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New Banking Schemes

IBPS PO · Banking Awareness

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Core Concept

Read this first — the foundation of the topic

📋Exam questions often ask

Who launched it? What is the benefit? Who is eligible? FORMULA BLOCK (Key Scheme Details to Remember) PM SVANidhi — Rs. 10,000 / Rs. 20,000 / Rs. 50,000 (loan limit, in 3 stages) — Target: Street Vendors PM Mudra Yojana — Shishu: up to Rs. 50,000 | Kishore: Rs. 50,001 to Rs. 5 lakh | Tarun: Rs. 5 lakh to Rs. 10 lakh PM Jan Dhan Yojana — Overdraft facility: Rs. 10,000 | Launched: 28 August 2014 Stand Up India — Loan range: Rs. 10 lakh to Rs. 1 crore — Target: SC/ST and Women entrepreneurs Kisan Credit Card (KCC) — Credit limit based on crop cycle — covers farming and allied activities EXAM PATTERNS IBPS PO regularly asks: - Name the scheme launched for a specific group (e.g., street vendors, women entrepreneurs) - Identify loan limits under Mudra Yojana categories - Match the scheme with its launching year or ministry - Questions about digital banking schemes like UPI-linked programs or account opening drives SHORTCUT/TRICK Trick 1 — MUDRA Memory Rule: Use 'SKT' — Shishu (Small), Kishore (Kids grow), Tarun (Teen/Big). Loan size grows in this order.

Always remember Shishu = smallest loan. Trick 2 — For Stand Up India vs Start Up India: Stand Up = Banks give loans to SC/ST + Women. Start Up = DPIIT registers businesses. 'Stand Up' = physical support (money), 'Start Up' = recognition support. WORKED EXAMPLE Question: Ramesh is an SC entrepreneur who wants a loan of Rs. 40 lakh to start a business. Which government scheme applies, and from which institution can he get the loan? Step 1 — Identify the beneficiary: Ramesh is SC (Scheduled Caste). This is a key filter. Step 2 — Match with scheme: Stand Up India Scheme targets SC/ST and Women entrepreneurs. Step 3 — Check loan range: Stand Up India provides loans from Rs. 10 lakh to Rs. 1 crore.

Rs. 40 lakh fits within this range. Step 4 — Identify institution: Stand Up India loans are provided through Scheduled Commercial Banks

→Answer

Stand Up India Scheme — from a Scheduled Commercial Bank. COMMON MISTAKE Students confuse PM Mudra Yojana (for small businesses, up to Rs. 10 lakh) with Stand Up India (for SC/ST/Women, Rs. 10 lakh to Rs. 1 crore)

💡Remember

Mudra is for micro units with smaller loans. Stand Up India is for greenfield enterprises with larger loans. Also, do not confuse SVANidhi (street vendors) with Mudra (micro businesses).

🔑 Key Points

PM Jan Dhan Yojana was launched on 28 August 2014 — India's biggest financial inclusion scheme with zero-balance accounts.
PM Mudra Yojana has 3 categories — Shishu (up to Rs. 50,000), Kishore (up to Rs. 5 lakh), Tarun (up to Rs. 10 lakh).
Stand Up India targets SC/ST and Women entrepreneurs — loan range is Rs. 10 lakh to Rs. 1 crore via Scheduled Commercial Banks.
PM SVANidhi Scheme provides collateral-free working capital loans to street vendors — starting at Rs. 10,000.
Kisan Credit Card (KCC) covers crop loans, post-harvest expenses, and allied agricultural activities under a single revolving credit.
PMJDY accounts include a Rs. 10,000 overdraft facility and Rs. 2 lakh accident insurance cover under RuPay card.
Start Up India (launched 16 January 2016) is managed by DPIIT — focuses on registration, tax benefits, and funding support for startups.
NABARD is the apex institution for agricultural and rural development finance — it refinances banks lending to rural sectors.

📌 Exam Facts

PM Jan Dhan Yojana was launched on 28 August 2014 by Prime Minister Narendra Modi.
Under PM Mudra Yojana, the maximum loan under the 'Tarun' category is Rs. 10 lakh.
Stand Up India Scheme was launched on 5 April 2016 — minimum one SC/ST and one woman borrower per bank branch.
PM SVANidhi Scheme was launched on 1 June 2020 to provide loans to street vendors affected by COVID-19.
The overdraft facility under PMJDY was enhanced from Rs. 5,000 to Rs. 10,000 in the 2018 revamp.
Start Up India was launched on 16 January 2016 and is administered by the Department for Promotion of Industry and Internal Trade (DPIIT).
Kisan Credit Card scheme was introduced in 1998-99 based on the recommendations of the R.V. Gupta Committee.
Under PM SVANidhi, a street vendor who repays on time can get an enhanced loan of Rs. 20,000 in the second cycle and Rs. 50,000 in the third cycle.

🚀 60-Second Revision

Remember: MUDRA = Shishu (up to Rs. 50,000) → Kishore (up to Rs. 5 lakh) → Tarun (up to Rs. 10 lakh) — loans for micro/small businesses.
Remember: Stand Up India = SC/ST + Women + Rs. 10 lakh to Rs. 1 crore + Scheduled Commercial Banks + Greenfield enterprises.
Remember: PMJDY launched 28 August 2014 — zero balance account + Rs. 10,000 overdraft + Rs. 2 lakh RuPay accident cover.
Trap: Do NOT confuse SVANidhi (street vendors, starts at Rs. 10,000) with Mudra (micro business owners, starts at Rs. 50,000).
Remember: Start Up India = 16 January 2016 = DPIIT; Stand Up India = 5 April 2016 = Banks giving loans.
Formula: KCC introduced in 1998-99 based on R.V. Gupta Committee — covers crop + post-harvest + allied activity loans.
Trap: Mudra loans do NOT require collateral — this is a key feature that is frequently tested in MCQs.

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