BENCHHMARK

Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)

The Pradhan Mantri Rozgar Protsahan Yojana (PMRPY), the flagship scheme of the Union Government for employment
generation, crossed the milestone of one crore beneficiaries on January 14, 2019.

About Pradhan Mantri Rojgar Protsahan Yojana:

• The scheme “Pradhan Mantri Rojgar Protsahan Yojana” (PMRPY) was announced in the Budget for 2016-17.
• The objective of the scheme is to promote employment generation.

• The scheme is being implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organization (EPFO).

• Under the scheme, Government is paying full employers’ contribution of 12% (towards Employees’ Provident Fund and Employees’ Pension Scheme both), for a period of 3 years in respect of new employees who have been registered with the EPFO on or after 1st April 2016, with salary up to Rs. 15,000 per month.

PMRPY has a dual benefit –

• The employer is incentivised for increasing the employee base in the establishment through payment of EP contribution of 12% of wage, which/otherwise would have been borne by the employer.

• A large number of workers find jobs in such establishments.
• A direct benefit is that these workers have access to social security benefit through Provident Fund, Pension and Death Linked Insurance.

Pradhan Mantri Mudra Yojana (PMMY)

The finance ministry has asked the banks to review all loans sanctioned under the Pradhan Mantri Mudra Yojana (PMMY or
Mudra loan scheme), as the non-performing assets (NPA) have crossed Rs 11,000 crore within three years of the launch of the scheme.

Pradhan Mantri MUDRA Yojana (PMMY) scheme:

1. The PMMY Scheme was launched in April, 2015.
2. PMMY is a scheme to extend collateral free loans by Banks, Non-Bankin Financial Companies (NBFCs) and Micro
3. Finance Institutions (MFIs) to Small/Micro business enterprises and individuals in the non-agricultural sector to enable them to setup or expand their business activities and to generate self-employment.
4. Banks, NBFCs and MFIs can draw refinance under the MUDRA Scheme after becoming member-lending institutions of MUDRA.
5. Mudra Loans are available for non-agricultural activities upto Rs. 10 lakh and activities allied to agriculture such as Dairy, Poultry, Bee Keeping etc, are also covered.
6. Mudra’s unique features include a Mudra Card which permits access to Working Capital through ATMs and Card Machines.

There are three types of loans under PMMY:
o Shishu (up to Rs.50,000).
o Kishore (from Rs.50,001 to Rs.5 lakh).
o Tarun (from Rs.500,001 to Rs 10,00,000)

Gold Monetization Scheme

Reserve Bank of India has allowed central and state governments and entities owned by them to deposit gold under its Gold Monetization Scheme. Furthermore, charitable institutions have also been made eligible to deposit gold with banks to earn interest under the program.

Gold Monetization Scheme was launched in 2015. The basic aim of this scheme is to monetise all the gold which is lying idle with individuals or institutions like banks.

The key features of Gold Monetization scheme are as follows:

• The persons can open Gold Saving Account in designated banks and anyone can deposit physical gold via BIS certified collection, purity testing centres (CPTCs). The minimum amount of gold thus deposited is 30 gms, no upper limit.
• The gold is deposited for short term (1-3 years), medium term (5-7 years) and long term (12-15 years).
• The gold thus collected is sent to refineries and banks have tripartite / bipartite agreements with refineries and CPTCs.
• On maturity, one can get back the cash / physical gold for short term deposits and cash only for long term deposits.
• The scheme allows banks’ customers to deposit their idle gold holdings for a fixed period in return for interest in the range of 2.25 per cent to 2.50 per cent.