Public and Private banks attracting the population to Invest

Public and Private banks

Public and Private banks attracting the population to Invest

The Indian banking system is a way for people to keep their money safe and secure. This is done by providing loans at good prices and offering trustworthy remittance services. This is how people can keep and not spend their money. They also put their money in things like government securities and long-term bonds.

So, the Government has taken initiative to include the majority of the public in the mainstream Indian Banking system. Some initiative taken by the government to further this cause are:

  1. Pradhan Mantri Jan Dhan Yojana (PMJDY) The plan wants everyone to have access to banking services, including a basic bank account for each household. It also aims to educate people about finances, give them access to loans, insurance, and retirement benefits. Moreover, the recipients will receive a RuPay debit card with built-in accident insurance cover of 1 lakh rupees.
  2. PMJJBY provides life insurance coverage for one year that can be renewed. The coverage amount is Rs. Each subscribing bank account holder between the ages of 18-50 will receive 2 lakhs if they die for any reason. They will need to pay a premium of Rs. to avail this benefit. The cost is 330 rupees per year per subscriber, and it will be automatically taken from the subscriber’s bank account.
  3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Life insurance policy worth Rs. 200,000 rupees in the event of death for any cause for a fee of Rs. The cost is 436 dollars per year. You can join the scheme by going to the bank or post office where you have an account, or by visiting their website.
  4. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a scheme in India that provides accident insurance and is supported by the government. This was first talked about in the 2015 Budget speech given by Finance Minister Arun Jaitley in February 2015. The Prime Minister Narendra Modi officially started it on 8 May in Kolkata.
  5. Atal Pension Yojana (APY) is a pension plan for people in India who work in the unorganized sector. The APY ensures that you will receive at least Rs. (amount) as your pension. At the age of 60, subscribers will receive either 1,000/-, 2,000/-, 3,000/-, 4,000/- or 5,000/- per month depending on how much they have contributed.
  6. Pradhan Mantri Mudra Yojana is an important scheme of the Indian government. The program helps people get small loans of up to Rs. 10 lakh refers to a large number of small businesses that make money in industries like manufacturing, processing, trading, or providing services.
  7. Stand Up India Scheme helps people who have not had access to financial help before, like SC, ST, and women entrepreneurs, by using banks to give them loans. This way, they can take part in the country’s economic growth.
  8. Pradhan Mantri Vaya Vandana Yojana is a Pension Scheme made specifically for senior citizens who are 60 years old or more. The highest amount that a senior citizen can invest in this scheme is 15 lakh rupees. You can buy the scheme by paying a one-time lump sum amount called the Purchase Price.
  9. EPF (Employees’ Provident Fund) is a plan that helps provide retirement benefits. It is offered by the Employees’ Provident Fund Organization (EPFO). The EPFO establishment search helps people find information about EPFO offices in India. People can get information about EPF regional and sub-regional offices, including their addresses, contact details, and jurisdiction areas, by going to the official EPFO website or calling the helpline.

Private sector banks are banks that are owned and run by people or companies, not the government. These banks work to earn money for the people who own them. Private sector banks are important in the banking sector because they provide various banking and financial services. They compete with government-owned banks and other private banks. Some private banks in India are ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank. 

  • Private banks have programs to teach people about money and how to use it wisely. They want to help people understand why it is good to have a bank account, save money, and only borrow money responsibly.
  • Working together with fintech companies allows private banks to create new and advanced digital payment solutions. This helps people who don’t have access to traditional banking options to easily use banking services.
  • Private Banks are creating easy-to-use mobile and internet banking platforms to make it simple for people to open accounts, make transactions, and access banking services from any location.
  • Private banks are also making it easier for people, including those who live in rural areas, to open bank accounts without any difficulties or the need for physical paperwork.
  • The private banks create special products and services that are made to fit the needs of different types of customers. This includes small businesses, students, and low-income groups.
  • Private banks are opening more new branches in countryside areas to serve more people who have not yet been reached.
  • Some private banks help microfinance organizations and self-help groups by giving them money. This helps people who are not rich to be able to borrow money.
  • Private Banks concentrate on providing a customer centric experience and provide not only personalized banking experience but also 24*7 customer service with mobile banking options. For instance, the Federal Bank customer care number provide automated solution to some regular customer queries.

The main goal of a bank is to encourage people to invest their money so that they can become financially stable. 

  • To make more money by using existing money. 
  • To save money and increase wealth. 
  • To speed up investments.

The banking industry in India has responded well to the financial reforms with positive and encouraging feedback. New private banks have entered the market, creating competition for public sector banks. Public sector banks are being affected by this competition. The changes made in the financial sector have made India’s financial system like the one used worldwide.

Banks are a trustworthy place for us to save, invest, or borrow money with specific rules and agreements. They are a good option for our savings and other financial needs. That is why we can confidently say that money and banking play a vital role in the economy.

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