Financial inclusion and social security in India

Abstract

Mr. Narendra Modi, the prime minister of India, recently introduced three new social security schemes to ensure insurance and pension for everyone. This has been a highly appreciated step and a powerful attempt to incorporate every individual in the financial system of our country. These schemes were launched on 9th, May, 2015 and has claimed to enhance the welfare of the citizens, especially the unorganized sector workers. The schemes are Pradhan Mantri Suraksha Bima Yojna, an accident insurance scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, a life insurance scheme and Atal Pension Yojana, a pension scheme with defined benefit. This project aims at analyzing these three schemes in detail. It tries to understand the evolution and the nature of some of the social security schemes by comparing the old schemes to the three new ones. It primarily tries to analyze whether these schemes are really needed, or are they just a remodeled form of the already present old schemes. It also brings forward the gaps and drawbacks in these three schemes and suggests some recommendations to support these schemes and have a greater impact. In addition, the project brings in a fresh idea of “sustainability allowance” for the farmers unable to repay their loans because of natural calamity leading to loss of crop for the year.