First, let’s explore why these government initiatives are central. They fuel India’s socio-economic growth, covering areas from reducing poverty and agricultural advancement to boosting financial reach and rural infrastructure. Grasping these plans shows you’re in tune with the economic scene and able to assess the effects of government policies. 

Interestingly, while both exams require awareness of these government plans, they focus on different areas. NABARD, which is centered on rural development and agriculture, stresses plans related to these fields, like the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) or the Paramparagat Krishi Vikas Yojana (PKVY). On the other hand, the RBI Grade B exam, focusing on banking and finance, tends more towards schemes affecting these sectors, such as Stand-Up India or MUDQA. 

Yet, the worry over overlooking an important scheme is a common concern among students preparing for either exam. This blog aims to clarify the study process for government schemes. We’ll show you a strategy that emphasizes understanding over sheer memorization, ensuring you excel in this key part of the NABARD and RBI Grade B exams. 

The Strategy of Schemes for NABARD and RBI Grade B 

Government schemes can feel like an overwhelming labyrinth for NABARD and RBI Grade B aspirants. But fear not! Here’s a strategic approach that prioritizes understanding over memorization, turning this section into your ally. 

Ditch the Rote, Embrace the Why: Forget memorizing every minute detail of every scheme.  Instead, focus on grasping the core objectives, target beneficiaries, and the impact each scheme aims to achieve. This in-depth understanding allows you to analyze schemes critically and discuss their effectiveness in the real world. 

Organize for Efficiency: Categorize schemes by themes like agriculture, rural development, financial inclusion, and infrastructure. This creates a mental framework, making it easier to recall and compare relevant schemes during the exam. 

Stay Ahead of the Curve: Prioritize current and high-impact schemes. Recent government initiatives often carry more weightage and demonstrate your awareness of evolving policies. Resources like the RBI website and official government websites are your best friends for finding the latest and most important schemes. 

Remember, this is just the beginning. Following are some practical tips for effective preparation, including utilizing current affairs and news sources, understanding the interlinkages between schemes, and using mind maps for better memorization: 

• Make current affairs and government announcements for your allies. Regularly follow credible news sources to stay updated on recent scheme launches and policy changes. This not only keeps your knowledge base fresh but also allows you to analyze the potential impact of these new initiatives. To stay up to date with general knowledge, you can explore ixamBee’s Beepedia with daily, weekly, and monthly updates on current affairs.

• Don’t get lost in the details.  For each scheme, focus on understanding the core objectives, target beneficiaries, and the intended impact. This will equip you to answer questions that go beyond just naming the scheme and delve into its effectiveness. 

• Government schemes are rarely standalone entities. Many are designed to work together for a bigger purpose.  Identify the interconnections between schemes targeting similar goals. Understanding how these schemes complement each other will demonstrate a deeper level of understanding. 

• Mind maps or flowcharts can be powerful tools for memorization and connecting different schemes. Create visual representations that showcase the relationships between various schemes under a particular theme. This not only aids in recall but also helps you identify potential overlaps and synergies. 

Important Schemes for the NABARD Exam 

To give you an idea of how to implement the above strategies to study relevant government schemes for the NABARD exam, we have picked a few important government schemes whose importance and impact are felt even today. Take a look at the schemes below: 

Agriculture Infrastructure Fund (AIF) 

Year Launched: 2020 

Objective: To provide medium-long-term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets. 

Launched by: Ministry of Agriculture and Farmers’ Welfare 

Brief: The AIF aims to provide financial support to farmers, farmer-producer organizations (FPOs), agricultural entrepreneurs, and startups for the creation of post-harvest management infrastructure. This includes setting up of cold storage, collection centers, processing units, etc. The fund provides a medium-long term debt financing facility for these projects. 

 Sahakar Mitra – Scheme on Internship Programme 

Year Launched: 2021 

Objective: To provide paid internship opportunities to youth in cooperative institutions and to encourage youth to take up cooperative-based entrepreneurship. 

Launched by: NABARD 

Brief: The Sahakar Mitra scheme provides internship opportunities to youth in cooperative institutions. The internship duration is 3-6 months, and interns are provided a monthly stipend. The scheme aims to promote cooperative-based entrepreneurship and provide hands-on experience to youth in the cooperative sector. 

 Yuva Sahakar – Cooperative Enterprise Support and Innovation Scheme 

Year Launched: 2019 

Objective: To provide financial assistance and credit guarantee support to young cooperators to take up entrepreneurial activities, innovation, and modernization of cooperative business. 

Launched by: NABARD 

Brief: The Yuva Sahakar scheme provides concessional finance and credit guarantee support to young cooperators (age 18-40 years) to set up new cooperative enterprises or modernize existing ones. It aims to promote cooperative-based entrepreneurship and innovation among the youth. 

 Fisheries and Aquaculture Infrastructure Development Fund (FIDF) 

Year Launched: 2018 

Objective: To provide concessional finance for the development of fisheries infrastructure. 

Launched by: Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying 

Brief: The FIDF provides affordable credit to state governments, state entities, cooperatives, individuals, and entrepreneurs for the development of fisheries infrastructure, such as fishing harbors, cold chain, and aquaculture farms. This helps boost fish production and productivity in the country. 

 Pradhan Mantri Fasal Bima Yojana (PMFBY) 

Year Launched: 2016 

Objective: To provide comprehensive crop insurance coverage against crop loss due to various natural perils. 

Launched by: Ministry of Agriculture and Farmers’ Welfare 

Brief: PMFBY is a crop insurance scheme that provides coverage for crop loss due to natural calamities, pests, and diseases. It aims to stabilize the income of farmers and encourage them to adopt innovative practices in agriculture. 

You can see that by categorizing relevant information regarding a scheme, you don’t have to go through pages and pages of information to study it. The name, year, ministry, and objective of the scheme suffice as basic introductions to a scheme. This method will help you cover a large number of schemes in a short period of time without being confused. Out of all the agriculture and rural development-related schemes by the government of India, which are important for the NABARD exam, some will stand out. 

There will be a few schemes, either recent or old, which will have wider implications in the overall governance of the nation. It is those specific schemes where you should spend more time. These schemes include Pradhan Mantri Krishi Sinchai Yojana (PMKSY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), and Micro Irrigation Fund (MIF). ixamBee helps you with all-round preparation for the NABARD exam through the NABARD online course, NABARD test series, and more.

Important Schemes for the RBI Grade B Exam 

Following the same tips from above, the way we listed government schemes for the NABARD exam, in this section we will go through important schemes to cover the for the RBI Grade B exam.  

Sovereign Gold Bond Scheme (SGB)

 
Year Launched: 2015 
Objective: The aim is to decrease the demand for physical gold and encourage the allocation of a portion of domestic savings, traditionally used for gold purchases, into financial instruments. 
Launched by: Ministry of Finance, Government of India 
Brief: This scheme offers investors a mechanism to own gold in bond form rather than tangible assets. These bonds, expressed in gold grams, present an innovative pathway beyond conventional gold possession, alongside a prospect to accrue interest on the held investment. This arrangement not only aims to convert gold investors towards more fiscal mediums but also enriches the financial saving culture by embedding a value-generating option apart from the physical holding of gold. 

Remission of Duties and Taxes on Exported Products (RoDTEP) 

Year Launched: 2021 
Objective: To refund the embedded central, state, and local duties/taxes that are not refunded under any other mechanism, to exporters. 
Launched by: Ministry of Commerce and Industry, Government of India 
Brief: The RoDTEP program aims to boost the global competitiveness of Indian exports by refunding the embedded taxes and duties on inputs for exports. It supersedes the previous Merchandise Exports from India Scheme (MEIS) and ensures exporters are reimbursed for all embedded taxes and duties, thus augmenting their competitive edge in global markets. 

Marketing and Logistics Development for the Promotion of Tribal Products from the North-Eastern Region (PTP-NER) 

Year Launched: 2021 
Objective: To promote the marketing and branding of tribal products from the North-Eastern region and strengthen the logistics infrastructure. 
Launched by: Ministry of Tribal Affairs, Government of India 
Brief: This scheme strives to enhance brand awareness, better market reach, and fortify the supply network for these goods, thus promoting the earnings and living standards of tribal groups. This initiative undertakes to mold a more robust economic environment for indigenous products, guaranteeing their rightful place in the competitive market while respecting the unique cultural heritage they represent. 

Mahila Samman Savings Certificates, 2023 

Year Launched: 2023 
Objective: To provide a savings instrument for women, with a higher interest rate and partial withdrawal facility. 
Launched by: Ministry of Finance, Government of India 
Brief: The Mahila Samman Savings Certificates, 2023, is a recent savings plan launched by the Indian Government to boost financial growth and power for women. This scheme provides a higher interest rate than most other minor savings options and permits some amount to be taken out early, making it a beneficial saving choice for women. 

Pradhan Mantri Vaya Vandana Yojana (PMVVY) 

Year Launched: 2017 
Objective: To provide social security during old age and protect elderly persons aged 60 years and above. 
Launched by: Ministry of Finance 
Brief: The PMVVY, managed by the Life Insurance Corporation of India (LIC), ensures a steady pension ranging from ₹1,000 to ₹5,000 monthly for those aged 60 and older, spanning a period of 10 years. This program guarantees a fixed return rate of 7.4% per annum for the fiscal year 2020-21, offering financial stability and predictability. 

Other important schemes from the point of view of the RBI Grade B exam include Bharat Bill Payment System (BBPS), Financial Inclusion Fund (FIF), Unified Payments Interface (UPI), Insolvency and Bankruptcy Code (IBC), Atal Pension Yojana (APY) and a few more. You can supplement your exam preparation with ixamBee’s RBI Grade B online course, RBI mock tests, and many more.

Conclusion 

Our journey through a strategic plan to grasp government projects for the NABARD and RBI Grade B exams has placed focus on deep knowledge rather than just learning by heart. This method lifts you to a place where you can examine and judge these policies with a keen eye. Keep in mind, government policies and schemes are just one piece of the puzzle in these broad exams. Candidates are also tested on their math skills, logic, and English. Moreover, showing your clear thinking and ability to solve problems is key to doing well. To help you with this ixamBee offers numerous resources like quantitative aptitude quizzes, English language basic concepts, and other resources like free mock tests and previous year papers.

The foundation of strong preparation is building a solid grasp of the main goals, who these projects are for, and the change they aim to make. This insight, together with recognizing how different plans intersect, will prepare you to shine in this area and others. 

So, as future experts in finance and rural growth, start your study path with certainty. By following the strategies we’ve discussed and focusing on understanding, you’ll be in a strong position to tackle the NABARD and RBI Grade B exams. 

To help you prepare 50% faster for competitive exams, ixamBee provides a free Mock Test Series and all the Current Affairs in English and Current Affairs in Hindi in the BeePedia capsules for GA Preparation. You can also get the latest updates for Bank PO, Bank Clerk, SSC, RBI Grade B, NABARD, and Other Government Jobs. 

Also Read:

What are some dos and don’ts for the RBI Grade B exam?

Government Schemes for NABARD Grade A

NABARD Grade A Best Study Material: How To Prepare for Finance

The post How many Schemes do I Need to Prepare for NABARD and RBI Grade B?  appeared first on ixambee.

In this Blog, we are going to talk in detail about the RBI Direct Retail Scheme and how you can get befitted by it so I would recommend you read this blog till the end.  

Let’s start by knowing what RBI Retail Direct Scheme is all about.  

An introduction to the RBI Direct Retail Scheme  

With the help of the RBI Direct Retail Scheme, users are now able to access the Government Securities market directly through both primary and secondary ways. All they have to do is create a G sec account (Gilt Securities Account) with the RBI. However, previously retail investors weren’t allowed to deal directly with RBI but now users can direct deal with RBI through the RBI Direct retail Scheme.  

Why Transact through RBI Direct Retail Scheme? 

The Government Securities investing has emerged has a safe investment option among users because of its leading support. Furthermore, it also boosts the portfolio performance apart from the inclusion of equities. So if you are someone looking to build your investment portfolio to speak volumes, then this RBI Direct retail Scheme is for you.  

If we compare the return on investment through this scheme and the GOI bond then we can see that for the 3 years GOI Bond gives approx. 5.1 per cent of return, whereas the return of 3 years received through this scheme will give approximately 6.5 per cent of return. Hence, it is evident which gateway is beneficial for users to invest in Government Securities. However, the tenure under which a user can invest through this scheme is between 3 to 40 years based in the maturity of the bonds.  

The Government bonds on which the user can invest through the RBI Retail Direct scheme are as follows: 

• Government Treasury Bills 
• Sovereign Bonds 
• State Development Loans  
• Govt of India Dates Securities  

Risk Involved in Investing Through RBI Direct Retail Scheme  

If we talk about the overall risk involved in the investment through this scheme, then it is minimal or negligible. The only risk here is the timing of investment, because the prices of bonds tend to fluctuate in the market depending on external or internal factors like inflation, war etc. Apart from that some macroeconomic factors are also involved in the price fluctuation of those bonds. However, users have to understand the fact that the pricing and market of small retail bunches might not be liquidated at their initial stage after investment. Therefore, if you expect to get a decent return of investment in Government Securities through this scheme, then patience is the key. The more time you stay in the market with your purchased bonds, the better probability there is for your bond to liquidity and provide a good return on investment.  

Who is Eligible to Invest Through RBI Direct Retail Scheme? 

If you are a permanent resident of India, then the basic and most important criteria to become eligible to invest through this scheme is that you must possess a Savings bank account in any Indian Authorized Bank, must hold a Permanent Account Number (PAN) Card, Aadhar Card/Passport/Driving License for KYC verification, Authentic Email id and a registered phone number. Once you are ensured of the availability of the documents mentioned, then you can head to the next proceedings. NRI or Non residents are eligible to invest in Government Securities as per the rules mentioned under Foreign Exchange Management Act, 1999. 

How to open an RDG (Retail Direct Gilt) Account? 

To begin with the process, you have to open an RDG (Retail Direct Gilt) Account. This account can be opened solely or jointly. The process to open the RDG Account is mentioned below: 

Step 1: Visit the scheme portal at rbiretaildirect.org.in  

Step 2: Click on Open RBI Retail Direct Account 

Step 3: An investor Registration Form will pop up on the screen, fill all the required details there and click on submit.   

Step 4: Verify your Phone number and Email if through OTP verification and enter the login name. 

Step 5: Once this process is done, you will be redirected to click on the final Submit after previewing the complete details. Check and make sure you have filled all the details appropriately. Once you have submitted a ‘Tracking Number’ will be allotted to you.  

Step 6: Now you will see a KYC verification option. Here you have to click on the ‘Initiate KYC’ option. In case of joint account, this KYC process is applicable to both the account holders. You will be required to upload your KYC documents of name, address, bank account, and others for authentication purpose.  

Step 7: After the completion of the KYC process, click on the submit button. Your KYC and registration process ends with this step. 

Taxability in the Government Securities Purchased Through the RBI Direct Retail Scheme 

In the case of holding any Government Bond till Maturity, then the interest received on the return of investment is taxable as per the relevant tax slab. However, then there will be no capital gain tax in such investment returns. Furthermore, if the bond is converted and traded in the secondary market after purchasing but before reaching maturity, then the capital gains tax is applicable to the seller in accordance with the duration the bond was held.  

In a nutshell, as per the taxability point of view, any Government security having a maturity period of more than a year is considered under the long-term capital gain and in such circumstances, the capital gain tax applicable would be 10 per cent of the interest received in investment. Furthermore, the long term capital gain tax on unlisted Government securities is 20 per cent and here indexation benefit cannot be claimed. However, taxation on the short term capital gain adheres to the regular slab rate.  

How to Purchase Government Securities via RBI Direct Retail Scheme? 

The RDG account holders are required to maintain a balance in that account prior to making any purchase orders. Furthermore, the auctions in the primary market are held every week. On the other hand, in the secondary market, auctions can be done 5 days a week from Monday to Friday from 10am to 3:30 PM IST. In the secondary market, the process can be done through NDS-OM, an anonymous electronic order matching system facility for trading in Government securities. The users can follow purchasing and selling both processes on the RBI direct scheme portal.  

Now you must have understood the operations, purchase process and much more about the RBI Direct Retail Scheme. At ixamBee, we ensure to make you experience immense wisdom through various resources. From our study material to blogs, the flow of education never stops here.  

Conclusion 

The purpose of launching the scheme and establishing the RBI direct scheme portal is to provide retail users with a safe and secure environment to trade and invest in Government Securities. Eliminating the involvement of any third party brokers encourages investors to rely on and invest in Government securities without fear of being the victim of any trading misconduct. We hope that you have understood about this scheme and have no doubt about it. No matter if you are a potential investor or a knowledge gainer. Our purpose is to offer you insightful information about every aspect of the topic. You will always find us in your journey of gaining knowledge, we wish you all the best.  

To help you prepare 50% faster for competitive exams, ixamBee provides a free Mock Test Series and all the Current Affairs in English and Current Affairs in Hindi in the BeePedia capsules for GA Preparation. You can also get the latest updates for Bank PO, Bank Clerk, SSC, RBI Grade B, NABARD, and Other Government Jobs. 

Also Read

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