PIB Summary - 16th August 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

From Cash to Digital: India’s Leap Towards Inclusive Finance

Basics of Financial Inclusion

• Definition: Financial inclusion means making sure that everyone, especially the poor who don’t have bank accounts, can access affordable financial services like saving, borrowing, insurance, sending money, and pensions.
• Significance: Financial inclusion is important because it:
• Reduces the need for people to rely on expensive informal moneylenders.
• Encourages people to save money, which helps in building capital.
• Provides a safety net through insurance and pensions.
• Helps the government deliver welfare benefits directly to people (DBT).
• Empowers marginalized groups, especially women.
• Global Context: Financial inclusion is considered crucial for achieving seven Sustainable Development Goals (SDGs) such as reducing poverty, promoting gender equality, ensuring decent work, and reducing inequality.

Indicators of India’s Progress

• RBI’s FI-Index (2025): India’s financial inclusion index has improved by 24.3% since 2021, reaching 67.0 in 2025.
• Global Findex 2025 (World Bank): The percentage of people with bank accounts in India has increased to 89% in 2025, up from 35% in 2011.
• Shift in Inclusion Model: The approach to financial inclusion has shifted from expanding bank branches to leveraging digital technology for greater access.

Key Policy Innovations Driving the Leap

a) PM Jan Dhan Yojana (2014–present)

• Scale: Over 56 crore accounts have been opened, with a total balance of ₹2.64 lakh crore.
• Social Impact: 55% of these accounts are held by women, highlighting a focus on women-centric financial inclusion.
• Features: The scheme offers zero-balance accounts, Rupay cards, overdraft facilities, and accident cover.

b) DBT & JAM Trinity

• Mechanism: This system combines Jan Dhan accounts, Aadhaar for authentication, and mobile access.
• Impact: Over ₹45.70 lakh crore has been directly transferred, reducing leakage and ensuring transparency in welfare programs.

c) Insurance Schemes

• PM Suraksha Bima Yojana: 50.99 crore people are enrolled in this accident cover scheme.
• PM Jeevan Jyoti Bima Yojana: 23.59 crore people are enrolled in this life insurance scheme.
• Social Reach: Nearly half of the beneficiaries of these schemes are women, and the majority are from rural areas.

d) Micro & Pension Schemes

• PM MUDRA Yojana: 53.85 crore loans have been sanctioned under this scheme, amounting to ₹35.13 lakh crore, aimed at “Funding the Unfunded.”
• Atal Pension Yojana: 7.65 crore subscribers with a corpus of ₹45,974 crore, providing security for unorganised workers.
• Stand Up India: ₹62,410 crore has been sanctioned under this scheme, targeting SC/ST and women entrepreneurs.

e) UPI Revolution

• Growth: UPI transactions have surged from 92 crore in 2017–18 to an estimated 18,587 crore in 2024–25, with a CAGR of 114%.
• Value: Transaction value has increased from ₹1.10 lakh crore to ₹261 lakh crore.
• Milestone: In July 2025, there were 1,946.79 crore transactions in a single month.
• Significance: UPI has become the world’s most successful real-time payment system, driving the cashless economy and reducing transaction costs.

f) SEBI’s CHOTI SIP (2025):

• Initiative: This entry-level Systematic Investment Plan (SIP) allows investments starting at ₹250.
• Impact: It democratizes the investment culture and bridges the gap between savings and wealth creation.

Transformative Outcomes

• Women Empowerment: Women are the majority beneficiaries of various schemes, including PMJDY, insurance, and pension schemes.
• Rural Penetration: There has been a significant uptake of insurance and pension schemes in rural India.
• Entrepreneurship Boost: Schemes like MUDRA and Stand Up India have nurtured millions of micro-businesses across the country.
• Transparency in Welfare Delivery: The DBT mechanism has reduced corruption and eliminated ghost beneficiaries by ensuring direct and transparent transfers.
• Digital Economy Shift: UPI has become the backbone of India’s fintech revolution, facilitating a shift from cash dependency to digital empowerment.

Challenges & Gaps

• Dormant Accounts: While account ownership has increased, many accounts remain inactive.
• Digital Divide: Issues like connectivity, digital literacy, and the affordability of devices hinder full access to digital financial services.
• Cybersecurity Risks: The rise in digital transactions has also led to an increase in fraud and cybersecurity threats.
• Credit Access Inequality: Women entrepreneurs and rural micro, small, and medium enterprises (MSMEs) still face challenges in accessing credit.
• Financial Literacy: Although various schemes are in place, awareness and effective use of these schemes remain low among the target populations.

Way Forward

• Financial Literacy: Strengthen grassroots financial literacy campaigns to improve awareness and understanding of financial products and services.
• Cyber Hygiene: Promote better cyber hygiene practices and establish stronger consumer protection norms to safeguard digital transactions.
• UPI Cross-Border Linkages: Leverage UPI’s cross-border capabilities to enhance global remittance inclusion.
• Insurance and Pension Penetration: Expand insurance and pension schemes beyond mere enrolment to ensure regular premium payments and active participation.
• Fintech Startups: Integrate fintech startups with government schemes to foster innovation in micro-credit and micro-insurance solutions.

Conclusion

•  India’s journey in financial inclusion from 2011 to 2025 exemplifies the effective synergy of policy initiatives, digital technology, and grassroots outreach. 
•  The transition from cash dependency to digital empowerment reflects a massive movement towards inclusive finance. 
•  The future challenge lies in enhancing not just access, but also the meaningful usage of financial services, ensuring security, literacy, and equity across all segments. 

Soil Health Card

Background & Rationale

Pre-2015 Scenario:Overuse of chemical fertilizers (especially nitrogenous urea) led to a nutrient imbalance in the soil. This caused a decline in soil fertility, stagnant yields, and rising input costs for farmers. Additionally, farmers lacked scientific knowledge about the specific soil nutrient requirements for their crops.

In the global context, 2015 was declared the International Year of Soils by the Food and Agriculture Organization (FAO). In response, India launched the Soil Health Card (SHC) Scheme on February 19, 2015, in Suratgarh, Rajasthan, to promote better soil management and fertility.

Objectives of SHC Scheme

• Provide soil health cards to all farmers every 2 years.
• Test soil samples on 12 parameters (macro, micro nutrients + soil quality indicators).
• Recommend crop-wise & region-specific fertiliser use.
• Promote balanced & integrated nutrient management → reduce excess chemical usage, encourage organics/bio-fertilisers.
• Build capacity of soil testing labs, agriculture students, SHGs, FPOs.
• Support data-driven decision-making in agriculture → reduce costs, increase productivity, ensure sustainability.

Implementation Architecture

Soil Sampling

• Depth: 15–20 cm
• Sampling grid: 2.5 ha (irrigated), 10 ha (rainfed)
• Tools: GPS-based mapping, revenue maps
• Carried out by: trained agri-staff/students

Testing Infrastructure

(as of Feb 2025:8,272 labs)

• 1,068 static labs
• 163 mobile labs
• 6,376 mini labs
• 665 village-level labs (VLSTLs)

Digital Backbone

• Soil Health Card Portal: centralised, multi-lingual (22 languages + 5 dialects)
• SHC Mobile App: GPS-based sampling, QR-code tagged results, automatic geo-tagging
• Developed by: NIC for nationwide use

Achievements (2015–2025)

• Distribution: Over 25 crore Soil Health Cards issued (as of July 2025)
• Financial Support: ₹1,706.18 crore released to States/UTs
• Soil Mapping: 290 lakh hectares mapped (1:10,000 scale) in 40 aspirational districts
• 1,987 village-level fertility maps for 21 States/UTs
• Village-Level Labs (VLSTLs): 665 set up → run by SHGs, FPOs, rural youth (18–27 years)
• School Soil Health Programme (2023–25): 1,021 schools implementing soil labs, 1,000 labs established in schools, 1.32 lakh students enrolled and trained in soil testing → farmer awareness multiplier

Case Study – Mr. Mahendra Kumar Singh (Nalanda, Bihar)

• Pre-SHC: High chemical dependency, low yields (27.5 quintals/ha).
• Post-SHC testing: Identified nutrient deficiency (low N, P, Boron, organic carbon).
• Recommendations: Compost + cow dung + balanced fertiliser use.
• Results: Yield improved by 16% (to 32 quintals/ha).
• Key Takeaway: SHC can reduce input cost & increase yield simultaneously.

Technological Advancements

• GIS Integration (since April 2023): Nationwide interactive soil fertility maps.
• Geo-tagging of samples: Ensures authenticity & prevents data tampering.
• Unique QR codes: Direct linkage between farmer, sample & results.
• Digital Portal: Real-time monitoring of SHC issuance & fertiliser use trends.

Benefits & Impacts

Economic

• Reduced fertiliser input cost: 20–25% (RKVY reports).
• Yield improvements: Reported in cereals, pulses, oilseeds.

Environmental

• Decline in excessive urea usage: Balanced NPK ratios.
• Reduced risk: Groundwater contamination & soil degradation.

Social

• Empowered farmers: With scientific knowledge.
• Involvement of schools, SHGs & FPOs: Community-driven approach.

Governance

• Integrated under RKVY (2022–23 onwards): As “Soil Health & Fertility” for sustainable funding & institutional support.

Challenges & Gaps

• Awareness & Adoption: Not all farmers follow recommendations; behaviour change is slow.
• Coverage vs Quality: 25 crore cards issued, but follow-up usage data is limited.
• Infrastructure Gaps: Some labs are underutilised; rural labs face manpower issues.
• Fertiliser Policy Disconnect: Subsidy regime is still urea-heavy, limiting SHC’s balanced fertiliser push.
• Monitoring: Difficulty in ensuring a 3-year update cycle for all farmers.

Way Forward

• Link SHC recommendations with fertiliser subsidy delivery to incentivise balanced use.
• Expand VLSTLs & school labs to ensure last-mile coverage.
• Encourage organic inputs & bio-fertilisers in SHC prescriptions.
• Strengthen fertiliser use monitoring through digital platforms.
• Integrate SHC with PM-KISAN & crop insurance schemes for holistic farmer support.
• Promote AI-driven soil analytics to create predictive fertility maps at village/block level.

Conclusion

• The Soil Health Card Scheme represents a significant policy shift towards scientific, sustainable, and data-driven agriculture in India. 
• It has moved the focus from indiscriminate fertiliser use to informed soil management, empowering millions of farmers to lower costs, boost yields, and maintain soil fertility. 
• By integrating laboratory infrastructure, digital technologies, and community engagement, the SHC has become a cornerstone of climate-resilient agriculture in India. 
• The future success of this initiative will depend on improving adoption quality, reforming fertiliser policies, and enhancing farmer education.