Important Terms Related to Swabhimaan Scheme

• Financial Inclusion: Financial Inclusion refers to the process of providing access to financial services and products such as banking, credit, insurance, and investment opportunities to all individuals and businesses, especially those who are underserved by the formal financial system.
• Rural areas: Rural areas refer to areas that are located outside of urban cities and towns or metropolitan areas characterized by low population density and typically dependent on agriculture and other primary economic activities.
• National Rural Livelihoods Mission (NRLM): A flagship program launched by the Government of India in 2011, aimed at reducing rural poverty through the promotion of sustainable livelihoods.
• Indian Banks’ Association (IBA): The premier association of banks in India, representing the interests of the banking sector and promoting best practices and innovation.
• Self-Help Groups (SHGs): A group of individuals who come together to save money and provide mutual support, often facilitated by government or non-governmental organizations to promote financial inclusion and entrepreneurship.
• Micro-insurance: Insurance products designed to cater to the needs of low-income households and individuals, often with lower premiums and simplified claims processes.
• Direct Benefit Transfer (DBT): A system introduced by the Government of India to transfer subsidies and other welfare benefits directly to the bank accounts of beneficiaries, aimed at reducing leakages and ensuring transparency.
• Financial Literacy: The ability to understand and make informed decisions about financial matters, including basic financial concepts, products, and services.
• Digital Payments: Payments made through electronic channels such as mobile wallets, internet banking, and point-of-sale machines, aimed at increasing convenience and reducing the use of cash.
• Financial Empowerment: The process of equipping individuals and communities with the knowledge, skills, and resources to make informed financial decisions and take control of their financial lives.

Swabhiman Scheme is a project designed to provide banking services to people who are living in remote rural areas. It was launched on February 10, 2011, by Smt. Sonia Gandhi. The main aim is this scheme of promoting financial inclusion in these underserved regions. The Swabhiman Scheme project is jointly operated by the Ministry of Finance and the Indian Banks’ Association (IBA) to ensure that the rural population has easy access to banking services. The main goal of the Swabhiman Scheme is to make banking services more accessible and convenient to the people living in large rural areas who have been lacking these services for far too long. The scheme has helped to promote entrepreneurship in rural areas and led to the development of robust banking infrastructure in rural areas. This scheme has a significant impact on financial inclusion in India. The Swabhimaan scheme has helped to increase financial literacy and awareness among the population. According to the Reserve Bank of India (RBI), the number of unbanked households in the country fell from 51.4 million in 2011 to 32.5 million in 2017.