Mains Paper 2 : Laws, Institutions & Bodies Constituted For The Vulnerable Sections |
From UPSC perspective, the following things are important :
Prelims level : Various schemes mentioned
Mains level : Credit facilities for EWS in India
- In terms of RBI guidelines on Priority Sector Lending (PSL) a target of 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher has been mandated for lending to the priority sector.
- This has been mandated for all domestic Scheduled Commercial Banks and Foreign Banks with 20 branches and above.
Various schemes for benefitting poor people are as under:
Pradhan Mantri Mudra Yojana (PMMY)
- It provides access to institutional finance to unfunded micro / small business units by extending loans upto Rs.10 lakh for manufacturing, processing, trading, services and activities allied to agriculture.
- These loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs.
- The borrower can approach any of the lending institutions mentioned above or can apply online through its portal.
Pradhan Mantri Awas Yojana – Urban (PMAY-U)
- The mission aims to provide assistance to all States/UTs in addressing the housing requirement of urban poor including EWS/ Low Income Group (LIG).
- This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc.
Central Sector Interest Subsidy Scheme (CSIS)
Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM)
- It aims at promoting poverty reduction through building strong institutions of the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services.
- DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7% per annum, on all credit availed by women Self Help Groups (SHGs)
- It permits a maximum loan of Rs. 3 Lakh per SHG.
- Further there is also provision of additional interest subvention of 3% for all prompt payee SHG accounts in selected 250 districts.
Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)
- It is a centrally sponsored scheme to reduce poverty and vulnerability of the urban poor households by enabling them to access gainful self-employment and skilled wage employment opportunities.
Differential Rate of Interest (DRI) Scheme
- Under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 percent per annum to the weaker sections of the community for engaging in productive and gainful activities.