NABARD Grade A Current Affairs — 17 October 2026

The Union Cabinet approved continuation of the PM-Kisan Samman Nidhi scheme beyond its current phase, extending the ₹6,000 annual direct income support to eligible farmer families. The scheme, launched in February 2019, transfers ₹2,000 in three equal instalments directly into farmers' bank accounts via DBT. The extension ensures uninterrupted income support to small and marginal landholding farmers, reinforcing the government's commitment to agricultural welfare and financial security for the farming community across India.

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) is a Direct Income Support scheme — a policy instrument distinct from price support (MSP) or input subsidies. Instead of subsidising inputs or guaranteeing output prices, it transfers cash directly to farmers, allowing them to use it for any agricultural or household need. This design reflects the shift in Indian agricultural policy from indirect price interventions toward direct demand-side support.

The scheme addresses a structural problem: small and marginal farmers in India often lack access to formal credit and are vulnerable to distress between harvest cycles. The ₹6,000 annual transfer, though modest, provides a predictable income floor. By routing it through DBT and Aadhaar-linked accounts, the scheme reduces leakage and intermediary capture — both key concerns in welfare delivery.

For RBI aspirants: PM-KISAN beneficiaries are eligible for the Kisan Credit Card (KCC), which links income support to formal credit access — a critical financial inclusion chain. NABARD aspirants must note that PM-KISAN complements rural credit by improving repayment capacity of small farmers. UPSC aspirants should frame it within the JAM (Jan Dhan–Aadhaar–Mobile) trinity as a governance delivery mechanism.

The Cabinet's continuation decision signals that income-support architecture for agriculture will remain a policy priority regardless of fiscal pressures, making the scheme's parameters, delivery architecture, and coverage scope perennially exam-relevant.

The Pradhan Mantri Jan Dhan Yojana, launched in August 2014, has crossed 54 crore beneficiary accounts with aggregate deposits exceeding ₹2.3 lakh crore as of 2024. The scheme provides zero-balance savings accounts, RuPay debit cards, and accidental insurance cover. Women hold 55% of accounts. The share of dormant accounts has fallen sharply. PMJDY underpins Direct Benefit Transfer delivery and remains India's primary financial inclusion vehicle under the JAM trinity.

PMJDY is the foundational layer of India's financial inclusion architecture. Launched on 28 August 2014, it addressed a structural gap: hundreds of millions of Indians lacked a formal bank account, cutting them off from credit, insurance, and government transfers.

The scheme operates through a 'basic savings bank deposit account' (BSBDA) model — zero minimum balance, RuPay debit card with ₹2 lakh accidental death insurance, and a ₹10,000 overdraft facility for eligible account holders. It is implemented through public sector banks, regional rural banks (RRBs), and India Post Payments Bank.

The JAM trinity — Jan Dhan + Aadhaar + Mobile — is the policy mechanism that made Direct Benefit Transfer (DBT) possible. By linking Aadhaar-seeded PMJDY accounts to mobile numbers, the government eliminated intermediaries and reduced leakage in welfare delivery (LPG subsidies, MGNREGS wages, PM-KISAN instalments).

For RBI, the significance is in priority sector lending and the role of Business Correspondents (BCs) who act as last-mile banking agents in unbanked villages. For NABARD, PMJDY accounts form the entry point for rural credit: account ownership is a prerequisite for Kisan Credit Cards and SHG-bank linkage. For UPSC, it represents the governance innovation of demand-side financial inclusion — moving from branch-led to technology-led access.

The 55% female account share is particularly important because women's financial inclusion is separately tracked under SDG 5 (gender equality) and SDG 1 (no poverty), making this a multi-SDG instrument.

Tamil Nadu has revised GST valuation and compliance rules targeting tobacco products, pan masala, and online gaming to curb revenue leakage. The state is enforcing stricter valuation norms — particularly for goods prone to under-invoicing — and tightening monitoring of online gaming platforms, which now attract 28% GST on full face value of bets. These measures align with recent GST Council decisions and aim to improve tax collection efficiency across high-evasion sectors within the state.

This development sits at the intersection of three GST reform streams that have converged since 2023.

**Tobacco and Pan Masala Valuation:** These goods have historically been under-invoiced because manufacturers declare artificially low transaction values. The GST Council introduced a Special Composition Scheme with capacity-based levy (tracked via electronic track-and-trace systems) to counter this. Tamil Nadu's tightening reflects state-level enforcement of these central norms, including mandatory registration of machines and physical verification of production capacity.

**Online Gaming — 28% GST on Full Face Value:** The GST Council's landmark October 2023 decision classified online gaming (including skill-based games like fantasy sports and rummy) as 'actionable claims' and levied 28% GST on the full face value of bets placed, not on gross gaming revenue. This overturned the earlier 18% on platform fees. States like Tamil Nadu are now ensuring platforms operating within their jurisdiction register, report, and remit correctly.

**Revenue Leakage Mechanism:** Leakage in GST occurs via (a) under-valuation of supply, (b) fraudulent input tax credit (ITC) claims, and (c) non-registration. Tamil Nadu's action targets all three. For online gaming, the primary risk is offshore platforms evading registration.

**Constitutional Dimension:** GST is a concurrent tax — the Centre levies CGST and states levy SGST at identical rates. State enforcement actions like Tamil Nadu's supplement GSTN's central monitoring, making them exam-relevant as examples of cooperative fiscal federalism in action.