Various Government Schemes: formula sheet

Key formulas

Launch and nature

Launched 28 August 2014; National Mission for Financial Inclusion

The scheme was announced on 15 August 2014 and launched on 28 August 2014. Extended after August 2018 without an end date.

Six pillars (original)

Banking access + Basic account with RuPay card and OD + Financial literacy + Credit guarantee fund + Micro-insurance + Pension for unorganised sector

List all six in the answer. Mention that the later extension shifted focus from households to unbanked adults.

Account type

BSBDA: zero balance, no minimum balance, RuPay debit card

Can be opened at a branch or a Business Correspondent outlet. Minors aged 10 and above can open an account, subject to the scheme guidelines.

Overdraft limit (after 2018 revision)

OD up to ₹10,000 per account; up to ₹2,000 without conditions

Earlier limit was ₹5,000. The upper age limit for OD was raised from 60 to 65. Other OD above ₹2,000 depends on satisfactory operation of the account.

RuPay accident insurance

₹2,00,000 for cards issued after 28 August 2018; ₹1,00,000 for earlier cards

The cover applies if the card was used for at least one successful transaction within a stipulated period (90 days) before the accident.

Life cover (older accounts)

₹30,000 for eligible accounts opened between 15 August 2014 and 31 January 2015

This was a time-bound benefit, subject to eligibility conditions. State it only as a historical feature.

PMJJBY

Age 18-50 at entry (cover up to 55) | Premium ₹436 a year | Death cover ₹2,00,000

Life cover for death from any cause. One-year term, renewable each year. Cover year runs 1 June to 31 May.

PMSBY

Age 18-70 | Premium ₹20 a year | Death or total disability ₹2,00,000 | Partial disability ₹1,00,000

Accident only. Cover year runs 1 June to 31 May, the same as PMJJBY. Total disability means loss of both eyes, both hands or feet, or one eye and one hand or foot. Loss of one eye, hand or foot is partial.

APY eligibility

Age 18-40 at entry | Contribution till age 60 | Pension from age 60

Needs a savings bank or post office account. From 1 October 2022, a person who is or has been an income-tax payer cannot join APY.

APY pension slabs

₹1,000 | ₹2,000 | ₹3,000 | ₹4,000 | ₹5,000 per month

Guaranteed by the Central Government. Contribution depends on entry age and slab. At age 18, the ₹5,000 slab costs ₹210 a month. The same slab costs more if you join later, so check the PFRDA chart for other ages.

APY benefit on death

Subscriber dies after 60: spouse gets the same pension | Both die: nominee gets the corpus accumulated at age 60 | Subscriber dies before 60: spouse continues the account or exits and takes the accumulated corpus

Remember this chain. The nominee gets the corpus only when both die after age 60. It is a common short-note point.

Nature of scheme

PMJJBY and PMSBY = pure risk cover, no maturity value | APY = defined pension, not insurance

Use this to open any comparison answer.

MUDRA loan categories

Shishu: up to ₹50,000 | Kishor: ₹50,001 to ₹5,00,000 | Tarun: ₹5,00,001 to ₹10,00,000

Loans are collateral-free and for non-farm income-generating activities. Tarun Plus was added later; confirm the limit in your material.

Stand-Up India loan range

₹10 lakh ≤ loan ≤ ₹1 crore

For a greenfield enterprise of a woman or SC/ST entrepreneur. At least one such borrower of each type per bank branch.

Stand-Up India borrower contribution

Borrower margin ≥ 10% of project cost

Can be partly met from admissible subsidies. Repayment up to 7 years, moratorium up to 18 months.

Stand-Up India non-individual units

Shareholding and controlling stake held by SC/ST or woman ≥ 51%

Applies when the borrower is not an individual.

PMEGP funding structure

Project cost = beneficiary contribution + government margin money subsidy + bank loan

Subsidy rate is higher for special categories and for rural areas. Use the rates in the latest scheme guidelines.

Credit guarantee logic

Lender's loss covered = guarantee % × outstanding default amount (as per the scheme's terms)

The percentage and ceiling depend on the current scheme circular. Quote them only if you are sure.

Interest subvention effect

Effective rate to borrower = lending rate − subvention rate

Applies for the period and conditions the scheme specifies, such as timely repayment.

Simple interest on a short-term loan

Interest = P × r × t ÷ 100

Use for crop loan illustrations with t in years, for example 6 months = 0.5.

Scheme answer frame

Objective → Beneficiary → Support offered → Conditions → Limits

Use this order for any scheme question.

SSA eligibility

Girl child below 10 years at opening; one account per girl; generally two accounts per family

Twins or triplets at the first birth can be an exception to the two-account limit. Opened by parent or legal guardian.

SSA deposits

Minimum ₹250 and maximum ₹1,50,000 in a financial year; deposits for 15 years from opening

These are the limits as currently notified. Check them in your study material before the exam, as the Government can revise them.

SSA maturity and withdrawal

Matures 21 years from opening; partial withdrawal of up to 50% of the balance at the end of the preceding financial year, after the girl attains 18 years or passes Class 10, whichever is earlier, for higher education expenses; the account can be closed on marriage only if the girl is 18 or older at the time of marriage

No deposits after 15 years, but interest continues until maturity. Marriage is a ground for closing the account (only if the girl is 18 or older at marriage), not for the 50% partial withdrawal.

SGB basic terms

Unit = 1 gram of gold; tenor 8 years; early exit allowed after the 5th year on interest payment dates; interest 2.50% a year on the initial investment, paid half-yearly

Interest is fixed on the issue price in rupees, not on the current gold value.

SGB redemption value

Redemption price = simple average of closing price of 999-purity gold of the previous 3 business days before the redemption date, as published by IBJA

The issue price was based on the simple average of 999-gold closing prices of the last three business days of the week preceding the subscription period, while redemption uses the previous three business days before redemption. The subscription limit was 4 kg per individual and per HUF, and 20 kg per trust, in a financial year.

SGB tax treatment

Interest: taxable. Capital gain on redemption at maturity by an individual: exempt. Gain on sale or transfer before maturity: taxable as capital gain

Confirm the current rule under the Income-tax Act, 2025 in your study material.

JAM trinity

JAM = Jan Dhan account + Aadhaar + Mobile number

DBT was launched on 1 January 2013. Digital India was launched on 1 July 2015.

Quick revision

• PMJDY is the national mission for financial inclusion through basic bank accounts.
• PMJJBY is a life insurance scheme and PMSBY is an accident insurance scheme, both offered through banks.
• APY is a pension scheme aimed mainly at workers in the unorganised sector.
• MUDRA supports micro and small enterprises through loans for non-corporate, non-farm businesses.
• Stand-Up India supports loans for women and Scheduled Caste and Scheduled Tribe entrepreneurs.
• PMEGP is a credit linked subsidy programme for setting up new self-employment ventures.
• Credit guarantee schemes reduce the lender's risk, which encourages banks to lend to smaller borrowers.
• Priority sector support links these schemes to the lending targets that banks must meet.
• For each scheme, remember the target group, the benefit and the delivery channel.
• Always check current limits and premiums against official sources before the exam.
• In case answers, state the scheme, apply the features to the facts, then give a clear conclusion.

Common mistakes

• Quoting the old overdraft limit of ₹5,000 as the current limit. Fix: Write ₹10,000 as the revised limit and mention that it was ₹5,000 earlier.
• Stating the accident cover as ₹1 lakh for all RuPay cards. Fix: Give both: ₹1 lakh for cards issued before 28 August 2018 and ₹2 lakh for cards issued after.
• Saying PMJJBY covers accidental death only. Fix: PMJJBY covers death from any reason. PMSBY covers accident only. Link J with Jeevan (life) and S with Suraksha (accident).
• Giving the same age limit for PMJJBY and PMSBY. Fix: PMJJBY: enter at 18 to 50, cover to 55. PMSBY: 18 to 70.
• Saying MUDRA gives loans directly to borrowers. Fix: Write that loans are given by banks, NBFCs and micro finance institutions under the scheme, and MUDRA provides refinance support.
• Placing ₹5 lakh exactly in the Tarun category. Fix: Kishor goes up to and including ₹5 lakh. Tarun starts above ₹5 lakh.
• Saying CGTMSE pays the borrower or gives subsidy to the borrower. Fix: CGTMSE guarantees the lender against loss. The borrower still must repay the loan.
• Treating interest subvention as a loan waiver. Fix: Subvention only reimburses part of the interest to the lender. The principal remains payable.
• Saying the Sukanya account can be opened for a girl of any age under 18. Fix: Remember: opening below 10 years, withdrawal eligibility from 18 or Class 10, maturity after 21 years.
• Saying deposits continue for 21 years in SSA. Fix: Deposits run for 15 years. The account matures at 21 years. The balance earns interest in the last 6 years. Closure before maturity on marriage is allowed only if the girl is 18 or older at the time of marriage.

Exam tips

• Write the dates and limits precisely: 28 August 2014, ₹10,000 OD, ₹2,000 without conditions, ₹2 lakh accident cover.
• Always show the old and revised limits side by side; it proves you know the 2018 changes.
• In case-based questions, check three facts before answering: date of card issue, age of holder and account operation period.
• Use short bullet points for pillars and benefits, then close with a one-line conclusion.
• Link PMJDY to PMJJBY, PMSBY and APY in your answer; these are often asked together.
• Learn the numbers as a grid: ages 50 and 70 for the two insurance schemes, age 40 and 60 for APY, premiums ₹436 and ₹20, cover ₹2 lakh and ₹1 lakh.
• In case questions, check the age and the trigger first. An illness death is covered by PMJJBY but not by PMSBY.
• Always add the bank's role. It links this topic to the paper's banking theme and is easy to forget.