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Scheme

National Rural Livelihood Mission (NRLM)

The National Rural Livelihood Mission is a centrally sponsored poverty alleviation scheme designed to reduce rural poverty by mobilizing poor households into self-managed Self-Help Groups and providing them with sustained access to formal credit and diversified livelihood opportunities.

Why it matters

  • It marks a structural shift in rural development from allocation-driven welfare delivery to a demand-driven model anchored in community-led institution building.
  • It serves as the primary administrative vehicle for deepening financial inclusion among rural women by linking community federations directly with the formal banking system.
  • It provides the institutional framework necessary for achieving last-mile convergence across multiple rural development schemes and social protection programs.

How it is asked

In GS Paper II and GS Paper III, UPSC evaluates the mission through the themes of inclusive growth, governance, and the role of Self-Help Groups in socio-economic empowerment. Questions typically require candidates to analyze the efficacy of the SHG-bank linkage model, identify structural bottlenecks in transitioning from micro-credit to viable micro-enterprises, and evaluate how social capital drives rural development. Candidates are expected to discuss institutional capacity, credit absorption constraints, and measures needed to diversify rural livelihoods beyond agriculture.

Where it sits

Coverage

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