QA Series S No 53 - Govt Schenmes Part 2

 

The Banking Tutor

Question Answer Series 2025

S No 53                                                                  01-09-2025

Govt. Schemes – Part 2 

37. What is full form of NRLM and what is it ? 

NRLM stands for National Rural Livelihood Mission NRLM –  Aajeevika - Deendayal Antyodaya Yojana (DAY). It is the flagship programme of Government of India to promote poverty reduction through building strong institutions for the poor, particularly women. 

38. What is the earlier name of NRLM?            

DAY-NRLM earlier known as SGSY.vNational Rural Livelihood Mission launched by the Ministry of Rural Development, Government of India by restructuring Swarna Jayanthi Gram Swarozgar Yojana (SGSY) w.e.f. 01.04.2013.

39. What is the primary duty of SHGs? 

SHGs should practice Panchasutra principles without fail, i.e., Regular Meetings, Regular Savings, Regular inter-loaning, Timely repayment and maintenance of proper up-to-date Books of Accounts. 

40. What is Social Target for lending under NRLM? 

Loan coverage should be: 50 % of beneficiaries from SC/ST, 15% to minorities and 3% to persons with disabilities.

41. Normally, SHGs contain women only as members. Is there any exception to this norm? 

Only for groups to be formed with Persons with disabilities, and other special categories like elders, transgenders, DAY-NRLM will have both men & women in the Self-Help Groups. 

42. How much Financial assistance be provided to SHGs by way of Revolving Fund? 

Revolving Fund under NRLM – Min Rs.20,000; Max Rs.30,000 for a minimum period of 3/6 months and follow the norms of good SHGs, i.e., they follow “Panchasutra”. 

43. How much  Capital Subsidy each SHG gets? 

Capital subsidy discontinued: No Capital Subsidy will be sanctioned to any SHG from the date of implementation of NRLM. 

44. What is the full form of CIF and who provides it? 

CIF stands for Community Investment support Fund. It would be provided by MoRD to the SHGs promoted under DAY – NRLM in all blocks (intensive and non-intensive) and would be routed through the Village level/ Cluster level Federations The CIF would be used, by the Federations, to advance loans to the SHGs and/or to undertake the common/collective socio-economic activities. 

45. What is the interest subvention applicable Under NRLM? 

NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7%, on all credit from the banks/financial institutions availed by women SHGs, for a maximum of Rs.3,00,000 per SHG. 

This will be available across the country in two ways: 

a) In 250 identified districts, Branches will lend to the women SHGs @7% up to an aggregated loan amount of Rs.3,00,000/-. The Branches would be sub-vented to the extent of difference between the Weighted Average Interest Charged and 7%, subject to the maximum limit of 5.5%. 

An additional interest subvention of 3% is also available on prompt repayment by the SHGs, reducing the effective rate of interest to 4%. 

b) In the remaining districts, the Branches may lend at their respective lending rates applicable to SHGs. In these districts, all women SHGs under DAY– NRLM would be eligible for interest subvention on prompt repayment. 

46.  How much subsidy a JLG may receive under NRLM? 

JLGs are not eligible for subsidy under NRLM scheme.

47. What are the guidelines related to KYC verification in case of SHGs? 

Know Your Customer (KYC) verification of only the office bearers shall suffice for opening of savings bank account. 

48. Is it mandatory for the members of SHG to open SB account in their name to get a loan to SHG? 

Opening of SB accounts of all the members is not mandatory for credit linkage to SHGs. 

49. Is it necessary to give PAN details while opening of SHG account? 

Should not insist on Permanent Account Number (PAN) of SHGs at the time of opening of account or transactions and may accept declaration in Form No 60 as may be required. 

50. What is meant by Financial Literacy? 

Financial Literacy is one of the important strategies to spread awareness on financial behaviour and keep households informed about various financial products and services. 

51. What is full form of FL-CRP ? 

DAY-NRLM has trained and deployed a large number of cadre called ‘Financial  Literacy Community Resource Persons (FL-CRPs)’ to carry out financial literacy camps at village level. 

52. What is the Funding Pattern of DAY-NRLM? 

Funding Pattern: DAY-NRLM is a Centrally Sponsored Scheme and the financing of the programme would be shared between the Centre and the States in the ratio of 60:40 (90:10 in case of North Eastern States including Sikkim; completely from the Centre in case of UTs) 

53. What is DAY-NULM? 

The Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) officially concluded on September 30, 2024. The scheme, which aimed to reduce poverty in urban areas by providing self-employment and wage employment opportunities, was replaced by NULM 2.0 in 2024. 

54. What is NULM 2.0? 

The guidelines for NULM 2.0 (now referred to as DAY-NULM ) focus on empowering the urban poor through the creation of urban micro-enterprises, providing access to skills and markets, and offering assistance like micro-credit, training, and support for social infrastructure. 

55. What is the Social Target under NULM 2.0? 

Key aspects include a minimum 30% women's participation in the Self-Employment Program (SEP), targeted support for Scheduled Castes (SCs), Scheduled Tribes (STs), and persons with disabilities, and earmarking 15% of physical and financial targets for minority communities, along with a 3% provision for the differently-abled. 

56. What is meant by Financial Inclusion? 

Financial inclusion means connecting all individuals, including those living in the remotest of rural areas, to a well-functioning financial system. 

57. What is the difference between Micro Finance and Micro  Credit ? 

Micro Credit is a component of Micro Finance in that it involves providing credit to the poor, but Micro Finance also involves additional non-credit financial services such as savings, insurance, pensions and payment services.

58. What is the full form of PMJDY and what is it ? 

PMJDY stands for Pradhan Mantri Jan Dhan Yojana. It was launched on 28th August 2014. As per the implementation plan all households were to be covered under the banking system by 31.01.2015.

59. What are the different components of PMJDY? 

The components of the plan are: 

a) Providing at least one Basic Banking Account to each household with RuPay Debit card (beyond 28.08.2018, change in focus of opening of Accounts from “every household” to “every adult”). 

b) Inbuilt accident insurance cover of Rs. 1 lakh (which has been raised from Rs.1 lakh to Rs.2 lakhs to new PMJDY accounts opened after 28.8.2018). 

c) In built overdraft facility of Rs.10000/- ) 

d) Life insurance covers of Rs. 30,000/- is available to accounts opened up to 26.01.2015. 

60. What are the Pillars of PMJDY? 

PMJDY  comprises of the following six pillars: -

1. Universal access to banking facilities.

2. Providing Basic Banking Accounts.

3. Financial Literacy Programme

4. Creation of Credit Guarantee Fund

5. Micro Insurance

6. Unorganized sector Pension schemes like Atal Pension Yojana

61. What is full form of PMSBY and what is it ?

PMSBY stands for  Pradhana Mantri Suraksha Bima Yojana (PMSBY). It is an Insurance Cover offered by The New India Assurance Co. Ltd for Accidental Death/Disability/Injury. 

62. What are key features of PMSBY? 

Annual Premium Rs 20/-

Sum Assured Rs 2 lacs (Accidental Death) & Rs 1 lakh (partial disability)

Eligibility SB Account holder

Insurance Period 1st June to 31st May

Age criteria 18 – 70 years

 

63. What is the full form of PMJJBY and what it is? 

PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). It is implanted by LIC of India and it is a Term Life Insurance Cover offered for Death due to any reason. 

64. What are Key features of PMJJBY? 

Annual Premium Rs 436

Sum Assured Rs 2 lacs ( Death due to any reason)

Eligibility Savings bank account is must

Insurance Period 01st June – 31st May (Every year)

Age criteria 18-50 Years

 

65. What is the full form of APY and what is it? 

APY stands for Atal Pension Yojana, being administered by PFRDA. It offers Pension benefits to members. 

66. What are the Key features of APY? 

All Bank account holders aged between 18-40 years are eligible. 

Income Tax Payers not eligible. 

Minimum contribution is for 20 years. 

Pension payment commences at the age of 60 years. 

Contribution can be monthly/ quarterly/ half yearly. 

Fixed pension ranges between Rs 1000 - Rs 5000 (depend upon Age and contribution)

Sekhar Pariti

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