RURAL DEVELOPMENT POLICY | RURAL BANKING NOTES
In this post, we will discuss Rural Development policy/Schemes launched by Govt of India for the latest CAIIB Exams 2023.
Today, we are presenting you the schemes launched by Indian Government for the benefit of rural public with the help of banks. These schemes are absolutely important if your elective paper for Certified Associate of the Indian Institute of Bankers is Rural Banking 2023.
As the exams are due in June 2023 for the IIBF administered CAIIB papers, bankers need to keep themselves updates with the syllabus & news relevant for their exams. So, learning Sessions keeps coming up with new notes & updates!
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Coming back to the exams, lets move on to our Rural Banking paper topic: Schemes for Rural Development launched by Government of India
The Ministry of Rural Development and the Government of India (GoI) in coordination with the Ministry of Rural Development and the Ministry of Land Resources are implementing various programs for the upliftment of the rural sector of our country. These programs are formulated to benefit the citizens of rural India who will eventually become the pillars of the Indian economy in the long run.
Some important rural development programs launched by the Government of India are:
Pradhan Mantri Gram Sadak Yojana (PMGSY)
Launched by then Prime Minister Atal Bihari Vajpayee on December 25, 2000, the program was aimed to improve rural road connectivity.
HOW DOES PMGSY HELP?
This scheme provides:
- connectivity to households with less or no connectivity and
- helps in poverty reduction by
- promoting access to economic and social services.
- This ensures sustainable poverty reduction in the long run as people get the opportunity to connect with the rest of the world.
This program has benefited several villagers and is helping them lead a better life.
SO FAR SO GOOD:
By December 2017, nearly 82% of roads had been built, successfully connecting several rural areas to cities.
Earlier, the scheme was funded only by the central government, but following the recommendations of the 14th Finance Commission report, the cost is shared by both the state and central governments.
As per the current data provided on the PMGSY website, the government has completed 705,179 km under the program and a total of 1,69,129 roads have been completed.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
The Deen Dayal Upadhyaya Grameen Kaushalya Yojana, a part of the National Livelihood Mission, aims to satisfy the career aspirations of the rural youth and add diversity to the income of rural families. The program, which was launched on September 25, 2014, focuses primarily on rural youth from poor families between the ages of 15 and 35.
HOW DOES DDU-GKY HELP?
An amount of Rs 1,500 crore has been provided for the scheme which will help increase employability. Jojana is present in:
- 21 states and union territories
- 568 districts and
- 6215 blocks
changing the lives of youth.
PROGRESS:
Approximately 690 projects are implemented by 300 partners. According to government reports, more than 11 million candidates have been trained so far and almost more than 6 million candidates have been placed in jobs.
National Rural Livelihood Mission (NRLM)
The Swarnjayanti Gram Swarozgar Yojana, which is rebranded as the National Rural Livelihood Mission, was launched in 2011 by the Ministry of Rural Development. Also known as Ajeevika, this program aims to strengthen the self-help model of women across the country.
HOW DOES NRLM HELP?
Under this scheme, the government provides a loan of 30 Lakh rupees at an interest rate of 7%, which can be reduced to 4% at the time of repayment. The program was supported by the World Bank and aimed to create effective and efficient institutional platforms for poor people.
PROGRESS:
It has also helped raise household income by improving access to financial services. NRLM also helps in harnessing the capabilities of the poor to participate in the growth of the country’s economy.
Prime Minister Rural Development Fellowship Programme
The Prime Minister Rural Development Fellowship (PMRDF) is a program initiated by the Ministry of Rural Development, implemented in collaboration with state governments. It has 2 objectives:
- to provide short-term support to district administration in underdeveloped and remote areas of the country, and
- to develop competent and committed leaders and facilitators who can serve as a long-term resource.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
The law deals with working people and their basic right to a dignified life. Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, 100 days of employment is guaranteed to every adult in a rural household willing to do unskilled manual labor in a financial year.
HOW DOES MGNREGA HELP?
If a person does not find a job within 15 days, they are entitled to unemployment benefits.
The National Rural Employment Guarantee Act (NREGA) also emphasizes the importance of the fundamental right to work. Amendments have been introduced in this Act to minimize corruption in the system.
PROGRESS:
- MGNREGA has covered more than 700 districts in India.
- More than 14.8 million MGNREGA cards have been currently issued in the country and
- a total of 28 million individuals have availed the benefits of the scheme in 2020-21.
Sampoorna Grameen Rozgar Yojana (SGRY)
Sampoorna Grameen Rozgar Yojana (SGRY) was started in 2001 to provide employment to the poor. It also focused on providing food to people in areas living below the poverty line and improving their nutritional levels.
Other objectives of this Yojana were to provide social and economic benefits to people living in rural areas.
Sarv Siksha Abhiyan
Sarv Siksha Abhiyan, pioneered by former Prime Minister Atal Bihari Bajpayee, was launched in 2000. However, in 2018, Samagra Siksha Abhiyan included 3 programs:
- Rashtriya Madhyamik Shiksha Abhiyan (RMSA),
- Teacher Education and
- Sarva Siksha Abhiyan.
It is an effort to provide all children with the opportunity to receive free education, which is also a fundamental right. The state and central government share the cost of this project with the central government bearing 85% of the cost and the state contributing 15%.
HOW DOES IT HELP?
In the 2023 budget, the government allocated more than 37,383 million crowns to the program.
Sansad Adarsh Gram Yojana (SAGY)
Sansad Adarsh Gram Yojana (SAGY) is a rural development project & was launched in 2014 by the Government of India.
HOW DOES SAGY HELP?
Under this Yohana, each Member of Parliament takes responsibility for 3 villages and looks after the personal, human, social, environmental and economic development of the villages.
This would significantly improve the standard of living and the quality of life in the villages.
No funding has been provided for this project as funding can be obtained through existing programmes.
National Social Assistance Program (NSAP)
The National Social Assistance Program means the fulfillment of the Directive Principles in Articles 41 and 42 of the Constitution, where it is the duty of the state to provide assistance to citizens in sickness, unemployment, old age within the limits of economic possibilities. The program was launched on August 15, 1995.
HOW DOES NSAP HELP?
It is basically a centrally sponsored scheme of the Government of India which provides financial assistance to widows, elderly, disabled people in the form of pensions.
PROGRESS:
So far, NSAP has more than 290 Lakh beneficiaries and with the addition of 150 lakh government beneficiaries, the total number has increased to more than 400 lakh people reaping the benefits of the program.
Pradhan Mantri Awaas Yojana (Gramin) / Indira Awas Yojana
Indira Awas Yojana rebranded as Pradhan Mantri Gramin Awaas Yojana in 2016 is a social program created by the Government of India to provide housing to poor rural people in India. The aim of this scheme is to provide a home to all citizens by 2023.
HOW DOES IT HELP?
The cost of building houses is shared between the center and the state. The program was introduced in rural areas across India, except for Delhi and Chandigarh.
Houses constructed under this scheme will have basic amenities like toilet, electricity connection, drinking water connection, LPG connection etc. Alloted houses will be jointly in the name of the spouses.
PROGRESS:
So far 120 lakh houses have been sanctioned and nearly 580 lakh houses have been completed.
In 2023, the government has sanctioned over Rs 48,000 crore for this scheme in the budget and the government wants to reach the target of nearly 80 crore this year.
Antyodaya Anna Yojana (AAY)
Launched by former Prime Minister Atal Bihari Vajpayee in 2000, the Antyodaya Anna Yojana aimed to provide food grains to around 20 lakh people at subsidized rates.
SO FAR SO GOOD:
Under the Below Poverty Line (BPL) scheme, families were provided 35 kg of food grains. Rice was supplied at the rate of Rs 3/kg and wheat at the rate of Rs 2/kg. This program was first launched in Rajasthan but now it has been introduced in all Indian states.
Provision of Urban Amenities in Rural Areas (PURA)
PURA is a strategy for rural development in India proposed by former President APJ Abdul Kalam in his book Target 3 Billion. PURA proposes that urban infrastructure and services be provided in rural areas to create opportunities outside the cities.
This will also prevent migration of youth from rural areas to urban areas.
The central government has been running PURA schemes in various states since its launch in 2004.
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