Government Schemes
Government schemes are special programs launched by the Union Government to solve social and economic problems. They are the main tools for implementing national policies and reaching development goals. These schemes usually focus on specific groups like the poor, women, or small business owners. For example, some schemes aim to provide bank accounts to everyone, while others provide loans to help people start small businesses. In the UPSC exam, these schemes are very important.
Concepts (3)
DBT is a mechanism where the government transfers subsidies directly into the bank accounts of beneficiaries. This eliminates middlemen and reduces the 'leakage' of funds.
DBT is a mechanism where the government transfers subsidies directly into the bank accounts of beneficiaries. This eliminates middlemen and reduces the 'leakage' of funds. It is linked to the JAM trinity: Jan Dhan (bank account), Aadhaar (identity), and Mobile (notifications). Example: The LPG subsidy money being credited directly to a housewife's bank account instead of giving a discounted cylinder at the shop.
Financial inclusion means providing affordable financial services to every individual in the country. This includes bank accounts, insurance, and credit.
Financial inclusion means providing affordable financial services to every individual in the country. This includes bank accounts, insurance, and credit. Without a bank account, a person is 'unbanked' and cannot access formal loans or government subsidies. PMJDY is the world's largest program for this. Example: A daily wage worker in a remote village opening a zero-balance account to save his earnings safely.
A refinance agency like MUDRA does not lend money directly to the public. Instead, it provides funds to commercial banks, small finance banks, and NBFCs. These banks then lend that money to the end-users (small shopkeepers).
A refinance agency like MUDRA does not lend money directly to the public. Instead, it provides funds to commercial banks, small finance banks, and NBFCs. These banks then lend that money to the end-users (small shopkeepers). This helps maintain liquidity in the banking system for small-scale lending. Example: If a local bank runs out of funds to give small loans, it borrows from MUDRA to continue lending to local vendors.
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