Financial Inclusion Schemes
The government schemes that run on the banking system: PMJDY and the Basic Savings Bank Deposit Account, the JAM trinity behind Direct Benefit Transfer, the PMJJBY, PMSBY and APY social-security schemes, and the business-correspondent model for last-mile delivery.
What you will be able to do
- Explain what financial inclusion means and how PMJDY and the BSBDA support it.
- Expand the JAM trinity and describe how it enables Direct Benefit Transfer.
- Compare PMJJBY, PMSBY and APY by what they protect against, benefit and eligible age.
- Describe the business-correspondent model and how inclusion progress is measured.
What is inside this lesson
- 1What financial inclusion means
- 2PMJDY and the BSBDA
- 3The JAM trinity and DBT
- 4PMJJBY, PMSBY and APY
- 5PMJJBY, PMSBY and APY at a glance
- 6Last-mile delivery
- 7Common confusions
- 8Quick revision
- 9Practice
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What financial inclusion means
Financial inclusion means giving every household and small business access to a basic set of formal financial services — a bank account, payments, savings, credit, insurance and pension — at an affordable cost. The alternative is dependence on cash and informal lenders.
India's approach combines an RBI regulatory push — priority-sector lending, a Basic Savings Bank Deposit Account every bank must offer, business correspondents — with a set of government schemes launched from 2014–15 that use the banking system as their delivery channel. This topic covers those schemes; the regulatory backbone is in the priority-sector topic.
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