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PIB – 21 DECEMBER 2021





Focus: GS Paper – 2, GS Paper – 3: Government Policies & Interventions, Growth & Development

Why in news?

As per the data provided by the Ministry of Finance, 68% of Pradhan Mantri Mudra Yojana accounts are held by women entrepreneurs, availing 44% of sanctioned amount.

  • For the current financial year (FY), a target of sanction of Rs. 3 lakh crore has been fixed for Member Lending Institutions (MLIs).

About Pradhan Mantri Mudra Yojana (PMMY):

  • It is a scheme launched in 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises, including Women
  • These loans are classified as MUDRA loans under PMMY.
  • Funding: Micro Units Development & Refinance Agency Ltd., (MUDRA) is a financial institution set up by the Government. It provides funding to the non-corporate small business sector through various last-mile financial institutions like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
  • It is provided for income generating activities in sectors such as manufacturing, trading, services and activities allied to agriculture.
  • Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.
    • Shishu: Covering loans up to Rs. 50,000.
    • Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 lakh.
    • Tarun: Covering loans above Rs. 5 lakh and up to Rs. 10 lakh.
  • Loans under this scheme are collateral-free

Steps taken to improve implementation of the scheme:

  • handholding support for facilitating submission of loan applications;
  • provision for online applications through ‘psbloansin59minutes’ and ‘udyamimitra’ portal;
  • intensive publicity campaigns for increased visibility of the scheme amongst the stakeholders;
  • simplification of application forms;
  • nomination of Mudra Nodal Officers in Public Sector Banks (PSBs);
  • periodic monitoring of performance of PSBs with regard to PMMY etc.


Focus: GS Paper – 2, GS Paper – 3, Important International Institutions, Regional Groupings

Why in news?

The Government of India and the Asian Development Bank has signed several loan agreements.

Key points:

  • Skill University in Assam: A $112 million loan to set up a skill university in Assam that will strengthen industry-aligned and flexible skills education and training system in the state.
    • The project will support the design and construction of environmentally sustainable and climate-resilient ASU campus and facilities equipped with state-of-the-art technologies.
    • The loan is supplemented by a $1 million grant from the Japan Fund for Poverty Reduction.
  • Sustainable Urban Services in India: A $350 million policy-based loan to improve access to urban services in India by accelerating policy actions and reforms to enhance service delivery and promote performance-based central fiscal transfers to urban local bodies (ULBs).
    • The program is aligned with the Government of India’s national flagship programs that promote cities as engines of economic growth by improving the quality of urban life through the creation of high-quality urban infrastructure, assured service provisions, and efficient governance.
  • Affordable housing for urban poor: A $150 million loan to provide access to inclusive, resilient, and sustainable housing for the urban poor in the state of Tamil Nadu.
    • The project is aligned with the Government of India’s development priorities and policies on urban sector development, particularly the flagship program PMAY-Housing for All (Urban).

About Asian Development Bank:

  • It is a regional development bank established in 1966.
  • Its headquarters is located in Manila, Philippines.
  • It is modeled on the lines of the world bank.
  • ADB now has 68 members, 49 from within Asia and the Pacific and 19 outside.
  • It assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
  • It invests in infrastructure, health, public administration system, helping nations to reduce the impact of climate change and to manage natural resources.
  • ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).


Focus: GS Paper – 2, Local Self Governance, Government Policies & Interventions, Constitutional Amendments

Why in news?

Ministry of Panchayati Raj organises a day-long National Webinar with the theme ‘Atmanirbhar Panchayats – Role of Technology, Entrepreneurship and Harnessing Energy in Achieving Self-reliance for Sustainable Development’.

Key points:

  • As the Nation is celebrating 75 years of Independence as ‘Azadi Ka Amrit Mahotsav’, the Ministry of Panchayati Raj is undertaking several activities and initiatives to uphold the Prime Minister’s vision of ‘Atmanirbhar Bharat’.
  • Atmanirbhar Panchayats is an instrument of economic development in rural areas through Rural Technology and Entrepreneurship.
  • It aims to make Panchayats aware of new technologies which are cost-effective, tested and useful so that their benefits could reach the last mile and Panchayats can become Economic Growth Centres and Demand Centres. 
  • Panchayats can serve as a bridge between the IIT’s Rural Technology Action Group (RuTAG) like institutions and the villages. 

About Panchayati Raj Institution (PRI):

  • It is a system of rural local self-government in India.
  • PRI was constitutionalized through the 73rd Constitutional Amendment Act, 1992 to build democracy at the grass roots level and was entrusted with the task of rural development in the country.
  • The Act added Part IX to the Constitution, “The Panchayats”. It contains Article 243 to Article 243 O.
  • Three-tier system of panchayats at village, intermediate block/taluk/mandal and district levels except in States with population is below 20 lakhs (Article 243B).
  • Reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs) and women were provided across various levels of Panchayats.
  • Further, the election process in the Panchayati Raj institutions will be held independent of the state government’s will.
  • Independent Election Commission in each State for superintendence, direction and control of the electoral rolls (Article 243K).
  • State Finance Commission was established in each state to determine the principles on the basis of which adequate financial resources would be ensured for panchayats and municipalities (Article 243I).
  • The Act has two parts: compulsory and voluntary. Compulsory provisions must be added to state laws, which includes the creation of the new Panchayati Raj systems. Voluntary provisions, on the other hand, is the discretion of the state government.
  • The Act is a very significant step in creating democratic institutions at the grassroots level in the country. The Act has transformed the representative democracy into participatory democracy.
February 2024