📚 JAIIB 2025 • PPB • Module B (Ch 19 of 20) • Unit 40

Government Sponsored Schemes

DAY-NRLM: replaced SGSY, SHG-based, RF ₹10-15K, interest subvention 7% women SHG ≤₹3L. DAY-NULM: urban SEP. PMJDY: no min balance, RuPay, accident ₹2L, OD ₹10K. MUDRA: Shishu/Kishore/Tarun (₹50K/₹5L/₹10L). PMEGP: KVIC, credit-linked subsidy.

⏱ 17 min read🎯 High Exam Weightage🧠 4 Memory Tricks⚡ 6 Flash Cards

Banky Implements Govt Schemes! 🏛️

Government schemes are a cornerstone of financial inclusion. From PMJDY accounts to MUDRA loans to NRLM SHG lending — banks are the primary delivery channel. Understanding scheme details is essential for every banker!

“Sir, a customer opened a PMJDY account and wants an overdraft. What is the limit and who is eligible?” 🏛️

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Section 1 of 9

Why Read This Chapter?

Government schemes = financial inclusion + poverty reduction — banks are the delivery vehicle

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What are the key government schemes for financial inclusion?

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Key schemes: (1) DAY-NRLM: Replaced SGSY (exam PYQ!). SHG-based. Revolving Fund ₹10-15K. Interest subvention: women SHG get loans at 7% (up to ₹3 lakh), prompt repayment = 4%. (2) DAY-NULM: Urban livelihoods. SEP-I: max ₹2 lakh individual. SEP-G: max ₹2L per person or ₹10L per group (exam PYQ!). (3) PMJDY: No minimum balance. RuPay card. Accident insurance ₹2 lakh. Life cover ₹30K. OD ₹10,000 to 1 member per household (exam PYQ!). (4) MUDRA: Shishu (≤₹50K), Kishore (₹50K-₹5L), Tarun (₹5L-₹10L). (5) PMEGP: KVIC nodal agency. Credit-linked subsidy for micro enterprises.

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Exam Marks

3-4 questions — NRLM replaced SGSY (exam PYQ!), NRLM interest subvention ₹3L max (exam PYQ!), PMJDY OD ₹10K to 1 member (exam PYQ!), SEP-G ₹2L/₹10L (exam PYQ!). Very important!

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Career Growth

Govt scheme implementation is a key KRA for every branch — targets are monitored closely

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Real Life

These schemes provide banking, insurance, pensions, and credit to millions of unbanked Indians

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Section 2 of 9

How Will It Benefit You?

Real career advantages

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Give me a real scenario!

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🏛️ Scenario: A rural woman opens a PMJDY account. Benefits: (1) No minimum balance. (2) RuPay debit card with ₹2 lakh accident cover. (3) Life insurance ₹30K. (4) After 6 months satisfactory operation → OD up to ₹10,000. She also joins an SHG under DAY-NRLM → gets revolving fund ₹15K → SHG gets bank loan at 7% (up to ₹3L) → prompt repayment → effective rate 4%! She wants to start a small tailoring business → applies for MUDRA Shishu loan (up to ₹50K). Manager: ‘Financial inclusion journey complete!’ 🌟

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Section 3 of 9

What Is This Chapter About?

30-second summary

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Quick version, sir!

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This chapter covers: DAY-NRLM: Replaced SGSY (exam PYQ!). SHG-based poverty reduction. Universal social mobilisation (priority: women, 50% SC/ST, 15% minorities, 3% disabled). Revolving Fund: ₹10-15K per SHG (corpus). CIF for intensive blocks. Interest subvention: Women SHG loans at 7% up to ₹3 lakh (exam PYQ!). Prompt repayment: additional 3% → effective 4%. No collateral/margin up to ₹10L. Above ₹10-20L: CGFMU cover, no collateral. DAY-NULM: Replaced SJSRY. Urban poor. SEP-I: max ₹2 lakh individual. SEP-G: max ₹2L per person or ₹10L per group (exam PYQ! — whichever lower). Subsidy: 5-7% interest subvention. 30% women, 15% minorities, 5% disabled. PMJDY: National Mission for Financial Inclusion. No minimum balance. RuPay debit card. Accident insurance ₹2 lakh (₹1L for pre-28.8.2018 accounts). Life insurance ₹30K. OD: ₹10,000 to 1 member per household (exam PYQ!). After 6 months satisfactory operation. DBT beneficiary. Eligible for PMSBY/APY/MUDRA. MUDRA (April 2015): PMMY launched. 3 categories: Shishu (≤₹50K), Kishore (₹50K-₹5L), Tarun (₹5L-₹10L). Non-farm/non-corporate small business. MUDRA card for cash credit. Refinance to lending agencies. PMEGP: KVIC nodal agency. Credit-linked subsidy. New micro enterprises. Merged PMRY + REGP. Repayment: 5-7 years after 6-18 months moratorium.

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Section 4 of 9

Key Definitions — Banky Asks, Mentor Explains

Every term explained like you’re 10

Critical Term

DAY-NRLM

Replaced SGSY. SHG-based rural livelihoods. Revolving Fund ₹10-15K. Interest subvention: women SHG 7% on ≤₹3L, prompt=4%.

Replaced SGSY

Banky’s Understanding: DAY-NRLM (March 2016): Deendayal Antyodaya Yojana — National Rural Livelihoods Mission. Replaced SGSY (exam PYQ! — not IRDP/TRYSEM/DWCRA). SHG-based. Universal social mobilisation: women (at least 1 per household), 50% SC/ST, 15% minorities, 3% disabled. Revolving Fund: ₹10-15K per SHG (corpus for savings+lending). CIF for intensive blocks. Interest subvention: Women SHGs get loans at 7% up to ₹3 lakh (exam PYQ!). Prompt repayment incentive: additional 3% → effective 4%. Banks subvented for difference between WAIC and 7% (max 5.5%). No collateral/margin up to ₹10L. Above ₹10-20L: CGFMU cover.

🧒 Analogy: NRLM = the government’s plan to help rural poor women form savings groups (SHGs), get bank loans at subsidized rates (7%), and escape poverty through self-employment. Like a financial gym membership — the SHG trains you, the bank funds you, the government subsidizes you!

Critical Term

PMJDY

No min balance, RuPay card, accident ₹2L, life ₹30K, OD ₹10K to 1 member per household, DBT channel

₹10K OD

Banky’s Understanding: PMJDY: Pradhan Mantri Jan Dhan Yojana — National Mission for Financial Inclusion. Benefits: (1) No minimum balance. (2) RuPay debit card. (3) Accident insurance ₹2 lakh (with RuPay card, ≥1 transaction in 90 days). (4) Life insurance ₹30,000. (5) Easy money transfer across India. (6) DBT (Direct Benefit Transfer) channel. (7) OD: ₹10,000 to 1 member per household (exam PYQ! — not ₹5K/2 members). After 6 months satisfactory operation. (8) Eligible for PMSBY, APY, MUDRA. Small accounts for those without OVD.

🧒 Analogy: PMJDY = the government saying ‘everyone gets a bank account, no questions asked.’ Like a universal metro card: no minimum balance, comes with insurance, and after 6 months of good behavior, you get a small loan (OD ₹10K)!

Critical Term

MUDRA Loans

Shishu (≤₹50K), Kishore (₹50K-₹5L), Tarun (₹5L-₹10L). Non-farm small business. MUDRA card. Refinance by MUDRA.

3 categories

Banky’s Understanding: MUDRA (April 2015): Micro Units Development and Refinance Agency. PMMY (Pradhan Mantri MUDRA Yojana) launched simultaneously. 3 categories: (1) Shishu: ≤₹50,000 (starting stage). (2) Kishore: ₹50K-₹5 lakh (growth stage). (3) Tarun: ₹5L-₹10 lakh (established stage). For non-farm, non-corporate small/micro enterprises. MUDRA card: For cash credit facility (like credit card for business). Refinance to banks/MFIs/NBFCs. No subsidy — market-rate loans. Target: unfunded micro enterprises. Manufacturing, trading, services, allied agri (food processing).

🧒 Analogy: MUDRA = three levels of support for small businesses: Shishu (baby — ₹50K for beginners), Kishore (teenager — ₹5L for growing businesses), Tarun (adult — ₹10L for established ones). Like school grades: nursery → middle → high school of business financing!

Critical Term

DAY-NULM & PMEGP

NULM: urban poor, SEP-I ₹2L, SEP-G ₹2L/person or ₹10L/group. PMEGP: KVIC nodal, credit-linked subsidy, new micro enterprises.

Urban + Employment

Banky’s Understanding: DAY-NULM: Urban livelihoods. Replaced SJSRY. SEP (Self Employment Programme): (1) SEP-I: Individual — max ₹2 lakh. (2) SEP-G: Group — max ₹2L per person or ₹10L per group (exam PYQ! — whichever lower). Interest subsidy 5-7%. Beneficiary mix: 30% women, SC/ST per city proportion, 15% minorities, 5% disabled. PMEGP: Prime Minister Employment Generation Programme. KVIC = nodal agency (national level). Merged PMRY + REGP (2008). Credit-linked subsidy programme (not interest subvention). New self-employment ventures/micro enterprises. Implemented by KVIC/State KVIBs/DICs/banks. Repayment: 5-7 years after 6-18 months moratorium. Subsidy deposited in TDR/SRF (no interest on TDR, no interest on loan for that portion).

🧒 Analogy: NULM = NRLM’s city cousin — same goal (livelihoods for poor) but for urban areas. PMEGP = the government helping you start a micro-factory with a subsidy — like a startup grant where KVIC is the incubator!

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Section 5 of 9

Chapter Explained in Simple Stories

So easy even Banky’s nephew understands

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Sir, explain this like a story!

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Three bite-sized stories coming up — impossible to forget! 🚀

🏛️ Block 1: NRLM, NULM & PMJDY

DAY-NRLM: Replaced SGSY (exam PYQ!). SHG-based. RF ₹10-15K. Interest subvention: women SHG 7% on ≤₹3L (exam PYQ!). Prompt = 4%.

DAY-NULM: Urban. SEP-I: ₹2L. SEP-G: ₹2L/person or ₹10L/group (exam PYQ!).

PMJDY: No min balance. RuPay. Accident ₹2L. Life ₹30K. OD ₹10K to 1 member (exam PYQ!).

Key Term

NRLM Replaced SGSY

DAY-NRLM replaced Swarnajayanti Gram Swarozgar Yojana (SGSY). NOT IRDP, TRYSEM, or DWCRA. This is a guaranteed exam question.

🧑‍💼 Banky: “NRLM=replaced SGSY, 7% on ₹3L, PMJDY OD=₹10K/1 member, NULM SEP-G=₹2L/₹10L! 🏛️”

💰 Block 2: MUDRA & PMEGP

MUDRA (April 2015): Shishu (≤₹50K), Kishore (₹50K-₹5L), Tarun (₹5L-₹10L).

Non-farm small business. MUDRA card for CC. Refinance to banks/MFIs/NBFCs.

PMEGP: KVIC = nodal agency. Credit-linked subsidy. New micro enterprises.

Merged PMRY + REGP (2008). Repayment: 5-7 years. Moratorium: 6-18 months.

Key Term

Shishu/Kishore/Tarun

MUDRA has 3 categories based on business stage: Shishu (≤₹50K for starters), Kishore (₹50K-₹5L for growing), Tarun (₹5L-₹10L for established). Total coverage up to ₹10 lakh.

🧑‍💼 Banky: “MUDRA: Shishu≤₹50K, Kishore≤₹5L, Tarun≤₹10L. PMEGP: KVIC nodal, subsidy! 💰”

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Section 6 of 9

Exam Angle — Every Testable Point

All facts, numbers, definitions JAIIB tests

✅ Must-Know Facts — Highest Probability

NRLM replaced SGSY (not IRDP/TRYSEM/DWCRA) — exam PYQ!
NRLM interest subvention: women SHG loans at 7% up to ₹3 lakh max — exam PYQ!
PMJDY overdraft: ₹10,000 to 1 member per household — exam PYQ!
NULM SEP-G: ₹2 lakh per individual or ₹10 lakh per group (whichever lower) — exam PYQ!
MUDRA: Shishu ≤₹50K | Kishore ₹50K-₹5L | Tarun ₹5L-₹10L
PMJDY: no min balance, RuPay, accident ₹2L, life ₹30K, DBT channel
PMEGP: KVIC nodal agency | Credit-linked subsidy | Merged PMRY+REGP
NRLM revolving fund: ₹10-15K per SHG | No collateral up to ₹10L
Prompt repayment under NRLM: additional 3% → effective rate 4%
PMJDY OD after 6 months satisfactory operation
MUDRA card for cash credit facility | Refinance to lending agencies
PMEGP repayment: 5-7 years after 6-18 months moratorium
NULM beneficiary mix: 30% women, 15% minorities, 5% disabled
PMJDY eligible for PMSBY, APY, MUDRA schemes

📝 Previous Year Questions

Q: NRLM replaced:

A: (d) SGSY ✅

Q: NRLM interest subvention max:

A: (d) ₹3,00,000 ✅

Q: NULM SEP-G loan:

A: (a) ₹2L/individual or ₹10L/group ✅

Q: PMJDY OD:

A: (d) ₹10,000 to 1 member ✅

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Section 7 of 9

Memory Tricks That STICK

Lock every fact permanently

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Too many facts! Help! 🤯

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These tricks will lock everything in forever! 🧲

🧠 Trick 1 — NRLM = SGSY Replaced

Predecessor

NRLM replaced = SGSY! (Not IRDP! Not TRYSEM! Not DWCRA!) SGSY → DAY-NRLM (March 2016) SHG-based | Rural livelihoods

DAY-NRLM replaced SGSY. The exam gives IRDP, TRYSEM, DWCRA as distractors — all are much older schemes that were already merged into SGSY.

🧠 Trick 2 — PMJDY OD = ₹10K/1

Overdraft

PMJDY OVERDRAFT: ₹10,000 limit! 1 member per household! (Not ₹5,000! Not 2 members!) After 6 months satisfactory operation

PMJDY overdraft is ₹10,000 (not ₹5,000) available to only 1 member (not 2) per household, after 6 months of satisfactory account operation.

🧠 Trick 3 — MUDRA SKT

3 categories

MUDRA = S-K-T: Shishu ≤ ₹50,000 (baby) Kishore ₹50K-₹5 Lakh (teen) Tarun ₹5L-₹10 Lakh (adult) (Non-farm micro enterprises)

Remember SKT: Shishu (smallest), Kishore (middle), Tarun (largest). The limits are ₹50K, ₹5L, ₹10L — each 10× the previous!

🧠 Trick 4 — NRLM Subvention = 7% on ₹3L

Women SHG

NRLM women SHG: Loan at 7% (subvention) Max ₹3 LAKH! Prompt repayment = 4%! (Not ₹5L capital subsidy!)

Under NRLM, women SHGs get interest subvention (not capital subsidy) reducing their rate to 7% on loans up to ₹3 lakh. Prompt repayment brings it to 4%.

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Section 8 of 9

Visual Summary — Chapter Map

Entire chapter in one diagram

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Section 9 of 9

Flash Revision — Last-Minute Cards

Read these 10 minutes before exam

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EXAM IN 15 MINUTES! 😰

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6 cards — read twice, you’ll get every question right! 💪

DAY-NRLM

Replaced SGSY | SHG-based | Rural

RF ₹10-15K | Subvention 7% on ≤₹3L | Prompt=4%

DAY-NULM

Urban livelihoods | Replaced SJSRY

SEP-I ₹2L | SEP-G ₹2L/person or ₹10L/group

PMJDY

No min balance | RuPay | Accident ₹2L

Life ₹30K | OD ₹10K to 1 member | DBT

MUDRA

Shishu ≤₹50K | Kishore ≤₹5L | Tarun ≤₹10L

Non-farm micro | MUDRA card | Refinance

PMEGP

KVIC nodal | Credit-linked subsidy

New micro enterprises | 5-7yr repayment

Subvention

NRLM: 7% on ₹3L | NULM: 5-7%

Prompt repayment: additional 3% = 4%

⚡ Chapter 40 Complete — Government Sponsored Schemes

NRLM: replaced SGSY, SHG-based, RF ₹10-15K, subvention 7% on ≤₹3L, prompt=4%
NULM: urban, SEP-I ₹2L, SEP-G ₹2L/₹10L | PMJDY: no min bal, RuPay, ₹2L accident, OD ₹10K/1 member
MUDRA: Shishu ≤₹50K, Kishore ≤₹5L, Tarun ≤₹10L | Non-farm micro enterprises
PMEGP: KVIC nodal, credit-linked subsidy, merged PMRY+REGP, 5-7yr repayment

Banky says: “NRLM=SGSY replaced, 7% on ₹3L, PMJDY OD=₹10K/1, MUDRA SKT, PMEGP=KVIC!” 🎉🏛️

You now understand all major government schemes — the backbone of financial inclusion in India! 💪

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