Why in the News?
The 3 Jansuraksha Schemes— Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) launched by PM Modi on May 9, 2015, have completed 10 years of providing social security coverage to citizens.
About the Jansuraksha Schemes:
|
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) |
Pradhan Mantri Suraksha Bima Yojana (PMSBY) |
Atal Pension Yojana (APY) |
| Type |
Accidental Insurance |
Life Insurance |
Pension Scheme |
| Eligibility Age |
18 to 70 years |
18 to 50 years |
18 to 40 years (non-taxpayers) |
| Premium |
₹20 per annum |
₹436 per annum |
Varies by age and pension amount |
| Coverage/Benefit |
₹2 lakh (death/total disability), ₹1 lakh (partial) |
₹2 lakh (death due to any cause) |
₹1,000–₹5,000 monthly pension after age 60 |
| Policy Term |
1 year (June 1 – May 31), renewable |
1 year (June 1 – May 31), renewable |
Contribution till age 60; pension begins post-60 |
Premiums Payment
|
Auto-Debit: Yes (from bank/post office account) |
Auto-Debit: Yes (from bank/post office account) |
Auto-Debit: Yes (monthly/quarterly/half-yearly options) |
| Administered By |
Public Sector General Insurance Companies (PSGICs) and other insurers in partnership with participating banks or post offices |
Life Insurance Corporation of India (LIC) and other participating life insurers, through tie-ups with banks or post offices |
Pension Fund Regulatory and Development Authority (PFRDA), implemented through banks and post offices |
| Achievements (as of 2025) |
51.06 crore enrolments; ₹3,121.02 crore paid for 1,57,155 claims; 23.87 crore female and 17.12 crore PMJDY enrolments |
23.63 crore enrolments; ₹18,397.92 crore paid for 9,19,896 claims; 10.66 crore female and 7.08 crore PMJDY enrolments |
7.66 crore enrolments; ~47% are women subscribers |
| [UPSC 2016] Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
2. Only one member of a family can join the scheme.
3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below.
Options: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only* (d) 1, 2 and 3 |
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Why in the News?
The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has announced the expansion of the Credit Guarantee Scheme for Startups (CGSS).
About Credit Guarantee Scheme for Startups (CGSS):
- The CGSS was launched on October 6, 2022, as part of the Startup India Action Plan.
- The scheme is designed to provide collateral-free credit to eligible startups through recognized financial institutions.
- It offers credit guarantee cover for loans extended by Scheduled Commercial Banks, All India Financial Institutions (AIFIs), Non-Banking Financial Companies (NBFCs), and SEBI-registered Alternative Investment Funds (AIFs).
- The guaranteed coverage is available in 2 formats:
-
- Transaction-based (for individual borrowers) and
- Umbrella-based (for Venture Debt Funds).
- The scheme helps startups access funding through instruments such as working capital, term loans, and venture debt.
- The DPIIT is responsible for the oversight and implementation of the scheme.
- The scheme is operated by the National Credit Guarantee Trustee Company Limited (NCGTC).
- A Management Committee (MC) and a Risk Evaluation Committee (REC) have been constituted to supervise and review the operations of the scheme.
- It aligns with the objective of encouraging innovation, supporting early-stage entrepreneurship, and driving economic self-reliance.
Key Changes in the Expanded CGSS:
- Guarantee ceiling increased from ₹10 crore to ₹20 crore per borrower.
- Guarantee cover enhanced to:
- 85% for loans up to ₹10 crore.
- 75% for loans exceeding ₹10 crore.
- Annual Guarantee Fee (AGF) reduced from 2% to 1% p.a. for startups in 27 Champion Sectors.
- The Champion Sectors are identified under the ‘Make in India’ initiative to strengthen domestic manufacturing and services.
| [UPSC 2023] Consider the following statements with reference to India:
1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
Options: (a) 1 only (b) 2 only* (c) Both 1 and 2 (d) Neither 1 nor 2 |
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Why in the News?
The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal under the Revised SHAKTI (Scheme to Harness and Allocate Koyla Transparently in India) Policy to enhance coal availability for Central/State Sector Thermal Power Plants and Independent Power Producers (IPPs).
About the SHAKTI Policy:
- The SHAKTI Policy, launched in 2017 by the Ministry of Power, created a transparent mechanism to allocate coal linkages to thermal power plants lacking Fuel Supply Agreements (FSAs).
- It replaced the earlier nomination-based system with auction-based and tariff-based bidding, enhancing fairness and transparency.
- While government-owned plants continue receiving coal through nominations, private power producers must obtain coal via competitive bidding.
- The policy aimed to reduce coal imports, promote the domestic coal industry, and improve energy self-sufficiency.
- It also intended to revive stressed assets in the power sector, indirectly supporting public sector banks and infrastructure growth.
Key Features of the Revised SHAKTI Policy (2024):
- The revised 2024 policy simplifies the system by merging eight criteria into just two windows, enhancing the ease of doing business.
- Window-I allocates coal at notified prices to central and state government utilities, their joint ventures, and subsidiaries, including those with PPAs under Section 62 of the Electricity Act.
- Window-II permits coal and imported coal-based producers to acquire coal through premium-based auctions for 12 to 25 years, without requiring a PPA.
- The policy encourages pithead plants, supports new capacity planning, and allows Imported Coal-Based (ICB) plants to transition to domestic coal, reducing import reliance.
- Existing FSA holders can now purchase coal beyond 100% of their Annual Contracted Quantity (ACQ) during periods of peak demand.
- Unrequisitioned surplus electricity can be sold on power exchanges, boosting plant utilization.
- The policy imposes no additional financial burden on coal companies.
- Beneficiaries include thermal power plants, Coal India, SCCL, railways, state governments, and end consumers.
| [UPSC 2023] With reference to coal-based thermal power plants in India, consider the following statements:
1. None of them uses seawater.
2. None of them is set up in water-stressed district.
3. None of them is privately owned.
How many of the above statements are correct?
Options: (a) Only one (b) Only two (c) All three (d) None* |
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Why in the News?
The Ministry of Road Transport and Highways (MoRTH) has officially notified the Cashless Treatment of Road Accident Victims Scheme, 2025, which came into force on May 5, 2025.
In 2023, India reported over 4.80 lakh road accidents and 1.72 lakh fatalities, highlighting the urgent need for such a scheme.
About the Cashless Treatment Scheme for Road Accident Victims, 2025:
- The scheme provides financial coverage up to ₹1.5 lakh per person, per accident, for a maximum of seven days from the date of the accident.
- All victims, including those without health insurance, are eligible for treatment under this scheme.
- This initiative was introduced following a Supreme Court directive, urging action under Section 162(2) of the Motor Vehicles Act, 1988.
- The scheme aims to deliver critical care during the “golden hour”, defined under Section 2(12A) as the first hour after a traumatic injury, when prompt treatment can save lives.
Key Features of the Scheme:
- Treatment must be provided immediately and is fully covered up to ₹1.5 lakh for up to 7 days from the accident.
- Designated hospitals are required to treat victims without delay or demanding any upfront payment.
- Non-designated hospitals may only offer initial stabilisation, as defined in the guidelines.
- The State Road Safety Council serves as the nodal agency for implementation at the state level.
- The Council will work with the National Health Authority (NHA) to onboard hospitals, monitor care, and ensure timely reimbursements.
- Additional hospitals may be designated by State Health Agencies, beyond those already listed under Ayushman Bharat PM-JAY.
- Hospitals must file payment claims via an online portal, attaching all required documentation.
- The State Health Agency will process claims and may approve, partially approve, or reject them, with reasons provided.
- A national steering committee, chaired by the MoRTH Secretary and NHA CEO, will oversee the scheme’s implementation and compliance.
| [UPSC 2023] Consider the following actions:
1. Detection of car crash/collision which results in the deployment of airbags almost instantaneously
2. Detection of accidental free fall of a laptop towards the ground which results in the immediate turning off of the hard drive.
3. Detection of the tilt of the smart phone which results in the rotation of display between portrait and landscape mode.
In how many of the above actions is the function of accelerometer required?
Options: (a) Only one (b) Only two (c) All three* (d) None |
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Why in the News?
India’s SVAMITVA Scheme will be showcased at the World Bank Land Conference, highlighting its role in land governance reform, climate action, and rural empowerment.
About SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas):
- Launched on 24th April 2020 by the Ministry of Panchayati Raj, the SVAMITVA Scheme aims to provide legal ownership of residential properties in rural areas using drone and geospatial technology.
- It is a Central Sector Scheme, fully funded by the Centre.
- It involves the Ministry of Panchayati Raj, Revenue Departments at the state level, and the Survey of India as the technical partner.
- The scheme issues property cards to rural households, reducing land disputes and enhancing financial inclusion.
- These cards serve as legally valid ownership documents (e.g., Gharauni in Uttar Pradesh, Adhikar Abhilekh in Madhya Pradesh), and the scheme aims to formalize property rights in rural India.
Key Features:
- Drone-based technology ensures high-resolution mapping of village areas for transparency and accuracy.
- Uses Continuous Operating Reference System (CORS) to achieve mapping precision up to 5 cm.
- The Gram Manchitra platform helps in village-level development planning, disaster risk mitigation, and infrastructure management.
- Aims to unlock land value estimated at USD 1.162 trillion, formalizing property ownership and enabling its use as a financial asset.
- Promotes collaboration between central and state governments and aims to reduce litigation and improve rural governance.
| [UPSC 2024] With reference to the Digital India Land Records Modernisation Programme, consider the following statements:
1. To implement the scheme, the Central Government provides 100% funding.
2. Under the Scheme, Cadastral Maps are digitised.
3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.
Which of the statements given above are correct?
Options: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3* |
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Why in the News?
The Union Ministry of Agriculture and Farmers’ Welfare has come up with the guidelines for setting up of bio-input resource centres (BRC) under the National Mission on Natural Farming (NMNF).
What are Bio-Input Resource Centres (BRCs)?
- BRCs are part of the National Mission on Natural Farming (NMNF), aimed at promoting chemical-free and sustainable agriculture.
- BRCs will produce, store, and supply bio-inputs like Jeevamrit, Beejamrit, and Neemastra using local livestock by-products and plant-based materials.
- Key Functions:
-
- Local Production: Ensures availability of bio-fertilizers and bio-pesticides, reducing dependency on synthetic inputs.
- Training: Provides training on bio-input preparation and natural farming techniques.
- Entrepreneurship: Promotes local entrepreneurship, empowering self-help groups (SHGs) and farmers.
- Affordability: Aims to make sustainable farming practices accessible to small and marginal farmers.
- Financial support of Rs 1 lakh per BRC are provided in two tranches of Rs 50,000, though experts raise concerns about its adequacy for infrastructure.
Back2Basics: National Mission on Natural Farming (NMNF):
- NMNF is a Centrally Sponsored Scheme was launched on November 2024 under the Ministry of Agriculture & Farmers’ Welfare, promoting chemical-free farming.
- Objectives:
- Focus on eco-friendly practices and organic methods.
- Reduce input costs by minimizing chemical usage.
- Restore soil health, promote biodiversity, and improve climate resilience.
- Implementation Strategy:
- Establish 15,000 clusters across Gram Panchayats.
- Train 1 crore farmers and implement practices on 7.5 lakh hectares.
- Establish 10,000 BRCs for bio-input accessibility.
- Deploy 30,000 Krishi Sakhis for mobilization.
- Financial Outlay: ₹2,481 crore until 2025-26.
| [UPSC 2021] How is permaculture farming different from conventional chemical farming?
1.Permaculture farming discourages monocultural practices, but in conventional chemical farming, monoculture practices are predominant. 2.Conventional chemical farming can cause an increase in soil salinity, but this phenomenon is not observed in permaculture farming. 3.Conventional chemical farming is easily possible in semi-arid regions, but permaculture farming is not so easily possible in such regions. 4.The practice of mulching is very important in permaculture farming but not necessarily so in conventional chemical farming.
Select the correct answer using the code given below:
Options: (a) 1 and 3 (b) 1, 2, and 4* (c) 4 only (d) 2 and 3 |
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Why in the News?
Under the SMILE scheme, the Union Social Justice Ministry has identified only 9,958 beggars across 81 cities, compared to 3.72 lakh recorded in the 2011 Census.
About the SMILE Scheme:
- The Ministry of Social Justice and Empowerment launched the SMILE scheme in 2022.
- It is a Central Sector Scheme to rehabilitate individuals engaged in begging and empower transgender persons.
- It focuses on rehabilitation, livelihood opportunities, skill development, and social empowerment for marginalized individuals.
- It combines previous programs targeting beggars and transgender persons, providing a more cohesive approach to their empowerment.
- Key Components:
- Shelter Homes: Utilizes existing shelter homes managed by state/UT governments; new homes will be established where necessary.
- Livelihood Support: Provides education, documentation, skill development, and economic linkages to help individuals become self-sufficient.
- Target Beneficiaries: Around 60,000 marginalized individuals.
- Implementation:
- Pilot project has been launched in 30 cities (Phase 1) and extended to 50 more cities (Phase 2).
- A local survey identifies individuals engaged in begging, aiming to rehabilitate 25 individuals per survey.
- ₹100 crore has been allocated for FY 2023-24 to 2025-26, with ₹14.71 crore spent by December 2024 on identification and rehabilitation.
Issues in Implementation:
- Inadequate Shelter Infrastructure: Some regions face a lack of facilities for rehabilitation.
- Resistance to Rehabilitation: Some individuals resist rehabilitation due to socio-economic factors or distrust in government schemes.
- Funding and Resource Constraints: Ongoing financial investment is required for sustainability.
- Sustainability of Rehabilitation: Long-term support is essential for successful reintegration into society.
| [UPSC 2016] ‘Rashtriya Garima Abhiyaan’ is a national campaign to-
(a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood*
(b) abolish the Child Labour
(c) salvage the marshy lands and wetlands in the coastal areas and cultivate crops in them
(d) rehabilitate the manual scavengers and provide them with suitable sources of livelihood |
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Why in the News?
A new study highlights the success of Surat’s Particulate Matter Emission Trading Scheme (PM-ETS), the world’s first market-based system for trading particulate emissions.
The scheme has reduced pollution by 20-30%, providing insights into its potential to improve air quality in industrial areas.
About Particulate Matter Emission Trading Scheme in Gujarat:
- This PM ETS was launched in Surat, Gujarat in 2019.
- It is the world’s first pilot project targeting particulate pollution using a market-based emissions trading system.
- It is India’s first emissions trading initiative for any pollutant.
- The scheme aims to reduce emissions from industries using solid (coal, lignite) and liquid fuels (diesel) by controlling fine particulate matter (PM).
- How It Works?
- Cap-and-Trade: Regulators set a cap on total emissions, and industries are issued permits (1 kg of particulate matter per permit).
- Permit Allocation: 80% of permits are given for free; 20% are sold via auctions.
- Market Trading: Permits can be bought or sold to meet emission targets. A ceiling price (Rs 100/kg) and floor price (Rs 5/kg) are set.
- Compliance: Non-compliant industries face fines double the ceiling price for each excess emission.
Successes of PM-ETS:
- Reduction in Emissions: Participating plants cut emissions by 20-30% compared to traditional methods.
- Improved Compliance: 99% compliance in participating plants.
- Cost-Effective: The system allowed industries to choose the most cost-effective methods for compliance.
Limitations of PM-ETS:
- Over-reliance on Free Permits: Smaller plants may struggle as the number of free permits decreases.
- Supply Chain Limitations: Tightened caps could increase costs for industries not reducing emissions.
- Market Manipulation: Concerns over unfair permit trading.
- Geographical Constraints: Limited to Surat, restricting broader impact.
| [UPSC 2011] Regarding “carbon credits’’, which one of the following statements is not correct?
(a) The carbon credit system was ratified in conjunction with the Kyoto protocol.
(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota.
(c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission.
(d) Carbon credits are traded at a price fixed from time to time by the United Nations environment programs. * |
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Why in the News?
The PM Vidyalaxmi scheme, aimed at supporting meritorious students, is facing slow uptake due to technical issues, including login failures and frequent auto logouts
About the PM Vidyalaxmi Scheme:
|
Details |
| Objective |
A Central Sector Scheme 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. |
| Payment Processing |
Interest support payments through e-vouchers and Central Bank Digital Currency (CBDC) wallets. |
| [UPSC 2017] What is the purpose of Vidyanjali Yojana’?
1. To enable the famous foreign campuses in India.
2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.
Select the correct answer using the code given below:
(a) 2 only* (b) 3 only (c) 1 and 2 only (d) 2 and 3 only |
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Why in the News?
The material cost for the PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme has been increased by 9.5%, resulting in an additional cost of ₹954 crore to be incurred by the Centre in the 2025-26 financial year.
About PM-POSHAN Scheme:
- The PM-POSHAN Scheme, formerly known as the Mid-Day Meal Scheme, is a centrally sponsored initiative aimed at providing a hot, cooked meal to children studying in government and government-aided schools across India.
- Launched under the Ministry of Education, it focuses on improving children’s nutritional status, school participation, retention, and attendance.
- The scheme complements POSHAN Abhiyan and Mission POSHAN 2.0 to improve nutrition among children and mothers.
Key Features:
- Target Group: It serves 11.20 crore children in Balvatikas (pre-primary classes) and Classes 1-8 in 10.36 lakh schools. Special focus is placed on disadvantaged children from low-income backgrounds.
- Nutritional Goals: The scheme provides balanced meals to meet children’s nutritional needs.
- Primary Students: 20g pulses, 50g vegetables, 5g oil.
- Upper Primary Students: 30g pulses, 75g vegetables, 7.5g oil.
- Model: The Centre provides 100% funding for food grains through the Food Corporation of India (FCI), while States contribute to meal implementation.
- Funding Pattern:
- 60:40 between Centre and States/UTs with the legislature.
- 90:10 for Northeastern and Himalayan States.
- 100% central funding for UTs without legislature.
- 26 lakh metric tonnes of food grains are provided annually, with transportation costs covered by the Centre.
- It also has a component to promote the development of School Nutrition Gardens in schools
- Social Audit of the scheme is made mandatory in all the districts.
| [UPSC 2014] Which of the following can be said to be essentially the parts of Inclusive Governance?
1 Permitting the Non-Banking Financial Companies to do banking
2 Establishing effective District Planning Committees in all the districts
3 Increasing the government spending on public health
4 Strengthening the Mid-Day Meal Scheme
Select the correct answers using the codes given below:
(a) 1 and 2 only (b) 3 and 4 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4 |
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Why in the News?
The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme to expand the manufacturing capabilities of passive electronic components in India.
About Electronics Components Manufacturing Scheme:
- The scheme is designed to promote the manufacturing of select electronic components in India, such as resistors, capacitors, relays, switches, sensors, and connectors.
- It focuses particularly on passive electronic components, while active components like semiconductors fall under the India Semiconductor Mission (ISM).
- The scheme has a tenure of 6 years, with a 1-year gestation period.
- The scheme offers 3 types of incentives:
-
- Turnover-linked incentive: Based on revenue.
- Capex-linked incentive: For investments in plants and machinery.
- Hybrid incentive model: A combination of both turnover and capex incentives.
Achievements and Growth in the Electronics Sector:
- Domestic Production Growth: India’s electronics production has grown from ₹1.90 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, at a compound annual growth rate (CAGR) of over 17%.
- Export Growth: Electronics exports have increased from ₹0.38 lakh crore in FY 2014-15 to ₹2.41 lakh crore in FY 2023-24, reflecting a CAGR of over 20%. India is now the second-largest mobile phone producer globally.
- Future Projections: By 2026, India’s electronics production is projected to reach USD 300 billion.
|
Government Initiatives for Electronics Growth:
- Make in India (2014): Aimed at boosting India’s manufacturing sector and transforming it into a global hub for design and manufacturing.
- Phased Manufacturing Programme (2017): Focused on increasing domestic value addition in mobile phones and their parts.
- Production Linked Incentive (PLI) Scheme (2020): Aimed at boosting domestic manufacturing in mobile phones, electronic components, and semiconductor packaging, offering 3-6% incentives on incremental sales.
- Semicon India Program (2021): With a financial outlay of ₹76,000 crore, this scheme promotes the domestic semiconductor industry.
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (2021): Provides a 25% financial incentive for capital expenditure in electronic goods manufacturing.
- Increased Budget for 2025-26: The allocation for electronics manufacturing has been raised from ₹5,747 crore in FY 2024-25 to ₹8,885 crore in FY 2025-26.
| [UPSC 2016] Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in:
(a) Andhra Pradesh (b) Gujarat (c) Maharashtra (d) Uttar Pradesh |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri MUDRA Yojana (PMMY)
Why in the News?
April 8, 2025, marks the 10th anniversary of Pradhan Mantri MUDRA Yojana (PMMY), launched to fund micro and small enterprises.
About the Pradhan Mantri MUDRA Yojana (PMMY)
- The PMMY, launched in 2015 is a Central Sector Scheme designed to provide financial support to non-corporate, non-farm small and micro-entrepreneurs previously excluded from the formal financial system.
- MUDRA stands for Micro Units Development & Refinance Agency Ltd., a financial institution established to support the development and refinancing of micro-enterprises
- It aims to foster grassroots entrepreneurship and remove barriers to accessing loans, especially for businesses that lack collateral.
Loan Categories:
-
- Shishu: Loans up to ₹50,000 for new or small businesses.
- Kishore: Loans ranging from ₹50,000 to ₹5 lakh for growing enterprises.
- Tarun: Loans from ₹5 lakh to ₹10 lakh for more established businesses with greater capital needs.
- TarunPlus: Loan limit up to ₹20 lakh for more established and larger businesses (since July 2024).
Key Features:
- Collateral-Free Loans: PMMY loans do not require any collateral, making them accessible to those without assets.
- Member Lending Institutions (MLIs): These include Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs), and Small Finance Banks (SFBs).
- Credit Guarantee: Loans are backed by the Credit Guarantee Fund for Micro Units (CGFMU), which was established in 2015 to provide security to financial institutions offering loans under PMMY.
- MUDRA Card: A MUDRA card is issued to manage the working capital portion of the loan, providing convenience to the borrower.
MUDRA 2.0:
- MUDRA 2.0 (launched in Union Budget 2024) is an upgraded version of the original PMMY, designed to extend its outreach, particularly in rural and semi-urban areas.
- This version introduces additional services such as financial literacy programs, business mentorship, and comprehensive business support, aiming to improve the overall impact of the scheme.
- Enhanced Credit Guarantee Scheme (ECGS) is a new feature introduced to encourage more lending to small and microenterprises by reducing the risk for financial institutions.
|
Successes of PMMY:
- Massive Loan Disbursement: Over ₹32.61 lakh crore disbursed through 52 crore loans, benefitting millions.
- Inclusivity: 69% of loans are held by women, 51% by SC/ST and OBC entrepreneurs.
- Job Creation: Promoted self-employment and business growth in rural and semi-urban areas.
- MSME Credit Growth: Lending increased from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24.
- International Recognition: Praised by IMF for expanding financial access, especially for women-led businesses.
Challenges:
- Increase in NPAs: Rising defaults due to lack of collateral.
- Disbursement Delays: Some banks face challenges in meeting loan targets.
- Fraud Risk: Collateral-free loans are susceptible to misuse and fraud.
- Larger Loan Limits: Higher limits under TarunPlus raise default risks for banks.
- Default Risk: Some borrowers exploit the system through “evergreening” tactics.
| [UPSC 2016] Pradhan Mantri MUDRA Yojana is aimed at
(a) bringing small entrepreneurs into the 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. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Palna Scheme
Why in the News?
The Ministry of Women and Child Development has informed that 1,761 Anganwadi-cum-Creches are operational across the country under the Palna Scheme.
About the Palna Scheme
- Launched to address childcare needs for working mothers, the Palna Scheme provides day-care facilities for children aged 6 months to 6 years.
- In 2022, the National Creche Scheme was reorganized and renamed Palna Scheme under the Samarthya sub-scheme of Mission Shakti.
- It is a Centrally Sponsored Scheme, with a 60:40 funding ratio between the Centre and State/UT Governments (90:10 for North-Eastern and Special Category States). UTs without legislature receive 100% funding.
- Target Audience: Provides services for all mothers (irrespective of their employment status), offering a safe, hygienic, and supportive environment for children.
- Creche Services: Includes day-care, early stimulation, preschool education, nutrition, health check-ups, and immunization support.
Other Creche Schemes:
- Standalone Creches: Independent creches are providing care for children aged 6 months to 6 years. They include provisions for one Creche Worker and one Creche Helper. Services include sleeping arrangements, health monitoring, and education.
- Anganwadi-cum-Creches (AWCC): A key component of Palna Scheme, these creches combine Anganwadi services with daycare for working mothers.
- Staffing: Includes an Anganwadi Worker, Helper, and Creche Worker and Helper.
- Target: Establish 17,000 new AWCCs by 2024-25, with 11,395 already approved as of March 2025.
- Objective: To provide childcare in rural and semi-urban areas, ensuring last-mile delivery.
- Honorarium: ₹6,500 for Creche Workers in standalone crèches and ₹5,500 for AWCC Workers.
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About Mission Shakti
- Mission Shakti is the Ministry of Women and Child Development’s flagship scheme, designed to strengthen women’s safety, security, and empowerment in India.
- The scheme supports women-led development by addressing issues affecting women across their life-cycle.
- Components:
- Sambal: Focuses on women’s safety, with initiatives like the One Stop Centre (OSC), Women Helpline (WHL), and Beti Bachao Beti Padhao (BBBP).
- Samarthya: Empowering women through sub-schemes like Ujjwala, Swadhar Greh, and the Palna Scheme. It integrates support for childcare and maternal health.
- Gap Funding for Economic Empowerment: A new initiative to support financial gaps in women’s enterprises.
| [UPSC 2019] With reference to the Maternity Benefit Amendment Act, 2017, consider the following statements:
1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave
2. This act applies to all organisations with 20 or more employees
3. It has made it mandatory for every organisation with 50 or more employees to have a crèche.
Which of the given statements is/are correct?
(a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Central Sector Scheme for Promotion of International Cooperation for AYUSH
Why in the News?
The Ministry of Ayush is implementing the Central Sector Scheme for Promotion of International Cooperation for AYUSH to enhance global recognition and development of AYUSH systems, including Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy.
About the Scheme
- The scheme focuses on promoting AYUSH systems internationally, contributing to their global growth.
- The scheme is announced on the AYUSH website, and applications are invited through open advertisements.
- Proposals are screened by a committee and approved for financial assistance based on needs and activity limits.
- Key Components of the Scheme:
-
- International Exchange of Experts & Officers: Facilitates deputation of AYUSH experts for international conferences and training.
- Incentives for Drug Manufacturers: Provides financial support for international propagation and product registration.
- Market Development Support: Supports exhibitions, conferences, and market surveys for international market development.
- Promotion through Young Postgraduates: Deploys young postgraduates to promote AYUSH abroad through NGOs.
- Translation and Publication: Funds the translation and publication of AYUSH literature in foreign languages.
- AYUSH Information Cells/Health Centres: Establishes AYUSH cells and health centers in foreign countries through Indian missions.
- International Fellowship Programme: Offers fellowships to foreign nationals to study AYUSH courses in India.
Significance of Yoga and AYUSH in India’s International Outreach
- The International Day of Yoga (IDY) was declared by the United Nations in 2014, with ₹161 crore spent on its promotion. IDY celebrations spread Yoga’s global message.
- Yoga is now part of the National Curriculum Framework (NCF), making it compulsory for students from Class I to Class X.
- The Yoga Certification Board (YCB) under the Ministry of Ayush certifies yoga professionals and accredits institutions, ensuring quality and standards in Yoga practice.
- The Ministry of Ayush has signed 24 Country-to-Country MoUs and 51 Institute-to-Institute MoUs to promote Indian traditional medicine systems globally.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MGNREGS
Why in the News?
The Centre has announced a hike in the wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2025-26, with an increase ranging from 2-7%.
Wage Revision Under MGNREGS:
- 2025-26 Wage Hike:
- Wage increase: 2.33%-7.48%, with ₹7 to ₹26 rise.
- Haryana records the largest hike of ₹26, bringing the wage to ₹400 per day (highest in India).
- Wage Calculation:
- Wages are linked to the Consumer Price Index for Agricultural Labourers (CPI-AL).
- Previous Hikes:
- Goa had the largest hike of 10.56% in 2024-25.
- Uttar Pradesh and Uttarakhand had the smallest at 3.04%.
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About MGNREGS
- The MGNREGS, launched in 2005, guarantees 100 days of wage employment annually for rural households.
- It provides a legal right to work, focusing on unskilled manual labour.
- Unique Features:
- 100 days of employment for rural households, with adult members volunteering for unskilled work.
- If employment isn’t provided within 15 days, an unemployment allowance is paid.
- Work must be offered within 5 km of the applicant’s residence.
- The Centre funds 100% of unskilled labour costs, 75% of skilled labour and materials, and 6% of administrative costs.
- Key Provisions under MGNREGS
-
- Rural households are entitled to 100 days of employment. Additional days are allowed during natural calamities or for Scheduled Tribe households.
- Citizens can conduct social audits to ensure transparency, with all records open to public scrutiny.
- Worksites must provide crèches, drinking water, and first aid.
- Workers more than 5 km from the worksite receive a travel allowance of 10% of the wage rate.
Recent Challenges surrounding MGNREGS:
- Delayed Payments: ₹11,423 crore owed for wages and administrative costs as of January 2025, with workers facing delays of weeks or months.
- Inadequate Wage Rates: Wage rates are not linked to inflation, with the highest wage for 2024-25 at ₹374 in Haryana, below the national minimum wage.
- Technological Challenges: Issues with Aadhaar-based payments and mobile monitoring systems have led to non-payment or misdirected funds.
- Budget Constraints: Budget allocations have decreased from 0.4% of GDP in FY22 to 0.2% in FY25, impacting workdays and payments.
- Social Audit Irregularities: Irregular audits by Gram Sabhas raise concerns about accountability and transparency.
|
| [UPSC 2011] Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?
(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gold Monetisation Scheme (GMS)
Why in the News?
The Centre has decided to discontinue the Gold Monetization Scheme (GMS) starting from March 26, 2025, considering evolving market conditions.
The short-term deposits (1-3 years) will continue at the discretion of individual banks based on commercial viability, highlighting a shift towards flexible, shorter-term options.
About Gold Monetization Scheme (GMS) and its Features
- The GMS was launched in November 2015 as an enhanced version of the Gold Deposit Scheme (GDS) and Gold Metal Loan (GML) Scheme.
- The main goal was to mobilize idle gold from households and institutions into the formal economy, thereby reducing the country’s reliance on gold imports and improving the current account deficit (CAD).
- Objectives: Aimed at mobilizing gold, reducing gold imports, and utilizing gold to generate interest as a financial asset, thereby strengthening the economy.
- The GMS included three deposit options:
- Short-Term Gold Deposit (STGD): 1-3 years
- Medium-Term Gold Deposit (MTGD): 5-7 years
- Long-Term Gold Deposit (LTGD): 12-15 years
- Interest and Redemption:
- Short-Term Deposits: Interest rates determined by individual banks; redemption could be in cash or gold.
- Medium- and Long-Term Deposits: Fixed interest rates at 2.25% (medium-term) and 2.5% (long-term), with cash redemption only.
- Eligibility Criteria:
- Open to individuals, institutions, and government entities.
- Gold tendering accepted only at designated Collection and Purity Testing Centres (CPTC) or through GMS Mobilisation Agents.
- Deposits were accepted only if the value exceeded ₹1 lakh.
Reasons for Discontinuation
- The Finance Ministry discontinued the Medium-Term and Long-Term Deposits due to changes in the gold market.
- Gold prices surged by 41.5% from ₹63,920 per 10 grams in January 2024 to ₹90,450 per 10 grams by March 2025.
- This rise in gold value reduced the attractiveness of schemes like GMS for both depositors and the government.
- With the closure of the Sovereign Gold Bond Scheme, the government aims to shift towards more market-oriented solutions for gold-related financial products.
| [UPSC 2016] What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
1. To bring the idle gold lying with Indian households into the economy.
2. To promote FDI in the gold and jewellery sector
3. To reduce India’s dependence on gold imports
Select the correct answer using the code given below:
(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Program for Dairy Development (NPDD)
Why in the News?
The Union Cabinet has approved the Revised National Programme for Dairy Development (NPDD), enhancing its scope and funding to modernize and expand the dairy sector across India.
About the National Programme for Dairy Development (NPDD)
- It is implemented by the Department of Animal Husbandry & Dairying (DAHD).
- The scheme has been operational since February 2014, initially targeting the development of dairy cooperatives and expanding infrastructure to support dairy activities.
- In July 2021, the scheme was restructured to align with the goals of the 15th Finance Commission cycle (2021-2026), to run from 2021 to 2026 with an enhanced budget.
- It focuses on providing technical and financial assistance to improve the dairy infrastructure in India, including enhancing milk procurement, processing, and marketing capabilities.
- It also aims to provide training facilities for dairy farmers, improving their skills and fostering rural development.
Revised Components of NPDD Scheme:
The Revised NPDD, a Central Sector Scheme, is designed with two primary components that focus on dairy infrastructure development and cooperative strengthening:
Component A: Dairy Infrastructure Improvement
- This component focuses on improving essential dairy infrastructure, such as the installation of milk chilling plants, advanced milk testing laboratories, and certification systems for quality assurance.
- Special attention is given to the North Eastern Region (NER), hilly areas, and Union Territories (UTs), where support is provided for the formation of new dairy cooperative societies and the strengthening of milk procurement and processing systems.
- Grant support will be provided for the formation of 2 Milk Producer Companies, ensuring a more efficient procurement system.
Component B: Dairying through Cooperatives (DTC)
- This component focuses on fostering dairy development through cooperative models in partnership with the Government of Japan and Japan International Cooperation Agency (JICA).
- It aims to sustainably develop dairy cooperatives, improve production, processing, and marketing infrastructure in 9 key states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.
- This component seeks to introduce international best practices in cooperative management and dairy technologies.
PYQ:
[UPSC 2013] Which of the following grants direct credit assistance to the households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using codes given below.
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-YUVA Scheme
Why in the News?
The Ministry of Education, Department of Higher Education, launched the PM-YUVA 3.0 (Prime Minister’s Scheme for Mentoring Young Authors) on 11th March 2025.
About the PM-YUVA Scheme
- PM-YUVA 3.0 was launched on 11th March 2025, building upon the success of the first two editions, which focused on themes like national movement and democracy.
- It is an initiative by the Ministry of Education, Department of Higher Education, aimed at mentoring young authors below the age of 30.
- The scheme’s objectives include fostering a new generation of writers who can explore topics such as:
- Contribution of the Indian Diaspora in Nation Building
- Indian Knowledge System
- Makers of Modern India (1950-2025)
- Background:
- PM-YUVA 1.0 (2021): Focused on India’s National Movement & unsung heroes.
- PM-YUVA 2.0 (2022): Focused on Democracy and Constitutional Values.
- The scheme was designed to promote reading, writing, and book culture in India while showcasing Indian literature and heritage globally.
- The National Book Trust (NBT), India, is the implementing agency responsible for executing the scheme.
- The scheme aligns with the National Education Policy (NEP) 2020, aiming to empower youth, develop creative leaders, and encourage capacity building in India’s younger generation.
Important Features of PM-YUVA 3.0
- An All-India Contest will be held through MyGov from 11 March 2025 to 10 April 2025.
- 50 authors will be selected across three themes.
- Evaluation of proposals will be completed by April 2025, and the final list of selected authors will be announced between May-June 2025.
- Each selected author will receive a ₹50,000 monthly scholarship for six months, totaling ₹3 lakh per author.
- Authors will also receive a 10% royalty on successful publications of their books.
- Books created under the scheme will be published by the National Book Trust and translated into other Indian languages, promoting literary exchange and supporting the vision of ‘Ek Bharat Shreshtha Bharat’.
- Applicants who have qualified for PM-YUVA 1.0 and PM-YUVA 2.0 are not eligible for this edition.
PYQ:
[2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements :
1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Kisan Credit Card (KCC) Scheme
Why in the News?
According to the RBI, bad loans in the Kisan Credit Card (KCC) Scheme segment increased by 42% over the last four years, reaching ₹97,543 crore by December 2024, up from ₹68,547 crore in March 2021.
About the Kisan Credit Card (KCC) Scheme
- The KCC Scheme is a government-backed credit initiative designed to provide timely and adequate credit to farmers for agricultural and allied activities.
- Launched in 1998 on the recommendation of NABARD (R.V. Gupta Committee), the scheme aims to ensure easy access to institutional credit, reducing farmers’ dependency on moneylenders and informal credit sources.
-
- Provides short-term credit for crop cultivation and post-harvest needs.
- Supports working capital requirements for farm mechanization, dairy, poultry, fisheries, and other allied agricultural activities.
- Helps meet household consumption needs of farmers.
- Allows credit access for investment in agriculture-related businesses.
- Credit and Repayment System:
- Farmers can avail collateral-free loans up to ₹2 lakh.
- Interest rates start as low as 4% per annum (with government interest subvention for timely repayment).
- The loan limit was increased from ₹3 lakh to ₹5 lakh in Budget 2025-26.
- Revolving credit system allows farmers to withdraw and repay as needed within the sanctioned limit.
- Repayment schedules are linked to the crop harvesting cycle, ensuring no undue financial burden.
- Implementation: Commercial Banks; Regional Rural Banks (RRBs); Small Finance Banks; Cooperative Banks.
-
- Comes with insurance coverage under the Pradhan Mantri Fasal Bima Yojana (PMFBY) to protect against crop loss.
- Covers fisheries and animal husbandry farmers (since 2018-19).
Successes and Limitations of the KCC Scheme:
| Successes |
Failures |
- Increased Financial Inclusion: 7.3 crore active accounts, reducing reliance on moneylenders.
- Higher Agricultural Productivity: Easy access to inputs like seeds, fertilizers, and machinery.
- Increased Support: Interest subvention makes loans affordable; loan limit raised from ₹3 lakh to ₹5 lakh (Budget 2025-26).
- Promoted Rural Development: Covers women farmers, Farmer Producer Organizations (FPOs), and non-farm activities.
|
- Rising NPAs: Discussed above.
- Loan Misuse: Funds diverted for non-agricultural expenses, increasing defaults.
- Low Financial Literacy: Many farmers unaware of repayment terms, leading to debt traps.
- High Credit Dependency: Continuous borrowing without income growth raises financial risks.
|
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:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 4 and 5 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agriculture Infrastructure Fund (AIF) Scheme
Why in the News?
Punjab has fully utilized ₹4,713 crore allocated under the Agriculture Infrastructure Fund (AIF), making it the top-ranked state in India for implementing this scheme.
As a result, Punjab has been granted an additional ₹2,337 crore to further expand its agricultural infrastructure projects.
What is the Agriculture Infrastructure Fund (AIF) Scheme?
- The AIF is a ₹1 lakh crore financing facility launched by the Government of India in July 2020 to support post-harvest agricultural infrastructure and community farming assets.
- AIF provides medium- to long-term debt financing at subsidized interest rates, along with credit guarantee support, to eligible beneficiaries.
Key Features of the AIF Scheme:
- Total Corpus & Disbursement: ₹1 lakh crore, disbursed over 10 years (2020-21 to 2029-30).
- Interest Subvention & Loan Benefits:
- 3% interest subvention on loans up to ₹2 crore.
- Credit guarantee support through CGTMSE and NABSanrakshan.
- Maximum interest rate capped at 9% for a 7-year tenure.
- Eligible Projects:
- Post-harvest infrastructure: Warehouses, cold storage, silos, drying yards, sorting, and packaging units.
- Processing & Value Addition: Food processing plants, oil mills, flour mills, kinnow and cashew processing.
- Technology-driven solutions: Drone projects, hi-tech farm equipment rental centers.
- Renewable energy: Solar-powered irrigation and cold storage units.
- Integration with Other Government Schemes: Can be combined with State & Central subsidies for maximum benefit.
- Implementation & Monitoring:
- Managed via online MIS platform for real-time tracking.
- National, State & District-level monitoring committees ensure effective execution.
Eligible Beneficiaries Under AIF:
- Individual Farmers: Seeking on-farm storage or processing units.
- Farmer Producer Organizations (FPOs): For community-based infrastructure.
- Self-Help Groups (SHGs) & Joint Liability Groups (JLGs): Engaged in agricultural activities.
- Cooperative Societies & Primary Agricultural Credit Societies (PACS): For collective farming and value addition.
- Startups & Agri-Tech Companies: Developing post-harvest management solutions.
- State Agencies & PPP Projects: Government-backed rural infrastructure projects.
- Entrepreneurs & Agripreneurs: Working in food processing and value addition.
PYQ:
[2017] Which of the following is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?
1. It is a pan-India electronic trading portal for agricultural commodities.
2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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