Shyama Prasad Mukherjee Rurban Mission: Most Important Topic for 2021 RBI Assistant Exam

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  • Large parts of rural areas in the country are not stand-alone settlements but part of a cluster of settlements, which are relatively proximate to each other. These clusters typically illustrate potential for growth, have economic drivers & derive locational & competitive advantages. These clusters once developed than can be classified as ‘Rurban’ . Hence taking cognizance of this, the Government of India, has launched the Shyama Prasad Mukherji Rurban Mission (SPMRM) , aimed at developing such rural areas by provisioning of economic, social & physical infrastructure facilities. The Mission was launched on 21st February, 2016.
  • The Mission aims at development of 300 urban clusters, in the next five years. These clusters would be strengthened with the required amenities, for which it is proposed that resources be mobilized through convergence of various schemes of the Government, over & above which a Critical Gap Funding (CGF) would be provided under this Mission, for focused development of these clusters.
Shyama Prasad Mukherjee Rurban Mission


  • The National Rurban Mission (NRuM) follows the vision of ″ Development of a cluster of villages that preserve & nurture the essence of rural community life with focus on equity & inclusiveness without compromising with the facilities perceived to be essentially urban in nature, thus creating a cluster of ″ Rurban Villages ″ .


  • The objective of the National Rurban Mission (NRuM) is to stimulate local economic development, enhance basic services, & create well planned Rurban clusters.


  • The larger outcomes envisaged under this Mission are:
    • Bridging the rural-urban divide-viz: economic, technological and those related to facilities and services.
    • Stimulating local economic development with emphasis on reduction of poverty and unemployment in rural areas.
    • Spreading development in the region.
    • Attracting investment in rural areas.

Rurban Cluster

  • A ‘Rurban cluster’ , would be a cluster of geographically contiguous villages with a population of about 25000 to 50000 in plain & coastal areas & with a population of 5000 to 15000 in desert, hilly or tribal areas. As far as practicable, clusters of villages would follow administrative convergence units of Gram Panchayats & shall be within a single block/tehsil for administrative convenience. To get the list of Approved Clusters.

Selection Procedure

  • There will be two categories of clusters under NRuM that are Non-Tribal and Tribal the process of selection will vary for each of these categories. While selecting the Rurban cluster the State may identify a large village/gram panchayat that are growth centers with resources available in the area that could potentially lead the economic transformation of the region. These growth centers could also be block headquarter villages or census towns. The clusters could then be formed by identifying geographically contiguous villages/gram panchayats within a radius of 5 – 10 km (or radius appropriate to the population density and geography of the region) around the identified growth center.

Non Tribal

  • For selection of Non- Tribal clusters, the Ministry would provide a list of leading sub districts to each State, within which the clusters could be identified.
  • The selection of these sub districts by the Ministry would be based on parameters such as
    • Decadal Growth in Rural Population
    • Decadal Growth in Non-Farm work force participation
    • Presence of Economic Clusters
    • Presence of places of Tourism and Pilgrimage significance.
    • Proximity to Transport Corridors.


  • For identification of the tribal clusters, the Ministry would select the leading sub districts falling within the top 100 tribal districts of the country, based on the Scheduled Tribes population.
  • The selection of these sub districts would be based on parameters such as
    • Decadal growth in Tribal Population
    • Current Tribal Literacy Rate
    • Decadal growth in Non- Farm Work force participation
    • Decadal growth in Rural Population and
    • Presence of Economic Clusters.

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