Social Security Schemes
After providing bank accounts to crores of unbanked people under the Jan Dhan Yojana, the Prime Minister of India has launched three social security schemes, including at ₹1 per day insurance cover. These schemes have been initiated in order to boost the financial stability of its citizens and to reinforce the economic development of the nation.
- Pradhan Mantri Jan Dhan Yojana
- Atal Pension Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana
Pradhan Mantri Jan Dhan Yojana
It is a national mission for financial inclusion to ensure access to finiancial services, namely, banking/savings and deposit accounts, insurance, pension, in an affordable manner. This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.
- For whom- For individuals who do not have any access to basic financial services. It is suitable for individuals working in an unorganised sector.
- Eligibility– Anyone belonging to the weaker section of the society.
- Cost involved– You can contribute from a minimum of Rs 500 to a maximum of Rs 200000.
- Benefits– It provides zero balance savings account, debit card facility and accident and life cover of Rs 100000 and Rs 30000 respectively.
Atal Pension Yojana
It is a government backed pension scheme, targeted at the unorganised sector. It was mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley. It was launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of pension scheme, this scheme aims to increase the number.
- For whom- It’s for people under the low-income group or who’s not a part of the tax bracket
- Eligibility- Suitable for all individuals between 18 to 40 years of age
- Cost involved- For a monthly pension of Rs 1,000, an 18-year-old will have to contribute Rs 42 per month for 40 years while a 40-year-old subscriber will have to invest Rs 291 per month for 20 years
- Benefits- Provides fixed monthly pension between Rs 1000 and 5000 post retirement.
Pradhan Mantri Jeevan Jyoti Bima Yojana
It is a government-backed Life insurance scheme in India. It was originally mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime Minister Narendra Modi on 9 May in Kolkata. As of May 2015, only 20% of India’s population has any kind of insurance, this scheme aims to increase the number.
- For whom- It’s for individual who is the sole earning member of the family and have dependents under him/her
- Eligibility- Anybody who has a bank account and falls under the age group between 18 to 50 years can avail the scheme
- Cost involved- The premium is Rs 330 every year
- Benefits- It ensures a term insurance cover of Rs 200000 to the dependents in case of policyholder’s death.