Initiatives under Financial Inclusion

Key Initiatives under Financial Inclusion:

 Credit Guarantee for MSMEs:

• The revamped Credit Guarantee scheme will take effect from 1st April 2023 through infusion of ` 9,000 crore in the corpus.
• This will enable additional collateral-free guaranteed credit of ` 2 lakh crore.
• The cost of the credit will be reduced by about 1 per cent.
• What is the Credit Guarantee Scheme for Micro and Small Enterprises (CGS)?
• CGS was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. 
• Both the existing and the new enterprises are eligible to be covered under the scheme.
• The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the CGS. 

National Financial Information Registry:

• It will be set up to serve as the central repository of financial and ancillary information.
• This will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability.
• A new legislative framework will govern this credit public infrastructure, and it will be designed in consultation with the RBI.

Data Embassy:

• Government will facilitate setting up of their Data Embassies in GIFT IFSC.
• What is a Data Embassy?
• It refers to server resources owned and maintained by a nation-state outside its territorial boundaries, according to its own laws.
• Gujarat International Finance Tec-City (GIFT):
• GIFT City is an integrated development on 886 acres of land with 62 mn sq. ft. of Built Up area which includes Office spaces, Residential Apartments, Schools, Hospital, Hotels, Clubs, Retail and various Recreational facilities etc.
• It is located on the bank of river Sabarmati connecting the Business capital (Ahmedabad) and Political capital (Gandhinagar) of Gujarat State.
• IFT City consist of a conducive Multi-Service SEZ (Special Economic Zone) and an exclusive Domestic Area.
• India’s first International Financial Services Centre (IFSC) is setup at GIFT City.

Mahila Samman Savings Certificate Scheme:

• This is a one-time scheme and will remain available for a two-year period i.e. up to March 2025.
• The scheme offers deposit facility up to Rs 2 lakh in the name of women or girls for a tenor of 2 years.
• It offers fixed interest rate of 7.5 per cent.
• There are no tax benefits, but partial withdrawal is allowed in this scheme.
• Benefit: It will encourage more women to adopt formal financial saving instruments.

Senior Citizen Savings Scheme (SCSS):

• SCSS was launched in 2004 with the main aim of providing senior citizens in India a regular income after they attain the age of 60 years old.
• Who is eligible?
• Indian citizens above the age of 60 years.
• Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation.
• Retired defence personnel above 50 years and below 60 years of age.
• Maturity: It has a maturity period of five years. But, a depositor can extend one’s maturity period for another three years.
• Premature withdrawal: After one year of opening the account, premature withdrawal is allowed.
• Budget 2023: The maximum deposit limit for SCSS will be enhanced from ` 15 lakh to ` 30 lakh.

 Q1)What is a Data embassy?

Data embassy refers to server resources owned and maintained by a nation-state outside its territorial boundaries, according to its own laws.

Source: Union Budget 2023: Here Are “Saptarshi” – The 7 Priorities Of Union Budget