit of Rs. 1,50,000 under section 80C of Income Tax Act, 1961. You may invest upto 20% of your gross annual income and claim tax exemption on the invested amount under section 80CCD(1). This tax exemption is subject to a limit of Rs. 1,50,000 under section 80C of Income Tax Act, 1961.

Withdrawal

Exit
Vesting Criteria Benefit
At the age of 60 years

  • Lumpsum Withdrawal – 60% of the corpus
  • Annuitisation – Min. 40% of corpus
  • Complete withdrawal, if corpus is below Rs. 2.00 Lacs

Partial withdrawal

  • Tax Free Withdrawal – 25% of own contribution, after lock-in period of 3 years, 3 times during entire tenure.

Kisan Credit Card (KCC)

Purpose:

  • To meet short term credit requirements for cultivation of crops/ dairy animals/fisheries/poultry birds/other small ruminants.
  • To provide Post-harvest expenses & Produce Marketing loans.
  • To meet the consumption requirements of farmers
  • To meet working capital requirement for maintenance of farm equipments and other assets and activities allied to agriculture like dairy, fisheries etc.

Eligibility

  • All Farmers - Individuals / Joint borrowers who are owner cultivators, tenant farmers, oral lessees, share croppers and Self Help Groups or Joint Liability Groups of Farmers, Farmers Producer organizations/ Farmers producer Companies.

Type of loan

  • Short-term revolving credit

Limit

  • Cash Credit limit will be sanctioned for 5 years
  • For the first year, limit will be fixed on the basis of
    • Scale of finance for the crop/ dairy animals etc, plus
    • 10% of limit towards post-harvest/household/consumption expenses plus
    • 20% of limit towards repairs & maintenance, crop insurance, Personal Accident Insurance & asset insurance.
  • For second and subsequent years the limit will be arrived at by adding 10% towards cost escalation over limit of the preceding year.

Rate of Interest

  • Limit Upto Rs 3,00,000/- (Interest Subvention): 7%

Interest subvention

  • 3% Prompt Repayment Incentive will be credited in CKCC accounts upto Rs.3 Lakhs of prompt repaying farmers so Net Interest rate on CKCC will be 4% for farmers paying promptly.

Mudra Loan Scheme

MUDRA Loan is offered under the Pradhan Mantri Mudra Yojana (PMMY). MUDRA stands for Micro-Units Development and Refinance Agency. Under this scheme, borrowers can avail business loans ranging from Rs.50,000 to Rs.10 lakh on the basis of the Sishu, Kishor, and Tarun categories.
  • Three Types of Mudra Schemes:
    • Sishu: A loan of upto Rs. 50,000 is given under sub-scheme ‘Shishu’.
    • Kishor: A loan of between Rs. 50,000 to 5.0 Lakhs under sub-scheme ‘Kishore’.
    • Tarun: A loan of between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’.

Eligibility:

  • Indian citizens who have their own business plans for service sector activities, or trading or manufacturing activities and require amounts of up to Rs.10 lakh can apply for Mudra loans. It can be availed from public sector banks, private sector banks, regional rural banks (RRBs), small finance banks (SFBs), and micro finance institutions (MFIs).

Age:

  • Minimum: 18 years
  • Maximum: 65 years

Benefits:

  • Banking and financial services can be availed in both rural and urban areas.
  • Financial backing can be obtained by micro-small businesses and start-ups.
  • Business loans can be taken for small amounts at affordable interest rates.
  • The borrower’s credit guarantee is taken by the government, so if a borrower is unable to repay the amount borrowed, the responsibility for the loss will be borne by the government.
  • Food vendors, shopkeepers and other small business owners can make the most of this scheme.

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