Government scheme and small savings terms, defined
PPF, EPF, NPS, SSY, SCSS, post office instruments and the welfare schemes alongside them. 41 terms with full definitions.
Sovereign-backed savings, and what you give up for the guarantee
India runs an unusually large set of government-backed savings instruments, and this topic defines them together because they are constantly compared with one another. The long lock-in group — PPF, EPF, NPS, SSY — trades access for tax treatment that is difficult to beat on a post-tax basis. The fixed income group — SCSS, POMIS, KVP, NSC, RBI floating rate bonds — offers a contracted return over a defined term.
The feature these share is a rate set administratively rather than by a market, usually reviewed quarterly. That produces a specific characteristic worth understanding: the rate you receive can change while your money is locked in, and the direction is not always favourable. Several definitions below note whether the rate applies at investment or is reset periodically.
A third group covers the welfare and inclusion schemes — Jan Dhan, Atal Pension Yojana, PM Jeevan Jyoti and Suraksha Bima, Mudra. These are defined here because their terminology appears constantly in Indian financial discussion and rarely in a glossary.
41 government scheme terms, A to Z
Definitions are unabridged. Interest rates on small savings schemes are revised periodically — always check the current quarter before relying on a figure.
Atal Pension Yojana (APY)
Atal Pension Yojana (APY) is a government-backed pension scheme launched on 1 June 2015, specifically targeting workers in the unorganised sector who lack formal employment benefits. It replaced the earlier Swavalamban scheme and is administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS) architecture. Any Indian citizen between the ages of 18 and 40 years who holds a savings bank account and is not a taxpayer can enroll in APY. NRIs are not eligible. The scheme guarantees a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month upon attaining the age of 60, depending on the contribution amount chosen at enrollment. The contribution amount varies based on the entry age and the pension level chosen — for example, a 25-year-old choosing ₹5,000 monthly pension must contribute approximately ₹376 per month. Contributions are auto-debited from the linked savings account monthly, quarterly, or half-yearly. The government co-contributed 50% of the subscriber’s contribution or ₹1,000 per year, whichever was lower, for eligible subscribers during the first 5 years of the scheme (2015–2020). Upon the subscriber’s death after 60, the spouse receives the same pension. Upon the death of both the subscriber and spouse, the nominee receives the accumulated pension corpus. If the subscriber dies before 60, the spouse can continue the account or withdraw the accumulated corpus. Penalties apply for delayed contributions — ranging from ₹1 to ₹10 per month depending on the contribution amount. APY can be enrolled at any bank branch or post office or through net banking/mobile banking. Section 80CCD(1) of the Income Tax Act provides a tax deduction for APY contributions within the overall ₹1.5 lakh Section 80C limit, and an additional ₹50,000 under Section 80CCD(1B).
Digital India
Digital India is a flagship programme of the Government of India launched on 1 July 2015 with the vision of transforming India into a digitally empowered society and knowledge economy. It is coordinated by the Ministry of Electronics and Information Technology (MeitY) and encompasses a wide range of initiatives across digital infrastructure, digital services, and digital literacy. The Digital India programme rests on three key pillars: Digital Infrastructure as a Core Utility to Every Citizen (including high-speed internet connectivity, mobile phones, bank accounts with digital access, and a common service centre in every village); Governance and Services on Demand (including integrated and interoperable government services through online platforms, real-time service delivery, and digital document management); and Digital Empowerment of Citizens (through universal digital literacy, digital resources in Indian languages, and collaborative digital platforms). Key projects under Digital India include BharatNet (connecting gram panchayats with optical fibre), UMANG (Unified Mobile Application for New-age Governance), DigiLocker (digital document storage), MyGov (citizen engagement), eSign (digital signatures), and the National Digital Health Mission (NDHM). Digital India has facilitated the expansion of UPI (Unified Payments Interface), Aadhaar-based authentication, India Stack (the collection of open digital public infrastructure), and the direct benefit transfer (DBT) ecosystem that has saved the government over ₹2.73 lakh crore in leakage since 2013. India now has over 87 crore internet users, over 1,200 crore UPI transactions per month, and over 60 crore DigiLocker accounts. The programme is overseen by MeitY with participation from the National Informatics Centre (NIC), UIDAI, NPCI, and all state governments. Digital India has positioned India as a global leader in digital public infrastructure and fintech innovation.
Emergency Credit Line Guarantee Scheme (ECLGS)
ECLGS was a COVID-19 relief package launched in May 2020 providing 100% guaranteed collateral-free loans to businesses (up to 20% of outstanding loans, maximum ₹50 lakh for MSMEs) — backed by Government of India guarantee. Banks could lend without credit risk (guaranteed by government). Total loans sanctioned under ECLGS exceeded ₹3.6 lakh crore.
Employees’ Provident Fund (EPF)
The Employees’ Provident Fund (EPF) is a mandatory retirement savings scheme for salaried employees in India, governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and administered by the Employees’ Provident Fund Organisation (EPFO). It is one of the world’s largest social security organisations, covering millions of workers across various industries. EPF is mandatory for establishments with 20 or more employees where employees earn a basic salary up to ₹15,000 per month, though higher-earning employees can also voluntarily participate. Both the employee and employer contribute 12% of the employee’s basic salary and Dearness Allowance (DA) each month. The employee’s entire 12% goes into the EPF account, while the employer’s 12% is split — 8.33% goes into the Employees’ Pension Scheme (EPS) and 3.67% into EPF. For establishments with fewer than 20 employees or certain industries, the rate may be 10%. The EPFO declares an annual interest rate on EPF balances; for FY 2023-24, it was set at 8.25% per annum. This interest is credited annually to the member’s Universal Account Number (UAN). Employees can access their EPF balance online through the EPFO member portal (https://unifiedportal-mem.epfindia.gov.in) or the UMANG app using their UAN. Partial withdrawals are permitted for specific purposes such as medical emergencies, home purchase, marriage, education, and unemployment after 2 months. Full withdrawal is allowed upon retirement (age 58) or upon complete withdrawal from employment for more than 2 months. Under the EEE tax regime, EPF contributions qualify for Section 80C deductions (up to ₹1.5 lakh), interest earned is tax-free (subject to conditions), and the lump sum at maturity is tax-exempt, provided the employee has completed 5 years of continuous service.
EPF (Employees’ Provident Fund)
EPF (Employee Provident Fund) is a mandatory defined-contribution retirement scheme for employees earning below ₹15,000/month basic salary, with optional coverage for those above. Both employee and employer contribute 12% of basic salary + Dearness Allowance. Employee’s 12% goes entirely to EPF; employer’s 12% splits into 3.67% EPF + 8.33% EPS (Employee Pension Scheme). EPFO (Employees’ Provident Fund Organisation) manages the scheme with ₹20 lakh crore+ AUM and 6+ crore active members. Interest rate: declared annually by CBT (Central Board of Trustees) — recently 8.15-8.25% guaranteed by the government. EPF interest is tax-free if contribution is within ₹2.5 lakh/year (Budget 2021 limited this; above ₹2.5 lakh, interest on excess is taxed). VPF (Voluntary Provident Fund): employees can contribute beyond 12% (up to 100% of basic + DA) at the same guaranteed rate — the best risk-free fixed-income option for moderate earners in India. EPF withdrawal: fully permissible after unemployment for 2+ months or at retirement (age 58). Partial withdrawal allowed for home purchase, marriage, medical treatment, children’s education. UAN (Universal Account Number): a 12-digit unique identifier for each EPF member across employers. UAN enables online EPF management — transfer on job change, balance checking via UMANG app, and online withdrawal. EPFO’s digital transformation has improved significantly: online claim settlement time reduced from 20 days to 3-5 days in most cases.
Epf Calculator →EPS (Employee Pension Scheme)
EPS is the pension component of the EPFO framework, funded by the employer’s EPF contribution (8.33% of basic salary, subject to ₹1,250/month cap). Employees completing 10 years of service become eligible for pension at 58 years. The maximum pension is ₹7,500/month — widely considered inadequate for retirement needs.
G-Sec (Government Securities)
G-Secs are long-term (2–40 years) debt instruments issued by the Government of India to finance fiscal deficit. Fixed coupon (interest) paid semi-annually; principal repaid at maturity. Zero default risk. RBI Retail Direct allows individuals to buy G-Secs directly.
GeM (Government e-Marketplace)
Government e-Marketplace (GeM) is an online procurement portal launched by the Government of India in August 2016 to enable government ministries, departments, public sector undertakings (PSUs), and autonomous bodies to procure goods and services directly from sellers in a transparent, efficient, and paperless manner. It is operated by GeM SPV (Special Purpose Vehicle) under the Ministry of Commerce and Industry and is regulated by the General Financial Rules (GFR) 2017 and the GeM Act framework. GeM serves as a one-stop-shop marketplace for government procurement. Sellers — including MSMEs, startups, artisans, Self Help Groups (SHGs), and large enterprises — list their products and services on the portal. Government buyers place orders directly, with payment through the Public Financial Management System (PFMS) within 10 working days. The platform ensures price transparency with comparison tools (including market-based pricing analysis), product standardisation, and end-to-end digitisation of the entire procurement cycle — from indent creation to payment. GeM eliminates the need for multiple tender filings for recurring government purchases up to certain value thresholds. Key benefits for MSME sellers include: (a) No registration fee, (b) Zero listing charges, (c) Preference in procurement — 25% of government procurement mandated from MSMEs, with 3% of that from women-led MSMEs and 4% from SC/ST entrepreneurs, (d) No EMD (Earnest Money Deposit) for orders below ₹10 lakh, (e) Direct access to thousands of government buyers without intermediaries, (f) Payment within 10 working days. GeM has processed cumulative orders worth over ₹4 lakh crore since inception, with over 62 lakh registered sellers and 75,000 government buyer organisations as of 2024. The portal supports Aadhaar-based authentication and integrates with the National Career Service portal and MSMEs Udyam portal.
Gold Monetisation Scheme
The Gold Monetisation Scheme (GMS) was launched by the Government of India in November 2015 with the objective of mobilising the idle gold held by Indian households and institutions — estimated at over 25,000 tonnes — and putting it to productive use in the economy. By enabling gold owners to deposit their physical gold with banks and earn interest on it, the scheme aims to reduce India’s dependence on gold imports and strengthen the financial system. It is regulated by the Reserve Bank of India (RBI) and implemented through designated banks and Collection and Purity Testing Centres (CPTCs). Under GMS, any Indian resident individual, HUF, trust, or institution can deposit a minimum of 10 grams of raw gold (jewellery, coins, or bars) with designated banks. The gold is first evaluated at a CPTC (licensed assaying and hallmarking centre) for purity and quantity, and the net gold value after deducting refining charges is credited to the depositor’s Gold Savings Account. GMS offers three types of deposits: Short-Term Bank Deposit (STBD) for 1-3 years with interest of 0.5-2.5% per annum; Medium-Term Government Deposit (MTGD) for 5-7 years; and Long-Term Government Deposit (LTGD) for 12-15 years. MTGD and LTGD interest rates are determined by the government and currently stand at 2.25% and 2.5% per annum respectively. Both principal (in terms of gold quantum) and interest (credited either in gold or equivalent cash) are exempt from capital gains tax, wealth tax, and income tax on interest — making GMS highly tax-efficient. The depositor can redeem in gold or the equivalent Indian rupees at maturity. Premature withdrawal is allowed with reduced interest rates. GMS is regulated by the RBI under the RBI Act and the Banking Regulation Act. Despite the compelling economics, GMS has had limited uptake due to emotional attachment to jewellery, lack of awareness, and the melting requirement for jewellery deposits. As of 2024, approximately 30 tonnes of gold have been mobilised under GMS.
Gratuity
Gratuity is a lump sum payment made by an employer to an employee who has completed at least 5 years of continuous service, as per the Payment of Gratuity Act, 1972. Formula: (Last drawn salary × 15 × years of service) ÷ 26. Gratuity is tax-exempt up to ₹20 lakh for private sector employees.
Gratuity Calculator →Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP) is a government-backed certificate savings scheme offered through India Post and selected banks. Originally launched in 1988 to encourage rural savings among farmers, it was relaunched in 2014 after a brief suspension. The scheme is open to all Indian resident adults — not just farmers, despite the name — and has become popular for its simplicity and the promise of doubling the invested amount over a fixed period. Any adult Indian resident can invest in KVP. It is available for a minimum investment of ₹1,000, with no upper limit. Certificates can be purchased at any post office or through designated banks. KVP can be held as a single, joint, or minor account. The scheme can also be transferred from one person to another and from one post office to another. The maturity period is determined by the prevailing interest rate — at 7.5% per annum (as of 2024), the invested amount doubles in approximately 115 months (9 years and 7 months). A lock-in period of 2.5 years applies before premature encashment is permitted. After this period, the holder can encash in stages with a stepwise payout schedule. KVP does not offer any Section 80C tax deduction on the invested amount. The interest income is taxable as per the investor’s slab rate. However, TDS is not automatically deducted at source — the investor is responsible for declaring and paying tax on the interest. KVP is issued as a certificate, and in the event of the holder’s death, the nominee can claim the maturity proceeds. It is regulated by the Department of Posts under the Ministry of Communications and Finance. KVP is especially popular in rural and semi-urban India where individuals want a simple, no-frills savings tool with a guaranteed doubling of investment.
KVIC (Khadi and Village Industries Commission)
KVIC is a statutory body promoting Khadi and village industries — providing training, raw materials, marketing support, and credit through banks under PM Employment Generation Programme (PMEGP). PMEGP provides 15–35% government subsidy on projects up to ₹50 lakh for manufacturing and ₹20 lakh for services.
KVP (Kisan Vikas Patra)
KVP is a small savings certificate scheme offered by India Post that doubles the invested amount in a fixed period (currently about 115 months — just under 10 years). It has no maximum investment limit, is available in denominations from ₹1,000, and can be pledged as collateral. Interest is fully taxable.
Kvp Calculator →Make in India
Make in India is a national programme launched by the Government of India on 25 September 2014 to transform India into a global manufacturing hub and encourage both domestic and foreign companies to manufacture their products in India. The initiative is led by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, and targets 27 key sectors across manufacturing, infrastructure, and services. The core objectives of Make in India are to increase the manufacturing sector’s contribution to GDP from about 15-16% to 25% by 2025, create 100 million additional manufacturing jobs by 2022, build world-class infrastructure including dedicated freight corridors, smart cities, and industrial corridors, and simplify the regulatory environment to enable ease of doing business. The initiative focuses on Foreign Direct Investment (FDI) liberalisation across sectors, simplification of labour laws, rationalisation of business regulations, and development of industrial clusters and Special Economic Zones (SEZs). Key policy reforms under Make in India include liberalised FDI norms across defence, insurance, railways, and retail; the introduction of the Goods and Services Tax (GST) to create a unified national market; digitisation of business processes through the eBiz portal and online approvals; development of 11 Industrial Corridors including the Delhi-Mumbai Industrial Corridor (DMIC); and the National Infrastructure Pipeline (NIP) worth ₹111 lakh crore. The initiative is monitored by the DPIIT with support from SEBI, RBI, and respective sectoral ministries. India’s FDI inflow has grown significantly since 2014, reaching over $83 billion in FY 2021-22, making India one of the top global FDI destinations. Make in India has enabled India to become the world’s largest two-wheeler manufacturer and a significant player in electronics manufacturing, pharmaceuticals, and defence equipment.
MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
MNREGA guarantees 100 days of unskilled manual employment per year to rural households in India. Wages are paid directly to bank/post office accounts. The scheme has provided income support to 5–8 crore households annually. It is the world’s largest public employment guarantee scheme, with a budget of ₹60,000+ crore.
MSME Definition and Schemes
Micro, Small and Medium Enterprises (MSMEs) form the backbone of India’s economy, contributing approximately 30% of GDP, 48% of exports, and employing over 11 crore people. The MSME sector is governed by the Ministry of Micro, Small and Medium Enterprises and regulated under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, with the revised definition effective from July 2020 based on investment and annual turnover. Under the revised definition (effective 1 July 2020): Micro Enterprises — Investment up to ₹1 crore and annual turnover up to ₹5 crore; Small Enterprises — Investment up to ₹10 crore and annual turnover up to ₹50 crore; Medium Enterprises — Investment up to ₹50 crore and annual turnover up to ₹250 crore. MSMEs register on the Udyam Registration portal (udyamregistration.gov.in) using PAN and Aadhaar — registration is free, paperless, and permanent. The Udyam Registration Certificate is the basis for availing all MSME benefits. Key government schemes for MSMEs include: (a) CGTMSE (Credit Guarantee Fund Trust for MSEs) — providing collateral-free loans up to ₹5 crore; (b) PMEGP (Prime Minister’s Employment Generation Programme) — margin money subsidy of 15-35% of project cost for new MSMEs; (c) Udyog Aadhar-linked benefits including priority sector lending at concessional rates; (d) Technology Upgradation under CLCSS (Credit Linked Capital Subsidy Scheme) — 15% subsidy on institutional credit for technology upgrades up to ₹1 crore; (e) Market Development Assistance (MDA) for MSME exporters; (f) GeM (Government e-Marketplace) preferential procurement — 25% of government procurement reserved for MSMEs. MSMEs also receive protection under the MSMED Act for delayed payments — buyers must pay within 45 days, failing which compound interest at 3x RBI bank rate is payable.
MUDRA Loan
MUDRA (Micro Units Development and Refinance Agency) loans are offered to micro and small businesses under PM MUDRA Yojana at three levels: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh). These are collateral-free business loans provided through banks, MFIs, and NBFCs to promote self-employment.
National Pension System (NPS)
The National Pension System (NPS) is a voluntary, defined-contribution pension scheme launched by the Government of India in January 2004, initially for central government employees and extended to all Indian citizens in 2009. It is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). The scheme aims to provide retirement income security by encouraging systematic savings throughout an individual’s working life. Any Indian citizen between the ages of 18 and 70 years can join NPS. There are two types of accounts: Tier I (mandatory, with withdrawal restrictions) and Tier II (voluntary, flexible savings with no lock-in for general citizens). Subscribers choose their own Pension Fund Manager (PFM) from PFRDA-approved entities like SBI Pension Funds, HDFC Pension, ICICI Prudential Pension, and others. They also choose their asset allocation across Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (A), either through Active Choice or Auto Choice (lifecycle-based). Upon reaching 60 years, at least 40% of the corpus must be used to purchase an annuity from a PFRDA-empanelled insurer, while the remaining 60% can be withdrawn as a lump sum tax-free. NPS offers multi-layered tax benefits. Contributions up to ₹1.5 lakh qualify for Section 80C deductions. An additional exclusive deduction of ₹50,000 is available under Section 80CCD(1B), over and above the 80C limit. For salaried employees, employer contributions up to 10% of basic salary + DA are deductible under Section 80CCD(2), which has no upper cap under the new tax regime. The NPS is administered through Points of Presence (PoPs) including banks and financial institutions, and subscribers can manage accounts online through the CRA (Central Recordkeeping Agency) portal or eNPS platform.
National Savings Certificate (NSC)
The National Savings Certificate (NSC) is a fixed-income investment instrument offered by the Indian Postal Department under the Government of India. It is one of the oldest and most trusted small savings schemes, designed to encourage savings among low- and middle-income groups while offering tax benefits under Section 80C of the Income Tax Act. Any Indian resident individual can invest in NSC at any post office across India. NRIs and Hindu Undivided Families (HUFs) are not eligible. NSC can be purchased by adults for themselves or on behalf of a minor, and jointly by two adults. The minimum investment is ₹1,000 with no maximum limit. The certificates are issued for a fixed tenure of 5 years. Unlike many savings instruments, interest is not paid out annually — it is compounded annually but paid only at maturity, which makes NSC suitable for long-term wealth accumulation rather than regular income needs. Premature encashment is generally not allowed except in case of the holder’s death or forfeiture by a pledgee. The current interest rate on NSC is 7.7% per annum (as of 2024), compounded annually but payable at maturity. The investment in NSC qualifies for deduction under Section 80C up to ₹1.5 lakh per year. Additionally, the interest accrued each year (except the final year) is deemed to be reinvested and also qualifies for Section 80C deduction — offering a compounding tax benefit over 5 years. NSC can be used as collateral to avail loans from banks. TDS is not deducted on NSC interest, but the maturity interest (of the final year) is taxable as per the individual’s income tax slab. NSC certificates can be transferred from one post office to another and are nominate-able — making them a simple, government-guaranteed, tax-efficient savings tool.
NPS (National Pension System)
NPS is a voluntary, long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). Contributions are invested in a mix of equity, government bonds, and corporate debt based on the subscriber’s choice. NPS offers additional tax benefit of ₹50,000 under Section 80CCD(1B) over and above 80C limit.
Nps Calculator →NSC (National Savings Certificate)
NSC is a fixed-income investment scheme offered by India Post with a 5-year tenure. The current interest rate is 7.7% per annum (compounded annually, paid at maturity). Investment up to ₹1.5 lakh qualifies for deduction under Section 80C. Interest earned (except final year) is deemed to be reinvested and qualifies for 80C each year.
PM Kisan Samman Nidhi
PM Kisan Samman Nidhi (PM-KISAN) is a Central Sector scheme launched by the Government of India on 24 February 2019 to provide income support to all landholding farmer families in the country. The scheme is implemented by the Ministry of Agriculture and Farmers’ Welfare and is designed to supplement the financial needs of farmers for procuring agricultural inputs and domestic requirements. Under the scheme, eligible farmer families receive direct income support of ₹6,000 per year, paid in three equal instalments of ₹2,000 every four months. The amount is directly transferred to the beneficiary’s bank account through Direct Benefit Transfer (DBT). All landholding farmer families with cultivable land are eligible, regardless of the size of the land holding. However, certain exclusions apply — farmers who are current or former holders of constitutional posts, serving or retired officers of state/central government, professionals like doctors, engineers, and lawyers, and income tax payees are not eligible. Institutional land holders are also excluded. Farmers must register on the PM-KISAN portal (pmkisan.gov.in) using their Aadhaar number, land records, and bank account details. State governments are responsible for identifying eligible beneficiaries and uploading their data on the portal. The scheme undergoes annual verification through Aadhaar seeding and land records. As of 2024, over 11 crore farmers are registered, and cumulative transfers exceed ₹2.81 lakh crore. The scheme does not have a direct tax implication — the ₹6,000 received is considered agricultural income for small and marginal farmers and is generally exempt from income tax under Section 10(1) of the Income Tax Act. PM-KISAN is one of the world’s largest Direct Benefit Transfer programmes and is regulated by the Agricultural Ministry with NPCI facilitating the payment infrastructure.
PM-KISAN
PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) is the central government’s direct income support scheme for farmers, providing ₹6,000 per year (paid in 3 instalments of ₹2,000 each) directly to the bank accounts of landholding farmer families across India. Launched in February 2019, PM-KISAN is India’s largest direct benefit transfer (DBT) scheme by number of beneficiaries — approximately 11 crore farmer families as of 2025, with annual outgo of ₹66,000+ crore from the central government budget. Eligibility: landholding farmer families across India (state government identifies beneficiaries using land records). Exclusions: former/current holders of constitutional posts, serving/retired officers of central/state government, income tax assessees, professionals (doctors, engineers, lawyers, CAs). The exclusion criteria are broad — intended to target genuine small and marginal farmers. Aadhaar-seeded bank accounts are mandatory for benefit receipt; PM-KISAN beneficiary status can be checked and updated via the PM-KISAN portal or UMANG app. State top-ups: several state governments supplement PM-KISAN with additional amounts — Telangana’s Rythu Bandhu (₹10,000/acre/year — one of India’s most generous farm income support schemes), Odisha’s KALIA, Karnataka’s Raitha Siri. Combined central + state transfers for small farmers in some states: ₹15,000-25,000/year — a meaningful supplement to agricultural income in years of poor rainfall or low commodity prices.
PMJDY (PM Jan Dhan Yojana)
Launched in August 2014, PMJDY aims to provide universal access to banking services. Key features: zero-balance savings accounts, free RuPay debit card, ₹2 lakh accidental insurance, ₹30,000 life insurance (eligible accounts), ₹10,000 overdraft facility, and Aadhaar-linked direct benefit transfers. By 2024, 52+ crore PMJDY accounts were opened.
PMJJBY (PM Jeevan Jyoti Bima Yojana)
PMJJBY is a government-sponsored term life insurance scheme for savings account holders aged 18–50. Annual premium is ₹436 (revised 2022) — auto-debited from savings account. Coverage: ₹2 lakh on death from any cause (accidental or natural) during the policy year. Enrollment is through the bank where the insured holds a savings account.
PMSBY (PM Suraksha Bima Yojana)
PMSBY is a government-sponsored accidental death and disability insurance scheme for savings account holders aged 18–70. Annual premium is only ₹20 (Rs. 20!) — deducted automatically from savings account. Coverage: ₹2 lakh for accidental death or permanent total disability; ₹1 lakh for permanent partial disability. One of the best value insurance products available.
Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS), also known as the Post Office MIS, is a government-backed monthly income scheme offered through India Post. It is a fixed-return savings instrument designed primarily to provide a regular monthly income to investors who want a safe, predictable cash flow from their savings. The scheme is particularly popular among retirees, homemakers, and conservative investors. Any Indian resident individual can open a POMIS account at any post office. It can be opened as a single account or jointly with up to three adults. For a single account, the maximum investment limit is ₹9 lakh, and for a joint account, the limit is ₹15 lakh. The minimum deposit amount is ₹1,000. The scheme has a tenure of 5 years. The interest is credited to the depositor’s linked post office savings account on the first of every month, providing a steady cash inflow. If the interest is not withdrawn, it does not compound — it accumulates in the savings account without earning additional MIS interest, though the savings account itself earns 4% per annum. The current interest rate on POMIS is 7.4% per annum (as of 2024). Premature closure is permitted after 1 year — with a deduction of 2% of the principal if closed between 1-3 years, and 1% deduction if closed between 3-5 years. There is no TDS on POMIS interest, but the interest received is fully taxable as per the depositor’s income tax slab. There is no Section 80C benefit on POMIS deposits. The scheme is regulated by the Ministry of Finance and backed by the Government of India’s sovereign guarantee, making it completely risk-free. It is especially suitable for those who do not need a lump sum but require reliable monthly income.
PPF (Public Provident Fund)
PPF is a long-term government-backed savings scheme with a 15-year lock-in period (extendable in 5-year blocks). It offers a government-declared interest rate (currently 7.1% per annum, compounded annually). Contributions of ₹500–₹1.5 lakh/year are EEE (Exempt-Exempt-Exempt) — fully tax-free at all three stages.
Ppf Calculator →Pradhan Mantri Jan Dhan Yojana (PMJDY)
PMJDY (Pradhan Mantri Jan Dhan Yojana) is India’s flagship financial inclusion initiative, launched on August 28, 2014. Its objective: ensure every Indian household has access to at least one basic banking account, enabling them to receive government benefits directly (eliminating middlemen leakages) and build savings habits. By 2025, 54+ crore PMJDY accounts have been opened — the world’s largest financial inclusion initiative in history. PMJDY account features: zero minimum balance (no penalty for zero balance); free RuPay debit card with ₹2 lakh accidental death insurance cover; ₹10,000 overdraft facility (for accounts operational for 6+ months); access to Aadhaar-linked direct benefit transfers (LPG subsidy, PM-KISAN, MGNREGA wages); and life insurance cover (₹30,000 — available for accounts opened before August 26, 2018). PMJDY is linked to Jan Suraksha Yojanas: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY — ₹2 lakh life cover at ₹436/year) and Pradhan Mantri Suraksha Bima Yojana (PMSBY — ₹2 lakh accidental disability/death cover at ₹20/year). DBT (Direct Benefit Transfer) via PMJDY: government subsidies and scheme benefits transferred directly to beneficiary bank accounts, eliminating leakage through intermediaries. DBT amount transferred via PMJDY-linked accounts: ₹35+ lakh crore cumulatively since 2014 (covering MGNREGA, PM-KISAN, LPG subsidy, scholarship, pension, and COVID-19 relief). This eliminates the estimated 30-40% leakage that characterised the pre-DBT era of physical vouchers and middlemen payments.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is a pension scheme for senior citizens (60+) offering guaranteed 7.4% p.a. pension for 10 years on a lump sum investment. Maximum investment: ₹15 lakh. Administered by LIC of India. Maturity: lump sum returned to investor.
Production Linked Incentive (PLI) Scheme
The Production Linked Incentive (PLI) Scheme is a major Government of India initiative announced in 2020 to boost domestic manufacturing and attract both global and domestic investments across key sectors. The scheme is administered by the Ministry of Finance and respective sectoral ministries and offers financial incentives to manufacturers based on incremental sales from products manufactured in India over a base year. PLI schemes have been introduced for 14 key sectors: mobile phones and electronic components, pharmaceuticals, medical devices, automobiles and auto components, advanced chemistry cell (ACC) batteries, textile products (MMF apparel and technical textiles), food processing, telecom and networking products, white goods (ACs and LED lights), specialty steel, solar PV modules, and animation, visual effects, gaming and comics (AVGC). The total financial outlay across all 14 sectors is approximately ₹1.97 lakh crore over 5 years. Incentives range from 1% to 20% of incremental sales depending on the sector — for example, 4-6% for mobile phones and 5-10% for pharmaceuticals. Companies must meet minimum investment thresholds and incremental sales targets to qualify for PLI benefits in each year. Applications are evaluated by respective line ministries, and incentives are disbursed annually after verification of sales data against the base year. The PLI scheme aims to add ₹5.35 lakh crore in manufacturing output over 5 years, create over 60 lakh jobs, and improve India’s export competitiveness in high-value sectors. It is regulated and monitored by the DPIIT and respective sectoral ministries with annual performance evaluations. The scheme is designed to reduce India’s import dependence, particularly in electronics, specialty chemicals, and strategic manufacturing sectors.
Provident Fund (PF)
Provident Fund is a government-mandated retirement savings contribution made by both employee and employer. India has several PF variants: EPF (for private sector employees), GPF (for government employees), and PPF (for all). EPF contributions earn tax-exempt interest (currently 8.25%) and build retirement corpus over a working career.
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one of India’s most popular long-term government-backed savings instruments, introduced in 1968 by the National Savings Institute under the Ministry of Finance. It is designed to help individuals build a retirement corpus while enjoying attractive tax benefits under the EEE (Exempt-Exempt-Exempt) regime — meaning contributions are tax-exempt, interest earned is tax-free, and the maturity amount is also fully exempt from tax. Any Indian resident individual can open a PPF account at a post office or designated nationalised bank branches (such as SBI, PNB, Bank of Baroda) or through online banking platforms. NRIs are not eligible to open a new PPF account, though they can continue an existing one until maturity. A minimum deposit of ₹500 per financial year is mandatory to keep the account active, with a maximum annual contribution limit of ₹1.5 lakh. Deposits can be made in a lump sum or in up to 12 instalments per year. The account has a mandatory lock-in period of 15 years, after which it can be extended in blocks of 5 years each. Partial withdrawals are permitted from the 7th financial year onwards, and loans against the PPF balance can be availed from the 3rd to the 6th year. The interest rate on PPF is set by the Government of India on a quarterly basis; as of recent quarters it stands at 7.1% per annum, compounded annually. The scheme is regulated by the Ministry of Finance and backed by the Sovereign guarantee of India, making it virtually risk-free. Section 80C of the Income Tax Act allows a deduction of up to ₹1.5 lakh per year on PPF contributions, making it a cornerstone of tax planning for salaried and self-employed individuals alike.
SCSS (Senior Citizens Savings Scheme)
SCSS is a government-backed savings scheme exclusively for Indians aged 60 and above (55+ for VRS retirees). It offers one of the highest guaranteed interest rates among small savings schemes — currently 8.2% per annum, paid quarterly. Maximum deposit is ₹30 lakh per individual (₹60 lakh for couples). Eligible for 80C deduction.
Scss Calculator →Senior Citizens Savings Scheme (SCSS)
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument exclusively designed for Indian citizens aged 60 years and above, offering one of the highest guaranteed returns among post office savings schemes. It was introduced under the Senior Citizens Savings Scheme Rules, 2004 and is available at all post offices and authorised bank branches across India. Eligibility extends to individuals aged 60 and above, retired civilian employees between 55 and 60 who have received retirement benefits, and retired defence personnel between 50 and 60 years. The account can be opened individually or jointly with a spouse. A minimum deposit of ₹1,000 is required, and the maximum investment limit is ₹30 lakh per individual (increased from ₹15 lakh in Union Budget 2023). The deposit is made as a lump sum, and interest is paid out quarterly — making it an excellent regular income instrument for retirees. The tenure is 5 years, extendable by 3 more years on application. Premature withdrawal is allowed after 1 year with a penalty of 1.5% of the deposit amount if closed between 1-2 years and 1% if closed after 2 years. The current interest rate is 8.2% per annum (as of early 2024), paid quarterly directly to the depositor’s savings account. This makes it one of the most rewarding risk-free investments for senior citizens. Contributions to SCSS qualify for deduction under Section 80C up to ₹1.5 lakh per year. However, the interest earned is fully taxable as per the investor’s income slab, and TDS is deducted if the annual interest exceeds ₹50,000. The scheme is regulated by the Ministry of Finance and offers sovereign-level security, making it the go-to retirement income tool for millions of Indians.
SGB (Sovereign Gold Bond)
SGBs are government securities denominated in grams of gold, issued by RBI on behalf of the Government of India. They offer 2.5% annual interest (semi-annually) plus capital appreciation linked to gold prices. On maturity (8 years), capital gains are completely tax-free. SGBs are the most tax-efficient way to invest in gold in India.
SSY (Sukanya Samriddhi Yojana)
SSY is a government-backed small savings scheme for girl children below 10 years, offering one of the highest guaranteed rates (8.2% currently) with full EEE tax treatment. Parents/guardians can invest ₹250 to ₹1.5 lakh/year. The account matures 21 years from opening (or on marriage after 18). Partial withdrawal allowed after the girl turns 18.
Ssy Calculator →Stand Up India
Stand Up India is a Central Government scheme launched on 5 April 2016 to promote entrepreneurship among women and Scheduled Caste (SC) and Scheduled Tribe (ST) communities. The scheme facilitates bank loans ranging from ₹10 lakh to ₹1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up greenfield enterprises in manufacturing, services, agri-allied activities, or the trading sector. Eligibility is restricted to SC/ST individuals and women borrowers above 18 years of age. For non-individual enterprises (companies or partnerships), at least 51% shareholding and controlling stake must be held by an SC/ST or woman entrepreneur. The enterprise must be a greenfield project — meaning it should be the applicant’s first venture in the relevant sector. The loan can be availed from any Scheduled Commercial Bank branch and covers both term loans and working capital requirements, combined into a composite loan. The repayment tenure is up to 7 years with a maximum moratorium period of 18 months. The scheme operates through the Stand Up India portal (standupmitra.in) and is also channelled through SIDBI and NABARD as facilitators. Borrowers can approach the bank directly, through the portal, or through a lead district manager. Working capital is sanctioned as a cash credit limit or overdraft. Loans up to ₹10 lakh are covered under the Credit Guarantee Fund Scheme for Stand Up India (CGFSI), providing collateral-free credit to eligible borrowers. The interest rate is set at the bank’s lowest applicable rate for that category, subject to a maximum of base rate (MCLR) plus 3% plus tenure premium. Stand Up India is regulated by the Department of Financial Services under the Ministry of Finance and monitored by SIDBI.
Startup India
Startup India is a flagship initiative of the Government of India launched on 16 January 2016 to build a strong ecosystem that promotes innovation and entrepreneurship, supports startups, and creates employment opportunities. It is administered by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, and is implemented through a dedicated Startup India hub and portal (startupindia.gov.in). To be recognised as a startup under the Startup India programme, an entity must be incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership Firm in India. It must be less than 10 years old from the date of incorporation and have an annual turnover not exceeding ₹100 crore in any previous financial year. Additionally, it must be working towards innovation, development, or improvement of products, processes, or services with a scalable business model with high potential for employment generation or wealth creation. DPIIT recognition is obtained by applying online with a brief description of the innovative nature of the business. DPIIT-recognised startups enjoy significant benefits: (a) Tax exemption for 3 consecutive years out of the first 10 years under Section 80-IAC, subject to DPIIT approval; (b) Exemption from tax on investments above Fair Market Value (angel tax exemption) under Section 56(2)(viib); (c) Self-certification compliance for 6 labour laws and 3 environmental laws for 3-5 years; (d) Fast-track patent examination at 80% rebated fees; (e) Access to ₹10,000 crore Fund of Funds for Startups (FFS) through SIDBI; (f) Relaxed public procurement norms (no prior turnover or experience required); (g) Easier winding-up provisions (within 90 days). As of 2024, over 1.17 lakh startups are DPIIT-recognised.
State Development Loans (SDL)
SDLs are state government bonds with maturities typically 10 years. They offer 25–50 bps higher yield than equivalent G-Secs (same sovereign guarantee but smaller market, less liquidity). Included in RBI’s SLR-eligible securities.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched in January 2015 under the Beti Bachao Beti Padhao campaign, specifically designed to ensure the financial security of the girl child in India. It is operated through post offices and authorised bank branches and is supervised by the Ministry of Finance. The scheme can be opened by a parent or legal guardian in the name of a girl child who is below 10 years of age. A family can open a maximum of two SSY accounts (one per girl child), with an exception for twins or triplets. The minimum annual deposit is ₹250 and the maximum is ₹1.5 lakh per year. Deposits must be made for 15 years from the date of account opening. The account matures 21 years from the date of opening or upon the girl’s marriage after she turns 18, whichever is earlier. Partial withdrawal of up to 50% of the balance is allowed once the girl turns 18 or passes Class 10, to fund higher education or marriage expenses. The interest rate on SSY is reviewed quarterly by the government; as of recent quarters it stands at 8.2% per annum, making it one of the highest-yielding government savings instruments. Like PPF, SSY enjoys EEE tax status — contributions qualify for Section 80C deductions up to ₹1.5 lakh per year, interest earned is fully tax-exempt, and the maturity amount is entirely tax-free. The account can be opened at any post office or designated bank (SBI, HDFC, ICICI, Axis, etc.) by submitting the girl’s birth certificate, the guardian’s identity proof, and address proof. The scheme directly addresses the dual challenges of girl child education and marriage expenses, encouraging families to save systematically from birth.
Where these schemes turn into a projection
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