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Type: Prelims Only

  • Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

    Land-Based Deep Depression causing extreme floods in Gujarat

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Disaster Management

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Land-Based Deep Depression

    Why in the News?

    • Gujarat and parts of Rajasthan are facing severe flooding caused by a land-based deep depression.
      • The unusual formation of this deep depression over land was intensified by moisture influx from soils or the Bay of Bengal and the Arabian Sea.

    What is Land-Based Deep Depression?

    • A land-based deep depression is a type of cyclonic system characterized by a significant drop in atmospheric pressure leading to sustained wind and significant weather impact.
    • They form and intensify over land, which is relatively rare due to the limited availability of moisture.
    • Characteristics:
      • It forms over land or water.
      • Wind Speed ranges from 51 to 62 km/h, just below the threshold for a tropical cyclone (62-88 km/h).
      • Relies on moisture from soil and surrounding environments rather than oceanic sources.
      • It often has an unpredictable path and can cause significant rainfall and localized flooding.

    Implications of Land-Based Deep Depressions

    • These systems can bring prolonged and intense rainfall, leading to widespread flooding, especially in regions unaccustomed to high levels of precipitation.
    • Heavy rainfall can lead to significant soil erosion, affecting agricultural productivity and altering landscapes.
    • Prolonged flooding can cause waterlogging in agricultural fields, leading to soil salinization and reduced fertility.

    PYQ:

    [2012] Consider the following statements:

    1. The duration of the monsoon decreases from southern India to northern India.

    2. The amount of annual rainfall in the northern plains of India decreases from east to west.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Wildlife Conservation Efforts

    Species in News: Atlantic Bluefin Tuna

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Atlantic Bluefin Tuna

    Why in the News?

    The Atlantic bluefin tuna, already heavily overfished, now faces a new threat from warming seas, causing it to migrate further north.

    Atlantic Bluefin Tuna (Thunnus thynnus)

    Details
    Scientific Classification Family: Scombridae; Species: Thunnus thynnus.
    Common Names Northern bluefin tuna, Giant bluefin tuna (for individuals over 150 kg), formerly known as “tunny”.
    Habitat and Range Western and Eastern Atlantic Ocean, Mediterranean Sea; extinct in the Black Sea.
    Size Can weigh up to 680 kg; one of the largest Perciformes.
    Commercial Importance Highly valued in the Japanese market for sushi and sashimi; foundation of a major global fishery.
    Conservation Status Overfished; dramatic stock declines (72% in Eastern Atlantic, 82% in Western Atlantic);

    Moved to “Least Concern” by IUCN in 2021 due to some population recovery;

    Proposed for CITES Appendix I.

     

    PYQ:

    [2015] With reference to the International Union for Conservation of Nature and Natural Resources (IUCN) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which of the following statements is/are correct?

    1. IUCN is an organ of the United Nations and CITES is an international agreement between governments

    2. IUCN runs thousands of field projects around the world to better manage natural environments.

    3. CITES is legally binding on the States that have joined it, but this Convention does not take the place of national laws.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Rajya Sabha Elections

    Prelims Only | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rajya Sabha Elections

    Why in the News?

    Results of the latest round of Rajya Sabha elections are out.

    Elections to the Rajya Sabha: 

    Details
    Election Method
    • Members are elected indirectly by the elected members of the State Legislative Assemblies and the electoral college for UTs (Delhi and Pondicherry).
    • Using the proportional representation system via the Single Transferable Vote (STV) method and Open Ballot.
    Composition • Total Members: Up to 250 members, with 238 elected and 12 nominated by the President for their contributions to art, literature, science, and social services.
    • Current Strength: 245 members (233 elected, 12 nominated).
    Voting Requirements for Candidates Candidates must be proposed by at least 10 members of the State Assembly or 10% of the party’s strength in the Assembly.
    Voting Process • Single Transferable Vote: Voters rank candidates based on preference. Votes are transferable if a preferred candidate is eliminated or achieves the quota.
    • Open Ballot System: Employed to facilitate transparency in the voting process.
    Election Procedure • Quota System: To win, a candidate must obtain a quota of votes calculated as [Total Votes / (Number of Vacancies + 1)] + 1.
    Powers and Functions • Legislative Powers: Can introduce and pass bills except Money Bills.
    • Special Powers: Can pass resolutions to create all-India services, make laws on state list subjects under certain conditions, and approve proclamations of emergency.
    Sessions
    • 3 regular sessions each year: the Budget session, Monsoon session, and Winter session.
    • Special sessions can be convened as required.
    Tenure
    • A permanent body that is not subject to dissolution;
    • One-third of its members retire every two years.
    Chairmanship
    • Vice President of India serves as the ex-officio Chairman of the Rajya Sabha.
    • House also elects a Deputy Chairman from among its members.
    Eligibility for Membership Candidates must be Indian citizens, at least 30 years old, and comply with other conditions set by the Constitution.
    Disqualification Criteria Members can be disqualified for defection, certain criminal convictions, or if declared bankrupt, among other reasons.
    Special Features • Nominated Members: Up to 12 members can be nominated by the President.
    • No dissolution: Unlike the Lok Sabha, the Rajya Sabha cannot be dissolved but operates as a continuous body.
    Key Sessions and Administrative Details • First Sitting: Conducted on May 13, 1952.
    • Secretary General: Acts as the chief executive officer and the administrative head of the Rajya Sabha Secretariat.

     

    PYQ:

    [2013] Consider the following statements:

    1. The Chairman and the Deputy Chairman of the Rajya Sabha are not the members of that House.
    2. While the nominated members of the two Houses of the Parliament have no voting right in the presidential election, they have the right to vote in the election of the Vice President.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

    India, Russia sign working plan to handle emergencies

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Disaster Management

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: India Russia IGA

    Why in the News?

    India and Russia signed the working plan of the Joint Russian-Indian Commission on Cooperation in the Field of Emergency Management for 2025-2026.

    Background of the Cooperation:

    • The meeting held in Moscow aimed to strategize the execution of previous agreements between India and Russia, including:
      • The Inter-Governmental Agreement (IGA) for cooperation in the field of Emergency Management was signed in December 2010.
      • The regulation was established in 2013 to create the Indo-Russian Joint Commission for Cooperation in the prevention and elimination of emergency situations.
    • The first meeting of this commission was held in New Delhi in 2016.

    About the Joint Commission on the Cooperation in the Field of Emergency Management for 2025-2026

    • It is an initiative aimed at enhancing collaboration between India and Russia in the area of disaster management and emergency response.
    • The plan covers a two-year period from 2025 to 2026 and focuses on several key areas:
      • Use of Space Monitoring Technologies: To improve risk forecasting and emergency response capabilities.
      • Exchange of Experiences: On responding to large-scale disasters to enhance preparedness and response strategies.
      • Training of Specialists: In fire and rescue operations to build a robust capacity for emergency management.
    • The next meeting is scheduled to be held in India in 2026 to facilitate cooperation and strategic planning in emergency management.

    About the Indo-Russian Joint Commission for Cooperation 

    • Established in 2013, it seeks to formalize and enhance cooperation between India and Russia in the prevention and elimination of emergency situations.
    • It was formed under the framework of the Inter-Governmental Agreement (IGA) for Cooperation in the Field of Emergency Management, signed in December 2010.
    • The commission serves as a platform for India and Russia to collaborate on various aspects of disaster management, including:
      • Prevention and Preparedness: Developing strategies and sharing expertise to prevent and prepare for potential disasters.
      • Response and Recovery: Coordinating efforts to respond to emergencies and support recovery efforts following disasters.
      • Capacity Building: Enhancing the skills and knowledge of personnel involved in emergency management through joint training programs and knowledge exchange.
    • It facilitates a structured approach to managing disasters by leveraging the strengths and resources of both countries.

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  • Global Geological And Climatic Events

    Chile’s Atacama Salt Flat sinking due to Lithium Mining

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Salar de Atacama

    Why in the News?

    • A recent study published in journal IEEE Transactions on Geoscience and Remote Sensing has found that Chile’s Atacama salt flat (Salar de Atacama) is sinking at a rate of 1 to 2 centimetres per year due to lithium brine extraction.
      • Lithium brine extraction involves pumping salt-rich water to the surface and letting it evaporate in ponds to collect lithium.

    About Salar de Atacama  

    • The Salar de Atacama in Chile boasts the highest lithium concentration (0.15% by weight) among all brine sources worldwide.
    • Argentina boasts more than half of the world’s total lithium resources.
    • It holds the distinction of having the 2nd-largest lithium resources, the 3rd-largest lithium reserves, and the 4th-largest lithium production in the world.
    • It is a part of the Lithium Triangle comprising of Uyuni (Bolivia) and Hombre Muerto (Argentina).

    Key Findings of the Study:

    • Researchers analyzed satellite data from 2020 to 2023 to observe deformations in the Earth’s crust in the salt flat.
    • The area experiencing subsidence measures approximately 8 km north to south and 5 km east to west.
    • The study indicates that subsidence occurs because the rate of lithium brine pumping is faster than the recharge rate of aquifers, leading to the ground sinking.

    What is Lithium?

    • Lithium is an alkali metal, often referred to as ‘white gold’ due to its value and color.
    • It is a soft, silvery-white metal, and notably, it is the lightest metal on the periodic table.
    • It is typically found in various minerals like spodumene, petalite, and lepidolite, from which it is extracted and refined.
    • The leading producers of lithium are Australia, Chile, China, and Argentina.

    Effects of Lithium Mining on Environment:

    • Water Use: Lithium mining, especially from salt flats and brine pools, requires substantial water usage, which can deplete local water resources in arid areas.
    • Ecological Disruption: The extraction process can alter the chemical balance of the natural environment, affecting local flora and fauna.
    • Pollution: Mining and processing lithium can release harmful chemicals into the environment, impacting air and water quality.

    PYQ:

    [2008] Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively?

    (a) Lithium and mercury

    (b) Lithium and osmium

    (c) Aluminium and osmium

    (d) Aluminium and mercury

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  • Civil Services Reforms

    [pib] ANUBHAV AWARDS, 2024

    Prelims Only | Trivia | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: ANUBHAV AWARDS, 2024

    Why in the News?

    The Minister of State for Personnel, Public Grievances, and Pensions has conferred the Anubhav Awards 2024.

    ANUBHAV Awards

    Details
    Purpose To recognize the contributions of retired officials to nation-building and document the administrative history of India through their written narratives.
    Portal Launch Launched in March 2015.
    Organizing Body Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare.
    Objectives – Create a database of significant suggestions and work experiences.
    – Utilize the experience of retiring employees for nation-building.
    – Enable Ministries/Departments to consider useful and replicable suggestions.
    Criteria Retiring Central Government employees and pensioners, who can submit their Anubhav write-ups 8 months prior to retirement and up to 1 year post-retirement.
    Award Process Write-ups are assessed by the concerned Ministries/Departments, published, and then shortlisted for the Anubhav Awards and Jury Certificates.
    Awards and Recognition – ANUBHAV Awardees: Receive a medal, certificate, and a prize of ₹10,000.
    – Jury Certificate Winners: Receive a medal and a certificate.

     

    PYQ:

    [2021] Consider the following statements in respect of Bharat Ratna and Padma Awards :​

    1. Bharat Ratna and Padma Awards are titles under the Article 18(1) of the Constitution of India.​

    2. Padma Awards, which were instituted in the year 1954, were suspended only once.​

    3. The number of Bharat Ratna Awards is restricted to a maximum of five in a particular year.​

    Which of the above statements are not correct?​

    (a) 1 and 2 only ​

    (b) 2 and 3 only​

    (c) 1 and 3 only ​

    (d) 1, 2 and 3​

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  • Financial Inclusion in India and Its Challenges

    [pib] 10 Years of Jan Dhan Scheme

    Prelims OnlySchemes | 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.

    (c) Promoting financial inclusion in the country.

    (d) Providing financial help to the marginalized communities.

    [2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

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  • Judicial Pendency

    Report reveals minimal use of Plea Bargaining in Courts

    Prelims Only | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Plea Bargaining

    Why in the News?

    According to a report by the Ministry of Law and Justice, only 0.11% of cases were settled through “plea bargaining” in 2022.

    Key Findings of the Report:

    • In 2022, only 19,135 out of 1,70,52,367 cases (about 0.11%) in Indian courts were disposed of through plea bargaining, indicating its minimal use.
    • Despite legal restrictions, 119 cases of crimes against women and only 4 cases under the Protection of Children from Sexual Offences Act (POCSO) were resolved through plea bargaining in 2022, showing a deviation from the intended exclusions.

    What is Plea Bargaining?

    Details
    Definition
    • Plea bargaining allows an accused person to negotiate with the prosecution for a lesser punishment by pleading guilty to a less serious offence. 
    • This involves pre-trial negotiations on the charge or the sentence.
    Provision in India • Introduced in 2006 as part of the Criminal Law (Amendment) Act, 2005 under Chapter XXI-A (Sections 265A to 265L).
    • Limited to offences that do not attract the death sentence, life sentence, or a term above seven years.• Not applicable to offences affecting socio-economic conditions or committed against women or children under 14. (applies only to offences punishable by up to seven years of imprisonment)
    Procedure in India • Only the accused can initiate plea bargaining.
    • The accused must apply to the court to start the process. If permitted, a meeting involving the prosecutor, investigating officer, and victim (if any) is held for a satisfactory case disposition.
    • Includes possible reduced sentences and compensation payments to the victim by the accused.
    Benefits Offered • Speeds up trials, reduces litigation costs and ends uncertainty over case outcomes.
    • Helps reduce prison overcrowding and the number of prolonged imprisonments of undertrials.
    • Offers a chance for offenders to make a fresh start.
    • Could improve conviction rates, as seen in the USA.
    • Recommended by the Malimath Committee (2000) for its potential to dramatically impact conviction rates and ensure a speedy trial.

     

    PYQ:

    [2021] With reference to India, consider the following statements:​

    1. Judicial custody means an accused is in the custody of the concerned magistrate and such accused is locked up in police station, not in jail.​

    2. During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.​

    Which of the statements given above is/are correct?​

    (a) 1 only ​

    (b) 2 only​

    (c) Both 1 and 2 ​

    (d) Neither 1 nor 2​

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  • Right To Privacy

    What is a Polygraph Test?

    Prelims Only | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Polygraph Test, Judments mentioned

    Why in the News?

    The Central Bureau of Investigation (CBI) concluded polygraph tests on the accused in the Kolkata Rape and Murder Case.

    About Polygraph Tests in India

    Details
    Definition A procedure measures physiological responses like blood pressure, pulse, respiration, and skin conductivity while a subject answers questions to detect deception.
    Physiological Indicators • Heart Rate and Blood Pressure: Monitored for changes.
    • Respiratory Rate: Tracks breathing patterns.
    • Galvanic Skin Response (GSR): Measures skin’s electrical conductance, which varies with moisture levels.
    Procedure • Sensor Connection: Attached to the chest, fingertips, and arm.
    • Baseline Questions: Establish physiological response baselines.
    • Control and Relevant Questions: Analyzed to identify deceptive responses by comparing physiological changes.
    Constitutional Provisions • Article 20(3): Protects against self-incrimination; necessitates consent for polygraph tests.
    • Article 21: Concerns about potential violations of the right to life and privacy due to mental torture aspects of polygraph tests.
    Legal and Judicial Rulings • Selvi vs. State of Karnataka (2010): Tests must be voluntary with informed consent.
    • D.K. Basu vs. State of West Bengal (1997): Involuntary tests could violate the Right to Life and Privacy.
    Admissibility in Court According to the Indian Evidence Act, 1871, results from polygraph tests are not admissible as evidence in court.
    Guidelines National Human Rights Commission Guidelines (1999): Establish consent and procedural requirements for administering polygraph tests to align with human rights standards.

     

    PYQ:

    [2018] Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statement?

    (a) Article 14 and the provisions under the 42nd Amendment to the Constitution.

    (b) Article 17 and the Directive Principles of State Policy in Part IV.

    (c) Article 21 and the freedoms guaranteed in Part III.

    (d) Article 24 and the provisions under the 44th Amendment to the Constitution.

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  • Microfinance Story of India

    MUDRA 2.0 Loans

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MUDRA 2.0

    Why in the News?

    The Union Budget 2024 has sought to increase the loan limit under the MUDRA scheme signifying the potential launch of MUDRA 2.0.

    What is MUDRA 1.0?

    Details
    Launch
    • Pradhan Mantri Mudra Yojana (PMMY)
    • Launched in 2015.
    Purpose To extend affordable credit to micro and small enterprises, bringing them into the formal financial system and funding the unfunded.
    Loan Providers Public Sector Banks (PSU Banks), Regional Rural Banks, Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFC).
    Eligibility Indian citizens with a business plan for non-farm sector income-generating activities in manufacturing, processing, trading, or services, requiring less than ₹10 lakh.
    Types of Loans • Shishu: Loans up to ₹50,000.
    • Kishor: Loans above ₹50,000 and up to ₹5 lakh.
    • Tarun: Loans above ₹5 lakh and up to ₹10 lakh.
    Subsidy
    • No direct subsidy;
    • Loans linked to Government schemes providing capital subsidies are eligible under PMMY.

    Achievements of MUDRA 1.0

    • Financial Inclusion: Disbursed over Rs 27.75 lakh crore to 47 crore small entrepreneurs, improving access to formal credit.
    • Support for Marginalized Groups: 69% of loans went to women, and 51% to SC/ST and OBC entrepreneurs, enhancing social equity and gender equality.
    • Job Creation: Helped create jobs and encouraged self-employment, especially in rural and semi-urban areas.
    • Reduction in NPAs: Reduced non-performing assets (NPAs) from 3.61% in FY21 to 2.1% in FY24, showing better loan management.

    Challenges Faced by MUDRA 1.0

    • Unequal Loan Distribution: In 2021-22, the top 10 districts received Rs 26,000 crore, about the same as the bottom 318 districts, showing uneven credit distribution.
    • High NPAs in Early Categories: The Shishu (loans up to Rs 50,000) and Kishore (loans between Rs 50,001 and Rs 5 lakh) categories had NPAs above 4% from FY20 to FY22 due to a lack of business skills among early-stage entrepreneurs.
    • Low Financial Literacy: Only 27% of the population is financially literate, leading to poor loan management and higher defaults.
    • Monitoring and Credit Appraisal Issues: Increased lending led to challenges in maintaining quality credit appraisal processes and monitoring, resulting in some misuse of funds.

    What is MUDRA 2.0?

    • MUDRA 2.0 is the proposed next phase of the scheme, aiming to expand and enhance support for micro-entrepreneurs, especially in underserved regions.
    • Features of MUDRA 2.0:
      • Expanded Outreach: Establish new centers in rural and semi-urban areas to provide financial literacy, mentorship, and business support.
      • Enhanced Financial Literacy: Launch nationwide programs covering budgeting, savings, credit management, and digital literacy to help entrepreneurs manage their finances better.
      • Improved Credit Support: Introduce the Enhanced Credit Guarantee Scheme (ECGS) to reduce risks for banks and encourage more lending to small enterprises.
      • Stronger Monitoring: Implement a robust monitoring framework using data analytics to track loan disbursements, usage, and repayments in real-time, ensuring transparency and reducing misuse.

    PYQ:

    [2016] Pradhan Mantri MUDRA Yojana is aimed at:

    (a) Bringing the small entrepreneurs into formal financial system.

    (b) Providing loans to poor farmers for cultivating particular crops.

    (c) Providing pension to old and destitute persons.

    (d) Funding the voluntary organizations involved in the promotion of skill development and employment generation.

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