GOVERNMENT SCHEMES 1 RECOMMENDED BY THE TOPPERS -------------------------------------------------------------------------------------------------------------------------------------------------- 2 -------------------------------------------------------------------------------------------------------------------------------------------------- 3 INDEX 4 5 6 7 8 9 10 11 12 13 MINISTRY OF FINANCE NATIONAL INVESTMENT FUND 1. Government created National Investment Fund in 2005 for the proceeds from Central Public Sector Enterprise. 2. It is a ‘Public account’ under government accounts. 3. Selected Public Sector Mutual Funds, namely UTI Asset Management Company Ltd., SBI Funds Management Private Ltd. and LIC Mutual Fund Asset Management Company Ltd. are entrusted with the management of the NIF corpus. 4. 75% of the annual income of the NIF was to be used for financing selected social sector schemes which promote education, health and employment. The residual 25% of the annual income of NIF was to be used to meet the capital investment requirements of profitable and revivable PSUs. 5. Proceeds from NIF can also be utilised in: • Recapitalization of public sector banks and public sector insurance companies • Investment by Government in RRBs/IIFCL/NABARD/Exim Bank • Equity infusion in various Metro projects. • Investment in Bhartiya Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India Ltd • Investment in Indian Railways towards capital expenditure. CENTRAL ROAD AND INFRASTRUCTURE FUND (CRIF) • The fund was initially part of Ministry of Road Transport and Highway which has now been moved to Finance Ministry under Department of Economic Affairs. • The Central Road and Infrastructure Fund (will be) for development and maintenance of National Highways, railway projects, improvement of safety in railways, State and rural roads and other infrastructure • This shift has been brought under Budget 2018 by amending Central Road Fund Act, 2000. • The amendment prescribes that road cess is first credited to the Consolidated Fund of India and later, after adjusting for the cost of tax collection, should go to the CRIF. • Most of the road projects under the NHDP as well as the PMGSDY are coming to the final stage. The remaining portion of the National Highway Development Programme (NHDP) has been merged into the new road-development programme (83,000 km including Bharatmala- Phase-I) and a significant portion of the Pradhan Mantri Gram Sadak Yojana (PMGSY) set to be concluded by 2019. In this context, the use of road cess to wider infrastructure areas is desirable. VIDYA LAKSHMI PORTAL To ensure that students can avail loans easily through single window system of banks for education loans. Banks follow Indian Banks' Association guidelines which stipulates that education loan applications have to be disposed off, in the normal course, within a period of 15 to 30 days. The Portal has been developed and is maintained by NSDL e-Governance under the guidance of Department of Financial Services, Ministry of Finance, Department of Higher Education, MHRD and Indian Banks' Association 14 Pradhan Mantri Jan Dhan Yojana It is a flagship financial inclusion scheme launched in 2014 for 4 years and was later approved to continue beyond. The scheme facilitates the opening of bank accounts with zero balance for every household to ensure access to financial services in an affordable manner. There are some special benefits like free accident insurance cover, over draft facility for the account holders. The 1st phase of the scheme focused on opening basic bank accounts and RuPay debit card with inbuilt accident insurance cover of Rs 1 lakh. The 2nd phase (2015-2018) planned to provide micro-insurance to the people and pension schemes to unorganized sector workers through Business Correspondents. Provide the facility of opening zero balance account from every household to every adult. The overdraft facility has also been increased to Rs.10,000 with no conditions attached to avail upto Rs.2000. The free accident insurance cover for new RuPay card holders has been doubled to Rs 2 lakh. Also, the upper age limit for availing the overdraft facility has been hiked to 65 from the earlier 60 years. Aam Admi Bima Yojana AABY is a Social Security Scheme administered through LIC. It provides Death and Disability cover to persons between the age group of 18 yrs to 59 yrs. It is a group insurance scheme providing insurance cover for a sum of Rs 30,000/- on natural death, Rs. 75,000/- on death or total permanent disability due to accident, Rs. 37,500/- for partial permanent disability due to accident. The total annual premium under the scheme is Rs. 200/- per beneficiary, of which 50% is contributed from the Social Security Fund created by the Central Government and maintained by LIC. The balance is contributed by the State Government / Nodal Agency / Individuals. Pradhan Mantri Suraksha Bima Yojana Providing accidental insurance cover at a very affordable premium of Rs.12/year. The coverage available will be Rs.2 lakh for accidental death or permanent total disability and Rs.1 lakh for permanent partial disability. Available to people in the age group 18 to 70 years with a savings bank account who give their consent to join and enable auto-debit on an annual renewal basis. It is offered by Public Sector General Insurance Companies or any other General Insurance Company who are willing to offer the product on similar terms. Individuals can exit and re-join the scheme subjecting to conditions. It serves the goal of financial inclusion by achieving penetration of insurance down to the weaker sections of the society. Pradhan Mantri Jeevan Jyoti Bima Yojana . It offers coverage for death due to any reason and is available to people in the age group of 18 to 50 years (life cover up to age 55) having a savings bank account who gives their consent to join and enable auto-debit. A life cover of Rs. 2 lakhs is available for a one year period at a premium of Rs.330/- per annum per member and is renewable every year. It is administered through LIC and other Indian private Life Insurance companies. 15 . A person can join PMJJBY with one Insurance company with one bank account only. Eligible persons can join the scheme without giving self-certification of good health. A death certificate and simple claim form is required to submit and the claim amount will be transferred to the nominee‘s account. Atal Pension Yojana The coverage under the then existing Swavalamban Scheme was inadequate due to non-clarity of benefits at the age of 60 years. To address this concern, the Government announced a new initiative called Atal Pension Yojana (APY) in the Budget for 2015-16. With this introduction, the enrolment under Swavalamban has been closed and the eligible subscribers were automatically migrated to the APY unless they opt out. The subscribers would receive the fixed pension ranging from Rs. 1000 - Rs. 5000 per month, at the age of 60 years, depending on their contributions. It focuses on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). It is open to all bank account holders who are not members of any statutory social security scheme. It mainly targets on unorganised sector workers. The age of joining APY is 18 years to 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. The Central Government would also co-contribute 50% of the subscriber‘s contribution or Rs. 1000 per annum, whichever is lower for a period of 5 years upto 2020. The same pension would be paid to the spouse of the subscriber and on the demise of both the subscriber and spouse, the accumulated pension wealth is returned to the nominee. The scheme follows the same investment pattern as applicable to the NPS contribution of Central Govt employees. APY can be opened through banks, Postal department and also through eNPS platform. National Pension Scheme It is a pension cum investment scheme launched to provide old age security to citizens. Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years can join NPS. The scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA). The different sectors covered under the scheme are classified in to 2 categories. T Sector Beneficiaries h e Government Sector Central Government/Central Autonomous Bodies Employees (except for armed e forces) m p State Government/State Autonomous Bodies Employees. l Private Sector Corporates (adopting NPS architecture) o y All Citizens of India e e of the various sectors contributes towards pension from monthly salary along with matching contribution from the employer (central government/state govt/corporate). 16 After retirement or exit from the scheme, the corpus is made available with the mandate that some portion of the corpus must be invested into annuity to provide a monthly pension post retirement or exit from the scheme. Recent Developments–PFRDA has now permitted Overseas Citizen of India (OCI) to enrol in NPS at par with Non-Resident Indians. Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years. Varishtha Pension Bima Yojana • It is a pension scheme for the benefit of citizens aged 60 years and above. • Under the Scheme the subscribers on payment of a lump sum amount get pension at a guaranteed rate of 9% per annum (payable monthly). • Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by Government of India by way of subsidy payment in the scheme. • The scheme allows withdrawals of deposit amount by the annuitant after 15 years of purchase of the policy. • The scheme is administered through LIC. Pradhan Mantri Vaya Vandana Yojana It is a pension scheme announced exclusively for the senior citizens aged 60 years or above.