Ministry of Finance Government Schemes

By BYJU'S Exam Prep

Updated on: September 13th, 2023

The Ministry of Finance under the Government of India is a very important ministry with the responsibility of the economy of India. In particular, it is responsible for taxation, financial institutions, financial legislation, capital markets, provincial finances, and also the Union Budget. 

The Ministry comprises of the five Departments namely:—

  • Department of Economic Affairs
  • Department of Expenditure
  • Department of Revenue
  • Department of Investment and Public Asset Management
  • Department of Financial Services

In this article, a comprehensive list of all the Government Schemes launched by the Ministry of Finance has been compiled in a to the point manner keeping its usage strictly for the relevance of UPSC exams.

Government Schemes: Ministry of Finance



Few Points to remember


Subscribers will earn a fixed minimum income at the age of 60 years, depending on their contribution.

  • Open to all Indians for 18 to 40 years of age.
  • It focuses primarily on people in an unorganized market.
  • The beneficiaries will not be able to exit the scheme before the age of 60.
  • The same pension amount will be paid to the spouse of the subscriber and in case of the demise of both the subscriber as well as spouse, the accumulated pension will get returned to the nominee.
  • The Central Government shall co-pay 50 percent of the total contribution or Rs. 1000 per year, whichever is lower, to each qualifying subscriber account for five years, which shall join the NPS between 1 June 2015 and 31 December 2015 and which are not members of any statutory social security scheme and which are not income taxpayers.
  • The beneficiary will receive an amount ranging Rs 1000-5000 each month at the age of 60 Years depending on their contributions. 


The scheme provides a one-year life insurance policy, and the scheme is available for each year.

  • Eligibility Criteria: Residents (including NRIs) aged 18 to 50 years.
  • Subject to the annual renewal, the benefits are valid until the age of 55 (admission, however, would not be eligible after the age of 50).
  • It offers compensation of Rs. 2 lakh in case of death for any cause whatsoever. It shall charge an annual premium of Rs. 330.
  • It is administered via LIC and other Indian pvt Life Insurance companies.


Ensure a comprehensive financial inclusion of all households in the country by ensuring universal access to banking facilities with minimum one basic bank account for each family, financial literacy, access to credit, insurance, remittances, and pension facilities.

  • Open an account at any bank branch or business correspondent (Bank Mitr) outlet.
  • It focuses on household coverage as opposed to the previous scheme, which concentrated on village coverage. It focuses on the coverage of both rural and urban areas. Any person over the age of 10 can open the Basic Savings Bank Deposit Account (BSBDA) account.
  • Special Benefits under PMJDY Scheme include:
    • No minimum balance required.
    • The scheme provides life cover of Rs. 30,000/
    • Overdraft facility is Rs 10000 and
    • Accidental insurance for Rupay cardholder has been doubled to Rs 2 Lakh.


Mobilizing gold owned by households and institutions of the country and promoting its use for beneficial purposes

  • The scheme enables banks’ customers to deposit their idle gold reserves for a fixed time in exchange for interest of between 2.25 and 2.50 percent.
  • Recently, RBI made amendments to the system, which could now be used by charitable organizations, the central government, the state government, or any other company owned by the central government or the state government, other than individual and joint depositors.


To strengthen the information technology network for the new GST regime.

  • It is the New Indirect Tax Network (Systems Integration) of the Central Board of Excise and Customs (CBEC).
  • Allow the introduction of the Goods and Services Tax (GST) and fund all existing services in customs, central excise, and service taxes.


Improve access to finance for non-banked, but also the cost of financing from the Last Mile Financiers to micro / small businesses, most of which are in the informal sector.

  • Any Indian citizen who has an income-generating business plan for a non-farm sector, such as manufacturing, shipping, trading, or service sector, and whose credit requirements are less than Rs 10 lakh.
  • The existing approved capital of MUDRA shall be Rs. 5000 crore with a paid-up capital of Rs.1675.93 crore. RBI has allocated a sum of Rs 20,000 crore from the Priority Sector shortfall of Commercial Banks to the development of the Refinance Corpus Fund.


There is one year protected by the Personal Accident Insurance Program, available from year to year, providing insurance against death or injury as a result of an accident.

  • Open to residents (including NRIs) aged 18 to 70 years with a bank account.
  • The premium payable is Rs.12/-per year per member.
  • Liability compensation will be Rs. 2 lakhs for accidental death and permanent complete disability and Rs. 1 lakhs for permanent partial disability


Provide social security during old age and defend elderly people from potential decreases in their interest income due to volatile market conditions.

  • It will have an indexed pension based on a fixed rate of return of 8% for ten years, with the option of opting for a monthly/quarterly/half-yearly and annual pension.
  •  Recently, the union cabinet has approved to increase the investment ceiling from Rs 7.5 lakhs to Rs 15 lakhs as well as to increase the time limit for subscription from 4 May 2018 to 31 March 2020.

Aam Admi Bima Yojana

AABY is a Social Security Scheme which provides Death & Disability cover to citizens between the age of 18 yrs to 59 yrs.

  • Administered through LIC
  • It is a group insurance scheme providing insurance cover
    • Rs 30,000/- on natural death
    • Rs. 75,000/- on death or total permanent disability due to accident
    • Rs. 37,500/- for partial permanent disability due to accident.
  • The total annual premium is Rs. 200/- per beneficiary, of which 50% is contributed from the Social Security Fund created by the Central Govt and maintained by LIC and the balance amount is contributed by the State Govt / Nodal Agency / Individuals.

Varishtha Pension Bima Yojana

A pension scheme for the benefits of citizens of 60 years and above.

  • Subscribers on payment of a lump sum amount get a pension at a guaranteed rate of 9% pa.
  • Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by GoI by way of subsidy payment in the scheme.
  • The scheme allows withdrawals of deposit amount by the annuitant after 15 years of the purchase of the policy.
  • The scheme is administered through LIC.


It aims to encourage entrepreneurship among women and castes and tribes.

  • It facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one female borrower per bank branch to set up a greenfield company. It could be a business in the manufacturing, retail, or trading market.


Reducing demand for physical gold by moving part of the approximate 300 tons of physical bars and coins purchased each year for investment into gold bonds.

  • Sovereign Gold Bonds would be issued for the payment of ropes and denominated in grams(Units of 1 gram) of gold with a maximum investment of 4 kg for individuals and Hindu Undivided Family (HUF) and 20 kg for Trusts, with the minimum being 1grams.
  • The interest rate is fixed at 2.50% p.a with a tenor period of 8 years with exit option from 5th year
  • Interests on gold bonds are taxable.
  • The RBI will issue securities on behalf of the Government of India. The Securities would also have a sovereign guarantee.


Attracting Corporate Social Responsibility (CSR) funds from the Private Sector and donations from individuals and philanthropists to meet the 2019 Clean India (Swachh Bharat) goal.

  • The Kosh will be governed by a Board headed by Secretary, Expenditure Department.

Pradhan Mantri MUDRA Yojana

To provide access to cheap credit for poor and small businesspersons with the aim to provide self-employment.

  • It extends collateral-free loans by Banks, NBFCs and MFIs to Small/Micro business enterprises as well as individuals in the non-agricultural sector.
  • The government set up a new institution named, Micro Units Development &
    Refinance Agency Ltd (MUDRA) for its implementation.
  • Loans to be availed under three categories
    • Shishu: loans up to Rs.50,000
    • Kishor: loans above Rs. 50,000 and up to Rs.5 lakh
    • Tarun: loans above Rs.5 lakh and up to Rs.10 lakh.


To read about other Ministry Schemes for UPSC Click Here

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