Smart City Yojana: Launched Date, Benefits, Motives and News

Indian economy has been growing consistently attracting global acclaim. Growing economic activity and urbanization have historically gone hand in hand. However currently, many cities are struggling to cope up with the adverse effects of unplanned development without any master plans. Adequate infrastructure and avenues for IT enabled services are sadly in short supply in most cities. The fast increasing gulf between urban rich and poor is also a matter of serious concern.

Keeping this in mind, Prime Minister Narendra Modi launched Smart Cities Awas Yojna Mission in June 2015. It is one of the government’s most ambitious programs, with a total of ₹980 billion being endorsed by the Indian Cabinet and the development of every single person in this country.

Selection of Smart Cities

The implementation of the project will take place in three rounds. The first round comprises of the selection of 20 cities which require immediate and foremost attention. These include Bhubaneswar, Pune, Jaipur, Ahmedabad, New Delhi and many others. The second round shortlists another 13 cities like- Lucknow, Chandigarh, Ranchi, etc. Lastly the last round would cover rest of the 27 cities. Amritsar, Nagpur, Agra, Varanasi are among the few cities shortlisted for the third round.

Main Motive of Smart City Yojana

The whole idea of Smart City Yojana is not just to build huge buildings but to develop a city and make it modern so that the people living in it may enjoy the easier lifestyle and may avail basic facilities easily.

This project would ensure sanitation and other modern facilities for developing the city. The scheme would provide certain essential things needed for the urban areas like vehicles, infrastructure, ecology, education, energy resources, people’s security, cleanliness and health care with the help of modern technologies.

Smart Housing for Smart cities

Foremost importance is being given to Smart Housing for Smart cities. According to the terms of the program, the government of India will undertake to construct about two crore houses by the year 2022. Each house covered under the scheme will draw in a central grant of about 1 lakh Indian rupees up to 2.3 lakh Indian rupees which will form a part of the 6.5 percent interest rate subsidy scheme which previously had an interest rate subsidy of 1 percent.

Digital Governance in Smart cities

Following which Digital Governance in Smart cities is being given significance. This includes- multi-channel citizen interface like mobile, web, face-to-face, kiosks and social media can assist in delivering various citizen-centric services such as bill payment, tax, and on-line issuance of certificates and registration of grievances. Social media has proven to be a very powerful two-way communication channel.

To serve all the major requirements of the implementation of the project, the government has the policy to outreach all the foreign investors so that they help in the development program.

This project will compromise a lot of steps. The exact duration of the scheme has not been mentioned, however, as conveyed the project would take place in phase/ rounds and the final phase should be completed within next two decades.

Benefits to other Social and Economic groups

While the Pradhan MantriAwasYojana is clear about its aim, it does make sure that the advantages of the program are cherished by every female, financially weak groups of Indian society. Tran’s genders and widows, members of the society which belong to the lower income groups and urban poor, and the Scheduled Castes and Scheduled Tribes shall be granted preference when they try to avail the affordable housing scheme.

Apart from these groups, people who often find themselves out of a home, senior citizens and differently-abled people shall also gain preference in allotment of houses. If needed, they shall be able to choose a ground floor house. As stated earlier, the project is one of the most ambitious projects till date in India and every Indian will be amazed by it.

The intent and the fundamental idea behind the project are quite righteous, provided the implementation part is done with utmost honesty. Protection and benefits are for everyone and every citizen of India should get all the benefits be in anyone either lower class people or even aTran’s genders and widows. Smart City Yojana would bring in smart solutions within the targeted cities so that the day to day lives of the citizens living in these cities is convenient and efficient at the same time.

job guarantee scheme

MGNREGA /NREGA Scheme- 100 Days Job Guarantee Scheme

MGNREGA or Mahatma Gandhi National Rural Employment Scheme is was introduced to increase job guarantee in the rural sectors. MGNREGA offers an employment tenure of at least 100 days to all the unemployed citizens of rural India who are adults (18 years and above). The objective is to provide non-skilled work to such citizens each financial year at a stipulated minimum pay as defined by the government. Implementation of MGNREGA ensures that the purchasing power of the rural India improves. Another excellent step taken by the government under MGNREGA is that about one-third of the unskilled laborers from rural areas are women. When MGNREGA was first introduced in 2005, it was known as the Nationwide Non-Urban Career Assurance Act. Later it came to be known by its present name in 2009. More about MGNREGA is given below.

job guarantee scheme

MGNREGA Details:

Full Form of MGNREGA

Also known as NREGA

Started in the year 2005

Later renamed as MGNERGA in 2009

MGNREGA or NREGA: Are they both same?

NREGA or MGNREGA are same schemes with different names. The scheme was launched in the year 2005, by the name NREGA (National Rural Employment Guarantee Act). Later in 2009, the scheme was renamed as MGNREGA.

Some people say that the name of Mahatma Gandhi is not there on the official website. This is because Mahatma Gandhi’s name was later added in 2009 by INC. Initially, when it was launched, it was known as NREGA scheme. This is the reason the official website of MGREGA is: and not MGNREGA.

What is a MGNREGA Card?

MGNREGA card is provided to every unemployed family. Instead of allotting every unemployed individually, one MGNREGA card serves the purpose for the entire family. It is basically a job card to track the activities and proceedings of days of work. One thing to note here is that all the family members sharing the same house, applicable under MGNREGA, will share the same card.

MNREGA Card comes with a unique number/code.

For example – WB/19/1/22/48

WB is the state name.

19 is the district code.

1 is the block code

22 is the village code

and 48 is the house number.

This way it becomes easier to track anybody with the unique code. Please note that it has now been linked with Aadhar Card.

Activities of MGNREGA

The benefits of MGNREGA are two-fold. Focus areas of activities are: growth in rural sectors and increasing the career opportunities by introducing jobs that demand unskilled labor.

The growth sector focuses on activities like:

  • Preservation of water
  • Controlling overflow of water by building embankments.
  • Introducing percolation aquariums and building tanks and ponds in possible places using manual labor.
  • Basically, the drought conditions in rural areas will be improved by the introduction of this scheme.

The career opportunities are the work provided to rural citizens after they are approved by their Gram Panchayat.

Funding For MGNREGA: MGNREGA And Union Budget 2017

Union Budget 2017 has extended an amount of 48,000 crore INR towards MGNREGA. The Nationwide Career Assurance Fund goes directly to the accounts of rural zones. This assistance provided by the government are divided into the following funding structure.

  • The salaries of unskilled laborers are extended by the government. Thus the government shoulders the entire price of income provided to adult rural workers.
  • The expenses required to administer MGNREGA like various programs, wage allocation, team building, working ground and facilities provided at the working ground are all borne by the government.
  • In the case where the government cannot fund some part of the wages for rural unskilled labor, there is a provision for providing unemployment relief.
  • The objective is to extend extra money in favor of MGNREGA with the introduction of each budget session.

How To Apply For Jobs Under MGNREGA

MGNREGA operates via issuing Job Cards for unemployed adults who wish to be a part of this scheme and benefit from it. Given here are more details about Job Card and the process of application for MGNREGA:

  • Job Cards are issued by Gram Panchayats to those applying for unskilled labor work.
  • These issued Job Cards are valid for a tenure of 5 years.
  • The Job Cards are issued in the name of a particular household. The details in the Job Card states the members of household eligible to work under MGNREGA.
  • The Job Cards are issued within a fortnight after verification of required documents.
  • On the basis of details provided on the Job Cards, adult individuals can apply for MGNREGA.
  • These applications need to be submitted to the Gram Panchayats who will process it further.
  • The entire cost to issue and provide these job cards are to be borne by the central government.
  • In case an individual loses their Job Card, a new application has to be made to the Gram Panchayat.
  • If an individual requires a change in personal details in regard to the household for which it is issued, the information needs to be conveyed to the Gram Panchayat.

If you have any doubts or queries about MGNREGA, please share it with us. We will do our best to answer you.

PMAY 2017

PMAY Scheme 2017: Pradhan Mantri Awas Yojana

Housing is a basic necessity for every human being. It provides a sense of security and ensures an environment of nourishment. It has over the years become a pivotal survival need. Keeping this in mind, Narendra Modi launched the Pradhan Mantri Awas Yojana in June 2015. This scheme has one simple objective: providing housing to all. The primary target of this scheme are the low-income groups or economically weaker sections of the society, female citizens and scheduled caste and scheduled tribe candidates.

PMAY 2017

Divisions In PMAY

There are two types of division under the Pradhan Mantri Awas Yojana. The schemes that  are completely sponsored by the central government are:

  • Land Allocation to slum dwellers in order to implement in-situ development.
  • Affordable housing facilities.
  • Subsidy for the construction of house or renovation of a house.

The scheme which acts as the Central Sector Scheme of PMAY is Credit Linked Subsidy Scheme.

Features of Government Sponsored Schemes Under PMAY

We will first discuss the features of all the government sponsored schemes. Following are some key points under this:

  • The lower income groups and economically weaker citizens of urban India will get a housing subsidy from the government. The amount of subsidy attained from the government is approximately INR 1 Lakh. Thus the weaker earning sections will be able to afford housing facilities easily. It falls under the government sponsored schemes.
  • Women and differently abled individuals will be given preference under this Scheme. The preference is given in sense that their application will be processed and taken into consideration earlier. This falls under the government sponsored scheme.
  • For the development of rural India, housing facilities are being to all slum dwellers and the homeless citizens. Under the Union Budget 2017-18, 23,000 crore INR is being extended towards this project.

To sum up the features, the government is crediting INR 100,000 to citizens who belong to the weaker earning sections. Also in the case where citizen under this category wants to buy a house or renovate their house a loan of INR 1.5 Lakhs will be extended from the government.

Credit Linked Subsidy Scheme Under PMAY: Features

There will be a subsidized rate of interest linked to house loans. According to Union Budget 2017-18, there has been an increase in the time period from 15 years to 20 years,  for the rate of interest will be to be 6.5%. The market rate for housing loans is 10.5%. This means that if someone applies for a home loan under PMAY, then they can enjoy a benefit of 4% where the interest rate is concerned. This scheme is also known as the Credit Linked Subsidy Scheme.

The subsidized interest rate ensures that the EMI that the beneficiary of loan has to pay will be much lesser than normal market rates. For example, if a person avails a loan of INR 6 Lakhs, the EMI payable as per market rates (10.5%) for 20 years is INR 8842. For the same principle, the EMI payable at subsidized rate of 6.5% for 20 years is INR 5400. Thus a benefit of INR 3442 is gained.

Some important characteristics of the Credit-Linked Subsidy Scheme are as follows:

  • Only urban sections of the society belonging to lower income groups (LIG) and Economically Weaker Sections (EWS) can avail this loan.
  • To get subsidized rates of 6.5%, the maximum loan value is 600,000 INR. Above this limit, the interest has to be paid at market rates.
  • If the loan period is exceeding 20 years, then the beneficiary has to pay at subsidized rates for first 20 years. The remaining balance has to be paid at market rates.
  • In the case of house extension or renovation, the loan will only be provided if the carpet area of the house is 30 meters for EWS category citizens and 60 meters for LIG category citizens.
budget 2017-18

Union Budget 2017 in Short: Highlights and Keynotes

Union Budget 2017 was presented today by the Finance Minister, Mr. Arun Jeitley. 1st February 2017 was probably the most awaited day after the legendary demonetisation on 8th November 2016. The Union Budget 2017 was to be presented officially by our Honourable Finance Minister today. The budget for this financial year is released earlier in the wake of the economic scenario of India. Narendra Modi described this budget as “futuristic” path for India which aims at fulfilling the dreams of citizens from all sectors. Here are the key highlights from the Union Budget, sequentially as telecast live.

budget 2017-18

Union Budget 2017 Key Highlights

The Budget started on a high note with the Honourable President Pranab Mukherjee calling the session himself. At approximately 11:10 a.m., Arun Jaitley started presenting the budget.

The announcement of this financial year’s budget being a “system and policy-based administration” was the declaration of eliminating black money completely. With a formal economy finally introduced, the financial reins are now completely in the hands of the government.

The merging of Railway Budget with the Union Budget was a huge step forward in the commencement of an economy that is stable and integrated. Though the budget has been merged, the Railways remain an autonomous body.

  • More financial assets will be spent by the government of rural areas, households below the poverty line and infrastructure development.
  • Soil testing equipment will be set up in all rural areas (648 Krishi Vigyan Kendras) as the first step towards development.
  • The new economic aim is to raise the GDP ( Gross Domestic Product) rate to 7.6% in the financial year 2017-2018.
  • By developing the rural areas, double the normal income will be generated for farmers. The Mahatma Gandhi National Rural Employment Guarantee Act will improve giving the agricultural sector a growth rate of 4.1%. There will be a credit of INR 48,000 crore towards MGNREGA and INR 10 Trillion for the agricultural sectors.
  • A major reform in Union Budget 2017 is the passing of GST Bill which will ensure a centralized taxation on goods and other services.
  • INR 27,000 is to be used for the Pradhan Mantri Gram Sadak Yojana to provide homes to one crore homeless people.
  • 28,000 domestic households affected by arsenic invested water will be provided clean drinking water facilities.
  • The credit linked subsidy scheme loans have extended their period from 15 years to 201 years under the Pradhan Mantri Awas Yojana.
  • 100 International skill centers will be introduced to help the Indian citizens to get a job in a foreign country. Apart from that the higher education system of the country will become be made autonomous by giving an autonomy under UGC to colleges and institutions.
  • Dairy funds of INR 8000 crore is proposed for three years. The initial financial support provided to the dairy industry is INR 2000 crore.
  • FDI policy liberalization is being done by abolishing Foreign Investment Promotion Board. All FDI request will now follow an automatic route.
  • Expenditure budget extended towards railways is INR 1.3 Lakhs crore. This is to develop the Indian Railways by providing more facilities like escalators, lift etc.
  • There will be no Service Tax levied on any bookings through IRCTC E-Ticketing portal.
  • INR 10,000 crore will be credited towards Bharat Net Project meaning that high-speed Broadband connection will be given.
  • 64000 crore will be credited towards highway development projects.
  • Power Development of 24,000 MW through solar energy by funding all solar power projects.
  • The advance tax rate on Income Tax will be increased by 34.8% in the wake of demonetization.
  • Income tax for Microfinance Units will be reduced.
  • The customs on Liquefied Natural Gas (LNG) is to be reduced to 2.5%.
  • All cash transactions for every individual will be limited to INR 3 Lakhs.
  • Political parties can receive donations only via transparent modes like cheque or digital banking. The cash donation amount towards the political parties will be limited to INR 2000 per individual.
  • The Income Tax Rate for all the salaried citizens earning between INR 3- 5 Lakhs will be reduced to 5% from the previous rate of 10%. A 10% surcharge rate in Income Tax will be applicable for those earning between INR 50 Lakhs to INR 1 crore.

Union Budget Allocation

MNREGA- 48,000 Crore INR compared to last years 35,000 Crore INR

Transport sector – 2 Trillion INR

Highways- 64,000 Crore INR.

Indian Railways – 55,000 Crores INR.

PM Awas Yojana- 23,000 Crore INR

Defense – 86,400 Crore INR

Agriculture credit – 10,00,000 Crore INR

Income Tax Slab 2017-18

Total Income (Taxable Income) Net Tax
Below 3,00,000 INR 0
3,00,001-5,00,000 INR 5%
5,00,001-10,00,000 INR 20%
10,00,001-50,00,000 INR 30% + 10 % surcharge
50,00,001-1,00,00,000 INR 30 % + 15 % surcharge
OROP sheme

One Rank One Pension Scheme: OROP Review

OROP or One Rank One Pension Scheme is government pensioning reform movement introduced in 2015. It states that any individual who has retired from Indian Civil Services with the same rank are liable for the same amount of pension irrespective of the age of retirement.

OROP sheme

Why Was OROP Introduced?

This scheme was introduced to avoid a discrimination in pension received by soldiers who retired earlier and soldiers who retired more recently. The pension system is dependent on the last salary received and with the introduction of pay commissions salaries have increased over the time. Thus an Army General who retired in 2015 would get more pension than an Army General who retired 1982. The OROP helped bridge this pension gap. This Armed Forces pension scheme was extended to all Indian Civil Services.

What is OROP?: Example and Illustration

Suppose an Army Major has retired back in the late 1970’s. Assume possible pension amount to be 50% of the last drawn salary. Due to inflation condition that was seen over the years in the market, the pension of the Army Major increased periodically. Now an Army Major has retired in 2015. Due to inflation, the officer’s salary is already higher. After retirement, the Major is pensioned at the same rate of 50% of the last drawn salary. Thus the initial pension amount is much greater. This amount now increases over the years due to inflation. So the individuals of the same rank would have different pensions.

This difference in pension did not matter much in other government organizations. But in Armed Forces where the retirement age is less and the rank holds far greater importance, the difference in pension was striking.

Advantages Of OROP

  • The OROP Scheme compensated for the fact that soldiers retired at a much younger age than other citizens. Thus their monetary needs and dependency on the pension system is higher. In this case, OROP makes sure that soldiers who have retired with the same rank status get a fair pension and do not suffer due to inflation.
  • OROP Scheme helps early retired government personnel to gain the same advantage of pay commissions like the more recently retired government personnel. This stands especially in the case of Armed Forces.

Disadvantages of OROP

  • All Civil Services are liable to OROP causing a huge amount to be invested in government job sectors. Though this scheme profited ex-servicemen, the other citizens who work for government organizations are dissatisfied. Thus in later years, this may cause a public outrage, meaning that the government will have to comply with the needs of other pensioners and extend OROP for them. This will result in a huge amount of wealth being drained out.
  • Pensioning the Armed Forces according to the OROP Scheme has resulted in raising the Defence Pension Budget to increase by approximately 4700 crores. Over the years the inflation and introduction of pay commissions have caused the salary of Civil Services officers to increase. Thus periodically more money has to be invested by the government.

OROP News Updates

Rahul Gandhi and Kejriwal claims that Modi has been lying on OROP. According to them, Army officials were fooled by the name of One Rank One Pension Yojana. They are not receiving any updated pension. – Is this True?

No. People have started getting a higher pension from the June 16, as promised by the Government. For people to get the benefits of higher pension, they should have done a service of 20 years as commissioned officers, and 15 years for the rest categories.

What should one do if they are not getting the higher amount as promised in OROP Scheme?

Instead of going to banks, you should connect with your relevant command. They should be able to help you with this. Please mind the pension pay orders comes from the command, and banks have no role to play in it.

OROP Facts

One Rank One Pension was already in place in 1973 before Mrs. Indira Gandhi stopped it when she was the then PM of India.

Indian Congress ruled for almost 30 years but never implemented OROP back.

Narendra Modi, after almost more than three decades, re-implemented OROP.

Still, out of 20.6 lakh Army personal, nearly one lakh people are still deprived of getting benefits of OROP Yojana due to various limitations but Defence Minister Manohar Parrikar has promised to solve the issue as early as possible (hopefully by February end).

Was there any change made by the Indian Government in the proposed OROP scheme?

Yes, a little. Before coming to the power, Prime Minister Narendra Modi had promised that they would implement OROP when they come to power. Once Narendra Modi became the Prime Minister, he had to fulfill his promises. But in reality, it was a lot of burden for the Indian Government. So to reduce the burden, they made a small change. Those Army Men, who opted for voluntary retirement were kept out of the benefits under the scheme.

This could, however, backfire the Indian Government. Many Army men used to opt for voluntary retirement, once they reached the pension permissible stage. As a result, new recruitment was possible. Now to get the benefits of One Rank One Pension Scheme, Army personnel would wait until their service period gets over and not take any voluntary retirement.

Suicide over OROP Scheme

If One Rank One Pension Scheme was for the benefit of the Indian Army, why did the ex-Jawan opt for suicide?

Subedar Ram Krishna Grewal, an ex-Army personnel, had taken retirement in 2004. Before the OROP scheme was implemented, he was getting a pension of Rs. 14,000 every month. Post OROP implementation, he was entitled to receive Rs. 28,000 INR per month. However, he only received Rs. 23,000 INR (Rs.5,000 less than what he should have got).

When he approached the SBI bank, the bank officials could not help him. As a result, he wrote a letter to the Defence minister Mr. Manohar Pariker, and committed suicide the very next day.

When enquired, it was found that due to a technical glitch, the bank showed miscalculated amount. Centre had already made all the clearance from their side.


Pradhan Mantri Garib Kalyan Yojana

Pradhan Mantri Garib Kalyan Yojana or PMGKY is a government scheme introduced by Narendra Modi in 2015 and was amended post demonetisation on 16th December 2016 to abolish poverty. The idea is to direct all the black money to improvise the conditions of the impoverished.


Objective Of PMGKY

When PMGKY was first introduced they had the following goals:

  • A series of workshops will be conducted for all citizens of the country. Each participant has to pay a small amount of money to register for the workshops.
  • All workshops will be conducted under the supervision of different Members of Parliament to analyse the proceedings and improvements.
  • Several ministers were encouraged to take part in these workshops in order to contribute to the funding for the weaker sections.

Why Re-Introduce PMGKY?

The Pradhan Mantri Garib Kalyan Yojana is the opportunity for all black money holders to convert their illegal financial assets to legal ones by investing in PMGKY as a penalty. The denominations, INR 500 was changed and INR 1000 was eliminated on 8th November, creating history in the nation and ruckus for all black money holders. A time frame was given to all citizens to exchange the old currency notes with new ones setting a limit for the money to be exchanged. Those with a huge amount of black money dealt with this blow by burning stacks of 500 and 1000 currency notes. Having observed this, the PMGKY introduced in 2015 was revised according to new tax laws in 2016. Thus while the original objectives were maintained this new amendment came into play to enable all black money holders to rectify the nature of their monetary assets.

Implementation Of PMGKY Post Demonetisation

When PMGKY was launched, Modi stated that a part of the government funds will be indulged in conducting paid workshops and raising money for the weaker sections of society. After demonetisation, the laws were modified to raise a greater amount of money to abolish poverty under PMGK.

  • The unaccounted black money held by citizens operating unlawfully will be declared confidentially via contributing it to PMGKY
  • The earlier Income Tax Act was modified by honourable Finance Minister Arun Jaitley to make these amendments.
  • The black money will be charged in two ways: 50% taxation for the illegal wealth attained with some of the amounts to PMGKY.
  • Apart from the above divisions for black money penalty, 25% of the black money will be invested in the account of PMGKY for a period of 4 years. This investment will not be liable for returns through interest rates for that duration.
  • Initially, all the national and co-operative banks were to operate in accordance with this scheme. But later co-operative banks were disallowed from continuing as they were suspected of converting the black money to legal currency for personal profits.
  • The PMGKY tax reform can be availed till 31st March and all black money holders are being encouraged to participate in it as the proceedings will remain anonymous.

How To Deposit Money Under PMGKY

All black money holders aiming to convert their illegal wealth confidentially, must make the deposits in a Bonds Ledger Account maintained by the Reserve Bank of India. A certificate will be drawn in the name of the beneficiary who has declared the illegal money. The deposits can be made in all denominations that are a multiple of 100. All deposits have to be made by the black money holders at one time for complete transparency and avoiding pilferage. A Bonds Ledger Account will commence only after a deposit is made via cash, cheque or online banking to the authorised banks under this scheme. 25% of these deposits made will be invested without interest for 4 years under PMGKY.

Nomination can be done in the case of a Bonds Ledger Account. The primary account holder can nominate more than one person for the account. In the case of death of the primary account holder, the amount payable will go to the nominees or the heir.

Success Of Amended PMGKY

The concept of organising workshops and raising money for funding the impoverished was not very successful. But with the new angle of raising money via the unaccounted wealth post demonetisation is by far a successful idea. A lot of lawful cash will be generated to benefit the poor and the black money holders will get a window to rectify themselves.


Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima is an Insurance Scheme introduced by Narendra Modi to increase the number of citizens insured in India. From a survey, it was deduced that only 20% of the demography is insured with a Life Insurance policy. With a country that has a huge population, 80% individuals being uninsured is a big lag in development.

What are the particulars Pradhan Mantri Jeevan Jyoti Bima Yojana?

Under PMJJBY, it is stated that the Indian citizens between the age 18-50 years must pay a premium of INR 330 per year which will be auto debited from the bank account of the beneficiary. This premium will be mature to an amount of INR 2,00,000 and will be paid to the heir or nominee in case of the death of the account holder. Thus PMJJY aims at every citizen having a life insurance. The scheme will be provided by all Life Insurance companies. PMJJBY can be availed by all saving account holders. Thus it will be mandatory for all earning citizens to open a bank account.

What is the eligibility criterion for PMJJBY?

  • An Indian citizen who is a savings bank account holder. (Age bracket: 18-50 years).
  • Must submit a written consent to the government that a premium of INR 330 will be auto debited from their account annually.

How To Apply For PMJJBY: Filling Online Application

The following are the steps to apply for PMJJBY:

  • Open the internet banking account of the bank you hold a savings account.
  • Go to the “Social Security Schemes” section. This section is available under account details.
  • Click on “Apply” and select scheme as “Pradhan Mantri Jeevan Jyoti Bima Yojana”.
  • Enter your account number and CIF number.
  • This application form is also available offline. Collect it from your bank or download it. Then you can fill the form online and submit with an authorized signature.

How is the premium divided?

The INR 330 premium auto debited monthly is divided as follows:

  • INR 289 is the annual amount for crediting the insurance.
  • INR 11 is payable to the bank by all account holders as Administrative Reimbursement.
  • INR 30 is the amount payable to various government and private corporate sectors for incurring the payments that enable the provision of these services.

What is the termination scheme for PMJJBY?

The termination policy is as follows:

  • The account will be terminated in the case of closure of the savings bank account of the beneficiary for reasons like bankruptcy or being unable to pay the premium due to insufficient balance remaining.
  • When the citizen reaches 55 years of age, the account is automatically terminated.( Note: Enrolment can’t be done in PMJJBY after 50 years of age).
  • In case the government comes to find out that an individual has multiple insurance schemes in the same account or under separate accounts, the PMJJBY for that individual will be terminated.

Aam Aadmi Bima Yojana (AABY) – Benefits and How to apply

Aam Aadmi Bima Yojana was launched on Gandhi Jayanti, 2007 by P.Chidambaram who was the Finance Minister back then. This was Social Security providing welfare scheme that targeted at benefiting the households of the lower sections of the society. The scheme covered the primary member of the family or the head of the family. The age of the family member should be between 15 years to 59 years, to be eligible for this scheme.

Who Is Administering The AABY Scheme?

The central head for the administration of the AABY Scheme is appointed by the Central Government. Thus according to feasibility, the administering body is either the Central Government, State Government or a local NGO who has taken up the charge for the welfare of any particular rural location.

What is Aam Aadmi Bima Yojana Premium Fund?

When individuals register for AABY, an account will be started under their name. For all the citizens who have applied for this scheme, a funding account will be set up. This account is known as the “Aam Aadmi Bima Yojana Premium Fund”. The account of every beneficiary will be credited with a premium of INR 200 annually. The payment of this amount will be incurred by the Central Government and the State Government equally.

What is the insurance coverage under AABY?

If an individual is registered for AABY Premium Fund account, the government will provide the insurance coverage as follows:

  • On death of the insured individual: INR 30,000
  • On untimely death due to an accident or complete disability: INR 75,000
  • On partial disability due to an accident: INR 37,500

What is the eligibility criteria for AABY?

The eligibility for Aam Aadmi Bima Yojana is as follows:

  • The individual applying for AABY should be a member of a household below the poverty line or marginal with the poverty line as identified by the government.
  • The individual must be from a family where no other member has an existing AABY account under their name. This scheme stands only for one earning member of the family or the head of the family.
  • The individual must be in the age bracket of 15-59 years.

How to apply for AABY?

The application form for AABY is available both online and offline. Thus interested citizens must apply for it by filling in the required information. This application form has to be submitted to the respective banks and municipality with supporting documents for further processing.

What the documents required to apply for this scheme?

Application for this scheme would mean submitted proof of age to the government. Thus the following documents:

  • Ration Card (Proof of Below The Poverty Line)
  • Aadhaar Card (account linked to Aadhar)
  • Voter Card (Proof for 18 years of age and above)
  • Birth Certificate (Age proof)

What are the other benefits of AABY?

Under the AABY Scheme, an additional benefit has been provided by the government to all premium fund account holders. This benefit states that an educational scholarship can be opted for by children of the individual registered for AABY. The scholarship is available for a maximum of 2 children who are studying in grades between 9 to 12. As scholarship, an amount of INR 300 is given to them on a quarterly basis.

LPG subsidy scheme

LPG Subsidy Scheme: Pros, Cons, Success Rate and Recent News

LPG Subsidy Scheme, popularly known as PAHAL, was launched by Narendra Modi Government, where the citizens living below poverty line gets a new LPG connection with the subsidized amount of the rich/middle-class people (who sacrificed their subsidy voluntarily).

This scheme was primarily launched to facilitate rural development. In a country having 125 crores population, there are many people who do not need any subsidy in LPG gas but were paying the same amount no matter he needed the subsidy or not. So the government came up with an idea, where people could voluntarily give up their subsidy and the government used the same amount to give a new connection to the poor as they can’t afford it.

LPG subsidy scheme

What is The LPG Subsidy Scheme?

The LPG Subsidy scheme introduced as PAHAL by Narendra Modi was initially launched in 54 districts when it started in 2014. By 2015, the scheme covered all the 622 districts remaining. The PAHAL or Pratyaksh Hanstantrit Labh Scheme states that there will be a direct benefit transfer of LPG subsidy that is given for domestic use. Initially, when the scheme started, the LPG subsidy was directly linked to the bank account via the Aadhaar Card under DBTL (Direct Benefit Transfer LPG). But the individuals who did not have an Aadhaar ID suffered. Thus the scheme was re-launched for the benefit of everyone, where CTC (Cash Transfer Compliant) was possible under PAHAL even if they do not have any Aadhaar card. But the CTC was only a two-month grace period given. Thereafter, Aadhaar is mandatory for LPG subsidies after 30th November.

Since LPG is a government provided service, there should be no money charged for transportation and direct delivery of LPG subsidies. Only the cost of the LPG is to be directed to the government. Thus, the mission of the PAHAL Scheme is providing cashless LPG Subsidies to households to maintain a transparency in the market.

What are DBTL and CTC?

DBTL is Direct Benefit Transfer LPG where the amount paid for LPG subsidies will be directly deducted from the bank account linked to the Aadhaar Card.

CTC is Cash Transfer Compliant where the bank account can be directly linked without an Aadhaar card in order to pay for LPG subsidies.

Update: This scheme is not available anymore.

What is the Success Rate Of LPG Subsidy Scheme?

  • PAHAL has reached a major milestone with generating saving up to 21,000 crores by 2016. More savings are expected by the end of this fiscal year.
  • In the face of demonetization, the dependency on PAHAL has increased as it promotes cashless transaction. Thus an increase in the number of LPG subsidies has been seen. From 13 crore in 2014 when it started, the number of domestic subsidies have become 17.4 crores.
  • PMUY was introduced for the households below the poverty line. Under the PMUY or Pradhan Mantri Ujjwala Yojana, LPG connection is given to all the households below the poverty line at no cost.

What Are The CONS of LPG Subsidy Scheme?

PAHAL was introduced in good faith to start cashless provision of LPG subsidies, but it has gone awry in some places. India is divided into two parts: the under-developed and the highly developing. For the people in urban areas where development is fast paced, PAHAL through DBTL and CTC is possible. But when looking at the broader picture, the overall price indexing system has to be considered. The poorer sections of the society are falling in a disadvantageous position in this respect due to the lack of development.

The successful fulfillment of PAHAL scheme depends on factors like proper banking system and remote network connectivity. But neither exists in rural India. Thus over 10 million have given up LPG subsidies after PAHAL.

LPG Subsidy: Union Budget 2017

The Union Budget 2017 claimed that several schemes regarding the use of non-renewable resources was to be financially earmarked. A total of 25,000 crore INR is to be set aside for that purpose. The LPG Subsidy Scheme which revolutionized rural India is to gain a massive capital under this. Thus out of 25,000 crore INR an amount of 16,076 crore INR is to be credited towards LPG Subsidy. This is a huge step forward by the government for the betterment of those who cannot avail the services of cooking gas.

LPG Subsidy Recent News

  • In an attempt to eradicate all black money and dealings in India, a new scheme related to PAHAL has been introduced. It states that all domestic households are entitled to a subscription of 12 cylinders of 14.2kg each at government stated rates. If more cylinders are in demand by the higher income group (greater than 10 lakh per annum), they will not get a further subscription.
  • 12% of customers in Indore who had LPG subsidies have been denied subscription as they have not linked their Adhaar number to their accounts.
  • The PMUY (Pradhan Mantri Ujjwala Yojana), which aimed at providing LPG as a free benefit to the households below poverty line, has met with a huge success. Narendra Modi has successfully monitored the delivery of LPG connections in 15 million households over a period of 8 months.
Start Up India

Start Up India Loan Scheme: Review

Concept of Start Up India

The young ignited minds will help build a better India. And that is exactly the inspiration drawn by Narendra Modi when he launched the Start-Up India Scheme. The aim was to take the country to a level where innovations will lead the youth to embark on a journey from “Job Seekers to Job Creators“. Thus, the end result would be a developed nation with a stable economy. The Start Up India Scheme states that if any Indian citizen shows potential entrepreneurship qualities by presenting an innovative idea that promotes development, they will get a monetary support from the Government of India.

Start Up India

What Is A Start Up and How Will It Be Eligible For Startup India Loan Scheme?

The eligibility criterions as set by the government of India for a Start Up Organization avail financial aid under Start Up India Loan Scheme is as follows:

  • The organization must be independent and registered in India.
  • It should not be formed after division, modification or close down of any previously present organization.
  • The organization must not be an establishment older than five years.
  • The turnover of the company should not be more than 25 Crores annually.

Action Plan For Start Up India Loan Scheme

The action plan for implementation of Start Up India Scheme will be in these areas:

  • To provide technical guidance to a Start Up organization to simplify their working plan and if required modify their innovations to get better results.
  • Support a Start Up organization with proper funding and provide good incentives.
  • Involve a Start Up organization with Incubators and help them partner with well established Industrial and Academic Institutions.

 Loan Value Under Start-Up India Scheme

The scheme, Start Up India was announced on 16th January 2016 and was officially launched on 1st April 2016. Under this scheme, if any organization with innovative ideas for development is considered as a “Start-Up” by the Government of India then a loan be extended to the organization. The amount of loan will range from 10 Lakhs to 100 Lakhs according to the requirement and set norms. Parallelly a scheme known as Stand Up India will be launched with similar facilities to promote entrepreneurship among women, SC/ST and Other Backward Classes.

Features Of Start Up India Loan Scheme

The key features of Start Up India Scheme are:

  • The registration to apply for Start Up India loan will be done via online application forms.
  • A system to self-certify a Start Up has been introduced.
  • To provide proper online support a web domain and a mobile app will be developed which will be dedicated to the Start Up organization.
  • The organization will not be inspected for the initial three years.
  • Exemption from Income Tax for the first three years.
  • Innovation promoting courses will be started under the Atal Innovation Mission.

An important point to note while applying for Start Up India is that the Start Up organization will be exempt from tax deductions unless it gets a certification from Inter-Ministerial Board.

Startup India: Registration Procedure

All aspirants who wish to register for the Startup India Scheme must follow either of the two options:

  • An individual can register himself or herself via a MCA or through Registrar of Firms. Simultaneously they have to register themselves officially on the web portal of Startup India.
  • The second option is to make the complete application through the Startup India mobile application. Though mostly it is recommended that this mobile application process is followed as it is an easier one. Registering via MCA or Registrar firms had to be done previously as the mobile app was not built.