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Transforming India: A Thorough Guide to Pradhan Mantri Yojanas

Created on 21 Sep 2023

Wraps up in 8 Min

Read by 4k people

Updated on 20 Feb 2024

Pradhan Mantri Yojanas (PMY)- Know All Schemes in One Place

In 2014, India was the 10th largest economy globally. Today, after nine years, it proudly stands at the 5th position in the world's GDP ranking, surpassing the UK, France, Italy, Canada, and Brazil.

But, this journey from 10th to 5th position was not easy. India faced a range of challenges, including high unemployment rates, limited access to financial services, inadequate housing, and a lack of skills development opportunities. The economy was also grappling with various structural issues that hindered growth.

But then we went through a transformation, more like a makeover, and it's not because of a fairy godmother. Instead, the credit goes to the visionary government schemes by the man himself.

Our Pradhan Mantri, Shri Narendra Modi, is the person behind the scenes.
Our Pradhan Mantri, Shri Narendra Modi, is the person behind the scenes. 

It's like turning a plain pumpkin into a gleaming carriage, but instead of a glass slipper, we've got schemes and policies doing the trick.🪄

In this article, we'll delve into the following six transformative Pradhan Mantri Yojanas.

  1. Pradhan Mantri Jan Dhan Yojana
  2. Pradhan Mantri Mudra Yojana
  3. Pradhan Mantri Awas Yojana
  4. Pradhan Mantri Kaushal Vikas Yojana
  5. Pradhan Mantri Vaya Vandana Yojana
  6. Pradhan Mantri Vishwakarma Yojana

From providing support to skilled artisans to affordable housing for all, Modi Ji is firm on his motive of:

Sabka Sath Sabka Vikaas

Let’s begin.

Pradhan Mantri Jan Dhan Yojana

Introduced in 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) can be thought of as a financial mission for all of India. It's a national effort to make sure that everyone in the country has access to important financial services like basic savings and deposit accounts, sending money, getting loans, and having insurance and a pension, all at affordable rates. 

With this program, anyone who doesn't already have a bank account can easily open a Basic Savings Bank Deposit (BSBD) account at a bank branch or through a Business Correspondent (Bank Mitra) outlet.

The scheme comes with a slogan: "Mera Khaata, Bhagya Vidhata," which translates to "My account, the maker of destiny." In simple terms, it signifies that having a bank account can be a pathway to a brighter future, where financial opportunities and security can shape one's destiny.

PMJDY is especially useful for people from rural areas and poorer sections of society. It worked wonders in providing financial aid to citizens who didn't even have bank accounts before.

The Guinness Book of World Records acknowledged the Pradhan Mantri Jan Dhan Yojana (PMJDY) for opening a staggering 18,096,130 bank accounts in just one week during its Financial Inclusion Campaign from August 23rd to 29th, 2014. Talk about making history in the world of banking!

Let me take you through the several benefits of this scheme:

  • It provides a basic savings bank account for people who didn't have one before.
  • There's no need to keep a minimum balance in these accounts.
  • You can earn interest on the money you deposit in these accounts.
  • You'll receive a Rupay Debit Card with your PMJDY account.
  • You get accident insurance cover of ₹2 lakh (for new accounts opened after August 2018) with the RuPay card.
  • If you're eligible, you can get an overdraft of up to ₹10,000.

PMJDY accounts are eligible for benefits like Direct Benefit Transfer (DBT), life insurance (Pradhan Mantri Jeevan Jyoti Bima Yojana), accident insurance (Pradhan Mantri Suraksha Bima Yojana), a pension scheme (Atal Pension Yojana), and business loans (MUDRA scheme).

To find comprehensive details about these benefits, qualification criteria, required documents, and the account opening procedure, refer to Pradhan Mantri Jan Dhan Yojana's article.

Pradhan Mantri Mudra Yojana 

Pradhan Mantri Mudra Yojana (PMMY), launched on 8 April 2015, serves as a financial ally to small businesses by offering loans of up to ₹10 lakh to non-corporate, non-farm small and micro enterprises. 

These loans fall under the category of MUDRA loans within PMMY and are extended by various financial institutions, including Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Microfinance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs). 

Borrowers have the option to approach any of the above-mentioned lending institutions or simply apply online through their portal.

Under the umbrella of PMMY, the Micro Units Development & Refinance Agency Ltd. (MUDRA) has introduced three distinct products: 'Shishu,' 'Kishore,' and 'Tarun.' 

As of September 15, 2023, the total number of loans disbursed during the fiscal year 2023-2024 reached an impressive figure of 2,24,53,026 loans.

People who run small businesses, like shops or workshops, are the ones PMMY helps the most.

The PMJDY has certain difficulties even though it promotes entrepreneurship and employment growth. On the one hand, it supports the "Make in India" campaign, which highlights the significance of domestic companies. High default rates in loan repayment and the challenge of corporate expansion under this plan, however, is an issue. 

Just a heads-up, PMMY offers three types of loans and has its own specific features and benefits. For a comprehensive understanding of the various funding options, eligibility criteria, and advantages, refer to Pradhan Mantri Mudra Yojana's article.

Pradhan Mantri Awas Yojana [PMAY–urban]

Launched in June 2015, Pradhan Mantri Awas Yojana (PMAY) is like a helping hand for families looking for affordable homes. Its main goal is to provide a comfortable place to live for those with low incomes. 

The PMAY-Urban scheme has been stretched out until December 31, 2024, to finish houses that were approved by March 31, 2022. However, during this extra time, no more new homes will be given the green light under this plan. 

This means that the scheme isn't taking in new applicants anymore; it's focusing on ongoing projects. 

Families with limited income are the ones who benefit the most from PMAY. 

Imagine this scenario in a parallel universe: What if Prime Minister Modi looked at us one day and said 👇 

PM Modi Ji Meme

Haha, let's hope that scenario never becomes a reality. For additional information regarding this scheme, please check out the Pradhan Mantri Awas Yojana article, which includes the characteristics, eligibility and the process of application.

Pradhan Mantri Kaushal Vikas Yojana 

Launched in July 2015, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a key program from the Ministry of Skill Development and Entrepreneurship (MSDE), managed by the National Skill Development Corporation (NSDC). Its main goal is to provide young Indians with practical job skills to improve their job prospects. It also recognises and certifies people who already have relevant experience through Recognition of Prior Learning (RPL).

It was the third scheme to be launched in the year 2015, making it quite a productive year for the government.

Youngsters who want to learn skills and get a job benefit from PMKVY.

After learning from the previous PMKVY 1.0 and PMKVY 2.0 programs, PMKVY 3.0, the third phase of this flagship scheme, was launched on January 15, 2021. This new version focuses more on the trainees and learners and aligns with the goals of Atmanirbhar Bharat (self-reliant India).

In the fiscal year 2020-2021, it aims to benefit over 8 lakh candidates with a budget of ₹948.90 crore, primarily targeting young people aged 15-45. 

The scheme has two main components: one managed by the National Skill Development Corporation (NSDC) and Directorate General of Training (DGT), and the other by State Skill Development Missions (SSDMs) and respective State/UT Departments. Skill training will be provided in three categories nationwide:

  1. Short-Term Training (STT)
  2. Recognition of Prior Learning (RPL)
  3. Special Project (SP)

For more details about the scheme, such as its objectives, eligibility criteria, and the process of application, make sure to read Pradhan Mantri Kaushal Vikas Yojana's article.

Pradhan Mantri Vaya Vandana Yojana 

Launched in May 2017, Pradhan Mantri Vaya Vandana Yojana (PMVVY) is like a lifeline for senior citizens. The scheme is aimed towards providing social security during old age and to protect elderly people aged 60 and above against a future fall in their income due to uncertain market conditions. The scheme provides an assured return of 8% per annum for 10 years.

Clearly, the beneficiaries of this scheme are senior citizens who lack economic stability.

Here are the benefits of the Scheme:

  • Pension Payment: If the pensioner lives through the 10-year policy term, they will receive pension payments periodically (based on the chosen mode, like monthly).
  • Death Benefit: If the pensioner passes away during the 10-year policy term, the Purchase Price will be given to the beneficiary.
  • Maturity Benefit: If the pensioner lives to the end of the 10-year policy term, they will receive the Purchase Price along with the final pension instalment.

To get further insights about the scheme, from its features to the application process, make sure to read Pradhan Mantri Vaya Vandana Yojana's article.

Pradhan Mantri Vishwakarma Yojana

Launched in September 2023, the Pradhan Mantri Vishwakarma Yojana, named after the divine architect Vishwakarma, is like a supportive pillar for traditional artisans all across India. This scheme supports skilled craftsmen such as carpenters, blacksmiths, weavers, etc., to enhance their business.

The main elements of this program include:

  • Recognition: Participants receive a Vishwakarma Certificate and an ID card.
  • Skill Enhancement: Candidates undergo skill verification and 5-7 days of basic training. They can also choose to pursue advanced training, and they receive a training stipend of ₹500 per day.
  • Toolkit Incentive: A grant of ₹15,000 is given to participants.
  • Credit Support: Collateral-free Enterprise Development loans are offered at a reduced rate of 5%. The Ministry of Micro, Small & Medium Enterprises covers the interest subsidy of up to 8%, and the government takes care of the credit guarantee fee.
  • Digital Transaction Incentive: An incentive of ₹1 per transaction is provided, with a maximum of 100 transactions per month.
  • Marketing Assistance: The National Committee for Marketing (NCM) offers services such as quality Certification, branding & promotion, E-commerce connections, trade fair representation, advertising, publicity, and other marketing initiatives.

Pros: It preserves and promotes India's rich heritage of craftsmanship, fostering economic independence among artisans. 

Cons: Limited reach and awareness often leave many eligible artisans excluded, and bureaucratic hurdles can hinder the application process. 

This initiative is quite new, and it has already received 9,991 applications. However, the verification process for these applications is still in progress.

For more details about the scheme, such as its objectives, features and implementation, make sure to read Pradhan Mantri Vishwakarma Yojana's article.

As we hopped from one "incredible" scheme to another, it's clear that these initiatives are like the puzzle pieces coming together to make a big picture for a fairer India. Well, I can't help but exclaim, 

Image of PM Modi Ji- Waah Modi Ji Waah

But we shouldn't forget that even the best plans have some problems. So, as we try to change things for the better, we need to fix these issues as much as we cheer for the good stuff.

The Bottom Line

In the big picture of India's progress, each of these Pradhan Mantri Yojanas is doing its part to create a transformation. Since Modi Ji became Prime Minister in 2019, our economy has seen some big changes. 

Let's hope this journey continues and we keep moving up in the world. Now, with the government's term ending in 2024, do you think we'll hear 

Abki Baar Modi Sarkar Meme

for the third time? 🫢

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An Article By -

Sakshi Dhakre

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Sakshi is an adventurous spirit who enjoys both the intellectual stimulation of Finance and the sensory experiences of good food and nature’s beauty. She has a passion for delving into complex financial topics and distilling them down into easy-to-understand insights. When she's not poring over financial reports, you might find her exploring a new corner of the city, trying out new restaurants and cuisines or admiring the beauty of the night sky.

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