ECONOMIC SURVEY 2019-20

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ECONOMIC SURVEY VOL 1

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ECONOMIC SURVEY VOL 2

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ECONOMIC SURVEY STATISTICAL APPENDIX



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NATIONAL STRATEGY FOR FINANCIAL INCLUSION FOR INDIA 2019-2024

Definition of financial inclusion?

            Financial inclusion has been defined as “the process of ensuring access to financial services,

timely and adequate credit for vulnerable groups such as weaker sections and low-income groups

at an affordable cost.

Why financial inclusion?

            Financial inclusion is increasingly being recognized as a key driver of economic growth

and poverty alleviation the world over.

            Access to formal finance can boost job creation, reduce vulnerability to economic shocks and increase investments in human capital. Without adequate access to formal financial services, individuals and firms need to rely on their own limited resources or rely on costly informal sources of finance to meet their financial needs and pursue growth opportunities.

            At a macro level, greater financial inclusion can support sustainable and inclusive socio-economic growth for all.

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            There has been a growing evidence on how financial inclusion has a multiplier effect in  boosting overall economic output, reducing poverty and income inequality at the national level. Financial inclusion of women is particularly important for gender equality and women’s economic empowerment.

            With greater control over their financial lives, women can help themselves and their families to come out of poverty; reduce their risk of falling into poverty; eliminate their exploitation from the informal sector; and increase their ability to fully engage in measurable and productive economic activities.

            An inclusive financial system supports stability, integrity and equitable growth. Therefore,financial exclusion because of several barriers likephysical, socio-cultural and psychological, warrants attention from the policy makers. Some of the key reasons resulting in involuntary exclusion are:

Why financial inclusion strategy?

1)seeks to address the inherent barriers of access to a gamut of financial products and services. 

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2)financial inclusion as a key enabler for achieving sustainable development worldwide by improving the quality of lives of poor and marginalized sections of the society.

3)An inclusive financial system (ably supported through sound financial inclusion policies, focus on financial education and customer protection) is not only pro-growth but also pro-poor with the potential to reduce income inequality and poverty, promote social cohesion and shared economic development.

Status of financial inclusion in India :

            India began its financial inclusion journey as early as in 1956 with the nationalisation of Life Insurance companies. This was followed by nationalisation of banks in 1969 and 1980. The general insurance companies were nationalised in 1972. A review of the status of financial inclusion in India indicates that a host of initiatives have been undertaken over the years in the financial inclusion domain.

            Under PMJDY, 34.01 crore2 accounts have been opened with deposits amounting to ₹89257 crore upto January 30, 2019 within a short span of five years.

            Under Pradhan Mantri Suraksha Bima Yojana (PMSBY) a renewable one- year accidental death cum disability cover of ₹2 lakhs is offered to all subscribing bank account holders in the age group of 18 to 70 years for a premium as low as ₹12/- per annum per subscriber.

            Under APY, a subscriber (in the age group of 18 to 40 years) will receive fixed monthly pension in the range of ₹1,000 to ₹5,000 after completing 60 years of age, depending on the contributions made by the subscriber.

Also various measures that have been undertaken by various stakeholders in strengthening financial inclusion in the country, there are still critical gaps existing in the usage of financial services that require attention of policy makers through necessary co-ordinationand effectivemonitoring. 

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1.     Inadequate Infrastructure: Limited physical infrastructure, limited transport facility, inadequately trained staff etc., in parts of rural hinterland and far flung areas of the Himalayan and North East regions create a barrier to the customer while accessing financial services.

2.     Poor Connectivity: With technology becoming an important enabler to access financial services, certain regions in the country that have poor connectivity tend to be left behind in ensuring access to financial services thereby creating a digital divide. Technology could be the best bridge between the financial service provider and the last mile customer. Fintech companies can be one of the best solutions to address this issue. The key challenge that needs to be resolved would be improving tele and internet connectivity in the rural hinterland and achieving connectivity across the country.

3.     Convenience and Relevance: The protracted and complicated procedures act as a deterrent while on-boarding customers. This difficulty is further increased when the products are not easy to understand, complex and do not meet the requirements of the customers such as those receiving erratic and uncertain cash flows from their occupation.

4.     Socio-Cultural Barriers: Prevalence of certain value system and beliefs in some sections of the population results in lack of favourable attitude towards formal financial services. There are still certain pockets wherein women do not have the freedom and choice to access financial services because of cultural barriers.

5.     Product Usage: While the mission-based approach to financial inclusion has resulted in increasing access to basic financial services including micro insurance and pension, there is a need to increase the usage of these accounts to help customers achieve benefits of relevant financial services and help the service providers to achieve the necessary scale and sustainability. This can be undertaken through increasing economic activities like skill development and livelihood creation, digitising Government transfers by strengthening the digital transactions’ eco-system, enhancing acceptance infrastructure, enhancing financial literacy and having in place a robust customer protection framework.

6.     Payment Infrastructure: Currently, majority of the retail payment products viz., CTS, AEPS, NACH, UPI, IMPS etc. are operated by National Payments Council of India (NPCI), a Section (8) Company promoted by a group of public, private and foreign banks. There is a need to have more market players to promote innovation & competition and to minimize concentration risk in the retail payment system from a financial stability perspective.

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National Strategy for Financial Inclusion for India 2019-2024

            The vision for financial inclusion as, “convenient access to a basket of basic formal financial products and services that should include savings, remittance, credit, government-supported insurance and pension products to small and marginal farmers and low-income households at reasonable cost with adequate protection progressively supplemented by social Cash transfers, besides increasing the access of small and marginal enterprises to formal finance with a greater reliance on technology to cut costs and improve service delivery.

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Pillars of National Strategy for Financial Inclusion for India 2019-2024:

 

Measuring Finacial inclusion :

AP STATE FINANCE COMMISSION

            Article 243I of the Indian Constitution prescribes that the Governor of a State shall, as soon as may be within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992, and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Panchayats and to make recommendations to the Governor as to

1. The principles which should govern
1. The distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds;
2. The determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats;
3. The grants-in-aid to the Panchayats from the Consolidated Fund of the State;
2. The measures needed to improve the financial position of the Panchayats;
3. Any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Panchayats.

            Article 243Y of the Constitution further provides that the Finance Commission constituted under Article 243 I shall make similar recommendation vis-a-vis municipalities.

            The Governor is required to cause every recommendation made by the State Finance Commission together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

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A comparison between central and State finance commissions:

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RBI Recommendations (2009) for strengthening SFCs

1.     Provide a uniform template to the SFCs so that there are not constituted in a casual manner

2.     Incentivise the State Governments to set up a data warehouse for the local bodies.

3.     Set up a central pool of fiscal experts from which the State Governments may select at least one member of SFC.

4.     Provide a time line to the State Governments in link to the release of share in central taxes for making progress in the arena of SFC.

Way Forward:

1.     In line with constitutional requirements, the states should constitute SFCs in a periodic manner

2.     It is important to acknowledge the role of SFCs. It is important to rectify the notion the SFCs are less important the UFC and that local governments are insignificant. The Constitution treats a local government on a par with a State government, especially when it comes to sharing of financial resources.

3.     The information of responsibilities and funds allocated to local bodies should be recorded properly so as to provide reliable data to the SFCs

4.     The composition of SFCs should incorporate representatives from the intellectual civil society/academicians and not solely comprise of bureaucrats

5.     To make India a sustainable and inclusive country, it is important that the UFC reduce inter-state disparity and then only SFCs can reduce intra-state disparity by using horizontal distribution criteria

6.     It is an urgent need to strengthen the SFCs to promote cooperative federalism and strengthen participatory democracy.

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YSR RYTHU BHAROSA

            The farmers in the most Indian states do not have the budgetary reinforcement that is essential for gathering the trimming prerequisites. The general GDP of the country and the particular states rely upon the rural yield. In this line, the AP government propelled the YSR Rythu Bharosa Scheme for the monetary assistance to the landless, little and negligible ranchers. The state has long before dispatched this new scheme will build the rural creation and salary of the ranchers. In this article, you will find out about the highlights of the plan and the qualification of the ranchers. Moreover, this article additionally will offer data with respect to the application procedure and fundamental archives for enlistment.

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The launch details

Name of the scheme	YSR Rythu Bharosa Scheme
Launched by	Jagan Mohan Reddy
Launched in	Andhra Pradesh
Date of announcement	June 2019
Date of implementation	15th Oct
Target beneficiaries	Poor farmers who lack financial support
Supervised by	Agriculture Cooperation & Farmers Welfare Department in Andhra Pradesh
Portal	ysrrythubharosa.ap.gov.in
Helpline number	1100, 1902
Total Amount	13,500 /year (for 5 year)

 

Key features of the YSR Rythu Bharosa Scheme AP

·        Monetary assistance to the farmers – The goal of the new plan will guarantee better income for the ranchers. Budgetary helps increment crop development. They can sell these yields in the enrolled markets and win a higher pay.

·        Financial assistance – As per the guidelines of the YSR Rythu Bharosa PM Kisan scheme, it has been decided that 54 lakh farmers will get rupees 13, 500 in three installments. Among these 40 lakh, beneficiaries will get rupees 6000 from the center. To this state government will add rupees 7500. 

·        Installment Details – Moreover, it has been said that rupees 7500 will be given to farmers before the onset of Kharif season. In addition, rupees 4000 will be given at the time of harvesting. Also, the last installment of rupees 2000 will be given during the farmer’s festival of Sankranti. Therefore, rupees 13500 will be given annually and continued for 5 years for improving the financial condition of the farmers. 

·        Mode of payment – The particular money related award will be stored in the financial balance of the recipient once every year.

·        Help for Rabi crop – This year, the plan will be propelled in October. Hence, every chose recipient can use the cash to set up their homestead land and buy seeds for the Rabi editing season.

·        The number of beneficiaries – It has been featured by the state authority that around 50 lakh rural specialists will fall under the qualified class.

·        DBT Facility – For better help and straight forwardness, the financial help will be legitimately moved in the recipient’s enlisted ledger.

·        Free power – It is unimaginable for the ranchers to work their water siphons without power. The state Chief Minister needs to offer capacity to the destitute horticultural specialists at no additional charges.

·        Water supply – Apart from providing power, the state authority will likewise find a way to guarantee that all ranchers have simple access to counterfeit water supply or water system offices.

·        Storeroom for harvests – Poor ranchers need satisfactory yield storage spaces at their homes. The state will offer cutting edge crop stockpiling houses, for these ranchers. These storerooms can dispose of the odds of harvest rot.

·        Estimation of yields by fixing least help – In the event of antagonistic climatic conditions, the state authority will fix the cost of the primary harvests. In this way, no purchaser will have the option to constrain the ranchers to sell the produce at low rates, and exploit these poor people.

·        Facility for farmer’s protection – The plan additionally guarantees the monetary security of the rancher’s family. On the off chance that the recipient meets with a mishap or passes away, the Andhra Pradesh government offers 5 lakhs rupees as a protection inclusion.

·        Premium installment – Another advantage that this plan offers is protection inclusion for the chosen recipients. Be that as it may, the poor farming specialists won’t pay the premium. The Andhra Pradesh government will make the top notch commitment for the recipients.

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Eligibility Criteria for YSR Rythu Bharosa Scheme AP

·        Resident of the state – The candidate must dwell inside the outskirts of Andhra Pradesh lawfully and for all time.

·        The unorganized and marginal farmers and farm labors – The essential recipients of the plan must fall in the minor or little rancher class.

·        Farmers without lands – Under the modified principles, the state has likewise incorporated the sharecroppers to accomplish the monetary help. These rural farmers who do not have their own property, eventually they end up farming on other’s land.

·        Land estimation – The rule features that the homestead plot can’t be more than one section of land. A similar principle applies for ranchers related with sericulture and agriculture.

Not Eligible for YSR Rythu Bharosa Scheme AP

·        Established government or non-government post holders – If the candidate is at present holding or recently held a sacred post, at that point he won’t be permitted to get the advantages of this plan.

·        Individuals from any administering body – All horticultural laborers, what current’s identity is related with any branch of the Gram Panchayat office, can’t get the advantages. Agrarian laborers, who held a seat the Rajya Sabha or Lok Sabha will likewise be restricted from this venture.

·        Representatives or resigned government workers – If the rancher or any individual from his family is or was utilized in any state or central government division, at that point such people will be let well enough alone for the plan.

·        The individual who gets pension every month – In the event that the candidate gets at least 10,000 rupees routinely every month, at that point the state government won’t allow the use of such ranchers.

·        The farmers who pay tax – Some ranchers might be related with different callings too. In the event that the candidate falls under the personal assessment or GST charge class, at that point he will be banned from getting the advantages of this program.

Required documents for application

·        Residential proof of the candidate – It is relevant for all the intrigued ranchers to deliver their private papers. The private archives must be given by the Andhra Pradesh government.

·        Enrollment declaration from the state Framers Association – Only those rural laborers, who have appropriate authentication, given by the AP Farmers Association will be conceded the authorization to get the fiscal advantages.

·        Recognizable proof records – It is basic for the intrigued contender to offer their Aadhar cards for investigation.

·        BPL card – The essential recipient of the plan is those ranchers who live beneath the destitution line. In the event that any intrigued candidate needs to achieve the money related advantages, at that point he should have the BPL authentication.

·        Caste certificate– If the ranchers hail from the calendar standing, plan clan, minority networks or BOC gatherings, at that point the candidates must submit authority testaments, which bolster these cases.

·        Proof of Land registration– Due to the land estimation confinements, referenced in the plan, land owing ranchers need to outfit the cultivating plot enrollment archives, during application.

·        Proof for the land less farmers – If the rancher doesn’t have his own property, and takes a shot at another person’s plot, at that point he should present an authentication that features these subtleties. The endorsement can be procured from the Gram Panchayat Office.

·        Details of bank account – The state government requires the account details of the candidates with the goal that the cash can be transferred effectively. The bank and branch name, account number just as the branch code and IFSC code are required for this.

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How to apply for YSR Rythu Bharosa Scheme AP?

·        Visiting the website- In order to apply for the scheme, the interested candidates need to visit to the AP YSR Rythu Bharosa Scheme Official Portal. After vising the site you need to go to the homepage and then you login to the site.

·        Login process- In order to log in into the account the candidates need to enter the username and password. After that they can apply for the scheme.

·        Filling up the form- After filling up the form, the candidates need to fill up the form along with proper details.

How to Check Payment Status Online for AP YSR Rythu Bharosa Scheme

Soon after the official launch of YSR Rhythu Bharosa scheme, applicants can check payment status. The online facility has been made available for ease of the farmers. The detailed procedure of checking status is given below. 

·        First, applicants have to open the official portal of the scheme. As the link opens, applicants have to click on ‘dashboard’ option present on the homepage. 

·        After this, the applicant will be forwarded to another page where they have to click on the ‘payment status’ option. Now, applicants should click on the option. 

·        Following this, the applicants will be taken to the status checking page where they have to enter Aadhaar card number. It will be given in the blank space given. 

·        Along with Aadhaar card, applicant has to enter Captcha code and then click on the ‘submit’ button. This will immediately display the payment status on the screen. 

Check Name in AP YSR Rythu Bharosa Scheme Beneficiary List

            The Real Time Governance Society has taken up the responsibility of preparing the beneficiary list for the scheme. There are 66, 54,891 farmers who can be the beneficiary of the scheme and as soon as they become the beneficiary of the scheme they will become the beneficiary of the scheme. It is said that around 15 lakhs farmers are getting benefitted from the scheme. On the other hand, there are around 61 lakh people associated with farming are eligible for the scheme. According to the scheme rules, the candidates who will come under the beneficiary list will get the monetary support in two installments.

            The plan will incorporate the greater part of the ruined segments of the rancher networks. The cash can be used by the farming laborers to meet the costs of the trimming season. It will pay off the money related obligation. Furthermore, the plan will likewise assist the agriculturists with bettering their cultivating strategies. It guarantees higher harvest yield that expands the procuring chances to the farmers of the state. AP Government has issued guidelines regarding the YSR Farmers Assurance Scheme. 

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