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Type: Schemes

  • What is Small Savings Scheme?

    Economists expect the Centre to raise the interest rates paid on small savings schemes for the July to September 2022 quarter.

    Small Savings Scheme

    • Small Savings Schemes are a set of savings instruments managed by the central government with an aim to encourage citizens to save regularly irrespective of their age.
    • They are popular as they provide returns higher than bank fixed deposits, sovereign guarantee and tax benefits.

    How is it managed?

    • Since 2016, the Finance Ministry has been reviewing the interest rates on small savings schemes on a quarterly basis.
    • All deposits received under various schemes are pooled in the National Small Savings Fund.
    • The money in the fund is used by the Centre to finance its fiscal deficit.

    What are the different saving schemes?

    The schemes can be grouped under three heads –

    1. Post office deposits
    2. Savings certificates and
    3. Social security schemes

    (1) Post Office Deposits

    • Under this we have the savings deposit, recurring deposit and time deposits with 1, 2, 3 and 5 year maturities and the monthly income account.
    • The savings account currently pays an interest of 4% per annum and can be opened individually or jointly with an initial investment of Rs 500.
    • The recurring deposit that pays 5.8% a year compounded quarterly matures after 60 months from the date of opening.
    • It allows investors to save on a monthly basis with a minimum deposit of Rs 100 per month.
    • Investments under the 5-year time deposit up to Rs 1.5 lakh further qualifies for benefit under section 80C of Income Tax Act.

    (2) Savings Certificates

    • Under this, we have the National Savings Certificate and the Kisan Vikas Patra.
    • The National Savings Certificate pays interest at a rate of 6.8% per annum upon maturity after 5 years. The interest that is earned is reinvested into the scheme every year automatically.
    • The NSC also qualifies for tax saving under Section 80C of the income tax act.
    • The Kisan Vikas Patra, which is open to everyone, doubles your one-time investment at the end of 124 months signifying a return of 6.9% compounded annually.
    • The minimum investment amount is Rs 1000 while there is no upper limit.

    (3) Social security schemes

    • In the third head of social security schemes, there is Public Provident Fund, Sukanya Samriddhi Account and Senior Citizens Savings Scheme.

    a. Public Provident Fund

    • The Public Provident Fund is a popular saving option for long term goals like retirement.
    • It pays 7.1% a year and qualifies for tax benefit under Section 80C of the Income Tax Act.
    • Upon maturity of the account after 15 years, it can be extended indefinitely in blocks of 5 years.
    • The accumulated amount and interest earned are exempt from tax at the time of withdrawal.

    b. Sukanya Samriddhi Account

    • The Sukanya Samriddhi Account was launched in 2015 under the Beti Bachao Beti Padhao campaign exclusively for a girl child.
    • The account can be opened in the name of a girl child below the age of 10 years.
    • The scheme guarantees a return of 7.6% per annum and is eligible for tax benefit under Section 80C of the Income Tax Act.
    • The tenure of the deposit is 21 years from the date of opening of the account and a maximum of Rs 1.5 lakh can be invested in a year.

    c. Senior Citizen Savings Account

    • And finally, the 5-year ​​Senior Citizen Savings Account can be opened by anyone who is over 60 years to age.
    • It carries an interest of 7.4% per annum payable quarterly and qualifies for Section 80C tax benefit.
    • These time-tested and safe modes of investments don’t offer quick returns, but are safer when compared to market-linked schemes.

     

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  • Group wants new order on MGNREGA workers revoked

    Certain groups has asked to discontinue manual attendance for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) work sites with more than 20 workers and use a mobile phone-based application.

    What is MGNREGA?

    • The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
    • This is labour law and social security measure that aims to guarantee the ‘Right to Work’.
    • The act was first proposed in 1991 by P.V. Narasimha Rao.

    Features of the scheme

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

    What is so unique about it?

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Any Indian citizen above the age of 18 years who resides in rural India can apply for the NREGA scheme. The applicant should have volunteered to do unskilled work.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

    Answer this PYQ in the comment box:

    Q.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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  • Extending the Aspirational District Programme (ADP)

    The PM has hoped to extend the Aspirational District Programme (ADP) to block and city levels.

    Aspirational Districts Programme (ADP)

    • Launched in January 2018, the ‘Transformation of Aspirational Districts’ initiative aims to remove this heterogeneity through a mass movement to quickly and effectively transform these districts.
    • The broad contours of the program are Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts driven by a spirit of mass Movement.
    • With States as the main drivers, this program will focus on the strength of each district, identify low-hanging fruits for immediate improvement, measure progress, and rank districts.

    Behind the name

    • PM then negated the idea of naming any scheme based on their backwardness.
    • Rather the name ‘Aspirational’ presents a more affirmative action-based execution of the scheme.

    Selection of districts

    • A total of 117 Aspirational districts have been identified by NITI Aayog based upon composite indicators.
    • The objective of the program is to monitor the real-time progress of aspirational districts based on 49 indicators (81 data points) from the 5 identified thematic areas.

    Weightage has been accorded to these districts as below:

    • Health & Nutrition (30%)
    • Education (30%)
    • Agriculture & Water Resources (20%)
    • Financial Inclusion & Skill Development (10%)
    • Basic Infrastructure (10%)

    Strategy of the ADP

    The core Strategy of the program may be summarized as follows.

    • Making development a mass movement in these districts
    • Identify low hanging fruits and the strength of each district, to act as a catalyst
    • for development.
    • Measure progress and rank districts to spur a sense of competition.
    • Districts shall aspire to become State’s best to Nation’s best.

    Features of the ADP

    • It has transformed into a Jan Andolan.
    • The ADP is different in trying to monitor the improvement of these districts through real-time data tracking.
    • The programme seeks to develop convergence between selected existing central and state government programmes.
    • District performance in the public domain and experience building of the district bureaucracy is another notable feature.
    • The programme is targeted, not towards any single group of beneficiaries, but rather towards the population of the district as a whole.

    What makes this program special?

    The program reflects what has become of the development project in India under neoliberalism, especially after the end of planning.

    • Long overdue sectors have been given more emphasis.
    • It is not a tailor-made program with one-size-fit strategy. More onus has been laid on the districts. It has a district-intervention strategy.
    • It works on the principle of SWOT (strength, weakness, opportunity and threats) model and comparison with national best parameters for effective resource management.
    • It is the most reviewed programme by the Prime Minister.
    • A general idea behind the idea is that a good work never goes un-noticed. It is duly appreciated on social media as well as by the officials.

    Programmatic Strengths

    • A key strength of the ADP is the collection of baseline data and follow-ups at regular intervals.
    • Sustaining this effort would create a robust compilation of statistics for use by both researchers and policy-makers.
    • In doing this, the government also brings much-needed attention to human development and a willingness to meet the Sustainable Development Goals (SDGs).
    • Incremental progress being made in the chosen districts as reflected in the rankings.
    • The programme also claims to be “non-partisan and unbiased” and geared towards all-India growth.
    • The selection of districts indeed suggests that the programme has not favored any bias either regional, political or any other.
    • The programme seeks convergence of central and state schemes anchored around specific activities.

    Issues with the programme

    • Using the case of Bihar, they argue that the programmes selection of districts itself is problematic.
    • In fact, it actually excludes the most backward districts because per capita income, the most basic measure of development, has not been considered.
    • There seems to be some ambiguity around the issue of whether the programme is concerned only with improved access or also with the quality of service provided.
    • The indicators used are not defined relationally, rather they are static human development indicators that do not see people mired in dynamic social relations.
    • It is also accused that the state is not making any new or focused public investment (except for possible use of Flexi-funds) into these districts, on the other hand, it is moralizing about their inability to improve (through rankings).
    • The programme is carrying the burden of proving the government’s “developmental” work without addressing any of the fundamental issues around achieving equitable development.
    • Yet, the NITI Aayog justifies the overall approach as capitalizing on “low-hanging fruit.”

    Way forward

    • The program has been able to make difference in the lives of citizens of India, in education, health, nutrition, financial inclusion, skill development and this has made a difference to some most backward and most geographically far-flung districts of the nation.
    • ADP is ‘aligned to the principle of “leave no one behind—the vital core of the SDGs. Political commitment at the highest level has resulted in the rapid success of the program the report said.
    • UNDP has recommended revising a few indicators that are slightly close to reaching their saturation or met by most districts like ‘electrification of households’ as an indicator of basic infrastructure.

     

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  • What is Agnipath Scheme?

    Defence Minister announced the ‘Agnipath’ scheme for the recruitment of youth in the armed forces for four years.

    Agnipath Scheme

    • This will be the only form of recruitment of soldiers into the three defence services from now.
    • The scheme aims at strengthening national security and for providing an opportunity to the youth to serve in the armed forces.
    • Recruits under the scheme will be known as ‘Agniveers’.
    • After completing the four-year service, they can apply for regular employment in the armed forces.
    • They may be given priority over others for various jobs in other government departments.
    • The move is expected to decrease the average age profile of armed forces personnel from the current 32 to 24-26 years over a period of time.

    Working of the scheme

    • The process of recruitment will commence in 90 days with a planned intake of 46,000 young men and women this year.
    • Enrolment to all three services will be through a centralized online system, with special rallies and campus interviews at recognized technical institutes.
    • Recruitment will be carried out on an “All India All Class” basis with the eligibility age ranging from 17.5 to 21, with medical and physical fitness standards in accordance with existing norms.

    Payouts of the Agniveers

    • The ‘Agniveers’ will receive an annual package of â‚č4.76 lakh in the first year to â‚č6.92 lakh in the fourth year, apart from risk and hardship and other allowances as applicable.
    • Under the ‘Seva Nidhi’ package, they will receive about â‚č11.71 lakh, including contribution and interest, on completion of service.
    • The recruits will have to contribute 30% of their monthly emoluments to Seva Nidhi, with a matching contribution made by the government.
    • There will be no entitlement to gratuity and pension benefits under the scheme.
    • However, the ‘Agniveers’ will be provided a non-contributory life insurance cover of â‚č48 lakh during their service.

     

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  • Nanhi Pari Programme

    The ‘Nanhi Pari’ programme was recently launched by the Northwest Delhi district administration.

    Nanhi Pari Programme

    • Nanhi Pari programme aims to provide a one-stop solution to parents, eliminating their need to visit various offices to obtain documents.
    • Under the programme, essential services such as the provision of a birth certificate, Aadhaar card registration and opening a bank account for girls are completed and delivered in government hospitals in the district before the mother and baby are discharged.
    • The programme will help in getting registration of baby girls and mothers under various schemes such as the Sukanya Samriddhi Account scheme, the Ladli scheme and Pradhan Mantri Matru Vandana Yojana at the hospital itself.

    Significance of the Programme

    • The programme makes the processes for schemes as simple as possible for all children and mothers.
    • Parents would not have to go from here to there, trying to avail themselves of the essential schemes.
    • Apart from ensuring that schemes reach target beneficiaries and protecting the interests of girl children, the programme also aims to promote institutional deliveries.

     

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  • Ujjwala LPG Scheme: 90-lakh beneficiaries don’t take refills

    In the financial year 2021-22, 90-lakh beneficiaries of the flagship welfare scheme, Pradhan Mantri Ujjwala Yojana (PMUY), did not take refill gas cylinders. And over one crore beneficiaries got their refills only once.

    About the PM Ujjwala Yojana

    • Pradhan Mantri Ujjwala Yojana (PMUY) was launched in 2016, with the aim to provide Liquefied petroleum gas (LPG) connections to five crore women members of below poverty line (BPL) households in the first phase.
    • he scheme was expanded in April 2018 to include women beneficiaries from seven more categories (SC/ST, PMAY, AAY, Most backward classes, tea garden, forest dwellers, Islands).
    • In the second phase the target was expanded to eight crore LPG connections.

    Why was this scheme launched?

    • Indoor air pollution is also responsible for a significant number of acute respiratory illnesses in young children.
    • Providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country.
    • This measure has empowered women and protected their health. It reduced drudgery and the time spent on cooking.
    • It will also provide employment for rural youth in the supply chain of cooking gas.

    Ujjwala 2.0

    • Now migrant workers would only be required to submit a self-declaration of their residential address to get the gas connection.
    • Along with a deposit-free LPG connection, Ujjwala 2.0 will provide the first refill and a hotplate free of cost to the beneficiaries.

     

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  • Union Finance Ministry revises MPLADS Rules

    At a time when MPs have been asking for an increase in the MP Local Area Development Scheme (MPLADS) fund, the Union Finance Ministry has ordered revised rules, under which the interest that the fund accrues will be deposited in the Consolidated Fund of India.

    What is the MPLAD scheme?

    • The Members of Parliament Local Area Development Scheme (MPLADS) is a program first launched during the Narasimha Rao Government in 1993.
    • It was aimed towards providing funds for developmental works recommended by individual MPs.

    Funds available

    • The MPs then were entitled to recommend works to the tune of Rs 1 crore annually between 1994-95 and 1997-98, after which the annual entitlement was enhanced to Rs 2 crore.
    • The UPA government in 2011-12 raised the annual entitlement to Rs 5 crore per MP.

    Implementation

    • To implement their plans in an area, MPs have to recommend them to the District Authority of the respective Nodal District.
    • The District Authorities then identify Implementing Agencies that execute the projects.
    • The respective District Authority is supposed to oversee the implementation and has to submit monthly reports, audit reports, and work completion reports to the Nodal District Authority.
    • The MPLADS funds can be merged with other schemes such as MGNREGA and Khelo India.

    Guidelines for MPLADS implementation

    • The document ‘Guidelines on MPLADS’ was published by the Ministry of Statistics and Programme Implementation in June 2016 in this regard.
    • It stated the objective of the scheme to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs in their Constituencies.
    • Right from the inception of the Scheme, durable assets of national priorities viz. drinking water, primary education, public health, sanitation, and roads, etc. should be created.
    • It recommended MPs to works costing at least 15 percent of their entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 percent for areas inhabited by ST population.
    • It lays down a number of development works including construction of railway halt stations, providing financial assistance to recognized bodies, cooperative societies, installing CCTV cameras etc.

    Answer this PYQ in the comment box:

    With reference to the funds under the Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? (CSP 2020)

    1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
    2. A specified portion of each MP’s fund must benefit SC/ST populations.
    3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.
    4. The district authority must inspect at least 10% of all works under implementation every year.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 3 and 4 only

    (c) 1, 2 and 3 only

    (d) 1, 2 and 4 only

     

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  • [pib] MSME Sustainable (ZED) Certification Scheme

    The  Union Ministry for Micro, Small and Medium Enterprises has launched the MSME Sustainable (ZED) Certification Scheme.

    MSME Sustainable (ZED) Certification Scheme

    • This Scheme is an extensive drive to enable and facilitate MSMEs adopt Zero Defect Zero Effect (ZED) practices.
    • It aims motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
    • Through the ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.

    Components of the scheme

    • Under the Scheme, MSMEs will get subsidy as per the following structure, on the cost of ZED certification:
    1. Micro Enterprises: 80%
    2. Small Enterprises: 60%
    3. Medium Enterprises: 50%
    • There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.
    • In addition to above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.
    • Further, a limited purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge.

    Back2Basics: Zero Defect Zero Effect Scheme

    • Launched in 2016 by the Ministry of MSME, the ZED scheme is an integrated and comprehensive certification system.
    • The scheme accounts for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR in both products and processes.
    • Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect.
    • ZED principles include:
    1. Zero Defect: Zero non-conformance or non-compliance
    2. Zero Effect: Zero wastage, liquid discharge, solid waste; zero pollution

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  • [pib] UDAN Scheme awarded PM Award for Excellence in Public Administration

    The Ministry of Civil Aviation’s flagship Regional Connectivity Scheme UDAN (Ude Desh ka Aam Nagrik) has been awarded Prime Minister’s Award for Excellence in Public Administration this year.

    What is UDAN Scheme?

    • The Ude Desh Ka Aam Nagrik (UDAN) scheme is a low-cost flying scheme launched with the aim of taking flying to the masses.
    • The first flight under UDAN was launched by the PM in April 2017.
    • It is also known as the regional connectivity scheme (RCS) as it seeks to improve air connectivity to tier-2 and tier-3 cities through revival of unused and underused airports.

    Working of the Scheme

    • Airlines are awarded routes under the programme through a bidding process and are required to offer airfares at the rate of â‚č2,500 per hour of flight.
    • At least 50% of the total seats on an aircraft have to be offered at cheaper rates.
    • In order to enable airlines to offer affordable fares they are given a subsidy from the govt. for a period of three years.

    Success of the scheme

    • In a short span of 5 years, today 419 UDAN routes connect 67 underserved/unserved airports, including heliports and water aerodromes, and over 92 lakh people have benefited from it.
    • More than 1 lakh 79 thousand flights have flown under this scheme.
    • UDAN scheme has immensely benefitted several sectors pan-India including Hilly States, North-Eastern region, and Islands.
    • The scheme also led to development of new Greenfield Airports such as Pakyong near Gangtok in Sikkim, Tezu in Arunachal Pradesh, and Kurnool in Andhra Pradesh.
    • Krishi UDAN Scheme launched in August 2020, on international and national routes has assisted farmers in transporting agricultural products.

    Issues with the working

    • Discontinuance: In reality, some of the routes launched have been discontinued as most of the routes awarded under UDAN are not active.
    • On-paper Ambitions: UDAN was expanded to provide improved connectivity to hilly regions and islands through helicopters and seaplanes. However, they mostly remain on paper.
    • The reasons include:
    1. Failure to set up airports or heliports due to lack of availability of land
    2. Airlines unable to start flights on routes awarded to them or finding the routes difficult to sustain
    3. Adverse impact of the COVID-19 pandemic

    Various challenges

    • Lack of funds: Many small airlines await infusion of funds, to be able to undertake maintenance of aircraft, pay rentals to lessors, give salaries to its staff, etc.
    • Maintenance issue: Many players don’t have more than one or two planes and they are often poorly maintained. New planes are too expensive for these smaller players.
    • Availability of pilots: Often, they also have problems with the availability of pilots and are forced to hire foreign pilots which costs them a lot of money and makes the business unviable.
    • Competition: Only those routes that have been bagged by bigger domestic players such as IndiGo and SpiceJet have seen a better success rate.

    Way forward

    • The govt offers subsidies for a route for a period of three years and expects the airline to develop the route during this time so that it becomes self-sufficient.
    • Airlines need an extension of the subsidy period for their operational continuity.
    • Due to the rise in COVID cases, travel restrictions and passenger safety too needs to be taken into consideration in the loss-making of such airlines.

     

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  • [pib] SVANidhi se Samriddhi Program

    The Ministry of Housing and Urban Affairs (MoHUA) has launched ‘SVANidhi se Samriddhi’ program in additional 126 cities across 14 States/ UTs.

    About PM SVANidhi Scheme

    • The Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi Scheme is aimed at benefiting over 50 lakh vendors who had their businesses operational on or before March 24 2020.
    • It is a Central Sector Scheme.
    • The scheme was announced by Finance Minister as a part of the economic package for those affected by the COVID-19 pandemic and lockdown.
    • The loans are meant to help kick-start activity for vendors who have been left without any income since the lockdown was implemented on March 25.
    • The scheme was valid until March 2022.

    What is SVANidhi se Samriddhi Program?

    • SVANidhi se Samriddhi program was started to provide social security benefits to street vendors for their holistic development and socio-economic upliftment.
    • Quality Council of India (QCI) is the implementing partner for the programme.
    • Under the program, socio-economic profiling of PMSVANidhi beneficiaries and their families is conducted to assess their eligibility for 8 Government of India’s welfare schemes and facilitate sanctions of eligible schemes.

    These schemes include:

    1. Pradhan Mantri Jeevan Jyoti Bima Yojana,
    2. PM Suraksha Bima Yojana,
    3. Pradhan Mantri Jan Dhan Yojana,
    4. Registration under Building and other Constructions Workers (Regulation of Employment and Conditions of Service) Act (BOCW),
    5. Pradhan Mantri Shram Yogi Maandhan Yojana,
    6. National Food Security Act (NFSA) portability benefit – One Nation One Ration Card (ONORC),
    7. Janani Suraksha Yojana, and
    8. Pradhan Mantri Matru Vandana Yojana (PMMVY).

     

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