Financial Inclusion for Women
Social Justice & Development
- PYQs7
- Articles1
Background
UPSC frequently examines government initiatives and societal efforts towards women's empowerment, financial inclusion, and the role of vulnerable sections in economic development. This concept highlights policy measures and their impact.
Financial inclusion refers to the accessibility and affordability of financial services for all sections of society, especially vulnerable groups. For women, it is crucial for economic empowerment, asset ownership, and overall socio-economic development, fostering independence and security.
Facts & tables
- Preferential Interest Rates
- Lenders offer 5-10 bps concession on home loan interest rates for women borrowers.
- Reduced Stamp Duty
- Several state governments levy 1-2% lower stamp duty charges for women property owners.
- Income Tax Benefits
- Full applicability of deductions under Sec 80C (principal) and Sec 24(b) (interest) for home loans, claimable individually in joint loans.
- Enhanced Creditworthiness
- Owning property via home loan builds women's credit profile, improving future access to credit and reducing default chances.
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | Social Justice & Development |
| Body | Role |
|---|---|
| Banks/Housing Finance Companies (HFCs) | Provide preferential interest rates and loans |
| State Governments | Offer reduced stamp duty charges |
| Income Tax Department | Administers tax benefits |
| Ministry of Housing and Urban Affairs | Implements pmay, which encourages female ownership |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Factual recall
- Preferential interest rates on home loans for women.
- State-level stamp duty concessions for female property owners.
- Income tax deductions (80C, 24(b)) applicable, enhancing savings.
- PMAY mandates female co-ownership in certain categories.
- Improved creditworthiness and loan approval chances for women.
| Year | Framing tags |
|---|---|
| 2023 | Multi-statement analysis, Factual recall |
| 2023 | Multi-statement analysis, Policy measures |
| 2021 | Factual recall |
| 2019 | Multi-statement analysis, Factual recall |
| 2018 | Multi-statement analysis, Factual recall |
| 2016 | Statement-based questions, Factual recall |
| 2016 | Factual recall, Purpose or function of a policy tool |
Timeline
-
Indian Economy
Conceptual area
-
Social Justice & Development
Conceptual area
-
Prelims 2016
Statement-based questions, Factual recall
-
Prelims 2016
Factual recall, Purpose or function of a policy tool
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2019
Multi-statement analysis, Factual recall
-
Prelims 2021
Factual recall
-
Prelims 2023
Multi-statement analysis, Factual recall
-
Prelims 2023
Multi-statement analysis, Policy measures
-
Home loan benefits for women
Government and financial institutions offer various incentives like lower interest rates, reduced stamp duty, tax benefits, and scheme-specific subsidies to promote women's participation in formal credit and home ownership, thereby boosting their financial inclusion and economic independence.
See also
Past papers
2016–2023 · 5 questions
In the news
Home loan benefits for women
Government and financial institutions offer various incentives like lower interest rates, reduced stamp duty, tax benefits, and scheme-specific subsidies to promote women's participation in formal credit and home ownership, thereby boosting their financial inclusion and economic independence.
Try these PYQs
With reference to the provisions made under the National Food Security Act, 2013 consider the following statements:
1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised grains.
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
3. Pregnant women and lactating mothers are entitled to a take-home ration' of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statements given above is/are correct?
Statement 1 is incorrect: In 2013, NFSA was enacted to provide food security to 67% of the population in the form of highly subsidized food grains at Rs. 2 and 3 per Kg for wheat and rice respectively. Beneficiaries are identified using Socio-economic Caste Census (SECC) methodology so even non-BPL will also benefit. Statement 2 is correct: Under the NFSA, to issue ration cards the eldest woman of a household aged 18 years or above would be considered as head. Hence, this statement is correct. Statement 3 is incorrect: Pregnant women and lactating mothers are entitled to a nutritious take home ration of 600 Calories and a maternity benefit of at least Rs 6,000 for six months, says the official act.
Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?
1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with crèches must allow the mother minimum six crèche visits daily.
3. Women with two children get reduced entitlements.
Select the correct answer using the code given below:
The Maternity Benefit (Amendment) Act 2017 has made several significant changes to benefit women employees - Paid maternity leave has been increased to 26 weeks from 12 weeks. - For women expecting after having 2 children, the leave duration remains at 12 weeks. - Establishments employing 50 or more employees must provide a crche facility, and women employees should be allowed to visit the facility 4 times during the day.
With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?
1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2. It provides for refinancing through SIDBI.
Select the correct answer using the code given below.
Statement 1 is Correct: The Stand-up India scheme aims at promoting entrepreneurship among women and scheduled castes and tribes. Statement 2 is Correct: The scheme is anchored by the Department of Financial Services (DFS), Ministry of Finance, Government of India. - The scheme provides for a refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs, 10,000 Crore. - Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
- This enterprise may be in manufacturing, services or the trading sector.
- In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur. Hence, option C is the correct answer.
Consider the following statements :
1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
2. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
3. The Regional Rural Banks and Scheduled Commercial banks support SHGs.
How many of the above statements are correct?
* Statement 1 is incorrect: NABARD began promoting self-help groups in 1991-1992. And it served as the actual launch pad for the SHG movement. The Reserve Bank of India additionally permitted SHGs to open savings bank accounts in 1993. * Statement 2 is correct: The Banks provide the loan to the Self-Help Group as a whole and it is the collective responsibility of the SHG to repay that loan. Hence all members of a group take responsibility for a loan that an individual member takes. Further, the SHG may decide to not provide any share in further loans to the defaulter member. * Statement 3 is correct: The Financial Inclusion Fund scheme to support Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) for enabling Dual Authentication options in the micro ATMs for SHG transactions is being launched to provide an enabling eco-system for the SHGs to seamlessly operate at Business Correspondent points with the proposed Dual Authentication feature. Thus, it can be said that SCBs and RRBs support the SHGs in availing the credits as per their needs.
Consider the following statements in relation to Janani Suraksha Yojana:
1. It is safe motherhood intervention of the State Health Departments.
2. Its objective is to reduce maternal and neonatal mortality among poor pregnant women.
3. It aims to promote institutional delivery among poor pregnant women.
4. Its objective includes providing public health facilities to sick infants up to one year of age.
How many of the statements given above are correct?
Statement 1 is incorrect: Janani Suraksha Yojana (JSY) is a 100% Centrally Sponsored Scheme under the National Health Mission (NHM). It is a central intervention implemented by states, not an intervention of the State Health Departments. Statement 2 is correct: The primary objective is to reduce maternal and neonatal mortality by encouraging safe, institutional births. Statement 3 is correct: The scheme provides a cash incentive to mothers to promote institutional delivery, particularly among those from BPL, SC, and ST households. Statement 4 is incorrect: While care for sick infants is a priority under the National Health Mission, the provision of free facilities for sick infants up to one year of age is specifically a feature of the Janani Shishu Suraksha Karyakram (JSSK) launched in 2011. JSY, launched in 2005, is primarily a conditional cash transfer scheme for delivery.
Show 2 more PYQs
Who among the following was associated as Secretary with Hindu Female School which later came to be known as Bethune Female School?
Ishwar Chandra Vidyasagar - He was associated as Secretary with Hindu Female School which later came to be known as Bethune Female School. As the secretary of the Bethune School established in 1849, Ishwar Chandra Vidyasagar did important work in the field of higher education for women in India. - Ishwar Chandra Vidyasagar's most significant contribution was his advocacy for widow remarriage and girls' education, leading to the enactment of the Hindu Widow Remarriage Act of 1856. Annie Besant: - In September 1916, Annie Besant along with Bal Gangadhar Tilak established the All-India Home Rule League. - In 1917, Annie Besant was elected the President of the Indian National Congress (INC) Calcutta session, becoming the first woman to hold this position. - In 1898, she founded the Central Hindu College in Benares. Theosophists from abroad assisted in this effort, and the institution eventually became the foundation for Banaras Hindu University. - She also established the Central Hindu School for Girls in Varanasi, advancing female education in India. Debendranath Tagore: - He founded the Tattvabodhini Sabha and Adi Brahmo Samaj. Sarojini Naidu: - In recognition of her service during the plague epidemic in India, the British government honored her with the ‘Kaisar-i-Hind’ Medal.
- In 1925, she became the first Indian woman to be elected president of the Indian National Congress (INC) during its Kanpur Session and held the position until 1928. - In 1930, Mahatma Gandhi chose her to lead the Salt Satyagraha, a nonviolent protest against the British monopoly on salt production. - She also accompanied Gandhi to London for the second session of the Round Table Conference in 1931, which ultimately remained inconclusive.
Pradhan Mantri MUDRA Yojana is aimed at -
Pradhan Mantri MUDRA Yojana (PMMY) is aimed at providing affordable credit to micro and small enterprises (MSEs) in the non-farm sector. Here's a breakdown of its key objectives - Financial Inclusion: MUDRA helps bring unbanked or underserved entrepreneurs into the formal financial system, enabling them to access loans from banks and other financial institutions.
- Loan Products: The scheme offers a range of loan products categorized under three categories based on loan amount Shishu (up to Rs. 50,000), Kishore (above Rs. 50,000 up to Rs. 5 lakh), and Tarun (above Rs. 5 lakh up to Rs. 10 lakh).
- Focus on Non-Farm Sector: MUDRA loans cater to income-generating micro enterprises engaged in manufacturing, trading, or service activities. - Activities allied to agriculture, like poultry, dairy, and beekeeping, are also included. Hence, option A is the correct answer.