NPS Vatsalya Scheme

Schemes | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important:

Prelims level: NPS Vatsalya Scheme

Why in the News?

The Finance Ministry has launched the “NPS Vatsalya scheme” as per the Union Budget 2024-25 announcement.

About NPS Vatsalya Scheme:

	Details
Objective	To secure children’s financial future by allowing parents to *invest in a pension account early on.*
Nodal Agency	Managed by Pension Fund Regulatory and Development Authority (PFRDA)
Eligibility	Indian citizens, NRIs (Non-Resident Indians), and OCIs (Overseas Citizens of India) can open accounts for minors. Parents or guardians.
Contributions	₹500 per month or ₹6,000 annually
Benefits offered	Contributions benefit from compounding, ensuring long-term wealth growth for the child. At 18, Vatsalya account is converted into a regular NPS account for seamless retirement planning. Promotes long-term financial security and retirement planning for future generations.

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

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Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

PM E-Drive Scheme

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?

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Rural Infrastructure Schemes

Launch of PM Gram Sadak Yojana- Phase IV

Schemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

Note4Students

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.

About Pradhan 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:

(a) 1, 2 and 3 only

(b) 2, 3 and 4 only

(d) 1 and 5 only

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Expansion of Agricultural Infrastructure Fund (AIF) Scheme

Schemes | Agriculture | Mains Paper 3: Agriculture and related issues

Note4Students

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:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

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Financial Inclusion in India and Its Challenges

[pib] 10 Years of Jan Dhan Scheme

Prelims Only Schemes | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

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.

(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.

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Pension Reforms

What is the Unified Pension Scheme?

Schemes | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

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.

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Innovation Ecosystem in India

[pib] REACHOUT Scheme

Schemes | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

Note4Students

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.

What is the REACHOUT Scheme?

It is an initiative by the Ministry of Earth Sciences (MoES) under the broader PRITHVI (PRITHvi Vigyan) program.
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

(d) Ministry of Skill Development and Entrepreneurship

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Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

Jiyo Parsi Scheme

Schemes | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students

From UPSC perspective, the following things are important:

Prelims level: Jiyo Parsi Scheme

Why in the News?

The Minister for Minority Affairs has launched a dedicated portal for Jiyo Parsi Scheme.

What is the Jiyo Parsi Scheme?

It is a Central Sector Scheme launched in 2013-14 by the Ministry of Minority Affairs.
It aims to arrest the population decline of the Parsis, a minority community in India.
It focuses on stabilizing and increasing the Parsi population through scientific protocols and structured interventions.
Features of the Scheme:
- Financial support for infertility treatments and related medical care in empanelled hospitals.
- Assistance for childcare and support for elderly Parsis.
- Programs to raise awareness and encourage participation within the Parsi community.
Target Groups:
- Parsi married couples of childbearing age needing assistance.
- Young adults and adolescents in the Parsi community for disease detection, with parental/legal guardian consent.

Significance of the scheme:

This scheme has successfully facilitated the birth of over 400 Parsi children.
It preserves the cultural heritage and identity of the Parsi community.
It ensures the long-term sustainability of the community in India.
It demonstrates government commitment to supporting minority communities and promoting diversity.

PYQ:

[2011] In India, if a religious sect/community is given the status of a national minority, what special advantages it is entitled to?

It can establish and administer exclusive educational institutions.
The President of India automatically nominates a representative of the community to Lok Sabha.
It can derive benefits from the Prime Minister’s 15-Point Programme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

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Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

[pib] Operational Guidelines for Implementation of ‘Model Solar Village’

Prelims Only Schemes | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

Note4Students

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?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

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Women empowerment issues – Jobs,Reservation and education

[pib] Nandini Sahakar Yojana

Schemes | Governance | Mains Paper 2: Government Scheme/Policies

Note4Students
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% women as 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 subvention on 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.
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Type: Schemes

Why in the News?

About NPS Vatsalya Scheme:

PYQ:

Why in the News?

About PM E-DRIVE Scheme:

Other components:

PYQ:

Why in the News?

About Pradhan Mantri Gram Sadak Yojana (PMGSY)

Benefits of PMGSY-IV

PYQ:

Why in the News?

About Agriculture Infrastructure Fund (AIF) Scheme:

Key changes introduced:

PYQ:

Why in the News?

About PMJDY

Successes of PMJDY

PYQ:

Why in the News?

About Unified Pension Scheme (UPS):

Significance of the UPS

PYQ:

Why in the News?

What is the REACHOUT Scheme?

About the International Earth Sciences Olympiad (IESO)

India’s Participation:

PYQ:

Why in the News?

What is the Jiyo Parsi Scheme?

Significance of the scheme:

PYQ:

Why in the news?

About PM Surya Ghar Muft Bijli Yojana

Features of the ‘Model Solar Village’ Initiative:

PYQ:

Why in the News?

About Nandini Sahakar Yojana

Features of the Scheme