Financial planning can look different at every stage of life, from managing day-to-day expenses and building an emergency cushion, to protecting family members and preparing for retirement. While people may use different financial products depending on their needs, government-backed schemes also offer options across banking, insurance, savings, pensions and other areas of personal finance.
Says Madhupam Krishna, a Securities and Exchange Board of India - registered investment advisor (Sebi RIA) and chief planner, WealthWisher Financial Planner and Advisors, “Government initiatives are designed not merely to provide financial assistance, but to build a stronger foundation for household financial stability, particularly for low-income families, rural communities, women, senior citizens and other underserved groups.”
Here are some key government-backed schemes covering banking, insurance, savings and retirement planning every individual should be aware of.
Pradhan Mantri Jan-Dhan Yojana
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme that provides access to basic bank accounts and essential financial services. It was introduced in 2014, and helps people to save money securely, receive government benefits directly, and access services.
Adds Krishna, “PMJDY creates the financial foundation by helping people access savings, deposits, remittances, credit, insurance, pensions and government benefits through the formal financial system.”
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a government-backed long-term savings scheme that offers 7.10 per cent annual deposit rate. Investors can deposit a minimum of Rs 500 and up to Rs 1.50 lakh every year. It has a 15-year lock-in period and can be extended in blocks of five years, with withdrawal and other conditions subject to scheme rules.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the financial future of a girl child. It was introduced in 2015 and currently offers 8.20 per cent per annum with annual deposits ranging from Rs 250 to Rs 1.50 lakh. The account matures after 21 years and helps families save for education and other long-term needs.
Pradhan Mantri Suraksha Bima Yojana
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a government-backed accident insurance scheme launched in 2015. For an annual premium of Rs 20, eligible subscribers aged 18-70 can get a cover of Rs 2 for accidental death or total disability and Rs 1 lakh for specified partial disability, which provides financial protection against accident-related risks.
Krishna adds, “PMSBY can provide a financial cushion to the insured person or family, helping them manage immediate obligations, such as household expenses, education costs, loan repayments, and essential treatment.”
Pradhan Mantri Jeevan Jyoti Bima Yojana
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed term life insurance scheme launched in May 2015. It provides a cover of Rs 2 lakh cover for death due to any cause at an annual premium of Rs 436. Individuals aged 18-50 years can enrol with a bank or post-office, thereby helping provide financial support to families after the subscriber’s death.
National Pension System
The National Pension System (NPS) is a government-regulated retirement savings scheme introduced in 2004. It was opened to all Indian citizens on a voluntary basis in 2009. Subscribers make regular contributions that are invested in market-linked funds to support them in building a retirement corpus as well as plan for income after their working years.
Atal Pension Yojana
The Atal Pension Yojana (APY) is a government-backed pension scheme launched in May 2015 to provide old-age income security, particularly to workers in the unorganised sector. Eligible subscribers aged 18-40 years can choose a guaranteed monthly pension of Rs 1,000-5,000 after turning 60, based on their contributions.
Senior Citizens’ Savings Scheme
The Senior Citizens’ Savings Scheme (SCSS) is a government-backed savings option introduced in 2004 for senior citizens. It currently offers a deposit rate of 8.20 per cent per annum, with a five-year tenure that can be extended, subject to scheme rules. The scheme helps senior citizens generate regular income from their savings during retirement.
According to Krishna, these schemes do not eliminate every financial risk, but they make financial protection more accessible, affordable and systematic. However, they should be considered part of a broader financial plan rather than a complete solution. “The combined effect is greater than the benefit of any one scheme in isolation,” he fruther says.
