Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

1. FINANCIAL INCLUSION INDEX

The Reserve Bank of India (RBI) has announced that the Financial
Inclusion Index (FI-Index) has risen to 64.2 in March 2024, up from 60.1 in
March 2023.

About Financial Inclusion Index:

• It is a comprehensive index incorporating details of banking,
investments, insurance, postal as well as the pension sector.
• It captures the extent of financial inclusion across the country.
• Single value index (0 to 100), where 0 is complete exclusion and 100 is
full inclusion.
• It includes three broad parameters viz., Access (35%), Usage (45%),
and Quality (20%).
• It is published annually in July.

2.Eligibility for SFBs to transitioning into UBs

• Net Worth: SFBs must have a minimum net worth of Rs 1,000 crore.
• Status: SFBs must be scheduled banks with a satisfactory track
record of performance for a minimum of 5 years.
• Financial Health:
o Profitability: Should have net profits in the last two Financial Years.
o Asset Quality: Gross non-performing assets (G-NPA) and net NPA (N-
NPA) must be less than or equal to 3% and 1%, respectively, over the
last two FYs.

SFBs: Genesis in Union Budget (2014-15), Setup under Companies act

2013 as limited company, regulated under Banking regulation act 1949,
Capital requirement 200 cr, with PSL 75% of ANBC
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

3. Financialization refers to the growing influence of financial markets,

institutions, and elites on economic policies and outcomes. It also signifies a shift
in investments from traditional physical assets (such as real estate and gold) to
financial assets (such as mutual funds and equities).

Concerns Related to Excessive Financialization: Widening Inequality: The

concentration of financial income among the top 1% leads to a rise in wealth
disparity, primarily through equity ownership. Economic Distortions: Instead of
being driven by trade in goods and services, economic profits increasingly stem
from financial investments. This results in stock market movements
overshadowing crucial economic indicators such as employment generation and
living standards.

4. Various Funds:

1. Venture Capital, Private Equity, and Angel Investors

These entities invest in early-stage startups to support their growth and

development.

2. Alternative Investment Funds (AIFs)

AIFs are privately pooled investment funds regulated by SEBI and categorized into
three types:

 Category I: Includes funds that invest in early-stage startups or sectors with

significant social impact. Examples:
o Venture Capital Funds (VCFs) – Invest in high-growth startups.
o Angel Funds – Provide capital to startups at their initial stages.
o Social Venture Funds – Support businesses with a social mission.
o Infrastructure Funds – Focus on infrastructure projects.
 Category II: Comprises funds that do not fall under Category I or III and do
not use leverage. Example:
o Debt Funds – Provide financing to companies through debt
instruments.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

 Category III: Includes funds that employ complex trading strategies and
leverage for high returns. Example:
o Hedge Funds – Engage in speculative trading to maximize profits.

5.National Bank for Financing Infrastructure and Development (NaBFID)

Why in News?

The Central Government has notified NaBFID as a Public Financial Institution

(PFI) under the Companies Act, 2013.

Public Financial Institution (PFI)

 Institutions established under any Central or State Act or those with at

least 51% government ownership can be notified as PFIs.

About NaBFID

 Establishment: Set up as a Development Financial Institution (DFI) under

the NaBFID Act, 2021, focusing on infrastructure financing.
 Objective: To promote long-term, non-recourse infrastructure financing
and facilitate the development of bond and derivatives markets in India.
 Regulation: Regulated and supervised by RBI . Ownership: Currently, 100%
owned by the Government of India.

6. Udyam Portal:
o It was launched on 1st July, 2020.
o It’s an online system for registering MSMEs, launched by the Union
MSME ministry.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

7. What is the SWAMIH Investment Fund?

 Nature:
o A government-backed fund, registered as a Category-II Alternative
Investment Fund (AIF) with SEBI.
o Launched in 2019, the fund provides debt financing for stalled real
estate projects.
o Sponsored by the Ministry of Finance and managed by SBICAP
Ventures Ltd. (a subsidiary of the State Bank of India).
 Eligibility Criteria:
o Projects must be RERA-registered and stalled due to funding
shortages.
o Must be near completion.
o Should fall under the Affordable and Middle-Income Housing
category (units ≤ 200 sq.m.).

8. Key Features of the MUDRA Scheme

1. Type of Scheme

 Central Sector Scheme – Fully funded by the Government of India.

2. Loan Disbursement through Member Lending Institutions (MLIs)

 Loans are provided through:

o Public Sector Banks (PSBs)
o Private Sector Banks
o State Cooperative Banks
o Regional Rural Banks (RRBs)
o Micro Finance Institutions (MFIs)
o Non-Banking Financial Companies (NBFCs)
o Small Finance Banks (SFBs)
 MUDRA (Micro Units Development & Refinance Agency Ltd.):
o Responsible for refinancing MLIs but does not directly lend to micro-
entrepreneurs.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

o Loans can be used for both term loans and working capital
financing.

3. Eligible Borrowers

 Non–Corporate Small Business Segment (NCSB) including:

o Individuals
o Proprietary concerns
o Partnership firms
o Private Limited Companies
o Public Limited Companies
o Other legally recognized business entities

4. Credit Guarantee

 Credit Guarantee Fund for Micro Units (CGFMU) provides guarantees for
loans under Pradhan Mantri Mudra Yojana (PMMY).
 CGFMU was established in 2015 to ensure collateral-free credit for micro-
units.

5. Additional Benefits

 No processing fees and no collateral required.

 Improved access to affordable credit with flexible repayment options.
 MUDRA Card – A debit card issued against the loan account for managing
working capital needs.

6. Loan Categories under MUDRA

 Shishu: Loans up to ₹50,000.

 Kishore: Loans up to ₹5 lakh.
 Tarun: Loans up to ₹20 lakh.

9.Classification of Cities in India

 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

City Tiers as per Population Size

 Tier 1: Cities with a population of 1,00,000 and above.

 Tier 2: Cities with a population between 50,000 to 99,999.
 Tier 3: Cities with a population between 20,000 to 49,999.

Growth of Tier 2 Cities in India

 Economic Transformation: Tier 2 cities are witnessing rapid

industrialization and urbanization.
 Emerging Middle Class: Growth is driven by rising disposable income and
increasing consumer culture.
 Infrastructure Development: Expansion of transport, education,
healthcare, and digital connectivity is accelerating urban growth.

9. Purchasing Managers' Index (PMI)

What is PMI?

 Survey-based economic indicator that assesses changes in key business

variables compared to the previous month.
 Purpose: Provides insights into current and future business conditions for
decision-makers, analysts, and investors.
 Calculated separately for Manufacturing and Services, with a composite
index also constructed.

PMI Interpretation

 Scale: 0 to 100
o Above 50 → Expansion in economic activity.
o Below 50 → Contraction in economic activity.
o Exactly 50 → No change.
 Month-on-month comparison: A lower PMI than the previous month
signals economic slowdown.
 Released at the start of every month, making it a leading economic
indicator.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

Compilation and Global Coverage

 Compiled by IHS Markit (now part of S&P Global) for 40+ economies
worldwide.

Significance of PMI

 A key indicator of economic health, as manufacturing and services drive

economic growth.
 High PMI → Positive economic outlook, indicating business expansion.
 Low PMI → Signals economic slowdown, affecting overall performance.

10. Jal Jeevan Mission (JJM)

Overview

 Launched: 2019
 Objective: To provide Functional Household Tap Connections (FHTCs) to all
rural households by 2024.
 Service Level: 55 litres per capita per day.

Key Features

 Background: National Rural Drinking Water Programme (NRDWP) was

restructured and merged into JJM.
 Nodal Ministry: Ministry of Jal Shakti.
 Scheme Type: Centrally Sponsored Scheme.
 Women Empowerment: 50% representation of women in Village Water &
Sanitation Committees (VWSCs) / Pani Samitis.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

11. Swachh Bharat Mission (Gramin) – Phase II

Overview

 Approved: February 2020

 Nodal Ministry: Ministry of Jal Shakti
 Objective: Ensuring sustainability of ODF (Open Defecation Free) status
and providing Solid & Liquid Waste Management (SLWM) facilities in rural
areas.
 Implementation Period: 2020-21 to 2024-25

Key Features

 ODF Plus: Focuses on sustaining ODF behaviors and ensuring

comprehensive waste management in every village.
 Funding Pattern:
o 90:10 – North-Eastern & Himalayan States, J&K
o 60:40 – Other States
o 100% – Union Territories
 Funding Norms: SLWM funding is now on a per capita basis instead of
household-based allocation.
 Monitoring Indicators (Under ODF Plus – SLWM):
1. Plastic waste management
2. Biodegradable solid waste management (including animal waste)
3. Greywater (household wastewater) management
4. Fecal sludge management

12. PRASHAD Scheme

Overview

 Full Form: National Mission on Pilgrimage Rejuvenation and Spiritual

Heritage Augmentation Drive (PRASHAD).
 Launched: 2014-15 by the Ministry of Tourism.
 Objective: Holistic development of identified pilgrimage destinations to
enhance tourism infrastructure, accessibility, and visitor experience.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

Key Development

 Initially launched as PRASAD (Pilgrimage Rejuvenation and Spiritual

Augmentation Drive).
 Renamed to PRASHAD in October 2017 to emphasize spiritual heritage
augmentation.

13. Swadesh Darshan Scheme

Overview

 Launched: 2015 by the Ministry of Tourism.

 Objective: To develop sustainable and responsible tourism destinations in
India.
 Funding: 100% centrally funded scheme.
 Implementation: Financial assistance is provided to State Governments, UT
Administrations, and Central Agencies for tourism infrastructure
development.
 Operation & Maintenance (O&M): Responsibility of the respective
State/UT administrations.

Swadesh Darshan 2.0 (SD2.0)

 Revamped version focusing on holistic tourism development, including:

o Tourism and allied infrastructure
o Tourism services
o Human capital development
o Destination management and promotion
o Policy and institutional reforms
 Encourages Private Sector Investment: Aims to boost Public-Private
Partnerships (PPP) in tourism and improve operation & maintenance of
assets.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

14. BharatNet Project

Overview

 Launched: 2011
 Implementing Agency: Bharat Broadband Network Limited (BBNL)
 Objective: To provide non-discriminatory broadband access to all telecom
service providers for enabling services like e-health, e-education, and e-
governance in rural and remote areas.
 Scope: One of the largest rural telecom projects globally, aiming to
connect all Gram Panchayats (GPs) with high-speed broadband
connectivity.
 Implementation: Approved in three phases by the Telecom Commission.

Phases of Implementation

1. Phase-I (2011–2017)
2. Phase-II (2017–2019)
3. Phase-III (2019–2023)

BharatNet is a key initiative under Digital India, aiming to bridge the digital
divide and boost rural connectivity for economic and social transformation.

15. Smart Cities Mission (SCM)

Overview

 Launched: 2015
 Ministry: Ministry of Housing and Urban Affairs (MoHUA)
 Extended Till: 31st March 2025
 Type: Centrally Sponsored Scheme
 Objective:
o Develop cities with smart solutions for core infrastructure,
sustainability, and quality of life.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

o Foster economic growth through social, economic, physical, and

institutional improvements.
o Create replicable models for sustainable and inclusive urban
development.

Key Features

 Funding: ₹100 crore per city per year from the Central Government, with
an equal matching contribution from States/Urban Local Bodies (ULBs).
 Selection Process:
o Stage 1: States shortlist cities based on equitable criteria.
o Stage 2: Shortlisted cities participate in a ‘City Challenge’
competition.
 Implementation:
o Special Purpose Vehicle (SPV) set up at the city level as a limited
company under the Companies Act, 2013.
o State/ULB holds 50:50 equity, with potential private sector
participation.
 Development Models:
o Area-Based Development:
 Retrofitting (city improvement)
 Redevelopment (city renewal)
 Greenfield (city expansion)
o Pan-City Initiative: Smart solutions applied city-wide.
 Integrated Command and Control Centres (ICCCs):
o Implemented in 100 Smart Cities for evidence-based governance.
o Services include traffic management, healthcare, water supply, and
emergency response.
 Convergence: Aligns with AMRUT, Swachh Bharat Mission (SBM), HRIDAY,
and other urban development programs.
 Current Status (as of 3rd July 2024):
o 90% of total projects completed (7,188 projects in 100 Smart Cities).
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

16. Maritime India Vision (MIV) 2030

Overview

 Launched by: Ministry of Ports, Shipping, and Waterways

 Objective: Comprehensive development of India's maritime sector,
including ports, shipping, and waterways, to establish India as a global
maritime leader.
 Key Initiatives: 150 strategic measures under 10 interconnected themes,
covering:
o Port Infrastructure Development
o Logistics Efficiency
o Shipbuilding Growth
o Coastal & Inland Waterway Traffic Expansion
o Technological Innovation & Policy Support
o Sustainability & Global Collaboration

Achievements (2022–2024)

 Port & Shipping Improvements:

o Major Port Capacity increased from 1,598 MMTPA (FY 2022) to
1,630 MMTPA (FY 2024).
o Vessel Turnaround Time (TAT) reduced from 53 hours (FY 2022) to
48 hours (FY 2024).
o 2 Indian Ports ranked in global top 30 ports.
o India’s Logistics Performance Index (LPI) Rank improved from 44
(2018) to 22 (2023).
 Coastal & Inland Waterways Growth:
o Cargo handled by National Waterways increased from 108 MMT (FY
2022) to 133 MMT (FY 2024).
o Coastal Tonnage increased from 260 MMT (FY 2022) to 324 MMT
(FY 2024).
 Investment & Infrastructure Expansion:
o Capital Expenditure increased by 37% to ₹7,571 crore (FY 2024).
o 75 port development projects awarded in major ports.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

Monitoring & Evaluation Mechanisms

 Sagarmanthan Portal: Tracks progress on capital expenditure, port

performance, traffic, and project execution.
 Special Monitoring Cells:
o Viksit Bharat Sankalp (ViBhaS) at the Ministry level.
o Neel Arth Vision Implementation Cells (NAVIC) at the organization
level.
o Focus on tracking key themes, ideation, and innovation.

New Initiatives under Maritime India Vision 2030 & Maritime Amrit Kaal
Vision 2047

The Ministry of Ports, Shipping, and Waterways has introduced several

initiatives to modernize infrastructure, enhance sustainability, boost tourism, and
improve technological capabilities in alignment with Maritime India Vision 2030
(MIV 2030) and Maritime Amrit Kaal Vision 2047 (MAKV 2047).

Key Initiatives

1. Port Modernization & Infrastructure Expansion

 Development of two new Mega Ports at Vadhavan and Galathea Bay.

 Establishment of deep-draft ports at Deendayal (Kandla), Vadhavan,
Tuticorin, Galathea Bay, and Paradip to handle larger vessels and
transshipment.
 Port digitalization & modernization to improve Vessel Turnaround Time
(TAT) and Berth Productivity.
 Enhanced multimodal connectivity under the Comprehensive Port
Connectivity Plan.
 Operationalization of six new National Waterways for improved inland
navigation.

2. Shipbuilding & Repair Development

 New Shipbuilding & Ship Repair Policy to boost domestic capacity.

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 Establishment of four Shipbuilding & Repair Clusters to modernize

shipyards and attract investment.

3. Green Shipping & Sustainability

 "Harit Sagar" Green Port Guidelines to reduce carbon footprint.

 Development of Green Hydrogen/Ammonia Hubs at Deendayal, Paradip,
and Tuticorin Ports under the National Hydrogen Mission.
 Green Tug Transition Programme (GTTP) to replace fuel-based harbor tugs
with eco-friendly alternatives.
 "Harit Nauka" Guidelines for the green transition of Inland Waterways
transportation.

4. Cruise Tourism Promotion

 Cruise Bharat Mission (2024) aims to double cruise passenger traffic by

2029.
 Development of six new international cruise terminals to position India as
a major global cruise destination.

5. Skill Development & Maritime Workforce

 Focus on skilling initiatives and supporting MSMEs in shipbuilding.

 Encouraging seafarers to take up academic roles in Maritime Universities
& Training Institutes.

2. Green Shipping & Environmental Sustainability

 Support for shipyards to comply with the Hong Kong Convention on

environmentally sustainable recycling (by 2026).
 Establishment of 5 Green Hydrogen/Ammonia Hubs and deployment of
1,000+ Green Vessels by 2029.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

17. PM-PRANAM Initiative

Full Form: PM Programme for Restoration, Awareness Generation,

Nourishment, and Amelioration of Mother-Earth

Launch: Announced in Union Budget 2023-24

Objective:

 Promote sustainable and balanced fertiliser use.

 Encourage adoption of alternative fertilisers.
 Support organic and natural farming practices.

Financial Mechanism:

 States/UTs reducing chemical fertiliser consumption (compared to the

past 3-year average) will receive 50% of the subsidy savings.
 Funds can be used for farmer welfare and local development.

Fertilisers Covered:

 Urea, DAP (Diammonium Phosphate), NPK (Nitrogen-Phosphorus-

Potassium), MOP (Muriate of Potash).

Scope: Applicable to all States & UTs in India.

Governance:

 Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime

Minister, oversees the policy.
 It reviews economic trends, sets investment priorities, and frames
economic policies, including those on foreign investment.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

18. PM-JANMAN Scheme

About:

 PM-JANMAN aims to mainstream tribal communities, particularly

Particularly Vulnerable Tribal Groups (PVTGs).
 Implemented by the Ministry of Tribal Affairs in collaboration with State
Governments and PVTG communities.
 It includes Central Sector and Centrally Sponsored Schemes, ensuring the
convergence of 11 critical interventions by 9 line ministries.

Key Features:

 Focus Areas: Housing (PM-AWAS), clean drinking water, healthcare,

education, nutrition, roads, telecommunications, and sustainable
livelihoods.
 Livelihood Initiatives:
o Van Dhan Vikas Kendras for trading forest produce.
o Off-grid solar power systems for 1 lakh households.
o Solar street lights in PVTG villages.
 Aims to improve quality of life, address exclusion and discrimination, and
recognize PVTG contributions.

Challenges in Implementation:

1. Lack of Updated Data:

o Last Census data (2001) counted 27.6 lakh PVTGs.
o 2011 Census figures were incomplete for some states.
o No dedicated Census for PVTGs, affecting planning and
implementation.
2. Diverse Needs & Capacities: Different regions require tailored
interventions.
3. Stigma & Discrimination: PVTGs face social exclusion, requiring awareness
campaigns.
4. Coordination Issues: Need for better integration with existing government
schemes for effective implementation.
 Sandhir’z Institute Patiala , 79-86463146 (Dhruv)

19.Particularly Vulnerable Tribal Groups (PVTGs)

 Origin:
o Identified by the Dhebar Commission (1973) as Primitive Tribal
Groups (PTGs) based on low literacy, economic backwardness,
declining/stagnant population, and pre-agrarian technology.
o Renamed PVTGs in 2006.
 Characteristics:
o Reside in remote, inaccessible areas with poor infrastructure and
limited administrative support.
 Number & Distribution:
o 75 PVTG communities across 18 States/UTs.
o Highest concentration:
 Odisha (15), Andhra Pradesh (12), Bihar & Jharkhand (9 each),
Madhya Pradesh & Chhattisgarh (7 each).
o Tribal Groups in Andaman & Nicobar Islands are also classified as
PVTGs.