From UPSC perspective, the following things are important :
Prelims level: Features of Ayushman Vay Vandana Yojana
Why in the News?
Within just three weeks of its launch, over 10 lakh senior citizens have enrolled for the Ayushman Vay Vandana Yojana.
Note: Pradhan Mantri Vaya Vandana Yojana (PM-VVY) is a pension scheme and insurance policy for senior citizens in India. One must not get confused with Ayushman-VVY.
AboutAyushman Vay Vandana Yojana:
Details
Features and Provisions
• Cashless health coverage up to ₹5 lakh per year for senior citizens aged 70and above. • Beneficiaries receive an Ayushman Vay Vandana Card, which grants them access to free treatment in empaneled hospitals across India.
• Coverage includes medical consultations, treatments, pre- and post-hospitalization expenses, and complex procedures such as angioplasty.
Structural Mandate
• Administered under the PM-JAY framework, ensuring structured implementation and integration with India’s health insurance network.
• Implemented across empaneled hospitals in both urban and rural areas, ensuring nationwide reach.
• Centralized digital system tracks treatments, patient details, and expenses for transparency and accountability.
• Specifically designed for senior citizens, addressing their unique healthcare needs.
Aims and Objectives
• Universal healthcare for senior citizens, ensuring access to essential medical treatments without financial strain.
• Seeks to reduce out-of-pocket expenditure for elderly citizens and their families.
• Encourages preventive care and early medical intervention to address age-related health conditions.
Eligibility Criteria
• Open to all Indian citizens aged 70 and above.
• There are NO income/ family size restrictions, making it accessible to all senior citizens, regardless of their economic status.
• Beneficiaries must be Indian citizens.
• Seniors need to register under PM-JAY to receive the AVV Card and avail of the benefits.
From UPSC perspective, the following things are important :
Prelims level: PM-Vidyalaxmi Scheme
Why in the News?
The Union Cabinet has approved a new Central Sector Scheme named PM Vidyalaxmi to provide financial assistance to meritorious students pursuing higher education.
About the PM Vidyalaxmi Scheme:
Details
Objective
To provide financial assistance to meritorious students pursuing higher education in quality institutions.
Eligible Students
Students gaining admission to the top 860 Quality Higher Education Institutions (QHEIs), including government and private institutions.
Annual Family Income Criteria
Up to ₹8 lakh for students who do not qualify for other government scholarships or interest subsidies.
Eligibility Based on NIRF Rankings
• Top 100 institutions in overall, category-specific, and domain-specific NIRF lists.
• State government-run institutions ranked 101-200.
• All Central government-governed institutions.
Loan Amounts
• Loans up to ₹7.5 lakh with a 75% credit guarantee.
• For loans up to ₹10 lakh, 3% interest subvention during the moratorium period.
Target Beneficiaries
Approximately 1 lakh students each year, with preference for students in technical or professional courses from government institutions.
Financial Outlay
₹3,600 crore for the period from 2024-25 to 2030-31.
Expected Impact
Benefit for 7 lakh new students through interest subvention during the scheme’s duration.
Application Process
Applications can be submitted via the PM-Vidyalaxmi portal for loans and interest benefits.
Aims to enhance access to higher education for meritorious students, reducing financial barriers.
PYQ:
[2016] Pradhan Mantri MUDRA Yojana is aimed at:
(a) bringing the small entrepreneurs into formal financial system
(b) providing loans to poor farmers for cultivating particular crops
(c) providing pensions to old and destitute persons
(d) funding the voluntary organizations involved in the promotion of skill development and employment generation
Central Sector Scheme for the period of 2024 to 2026.
To provide drones to 14,500 Women Self Help Groups (SHGs) for rental agricultural services (applying liquid fertilizers and pesticides)
Total Funding
Rs. 1,261 crore allocated by the Ministry of Agriculture and Farmers Welfare.
Financial Assistance
80% of the cost (up to ₹8 lakh per drone), with remaining 20% to be financed through loans.
Loans available under National Agriculture Infra Financing Facility (AIF) with 3% interest subvention; SHGs can also access loans from other Rural Development programs
Training
15 days mandatory training for drone pilots.
Additional training for drone assistants in repairs and maintenance.
Training Providers
Remote Pilot Training Organizations (RPTOs) approved by the Directorate General of Civil Aviation (DGCA).
Implementing Agency
Lead Fertilizer Companies (LFCs) responsible for coordinating with State Departments, drone manufacturers, and SHGs.
They will procure drones through a transparent process, with ownership placed with the Cluster Level Federations (CLFs) of SHGs or the SHGs themselves.
Operational Limits
Drones must operate within visual line of sight (vLOS) and below 400 feet (120 meters) AGL.
Expected Outcomes
Each SHG is expected to cover approximately 2,000-2,500 acres annually;
IT-based Management Information System (MIS) – Drone Portal for tracking drone usage, fund disbursement, and monitoring service delivery
PYQ:
[2020] Consider the following activities:
Spraying pesticides on a crop field.
Inspecting the craters of active volcanoes.
Collecting breath samples from spouting whales for DNA analysis.
At the present level of technology, which of the above activities can be successfully carried out by using drones?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Schemes | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Mudra Yojana (PMMY)
Why in the News?
The Centre has doubled the limit of Mudra loan amount under the PMMY to Rs 20 lakh from Rs 10 lakh under a new ‘Tarun Plus’ category to promote entrepreneurship in the country.
This higher loan limit is available to entrepreneurs who have previously taken and successfully repaid loans under the existing ‘Tarun’ category.
AboutPradhan Mantri Mudra Yojana (PMMY):
Details
Launch
Launched on April 8, 2015, by Prime Minister.
Objective
To provide financial assistance and support to non-corporate, non-farm small and micro-entrepreneurs through collateral-free loans.
Non-corporate, non-farm small and micro-entrepreneurs are individuals or entities that operate small-scale businesses outside the corporate and agricultural sectors.
These include self-employed workers, small retail shops, artisans, repair services, and other informal sector businesses, often with limited capital and workforce.
Recent Update
Loan limit increased from Rs 10 lakh to Rs 20 lakh under the new Tarun Plus category, announced in July 2024.
Loan Categories
• Shishu: Loans up to Rs 50,000
• Kishore: Loans between Rs 50,000 and Rs 5 lakh
• Tarun: Loans between Rs 5 lakh and Rs 10 lakh
• Tarun Plus: Loans between Rs 10 lakh and Rs 20 lakh
Loan Performance (2023-24)
• 66.8 million Loans sanctioned totaling Rs 5.4 trillion.
• Over 487.8 million loans worth Rs 29.79 trillion sanctioned since launch.
NPA Statistics
• NPA of public sector banks under Mudra loans decreased to 3.4% in FY24, down from 4.77% in 2020-21.
• Gross NPA for scheduled commercial banks at 2.8% as of March 2024.
Target Beneficiaries
Aims to empower women, minorities, and marginalized communities by facilitating easy access to credit.
Technological Intervention
MUDRA Card: An innovative credit product that offers an overdraft facility and can be used like a debit card for transactions.
MUDRA MITRA App: A mobile application providing information about MUDRA and its schemes, guiding loan seekers to approach banks for availing loans.
PYQ:
[2016] Pradhan Mantri MUDRA Yojana is aimed at:
(a) Bringing the small entrepreneurs into formal financial system.
(b) Providing loans to poor farmers for cultivating particular crops.
(c) Providing pension to old and destitute persons.
(d) Funding the voluntary organizations involved in the promotion of skill development and employment generation.
From UPSC perspective, the following things are important :
Prelims level: PM-YASASVI Scheme
Why in the News?
The Ministry of Social Justice and Empowerment has implemented the PM Young Achievers Scholarship Award Scheme for Vibrant India (PM-YASASVI).
About PM-YASASVI Scheme
Details
Launch Year
2021-22
Purpose
To provide financial assistance and educational support to students from Other Backward Classes (OBC), Economically Backward Classes (EBC), and De-notified Tribes (DNT).
Eligibility Criteria
• Students from OBC, EBC, and DNT(Denotified Tribes) categories
• Annual family income up to ₹2.50 lakh
• Additional criteria may apply based on specific schemes.
Benefits
• Scholarships for pre-matriculation (Class 9-10) and post-matriculation (higher studies)
• Covers tuition, hostel expenses, and academic costs
• Hostel facilities for OBC students
• Promotes educational advancement for marginalized communities.
Scholarship Amounts
• Class 9 and Class 10: ₹75,000 annually
• Class 11 and Class 12: ₹1,25,000 annually
Selection Criteria
• Based on performance in the YASASVI Entrance Test (YET) conducted by the National Testing Agency (NTA)
Application Process
• Applications submitted online through the National Scholarship Portal (scholarships.gov.in)
Significance
Promotes inclusivity and social progress by supporting students from OBC, EBC, and DNT backgrounds in their educational pursuits.
From UPSC perspective, the following things are important :
Prelims level: SAMARTH Scheme
Why in the News?
The Samarth Scheme (Scheme for Capacity Building in Textiles Sector), which aims to teach 300,000 people in textile-related skills, has been extended for two years (FY 2024–25 and 2025–26).
Achievements of the SAMARTH Scheme:
So far, 3.27 lakh candidates have been trained under the Samarth Scheme, with 2.6 lakh (79.5%) of them gaining employment.
There is a strong focus on women’s employment, with 2.89 lakh (88.3%) women trained so far.
What is ‘SAMARTH’ Scheme?
Details
Name
Samarth (Scheme for Capacity Building in Textile Sector)
Nodal Ministry
Ministry of Textiles
Approval
Approved by the Cabinet Committee of Economic Affairs as a continuation of the Integrated Skill Development Scheme for the 12th Five Year Plan (FYP)
Implementing Agency
Office of the Development Commissioner (Handicrafts)
Objectives
• Provide demand-driven, placement-oriented skilling programs
• Incentivize industry efforts to create jobs in organized textile and related sectors
• Promote skilling and skill upgradation in traditional sectors
Scope
Covers the entire textile value chain, excluding spinning and weaving
Special Provisions
Includes upskilling and reskilling programs to improve productivity of existing workers in the apparel and garmenting segments
Target Beneficiaries
Handicraft artisans and individuals seeking employment in the textile sector
Implementing Agencies
• Textile Industry
• Institutions/Organizations of the Ministry of Textiles/State Governments with training infrastructure
• Reputed training institutions/NGOs/Trusts/Companies with placement tie-ups
PYQ:
[2020] Consider the following statements:
The value of Indo-Sri Lanka trade has consistently increased in the last decade.
“Textile and textile articles” constitute an important item of trade between India and Bangladesh.
In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: Rythu Bharosa Scheme
Why in the News?
After the completion of the loan waiver, the Telangana government will provide Rythu Bharosa assistance to support farmers further.
About theRythu Bharosa Scheme:
Details
Scheme Name
Rythu Bharosa Scheme (Farmer’s Investment Support Scheme – FISS)
Launch Year
2018-19 Kharif season (Telangana Govt’s Navratna Scheme)
Objective
To support the initial investment needs of farmers by providing financial aid for agriculture and horticulture crops.
Benefits
₹5,000 per acre per season as a grant for input purchases, with no cap on the number of acres owned by farmers.
Eligibility
Farmers must be residents of Telangana.
Must own agricultural land.
Small and marginal farmers are eligible.
Farmers cultivating land with Record of Forest Rights (ROFR) document (mainly from Scheduled Tribe communities).
Ineligible Farmers
Commercial farmers.
Farmers working on a rental contract or tenant farmers.
Significance of the move
Financial Relief for Farmers: By waiving loans of up to ₹2 lakh per farmer, the scheme provides significant financial relief, helping farmers manage their debt and invest in future agricultural activities.
Boost to Agricultural Sector: The waiver will enable farmers to focus on improving productivity and crop yields without the burden of debt, potentially boosting the state’s agricultural output.
Reduction in Farmer Distress: This move will alleviate distress among farmers, especially those affected by unpredictable weather and fluctuating crop prices, reducing the risk of farm-related suicides and financial instability.
PYQ:
[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
Working capital for maintenance of farm assets
Purchase of combine harvesters, tractors and mini trucks
Consumption requirements of farm households
Post-harvest expenses
Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5
From UPSC perspective, the following things are important :
Prelims level: PM-RKVY, KY
Why in the News?
The Union Cabinet approved the rationalization of all Centrally Sponsored Schemes (CSS) under the Ministry of Agriculture and Farmers Welfare into two umbrella schemes:
Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) – A cafeteria scheme aimed at promoting sustainable agriculture.
Krishonnati Yojana (KY) – Focuses on food security and agricultural self-sufficiency.
AboutPM Rashtriya Krishi Vikas Yojana (PM-RKVY):
Details
Objective
To promote sustainable agriculture and improve agricultural productivity.
Total Proposed Expenditure
Rs 1,01,321.61 crore (combined with Krishonnati Yojana).
Sustainable agricultural practices, soil health, water conservation, crop diversification, organic farming, and agricultural mechanization.
Flexibility for States
Increased flexibility for state governments to reallocate funds based on unique requirements of the states.
Implementation Method
Funds allocated to states, with state governments developing Comprehensive Strategic Documents addressing crop production, climate resilience, and value chains.
Benefits
Avoid duplication, ensure convergence, and streamline the approval process for quicker implementation of Annual Action Plans (AAP).
Schemes merged into Krishonnati Yojana (KY):
National Food Security Mission (NFSM)
National Mission on Oilseeds and Oil Palm (NMOOP)
Mission for Integrated Development of Horticulture (MIDH)
National Mission on Sustainable Agriculture (NMSA)
Sub-Mission on Agricultural Mechanization (SMAM)
National Mission on Agricultural Extension and Technology (NMAET)
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
PYQ:
[2014] Consider the following pairs:
Programme/Project
Ministry
1. Drought – Prone Areas Programme
Ministry of Agriculture and Farmers Welfare
2. Desert Development Programme
Ministry of Environment, Forest and Climate Change
3. National Watershed Development Project for Rainfed Areas
Ministry of rural development
Which of the pairs given above is/are correctly matched?
From UPSC perspective, the following things are important :
Prelims level: Bio-RIDE Scheme
Why in the News?
The Union Cabinet has approved the “Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE) scheme” to support cutting-edge research and development in biotechnology.
About Bio-RIDE Scheme
Details
Objective
To support cutting-edge research, bio-entrepreneurship, and bio-manufacturing in biotechnology.
Total Outlay
₹9,197 crore for the 15th Finance Commission period (2021-22 to 2025-26).
Components
Merges Biotechnology Research and Development (R&D) and Industrial & Entrepreneurship Development (I&ED).
Introduces Bio-manufacturing and Bio-foundry as new components.
Key Aims
Fostering Innovation: Promote bio-entrepreneurship and strengthen India’s position in biotechnology.
Bridging Gaps: Accelerate research and product development.
Implementation Focus
Promoting Bio-Entrepreneurship: Seed funding, incubation, mentorship for startups.
Advancing Innovation: Grants for research in synthetic biology, bio-pharma, and bio-plastics.
Focus Areas
Extramural Funding for research in agriculture, healthcare, bioenergy, and environmental sustainability.
Nurturing human resources in biotechnology.
Industry-Academia Collaboration
Synergies between academic institutions and industry to accelerate commercialization of bio-based products.
Significance
Enhances bio-innovation and supports sustainable development.
Contributes to achieving green goals and global leadership in biotechnology.
PYQ:
[2019] Atal Innovation Mission is set up under the
(a) Department of Science and Technology
(b) Ministry of Labour and Employment
(c) NITI Aayog
(d) Ministry of Skill Development and Entrepreneurship
The Union Cabinet approved the “Pradhan Mantri Janjatiya Unnat Gram Abhiyan” with a total outlay of ₹79,156 crore (₹56,333 crore as central share and ₹22,823 crore as state share).
About Pradhan Mantri Janjatiya Unnat Gram Abhiyan (PMJUGA)
Details
Objective
Improve socio-economic conditions of tribal communities through scheme convergence.
Outlay
₹79,156 crore (₹56,333 crore central; ₹22,823 crore state share).
Coverage
63,000 villages; 5 crore people in 549 districts across 30 States/UTs.
25 interventions by 17 ministries; monitored via PM Gati Shakti Portal.
Social Component
Pucca houses (PMAY), water supply (Jal Jeevan Mission), road and mobile connectivity, education, healthcare.
Increase GER, build tribal hostels, reduce IMR & MMR through Mobile Medical Units.
Economic Push
Tribal Home Stays, Sickle Cell Disease management (Centers of Competence), 100 Tribal Multipurpose Marketing Centres (TMMCs) for tribal product marketing.
Sustainable Livelihood
Support 22 Lakh Forest Rights Act (FRA) patta holders for forest rights and sustainable agriculture, animal husbandry, and allied activities.
Special Initiatives
Tribal Home Stays, SCD management, and establishment of Tribal Multipurpose Marketing Centres (TMMC).
Eligibility
Tribal-majority villages: 500+ population (plains), 250+ (NE & Hill States), 100+ (LWE districts based on Census 2011).
PYQ:
[2021] At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006?
(a) Ministry of Environment, Forest and Climate Change.
(b) Ministry of Panchayati Raj
(c) Ministry of Rural Development
(d) Ministry of Tribal Affairs
[2017] What are the two major legal initiatives by the State since Independence addressing discrimination against Scheduled Tribes (STs)?
[2016] Why are the tribals in India referred to as ‘the Scheduled Tribes’? Indicate the major provisions enshrined in the Constitution of India for their upliftment.
Schemes | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM E-Drive Scheme
Why in the News?
The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme with an outlay of ₹10,900 crore over two years.
About PM E-DRIVE Scheme:
Details
Name
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
Total Outlay
₹10,900 crore for two years
Goal
Promote electric mobility, reduce pollution, and enhance fuel security
Reduce range anxiety by providing charging infrastructure in cities and highways.
Incentives
Direct subsidies for e-2Ws, e-3Ws, e-buses, e-ambulances, and e-trucks
Key Components
₹3,679 crore for demand incentives for e-2Ws, e-3Ws, e-ambulances, and e-trucks.
₹500 crore for e-ambulances.
₹4,391 crore for e-buses.
Other components:
E-Vouchers
Aadhaar-authenticated e-voucher for EV buyers;
Signed by both buyer and dealer for claiming incentives.
E-Bus Procurement
₹4,391 crore for 14,028 e-buses in 9 major cities (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, Hyderabad)
Charging Infrastructure
₹2,000 crore for 72,300 public EV charging stations, including fast chargers for e-4Ws, e-buses, e-2Ws, and e-3Ws
Incentivizing E-Trucks
₹500 crore tied to scrapping certificates from MoRTH-approved scrapping centres
Testing and Upgradation
₹780 crore for upgradation of MHI’s test agencies for green mobility technologies
PYQ:
[2019] How is efficient and affordable urban mass transport key to the rapid economic development in India?
From UPSC perspective, the following things are important :
Prelims level: All phases of PMGSY
Why in the News?
The Union Cabinet has approved Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY-IV) to build 62,500 km of all-weather roads, connecting villages across India.
AboutPradhan Mantri Gram Sadak Yojana (PMGSY)
Details
Launch
In 2000 by former PM Late Atal Bihari Vajpayee.
To provide connectivity to unconnected habitations.
Nodal Agency
Ministry of Rural Development
Type
Centrally Sponsored Scheme
Phases
Phase I: Focus on connecting unconnected habitations.
Phase II: Upgrading roads built in Phase I to enhance rural infrastructure.
Phase III: Consolidation of 1.25 lakh km of rural roads connecting habitations to Gramin Agricultural Markets, Higher Secondary Schools, and Hospitals. Cost: ₹80,250 crore (2019-2025). Funding: 60:40 (Centre), 90:10 for North-East and Himalayan States.
Phase IV: Aims at constructing 62,500 km of all-weather roads to provide connectivity to 25,000 unconnected habitations with focus on Left-Wing Extremism (LWE) areas, tribal areas, and remote regions.
Road Length and Coverage
62,500 km of all-weather roads covering 25,000 unconnected habitations.
Benefits of PMGSY-IV
Road Connectivity for 25,000 Villages:All-weather roads will provide reliable access to previously unconnected rural habitations, improving transportation and accessibility.
Socio-Economic Transformation: These roads will act as catalysts for socio-economic development in rural areas, enabling access to government educational institutions, health services, markets, and growth centers.
Enhanced Infrastructure: The construction will adopt international benchmarks and best practices, such as using Cold Mix Technology, Waste Plastic, Full Depth Reclamation, and materials like Fly Ash and Steel Slag, contributing to eco-friendly construction.
PYQ:
[2020] In rural road construction, the use of which of the following is preferred for ensuring environmental sustainability or to reduce carbon footprint?
Copper slag
Cold mix asphalt technology
Geotextiles
Hot mix asphalt technology
Portland cement
Select the correct answer using the code given below:
From UPSC perspective, the following things are important :
Prelims level: Agricultural Infrastructure Fund (AIF) Scheme
Why in the News?
The Union Cabinet has approved the expansion of the Agricultural Infrastructure Fund (AIF) scheme.
It will now include financial support for Farmers’ Producers Organizations (FPOs) to enhance their financial security and creditworthiness.
About Agriculture Infrastructure Fund (AIF) Scheme:
Details
Launch
July 2020, Central Sector Scheme
Nodal Ministry
Ministry of Agriculture and Farmers Welfare, Government of India
Fund Allocation
Rs. 1 lakh crore, with disbursements planned until 2025-26; interest subvention and credit guarantee assistance extended till 2032-33.
Aim
To mobilize medium to long-term debt financing for investment in viable projects relating to post-harvest management infrastructure and community farming assets, to enhance agricultural infrastructure in India.
Key Features
– Interest Subvention: 3% on loans up to Rs. 2 crore, with additional rate reductions for NABARD loans for PACS.
– Credit Guarantees: Under the CGTMSE scheme for loans up to Rs. 2 crore.
– Fund Usage: Supports up to 25 projects per beneficiary across different locations.
Target Beneficiaries
Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), entrepreneurs, startups, Self Help Groups, Agricultural Produce Market Committees, and federations.
Management
Managed through an online MIS platform with national, state, and district level monitoring committees for real-time monitoring and feedback.
Lending Institutions
Includes 24 commercial banks, 40 cooperative banks, and NABARD among others.
Hassle-Free Process
Supported by a user-friendly online portal to facilitate speedy loan sanctions.
Key changes introduced:
Description
Support for FPOs
Includes financial support for Farmers’ Producers Organizations (FPOs) to improve financial security and creditworthiness.
Broader Eligible Projects
Expand the scope to cover more types of agricultural infrastructure projects.
Community Farming Assets
Allows the creation of community farming assets to enhance productivity and sustainability.
Integrated Processing Projects
Adds integrated primary and secondary processing projects as eligible activities; standalone secondary projects remain under MoFPI schemes.
Alignment with PM-KUSUM
Converges AIF with PM-KUSUM Component-A for joint development of agricultural infrastructure and clean energy solutions.
Extended Credit Guarantee
Extends credit guarantee coverage to FPOs through NABSanrakshan, in addition to CGTMSE, to boost investment confidence.
PYQ:
[2015] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of 4,00,000 crore at present.
Select the correct answer using the codes given below:
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Jan Dhan Yojana (PMJDY)
Why in the News?
PM Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014. It has now completed a decade of successful implementation.
About PMJDY
Details
Objective
• Banking the Unbanked: Open basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
• Securing the Unsecured: Issue Indigenous Debit cards with free accident insurance coverage of ₹2 lakh.
• Funding the Unfunded: Provide micro-insurance, overdraft, micro-pension, and micro-credit facilities.
Initial Features
• Universal Access to Banking Services: Access through branches and BCs.
• Basic Savings Bank Accounts: With an overdraft facility of up to ₹10,000 for every eligible adult.
• Financial Literacy Program: Promote savings and credit usage.
• Insurance: Accident cover up to ₹1 lakh and life cover of ₹30,000 for accounts opened between Aug 2014 to Jan 2015.
• Pension Scheme: For the unorganized sector.
• Creation of Credit Guarantee Fund.
Key Provisions
• Inter-operability: Through RuPay debit card or Aadhaar-enabled Payment System (AePS).
• Fixed-point Business Correspondents.
• Simplified KYC / e-KYC.
Extension and New Features (Post-2018)
• Focus Shift: From ‘Every Household’ to ‘Every Unbanked Adult’.
• RuPay Card Insurance: Increased accidental insurance cover to ₹2 lakh for new accounts.
• Overdraft Facilities Enhanced: Limit doubled from ₹5,000 to ₹10,000; up to ₹2,000 without conditions.
• Increase in upper age limit for OD: From 60 to 65 years.
Eligibility for Other Programs
PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
Successes of PMJDY
Financial Inclusion: PMJDY is recognized as the largest financial inclusion initiative globally, with over 53 crore bank accounts opened as of August 2024.
It has facilitated access to credit for individuals without a formal financial history, as evidenced by the rise in Mudra loan sanctions at a compounded annual rate of 9.8% from FY 2019 to FY 2024.
Social Empowerment: 55.6% of Jan Dhan account holders are women, and 66.6% of accounts are in rural and semi-urban areas, demonstrating the program’s reach among marginalized communities.
Deposit Growth: The total deposits in PMJDY accounts have reached Rs. 2.31 lakh crore, showing a 15-fold increase since August 2015.
Digital Transaction Growth: Digital transactions under PMJDY have surged, with UPI financial transactions growing from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
Effective DBT Mechanism: The Jan-Dhan Aadhaar Mobile (JAM) trinity has enabled a diversion-proof subsidy delivery mechanism, with subsidies and social benefits directly transferred into the bank accounts of the underprivileged.
Savings and Financial Discipline: The average deposit in the PMJDY account has increased 4 times since August 2015, indicating improved saving habits among account holders.
PYQ:
[2015] ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for
(a) Providing housing loan to poor people at cheaper interest rates.
(b) Promoting women’s Self-Help Groups in backward areas.
(c) Promoting financial inclusion in the country.
(d) Providing financial help to the marginalized communities.
[2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.
From UPSC perspective, the following things are important :
Prelims level: Unified Pension Scheme (UPS)
Why in the News?
The Union Cabinet approved the Unified Pension Scheme (UPS) for 23 lakh central government employees.
About Unified Pension Scheme (UPS):
Explanation
Implementation Date
Effective from April 1, 2025.
Eligibility
Central government employees with at least 10 years of service.
Assured Pension
50% of average basic pay over the last 12 months prior to retirement for employees with 25+ years of service.
Proportionate benefits for 10-25 years of service.
Assured Minimum Pension
₹10,000 per month for employees with at least 10 years of service.
Assured Family Pension
60% of the pension that the employee was drawing before their death.
Inflation Protection
Pensions indexed to inflation;
Dearness Relief (DR) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Government Contribution
18.5% of basic pay and DA, increased from 14% under the National Pension System (NPS).
Employee Contribution
10% of basic pay and DA (same as under NPS).
Lump Sum Payment on Superannuation
One-tenth of the last drawn monthly pay (including DA) for every 6 months of completed service, in addition to gratuity.
Option to Choose
Employees can choose between UPS and NPS starting from the upcoming financial year; the choice is final once made.
Beneficiaries
Initially benefits 23 lakh central government employees;
May extend to 90 lakh if adopted by state governments.
Difference from NPS
Unlike the market-dependent NPS, UPS provides a guaranteed pension amount, a minimum pension, increased government contribution, fixed family pension, and a lump sum payment at superannuation.
Significance of the UPS
Financial Security: Guarantees a pension and family pension for stable post-retirement income.
Minimum Pension: Ensures at least ₹10,000 per month for retirees, supporting lower-income employees.
Inflation Protection: Indexes pensions to inflation, maintaining purchasing power over time.
Increased Benefits: Raises government contribution to 18.5%, enhancing employee retirement benefits.
Flexibility: Allows choice between UPS and NPS based on personal financial needs.
Family Support: Provides 60% of the pension to the spouse if the employee passes away.
Employee Welfare: Aligns with government goals to improve employee welfare and post-retirement life quality.
PYQ:
[2017] Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only.
(b) Persons of age from 21 to 55 only.
(c) All State Government employees joining the services after the date of notification by the respective State Governments.
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004.
From UPSC perspective, the following things are important :
Prelims level: REACHOUT Scheme
Why in the News?
The Indian student team, supported by the REACHOUT (Research, Education, Training and Outreach) scheme, achieved remarkable success at the 17th edition of the International Earth Sciences Olympiad (IESO) held in Beijing, China.
The scheme aims to enhance the understanding and dissemination of Earth system sciences through research, education, and outreach activities.
About the International Earth Sciences Olympiad (IESO)
The IESO was established in 2003 during the International Geoscience Education Organization Council Meeting in Calgary, Canada.
The competition focuses on promoting interest in earth system sciences, particularly in addressing climate change, environmental challenges, and natural disasters.
India’s Participation:
India has participated in the IESO since 2007 and hosted the 10th edition in Mysore.
The Indian National Earth Science Olympiad (INESO) serves as a national-level prelude to the IESO, held across schools in India.
Top-performing students from INESO represent India at the IESO, with support from MoES and the Geological Society of India.
PYQ:
[2019] Atal Innovation Mission is set up under the
(a) Department of Science and Technology
(b) Ministry of Labour and Employment
(c) NITI Aayog
(d) Ministry of Skill Development and Entrepreneurship
From UPSC perspective, the following things are important :
Prelims level: Model Solar Village
Why in the news?
The Ministry of New and Renewable Energy has issued operational guidelines for the Implementation of ‘Model Solar Village’ under PM-Surya Ghar Muft Bijli Yojana.
The centre recently allocated ₹800 crore for the same.
About PM Surya Ghar Muft Bijli Yojana
Description
Purpose
To provide 300 units of free electricity per month to beneficiaries through an investment of ₹75,000 crores.
Deadline
Extended the deadline from 2022 to 2026.
Announcement
Initially announced in an Interim Budget 2024-25 speech by the Finance Minister.
Target
Aimed to light up 1 crore households.
Implementation
Urban Local Bodies and Panchayats are incentivised to promote rooftop solar systems.
Financial Support
Average Monthly Electricity Consumption (units)
Suitable Rooftop Solar Plant Capacity
Subsidy Support
0-150
1-2 kW
₹ 30,000 to ₹ 60,000
150-300
2-3 kW
₹ 60,000 to ₹ 78,000
> 300
Above 3 kW
₹ 78,000
Features of the ‘Model Solar Village’ Initiative:
Details
Comprehensive Solarization
Solarize all households and public areas with home lighting, water systems, pumps, and streetlights.
Seeks to create one Model Solar Village per district.
Implementing Agency
State Renewable Energy Development Agency (SREDA) or another entity nominated by the State/UT Government will implement the scheme.
24×7 Solar-Powered Village
Develop villages powered entirely by solar energy, promoting self-reliance in meeting energy needs.
Central Financial Assistance (CFA)
₹1 crore grant per village based on a Detailed Project Report (DPR) by the Implementing Agency.
The total financial allocation for this initiative is ₹800 crore.
Eligibility Criteria
Revenue village with a population over 5,000 (or 2,000 in special category states).
Based on installed renewable energy capacity, overseen by the District Level Committee (DLC) 6 months after the declaration.
Fund Disbursement
40% on the award of works, 40% after completion, 20% after 6 months of operation.
PYQ:
[2018] With reference to solar power production in India, consider the following statements:
1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
2. The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Nandini Sahakar Yojana
Why in the News?
The Minister of Cooperation has provided some information about the Nandini Sahakar Yojana.
NCDC has cumulatively disbursed financial assistance amounting to Rs. 6426.36 crore for the development of cooperative societies exclusively promoted by women across the country.
About Nandini Sahakar Yojana
The Nandini Sahakar Scheme was initiated by the National Cooperative Development Corporation (NCDC) in 2010.
It is a women-focused framework providing financial assistance, project formulation, hand-holding, and capacity development.
The scheme aims to assist women cooperatives in undertaking business model-based activities under the purview of NCDC.
Features of the Scheme
Any cooperative society with at least 50% womenas primary members and a minimum of three months in operation is eligible to apply.
Assistance is provided in the form of credit linkage for infrastructure term loans and working capital, along with subsidies or interest subvention from other government schemes.
There is no minimum or maximum limit on financial assistance for projects by women cooperatives.
NCDC offers a 2% interest subventionon its rate of interest on term loans for new and innovative activities.
A 1% interest subvention is provided on term loans for all other activities, resulting in lower borrowing costs for women cooperatives.
