PM SHRI (PM Schools for Rising India) is a centrally sponsored scheme launched in September 2022 to upgrade 14,500 existing government schools into model schools across India. These schools showcase NEP 2020 implementation, emphasizing holistic, inquiry-based learning. The scheme operates in two phases with a total outlay of approximately ₹27,360 crore over five years. As of 2024–25, over 6,400 schools have been selected and onboarded under the scheme across states and union territories.

PM SHRI is not just another school infrastructure scheme — it is the flagship vehicle for embedding NEP 2020 philosophy into public school education at scale. The key distinction is the word 'model': these schools are expected to demonstrate best practices in pedagogy, assessment, and green campus design, so that surrounding schools replicate them organically.

The scheme is implemented by the Department of School Education and Literacy under the Ministry of Education. States must sign a Memorandum of Understanding (MoU) with the Centre, agreeing to implement NEP 2020 fully. This conditionality is significant — states that have not adopted NEP 2020 framework cannot access PM SHRI funds.

Funding follows the Centrally Sponsored Scheme pattern: 60:40 between Centre and states (90:10 for North-Eastern and Himalayan states; 100% Central funding for UTs without legislature). Each selected school receives phased grants for infrastructure, labs, libraries, sports facilities, and teacher training.

From an exam perspective, PM SHRI matters because it operationalises NEP 2020 — examiners frequently link the two. It also touches on fiscal federalism (Centre-State funding ratios), education governance (MoU conditionality), and school-level financial inclusion through mid-day meals and digital learning tools. NABARD's interest is indirect: rural school upgradation connects to rural human capital formation, a key input for agricultural productivity and rural livelihood programmes.