Other Schemes under Ministry of Finance

Sovereign Gold Bond Scheme (SGB)

• Nature: Government securities denominated in grams of gold (alternative to holding physical gold).
• Issuer: Reserve Bank of India (on behalf of the Government of India).
• Eligibility: Resident individuals, HUFs, trusts, universities, charitable institutions.
• Tenure: 8 years, with early redemption allowed after 5 years (on coupon payment dates).
• Interest: 2.5% per annum (semi-annual payout).
• Tax Treatment:
  • Interest earned is taxable.
  • But capital gains tax on redemption of SGB by individuals is exempt.
• Investment Limits (per fiscal year):
  • Minimum: 1 gram.
  • Maximum: 4 kg (individuals & HUFs), 20 kg (trusts & similar entities).
• Authorized Agencies: Nationalised Banks, Scheduled Private Banks, Foreign Banks, designated Post Offices, SHCIL.

👉 Significance: Provides a safe investment in gold, reduces reliance on physical gold, and helps control India’s gold imports.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Type: Central Sector Scheme (life insurance).
• Eligibility: Citizens (18–50 years).
• Coverage: ₹2 lakh term insurance (death due to any reason, after 45 days of enrollment).
• Premium: ₹436 per annum.
• Implementing Agencies: LIC + other life insurers.

👉 Aimed at providing low-cost life insurance to the poor and vulnerable.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

• Type: Central Sector Scheme (accident insurance).
• Eligibility: Citizens (18–70 years).
• Coverage:
  • ₹2 lakh for accidental death or full disability.
  • ₹1 lakh for partial permanent disability.
• Premium: ₹20 per annum.
• Implementing Agencies: Public Sector General Insurance Companies (PSGICs) + other general insurers.

👉 Extremely low premium scheme ensuring accident and disability cover for the working population.

Atal Pension Yojana (APY)

• Type: Central Sector Scheme.
• Implementing Agency: PFRDA (under NPS framework).
• Eligibility: Open to all bank account holders (18–40 years).
• Benefits: Guaranteed minimum pension of ₹1,000–₹5,000 per month (post 60 years), depending on contributions.
• Voluntary Exit: Allowed with conditions.
• Death Benefits:
  • If subscriber dies before 60 → Spouse can continue.
  • After 60 → Pension continues to spouse.
  • If spouse also dies → Corpus goes to nominee.

👉 Provides a social security net for unorganized sector workers.

Mahila Samman Savings Certificate (MSSC)

• Announced: Union Budget 2023–24.
• Objective: Promote financial inclusion and empowerment of women.
• Key Features:
  • Tenure: 2 years (valid till 2025).
  • Interest: 7.5% per annum (compounded quarterly).
  • Maximum Withdrawal: 40% of eligible balance after 1 year.
  • Minimum Investment: ₹1,000 (multiples of ₹100).
  • Maximum Investment: ₹2 lakh.

👉 A targeted small savings scheme for women, combining safety, decent returns, and liquidity.

Atmanirbhar Bharat Rojgar Yojana (ABRY)

• Aim: Reduce employers’ financial burden and encourage them to hire more workers.
• Implementing Agency: EPFO (Employees’ Provident Fund Organisation).
• Applicability:
  • Establishments registered with EPFO.
  • New employees earning < ₹15,000/month (hired Oct 2020–June 2021).
  • Covers employees who lost jobs between March–Sept 2020.
• Incentive: Government pays PF contributions for two years:
  • Employee’s share (12% of wages).
  • Employer’s share (12% of wages).

👉 Part of post-COVID employment revival measures under Atmanirbhar Bharat package.

Viability Gap Funding (VGF) Scheme

• Purpose: To make Public–Private Partnership (PPP) projects commercially viable by providing financial grants.
• Tenure: Till 2024–25.
• Form of Support: One-time or deferred financial support by the Government.

Sub-Scheme 1 (Social Sector Projects)

• Applicable to: Water treatment, supply, waste management, health, education.
• Operational Cost Recovery: 100%.
• Support:
  • Central Government: Up to 30% of total project cost.
  • State/Ministry: Additional 30% of project cost.

Sub-Scheme 2 (Demonstration/Pilot Projects in Health & Education)

• Operational Cost Recovery: Minimum 50%.
• Support:
  • Up to 80% of Capital Expenditure (Centre + State).
  • Up to 50% O&M costs (first 5 years).
  • Central Govt share: Up to 40% of total cost.
  • Additional: Up to 25% of O&M costs.

👉 This scheme bridges the financial gap for PPP projects in critical social infrastructure.

Special Assistance to States for Capital Investment

• Announced: Union Budget 2023–24.
• Nature: 50-year interest-free loans to states.
• Total Outlay: ₹1.3 lakh crore for FY 2023–24.
• Objective: Support states for infrastructure and capital investment.

Key Features

• First instituted in 2020–21 (COVID-19 context).
• Has 8 components, including:
  • Financing reforms in Urban Local Bodies (ULBs).
  • Housing for police personnel.
  • Digital libraries at Panchayat/Ward level.
  • Incentive for scrapping old vehicles.
  • Urban planning reforms.
  • Construction of Unity Malls.

SWAMIH Fund (Special Window for Affordable and Mid-Income Housing)

• Launched: 2019.
• Type: Social impact fund to complete stressed and stalled housing projects.
• Implementing Agency: Managed by SBICAP Ventures Ltd., sponsored by Ministry of Finance.
• Support: Provides priority debt financing for completion of RERA-registered residential projects.

👉 Example: Bengaluru’s first project under SWAMIH provided homes to nearly 3,000 families.

e-Appeals Scheme (2023)

• Announced by: Central Board of Direct Taxes (CBDT).
• Purpose: To reduce pendency of income tax appeals at the level of Commissioners.

Features

• Aggrieved assessee can appeal against certain orders below Joint Commissioner (Appeals).
• No need for physical appearance—can be done via video conferencing.
• Option for personal hearing on request.

Dispute Resolution Scheme (e-DRS), 2022

• Purpose: To reduce litigation and provide speedy relief in small tax disputes.

Eligibility

• Aggregate variations ≤ ₹10 lakh.
• Returned income ≤ ₹50 lakh.
• Not applicable to cases arising from searches/surveys.

Benefits

• Faster resolution (within 6 months).
• Waiver/reduction of penalties and prosecution.

Process

• Applications filed via e-filing portal (Form 34BC).
• Filing deadline: Within 1 month of receiving specified order.