PMJDY: Pradhan Mantri Jandhan Yojna (PMJDY) is a financial inclusion scheme intended to provide banking service for every citizen of India. It was launched on 28th August of 2014. Aadhar card is sufficient to open account with no minimum balance under PMJDY. PMJDY provides 1 Lakh accidental cover and Rs.5,000 as overdraft facility to the account holder. This bank account can also be used to receive all government subsidiaries through direct benefit transfer (DBT).
Timeline of Banking: In 1969, 14 banks were nationalised. Similarly in 1980 6 more banks were nationalised. By 1980, almost the entire banking sector is dominated by public sector banks.In 1993 RBI invited private companies for applying bank license and it gave bank licenses to 10 private banks. Similarly in 2001 RBI invited private companies for applying bank license and it gave bank licenses to 2 private banks (Kotak Mahindra and Yes bank) in 2003. Again in 2013 RBI invited private companies for applying bank license and 25 companies applied while RBI gave approval to only 2 private companies named IDFC and Bandhan to open bank within 18 months.
FDI: FDI limit for various sectors has been increased by Modi government in recent times. 100% FDI is allowed in construction of new airports, Helicopter and seaplane services and modernization of Railways. 49% FDI is allowed in Defence and Insurance sector.
Fast Facts: Govt closes 6 PSU named Hindustan Photo Films, HMT Bearings, HMT Watches, HMT Chinar Watches Ltd, Tungabhadra Steel Products, and Hindustan Cables this year as this PSU are in loss over long period. India overtakes Japan and ranks no 3 in terms of Purchasing Power Parity. Similarly China overtakes USA and ranks no 1 in terms of Purchasing Power Parity. Asian Infrastructure Investment bank(AIIB) is proposed by China to provide infrastructure investments in the Asia pacific region. Black Money in India is estimated to be 75% of GDP.