India’s economy has been going through several ups and downs in the last few months. Rising inflation, slow job growth and decreasing income of small businesses have increased financial pressure on common people. In such a situation, the government has made a big announcement stating that eligible account holders of SBI, Punjab National Bank (PNB) and Bank of Baroda (BOB) will receive ₹1 lakh directly into their bank accounts from 2 December 2025.
This step is being considered a major part of the government’s economic relief package, aimed at bringing stability to the economy and boosting domestic consumption.
What Is the Purpose of This Scheme?
To Reduce Financial Pressure
In the past two years, inflation and rising daily expenses have severely affected the middle class. Increasing prices of fuel, food items, medicines and electricity bills have weakened the financial situation of families.
According to the government, this ₹1 lakh support amount will give immediate relief and help people regain financial stability.
To Support Small Businesses
The MSME sector is the backbone of the Indian economy. But millions of small traders have faced reduced sales, fewer customers and increased costs in recent years.
The government believes this cash support will help small businesses restock goods, expand operations and generate employment again.
Who Will Receive the Benefit?
Main Eligibility Conditions
The government has set certain conditions for beneficiaries. The ₹1 lakh will be credited only to those who meet these criteria:
- Annual income must be within the limit set by the government
- Bank account must be linked with Aadhaar
- KYC must be fully updated
- Account should be active for at least 6 months
- Savings or current account must be in SBI, PNB or BOB
According to the government, the beneficiary list is large and includes millions of families.
When and How Will the Money Be Sent?
Payment via DBT
The government and banks will transfer the amount through DBT (Direct Benefit Transfer). This eliminates the role of middlemen and ensures the money reaches the correct bank account directly.
DBT is fully digital and significantly reduces the chances of errors.
Transfer Starts from 2 December 2025
All three banks — SBI, PNB and BOB — have completed verification of customer data. The banks also informed that beneficiaries will receive an SMS and app notification once the amount is credited.
What Do Account Holders Need to Do?
KYC and Aadhaar Linking Required
The government clearly stated that accounts with pending KYC or without Aadhaar linking will not receive the amount.
Account holders must ensure the following:
- Aadhaar is updated in the bank
- PAN card is linked
- Mobile number is registered
- Account is active and not dormant
People with incomplete KYC have time until 1 December 2025 to update their details.
How Can Beneficiaries Check Their Name?
Easy Methods
Beneficiaries can check their name in the scheme list through these options:
- Official website of the bank
- Mobile banking app
- Nearest branch
- Toll-free helpline numbers
The final beneficiary list will be updated by 30 November 2025.
What Impact Will This Have on the Economy?
Rise in Domestic Consumption
Economists believe that direct cash transfer of ₹1 lakh will significantly increase purchasing power. People are likely to spend this money on:
- Household items
- Education
- Medical needs
- Local market purchases
- Business investment
This will increase market demand and benefit local shopkeepers as well.
Boost to MSME Sector
Nearly 40% of small business owners reported a fall in business in the past two years.
This cash support will help them:
- Refill stock
- Upgrade business
- Gain new customers
- Improve digital payment systems
The MSME sector is expected to see a positive impact in the coming months.
Banking Sector Preparations
Special Help Desks Set Up
All three banks have opened special help desks in their branches to assist customers. These desks will support:
- KYC updates
- Aadhaar linking
- Beneficiary list checking
- SMS alert information
Banks have also strengthened their digital support teams.
Challenges for the Government
Managing Cash Flow
Sending such a large amount in one cycle can put financial pressure on the government. Proper budget management and allocation will be essential.
Preventing Fraud
Cyber fraud cases may increase during such schemes.
Both the government and banks are prioritizing cybersecurity.
Public Reaction
People across the country have welcomed this move.
Middle-class families say the amount will help them manage essential expenses.
Small traders believe this scheme will help them revive their business.
Where Will This Money Be Used the Most?
Most people are expected to use the amount for:
- Children’s education
- House repair
- Medical expenses
- Repaying small loans
- Weddings and family functions
- Investment in small businesses
Economists predict that the money will circulate mainly in domestic markets, strengthening the Indian economy.
Conclusion
The government’s decision to transfer ₹1 lakh to SBI, PNB and BOB account holders from 2 December 2025 is being seen as a major economic initiative. It will reduce financial stress, support small businesses and increase market movement.
This step is likely to bring stability and positive growth to the Indian economy in the upcoming months.
Disclaimer
This article has been prepared based on news reports and publicly available information. It should not be considered as an official government document. Before making any financial decision or taking any action related to bank schemes, always verify details with your bank or official sources.
