Lok Sabha Question No. 31 (STARRED), answered on 2024-02-05
Subject: Promotion of Financial Inclusion
Ministry: FINANCE
Asked by: Kanakmal Katara, Raksha Nikhil Khadse

## 11 th  POSITION

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO.  *31

ANSWERED ON MONDAY, FEBRUARY 5, 2024/MAGHA 16, 1945 (SAKA)

## Promotion of Financial Inclusion

## *31. SHRI KANAKMAL KATARA: SHRIMATI RAKSHA NIKHIL KHADSE:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken steps to include everybody in the society by giving them basic financial services;
- (b) if so, the details thereof;
- (c) the details of the steps taken by the Government to promote financial inclusion in the country; and
- (d) the measures taken by the Government to foster entrepreneurship, especially among unorganized small-scale entrepreneurs like street vendors?

## ANSWER THE FINANCE MINISTER

(Smt. Nirmala Sitharaman)

- (a) to (h) A Statement is laid on the Table of the House.

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## Statement  referred  to  in  reply  to  Lok  Sabha  Starred  Question  No.  *31  for 05.02.2024  by      Shri Kanakmal Katara, MP & Shrimati Raksha Nikhil Khadse, MP regarding 'Promotion of Financial Inclusion '.

(a)  to  (d)  The  Government  initiated  the  National  Mission  for  Financial  Inclusion (NMFI),  namely,  Pradhan  Mantri  Jan  Dhan  Yojana  (PMJDY)  in  August,  2014  to provide universal banking services for every unbanked household based on the guiding principles of banking the unbanked, securing the unsecured, funding the unfunded and serving unserved and underserved areas.

In  order  to  give  impetus  to  financial  inclusion  initiatives  of  the  Government, PMJDY  was  extended  beyond  14.08.2018  with  the  focus  on  opening  of  accounts shifting  from 'every household' to 'every unbanked adult'. The scheme was made more attractive with upward revision in :

- (i) OD limit from Rs.5,000 to Rs.10,000 and
- (ii) Accident insurance cover on RuPay card holders from Rs. 1 lakh to Rs. 2 lakh.

PMJDY  has  been  successful  in  increasing  banking  penetration  to  promote financial inclusion across the country. A total of 51.61 crore Jan-Dhan accounts with a deposit  balance  of  Rs.  2,17,218  crores  have  been  opened  as  on  17.01.2024  under PMJDY. Out of the above, 28.60 crore (55.5%) Jan-Dhan accounts belong to women and about 34.41 crore (66.8 %) PMJDY accounts have been opened in rural and semiurban areas.

The opening of Jan-Dhan accounts has facilitated the coverage of various social security schemes amongst the unorganized sections of the society. The coverage as on 17.01.2024, is as under:-

- i. Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), 19.18 crore cumulative enrolments have been done to provide life insurance cover of Rs. 2 lakh for death due to any reason ;
- ii. Under Pradhan  Mantri  Suraksha  Bima  Yojana  (PMSBY), 42.45  crore cumulative enrolments have been done to provide one-year accidental cover of Rs. 2 lakh (death or permanent total disability) and Rs. 1 lakh (permanent partial disability);
- iii. Under Atal  Pension  Yojana  (APY), 6.20  crore  cumulative  enrolments  have been done to provide monthly pension to eligible subscribers .

Further,  with  the  objective  of  'Funding  the  Unfunded''  and  to  promote entrepreneurship, especially among the unorganized small entrepreneurs such as street vendors, the coverage of credit linked schemes launched by the Government, inter-alia, are as under-

- i. Under Pradhan  Mantri  Mudra  Yojana  (PMMY), 46.03  crore  cumulative loans amounting to Rs. 27.29 lakh crore (as on 19.01.2024) have been sanctioned to provide collateral-free institutional finance to micro/small business units up to Rs.10 lakh for income generating activities in the sectors such as manufacturing, trading, services and activities allied to agriculture .
- ii. Under Stand Up India Scheme (SUPI), 2.16 lakh cumulative loans amounting to Rs. 48,878 crores (as on 25.01.2024) have been sanctioned to Scheduled Caste / Schedule Tribe and Women entrepreneurs for setting up greenfield projects in the  sectors  such  as  manufacturing,  trading,  services  and  activities  allied  to agriculture .
- iii. PM Vishwakarma Scheme, launched on 17.09.2023, aims to provide end-toend  holistic  support  to  traditional  artists  and  craftspeople  engaged  in  18 identified trades through access to skill training, collateral-free credit, modern tools, market linkage support and incentive for digital transactions.
- iv. Prime Minister Street Vendor's Atma Nirbhar Nidhi (PMSVANidhi) was launched on June 01, 2020 with the main objective of providing relief to street vendors affected by Covid-19 lockdown. The Scheme envisages empowering street  vendors by  not  only  extending  loans  to  them  but  also  for  their  holistic economic development.

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