Content:

1. Government notifies the expansion of the Credit Guarantee Scheme for Startups (CGSS) to increase capital mobilization for startups
2. Three Jan Suraksha Schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) complete 10 years of providing social security cover

Government notifies the expansion of the Credit Guarantee Scheme for Startups (CGSS) to increase capital mobilization for startups

Objective of the Expansion

• Aims to boost capital mobilization for startups by enhancing credit support.
• Aligns with the vision of an innovation–driven and self–reliant economy (Atmanirbhar Bharat, Viksit Bharat).

Relevance : GS 2(Schemes ,Governance) ,GS 3(Indian Economy)

Key Modifications in the Scheme

• Guarantee cover ceiling per borrower raised from ₹10 crore to ₹20 crore.
• Extent of guarantee cover increased:
  • 85% for loan amounts up to ₹10 crore.
  • 75% for loan amounts above ₹10 crore.
• Annual Guarantee Fee (AGF) for 27 Champion Sectors reduced from 2% to 1% per annum.

Champion Sectors: Focus and Impact

• Identified under the ‘Make in India’ initiative.
• Include key manufacturing and services sectors critical to India’s growth.
• Reduction in AGF makes credit more affordable, promotes innovation, and enhances sector-specific self-reliance.

Implementation & Support Ecosystem

• Scheme applicable to loans from:
  • Scheduled Commercial Banks
  • All India Financial Institutions (AIFIs)
  • Non-Banking Financial Companies (NBFCs)
  • SEBI-registered Alternative Investment Funds (AIFs)
• Facilitates collateral-free debt funding (e.g., working capital, term loans, venture debt).

Broader Significance and Benefits

• Reduces perceived risk for lenders, increasing willingness to fund startups.
• Expands early-stage debt access, enabling R&D, experimentation, and tech innovation.
• Includes operational reforms based on stakeholder consultations to enhance usability and reach.

Background & Evolution

• CGSS was originally launched on 6 October 2022 as part of the Startup India Action Plan (since Jan 2016).
• The Union Budget 2025–26 proposed enhancement of guarantee support in line with startup ecosystem needs.

Expected Outcomes

• Greater participation of financial institutions in startup lending.
• Improved fund flow to startups leading to higher innovation output.
• Support for India’s goal of becoming a global innovation and startup hub.

Three Jan Suraksha Schemes – Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) complete 10 years of providing social security cover

Overview and Vision

• Launched on 9th May 2015 by Prime Minister Narendra Modi with the motto “Securing the Unsecured.”
• Objective: Provide affordable insurance and pension to poor, underserved, and vulnerable sections.
• Key guiding principles: Affordability, accessibility, simplicity, and digital enablement.
• The launch of the Jan Suraksha Portal has digitized enrolments and claims, ensuring faster delivery of benefits.

Relevance : GS 2(Governance, Schemes , Welfare)

Achievements at 10-Year Mark (as on 23rd April 2025)

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Type: Life Insurance
• Coverage: ₹2 lakh on death (any reason)
• Premium: ₹436 per annum (less than ₹2/day)
• Eligibility: 18–50 years, bank/Post office account holder
• Enrolment Window: 1st June to 31st May annually
• Claim Settlement: ₹18,397.92 crore paid for 9,19,896 claims
• Cumulative Enrolments: 23.63 crore
• Women Enrolment: 10.66 crore
• PMJDY-linked Enrolments: 7.08 crore

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

• Type: Accidental Insurance
• Coverage:
  • ₹2 lakh (death/permanent total disability)
  • ₹1 lakh (partial disability)
• Premium: ₹20 per annum (less than ₹2/month)
• Eligibility: 18–70 years, bank/Post office account holder
• Enrolment Window: 1st June to 31st May annually
• Claim Settlement: ₹3,121.02 crore for 1,57,155 claims
• Cumulative Enrolments: 51.06 crore
• Women Enrolment: 23.87 crore
• PMJDY-linked Enrolments: 17.12 crore

Atal Pension Yojana (APY)

• Type: Pension Scheme
• Administered by: PFRDA under NPS architecture
• Eligibility:
  • Age: 18–40 years
  • Must not be an income tax payer
  • Bank account required
• Benefits: Guaranteed monthly pension of ₹1,000 to ₹5,000 after 60 years
• Cumulative Subscribers: 7.66 crore
• Targets workers in the unorganised sector to ensure retirement income security

Impact and Importance

• Total Coverage: Over 82 crore cumulative enrolments across all three schemes.
• Empowerment of Women: Substantial female participation in both PMJJBY and PMSBY.
• Inclusion of Underserved: PMJDY accounts linked for seamless access to benefits.
• Low-Cost Coverage: Nominal premiums ensured mass affordability.

• Digital Progress: Online enrolments and claims have improved ease of access and efficiency.

Conclusion

• The Jan Suraksha schemes mark a major milestone in India’s social security architecture.
• They have helped create a safety net for the poor and vulnerable, especially during uncertainties.
• As India completes 10 years of these schemes, they stand as a testament to inclusive financial protection.