Social Empowerment: Yojana August 2018 Summary (Part - 1) (Download PDF)


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Key Topics included in this Article - Pradhan Mantri Adarsh Gram Yojana (PMAGY), National Backward Classes Finance & Development Corporation (NBCFDC), National Scheduled Castes Finance & Development Corporation (NSCFDC).

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Social Empowerment: Yojana August 2018 (In English)

Dr. Manishika Jain explains Yojana August 2018: Social Empowerment

  • National Scheduled Tribes Finance & Development Corporation (NSTFDC)

  • National Safaikarmacharies Finance & Development Corporation (NSKFDC)

  • National Backward Classes finance & Development Corporation (NBCFDC)

  • National Minorities Finance & Development Corporation (NMDFC)

  • National Handicapped Finance & Development Corporation (NHFDC)

  • MUDRA Yojana

  • Prime Minister Jan Dhan Yojana (PMJDY)

  • Social Change among SCs & STs

  • Social Empowerment for Differently Abled

  • Empowerment of Women

  • Constitutional Provisions for social justice

  • India’s MMR now at 130

Forthcoming Issue: Employment & Self Employment

  • Empowerment having control over one’s life as individual to male members it could mean financial freedom while to female members it could mean freedom from gender-based discrimination.

  • “Empowering women tantamount to empowering entire family”

  • Differently abled, life is different story altogether. Intiatives like Technology development projects in Mission mode, Inclusive education for disabled at secondary stage, Accessible India campaign, Deendayal Disabled Rehabilitation schemes, etc. have encouraged differently abled to achieve quality of life.

Building an Inclusive Society

  • Scheduled Caste Development
  • Flagship scheme of Department, Post-Matric Scholarship (PMS-SC) for SC students has been in operation since 1944 & single largest intervention by GOI for educational empowerment of scheduled caste students.

Statistics on Target Population

  • SCs comprise 16.6 % of country’s population as per census 2011

  • No enumeration of OBC caste done after independence

  • Mandal Commission estimated OBC population at 52 % while NSSO estimated 41.7% (2009 - 10)

  • Senior Citizens number 10.36 crore

Welfare of SCs

  • Important act for protection & dignity of members of SC & ST

    Community Scheduled Castes & Scheduled Tribes (Prevention of Atrocities) Act, 1989.

  • Department, apart from implementing schemes directly, also keeps track of ‘Allocation for Welfare of SCs’ (AWSC), which is new name of SC Sub plan. Concept of Special Component Plan (SCP) for Scheduled Castes in existence since 1979 - 80 to ensure proportionate flow of plan resources for development of Scheduled Castes (SCs) / Scheduled Tribes (STs).

  • Web-portal (e-utthaan. gov. in) in 2017 for online capturing of data from various Ministries/Departments on financial, physical & outcome based monitoring indicators as per formats designed by NITI Aayog.

  • 👌 Pradhan Mantri Adarsh Gram Yojana (PMAGY) envisages an integrated development of SC majority villages, primarily thru convergent implementation of central & state schemes, by providing central gap-filling assistance. Program taken up in villages which have more than 50 % SC population.

Backward Classes Development

Skill development an important intervention & undertaken thru National Backward Classes Finance & Development Corporation (NBCFDC)

Social Defence

  • 👌 Under Rashtriya Vayoshri Yojana, scheme meant for providing living assisted devices, 292 districts have been selected; assessment camps held in 52 districts & distribution camps held in 39 districts benefitting 43865 senior citizens. 99431 devices provided to senior citizens belonging to BPL categories.

  • Under scheme of Prevention of Alcoholism & Substance (Drugs) Abuse, cost norms increased by 30 % for de-addiction centres supported by department.

Rehabilitation of Manual Scavengers

  • In 150th birth year father of the nation, Mahatma Gandhi, department committed to correct historical injustice & indignity suffered by manual scavengers, & rehabilitation them to life of dignity.

  • Further, NSKFDC will focus on areas of training, rehabilitation & awareness generation. Recognition of prior Learning (RPL) program will utilized to train 10000 sanitation workers & waste pickers in safe, healthy & mechanized cleaning.


Department has three Finance Development Corporations viz. NBCFDC, NSKFDC & NSCFDC (National Scheduled Castes Finance & Development Corporation). 👌

Dr. Ambedkar International Centre

  • In order to further ideas of Dr. Baba Saheb Ambedkar, department has set up Dr. Ambedkar International Centre (DAIC), which was inaugurated by Hon’ble Prime Minister at DAIC in 2017. 👌

    Growth Opportunities for Weaker Sections

  • Successive Govts. In India have also made essential amendments to constitution & brought legislative framework to ensure social & economic safeguards to deprived sections of society.

  • Regional Rural Banks (RBIs) established to provide last mile connection to people in rural areas & banking facilities at their door steps, concept of service area approach brought in. Self-Help Groups- (SHGs) bank linkage programs introduced to give platform for needy people to come up w/business & innovative ideas to self-sustain & engage in gainful economics activities, etc.

  • Important role played by Govt. , RBI, Nationalized Banks, Scheduled Banks, Regional Rural Banks & now Micro Finance Institutions (MFIs) in promoting inclusive growth & addressing barriers & challenges on demand as well as supply aspects of financial inclusion needs appreciation.

Barriers for Financial Inclusion

  • Bharati D. B. (2016) observes that from demand side, reasons identified in study for financial exclusion low income, poverty & illiteracy & lack of awareness. From supply side branch proximity, timings, cumbersome documentation, & procedures, attitude of bank staff & language reasons cited.

  • Low penetration of financial services, less efficiency of business correspondents also limits success of financial inclusion.

  • Challenges identified include:

  • Agent & vendor risk

  • Consumption oriented expenditure patterns

  • Dormant accounts

  • Inadequate awareness levels

  • Lack of Infrastructure

  • Low literacy rates

  • Poor saving habits

  • Recovery related issues

  • Small ticket transactions & high transactions costs

  • Sustainability factor

Financial Inclusion & Govt

  • National Scheduled Castes Finance & Development Corporation (NSCFDC)

  • NSFDC set up by GOI in Feb. 1989 as Govt. Company under Section 25 (A company not for profit) of companies Act. , 1956. Broad objective of NSFDC financing, facilitating & mobilizing funds for economic empowerment of Scheduled Caste Communities living below Double Poverty Line (DPL) limit.

  • NSFDC extends loans (Term Loans, Micro Finance & Education/Vocational Education & Training) at concessional rates to Scheduled Castes (SCs) living below DPL as refinancing thru State Channelising Agencies & RBIs.

  • 👌 National Scheduled Tribes Finance & Development Corporation (NSTFDC)

    • NSTFDC established during 2001 & incorporated as Govt. Company having licence under Section 25 of Companies Act, 1956 i. e. company not for profit to provide concessional financial assistance to scheduled tribes for their economic & educational development.

    • NSTFDC assists SHGs & extends financial assistance for projects having unit cost upto Rs. 25 lakh Per S. H. G. & provides upto 90 % of cost of project subject to per member loan not exceeding Rs. 50,000/-.

    • Rate of interest 6 % p. a. upto Rs. 5 lakh & 8 % p. a. up to Rs. 10 lakh & 10 % above Rs. 10 lakh. Adivasi Mahila Sashaktikaran Yojana (AMSY)

Exclusive scheme for economic development of scheduled tribes women under which NSTFDC provides loan upto 90 % for project costing upto Rs. 1 lakh at interest rate of 4 % p. a.

  • 👌 National Safaikarmacharies Finance & Development Corporation (NSKFDC)

    • NSKFDC established under Section 25 of Companies Act, 1956 on 24th Jan. 1997 as ‘company not for profit’. It is fully owned by GOI & has authorized share capital of Rs. 600.00 crores.

    • NSKFDC disburses funds to states channelizing agencies (SCAs) nominated by concerned State Govts. / UT Administrations & to RBIs disbursement of funds to beneficiaries

  • National Backward Classes finance & Development Corporation (NBCFDC)

    • NBCFDC is GOI undertaking aegis of Ministry of Social Justice & Empowerment. NBCFDC incorporated under section 25 of Companies Act 1956 on 13th Jan. 1992 w/authorised share capital of Rs. 1500 crores.

    • National Minorities Finance & Development Corporation (NMDFC)

    • NMDFC incorporated on 30th sept. 1994, as company not for profit, under Section 25 of Companies Act 1956. Prime mandate of NMDFC to provide concessional finance to Minorities for self-employment/income generation activities. As per National Commission for Minorities Act, 1992, notified Minorities Muslims, Christians, Sikhs, Buddhists, & Parsis.

    • Subsequently, Jain community also added into list of noticed Minority Communities in Jan. 2014.

  • National Handicapped Finance & Development Corporation (NHFDC)

    • NHFDC set up by GOI to play catalytic role in economic empowerment of Persons w/Disabilities (Pw Ds), as Company u/s of Companies Act, 1956 on 24th Jan. 1997 w/authorised share capital of Rs. 400 crores. It has been working as an Apex Corporation for benefit of Persons w/Disabilities (Pw Dw) (Divyangjan) in country.

    • Rashtriya Mahila Kosh (RMK)

    • RMK is autonomous organisation under Ministry of Women & Child Development (MWCD) . It is society registered under Societies Registration Act 1860 & apex micro-finance organisation.

    • MUDRA Yojana

  • Finance Minister announced formation of MUDRA Bank. Accordingly MUDRA launched on 8 April 2015 for providing loans upto 10 lakh to non-corporate, non-farm small/micro enterprises.

  • Under aegis of PMMY, MUDRA created three products namely ‘Shishu’, ‘Kishore’, & ‘Tarun’ to signify stage of development & funding needs of beneficiary entrepreneur & also provide reference point for next phase of graduation.

  • Stand-up India Scheme

    • Facilities bank loans b/w 10 lakh & 1 crore to at least one SC or ST borrower per bank branch for setting up Greenfield Enterprise may be in manufacturing, services or trading sector. Rate of interest would be lowest applicable rate of bank for category (rating category) not to exceed (base rate (MCLR) +3 + tenor premium). Scheme envisages 25 % margin money which can provided in convergence w/eligible State schemes.

    • Venture Capital Fund Scheme

    • First of its kind Venture Capital Fund launched by Ministry of Social Justice & empowerment, GOI to promote entrepreneurship in India among Scheduled Castes by providing concessional finance to them.

    • Credit Enhancement Guarantee Scheme

    • Financial Minister during Union Budget speech (2014 - 15) on July, 2014 had announced that a sum of Rs. 200 crore allocated towards credit enhancement facility for young & start up entrepreneurships, belonging to Scheduled Castes, w/an objective to encourage entrepreneurship in lower strata of society resulting in job creation besides creating confidence in Scheduled Castes.

    • Prime Minister Jan Dhan Yojana (PMJDY)

    • PMJDY on Aug. 15,2014, to ensure financial inclusion for weaker sections for providing banking, pension & insurance to reduce negative effects of earlier schemes, thus giving financial freedom & stability. 1.5 crore bank accounts opened under this scheme across country.

    Social Change among SCs & STs

    • Constitution had recognised less privileged & more disadvantaged groups (SCs for their structural disadvantage based on ritual status & STs for their geographic isolation & disadvantage) for special safe-guards & affirmative measures such as anti-discrimination, anti-atrocity & positive discrimination laws such as prohibition of practice of un- touchability (in case of SCs), protection of right to land & habitation (in case of STs), provision of scholarships & reservations in education & employment (for both SCs & STs).

    • Social empowerment of disadvantaged increases their aspirations to get good & relevant education for employment.

Higher Education Participation

  • Gross enrolment rations (GER) of SCs & STs have witnessed tremendous improvement in past 15 years.

  • Higher education participation rates among SC & ST women almost tripled b/w 2005 - 06 (6.4 for SC women & 4.7 for ST women) & 2014 - 15 (18.2 for SC women & 12.3 for ST women).

  • Much growth of higher education in post 2000s is in private higher professional education, not accessible to large sections of SCs & STs, as it does not facilitate reservations as mandated in Constitution.

  • No reservations in private sector employment large scale employment opportunities currently found, SCs & STs become educated unemployed.

Fostering Entrepreneurship among the Marginalized

Favorable Social Perception

  • Study conducted by Pratham for NITI Aayog suggests that, “about 70 % of respondents who come from rural areas aspire to become ‘Self-employed’ entrepreneurs, in stark contrast to their urban counterparts (The Indian Express, 2016) “.

  • Demographic profiles of youth, most of come from marginalized communities in rural areas largely resource constrained environments.

  • Inventing new products, solving complex social problems thru novel solutions & breakthrough strategies fascinate them

  • Global Entrepreneurship Monitor (GEM) Report 2016 - 17 finds increase in rate of ‘entrepreneurial intention’ to 14.9 % compared to 9 % 2015 - 16, ‘fear of failure’ declined from 44 % in 2015 - 16 to 37.5 % in 2016 - 17. GEM Report 2016 - 17 finds that nearly 44 % adults in India see ‘good opportunities to start business’ while 44 % perceive have ‘capabilities to start business’.

Challenges & Opportunities

  • Lack of education & skills major impediment among marginalized.

  • Workshops & seminar sessions proved to time-tested methods of attitude orientation & confidence building among youth.

  • Shortage of finance, fear of risk & lack of functional literacy some of reasons hold back from starting their own enterprises.

  • Post-1990 economic reforms in India resulted in sporadic rise of Dalit entrepreneurs in country but representation in ownership of private enterprises & employment generated remained very low for Scheduled caste communities.

Four-Fold Strategy to Empower Disadvantaged Sections of Society Thru Entrepreneurship Development Initiatives

4-fold Strategy to Empower Disadvantaged sections of society

4-Fold Strategy to Empower Disadvantaged Sections of Society

Image of 4-fold Strategy to Empower Disadvantaged sections of society

Start-up India Programme

  • As part of start-up India action plan, Govt. set up fund of funds for start-ups (FFS) w/corpus of Rs. 10,000 crore to support companies over next four years. Funds make up lifeline of budding new enterprises.

  • Virtual Start-up India Hub created to provide information & learning resources to aspirants.

Stand-Up India Initiative

  • Under Stand up India Initiative, around 1.25 lakh bank branches encouraged to fund SC/ST & women entrepreneur in country.
  • Idea facilitate bank loans from 10 lakhs to 100 lakhs to given by each bank branch to one SC/ST & woman under start-up India scheme to promote entrepreneurship among them.
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Social Empowerment: Yojana August 2018 (In Hindi)

Dr. Manishika Jain explains Yojana August 2018: Social Empowerment

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- Published/Last Modified on: September 12, 2018


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