Pradhan Mantri Fasal Bima Yojana (PMFBY)…… Pradhan Mantri Krishi Sinchai Nilokheri Experiment.

ri Experiment. Answer It started during 1948 under the leadership of Gandhian approach to rural development attaches supreme importance to
Yojana (PMKSY) …….Paramparagat Krishi Vikas Yojana (PKVY) …….Rainfed Area S.K.Dey who was then, the Minister of Community Develepment. 2 3. 4 5. Its moral values. It gives primacy to moral values over material conditions. The
Development Programme (RADP) ……..National Watershed Development primary purpose was to develop a new township to rehabilitate displaced Gandhians believe that the source of moral values in general lies in religion and
Project for Rainfed Areas (NWDPRA) ……..National Mission for Sustainable persons from West Pakistan. The project was built in a swampy barren land Hindu scriptures like the Upanishads and the Gita. The concept of Rama Rajya'
Agriculture (NMSA) under National Action Plan on Climate Change (NAPCC) around the vocational training centre on the highway of Delhi and Ambala. is the basis of Gandhiji's idea of an ideal social order. Gandhiji defined Rama
Atal Pension Yojana (APY): Pradhan Mantri Suraksha Bima Yojana (PMSBY) : S.K.Dey launched the new scheme called 'Mazdoor Manzil' for construction of Rajya as "sovereignty of the people based on moral authority'. Following are
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): rural development township at Nilokheri. This scheme gave the people : i ii. Training on the basic tenents of the Gandhian ideal social order : A. Ideal Village: 1 The
programmes in area of social sector20 - Point Programme. Minimum Needs agricultural implements preparation, Training on cottage industries, Training village is the basic unit of the Gandhian ideal social order. 2 3. 4 5. Gandhi's
Programme (MNP). Food For Work Programme (FFW). National Rural on carpentry etc. Alongaide technical and vocational training , work centres ideal village belongs to the Pre-British period, when Indian villages were
Employment Programme (NREP). Rural Landless Employment Guarantee were started in the crafts like weaving calico printing, soap making, laundry, supposed to constitute the federation of selfgoverning autonomous republics.
Programme (RLEGP). Jawahar Rozgar Yojana (JRY). Self-Employment for the bnkery, blacksmithy. general mechanics, leather and a multitude of other According to Gandhiji, this federation will be brought about not by compulsion
Educated Unemployed Youths (SEEUY. Integrated Rural Development crafts and trades, "lhe Nilokheri projeet was unlike any other village but by the voluntary offer of every village republic to join such a federation.
Programme (IRDP). Indira Awas Yojana (IAY). development projec.its objective was to rehabilitate the refugees in a planned The work of the central authority will only be to coordinate the work of
settlement where they could get everything which is required for a town or a different village republics and to supervise and manage things of common
village. The colony had school agriculture farms polytechnic training centre , interest, as education, basic industries, health, currency, banking etc. The
Sriniketan Experiment. Tagore was in charge of the family's estates in East dairy poultry farm , pig farm , horticulture garden , printing press etc. The central authority will have no power to enforce its decisions on village
Bengal he was exposed to the poverty and oppression engulfing the rural Nilokheri was an excellent exercise in the planning of a town republics except the moral pressure or power of persuasion. B.
mass. This whole scenario made him keenly sensitive towards these people Decentralisation : 1. Gandhi firmly believes that village republics can be built
and he decided to pull them out from this poverty and oppression. Tagore's only through decentralisation of social and political power. In such a system
ideological framework attracted Leonard Elmhirst, a British agronomist to approaches to rural development in India nce the types of approaches to rural decision-making power will be vested in the 3. 4. 5. 6 7. Village Panchayat. The
come to India upcn the invitation ofTagore to work with him. They both began development are as follows: i i. iii. iv. V. vi. vii. Broad front Approach. Sectoral representatives would be elected by all adults for a fixed period of five years.
to formulate methods for social and economic change. To translate his dream Approach. Participatory Approach. Area Development Approach. Target The elected representatives would constitute a council, called the Panchayat.
into reality, the Institute of Rural Reconstruction in Sriniketan was established Approach. Basic Needs Approach. Employment-oriented Integrated Appronch The Panchayat exercises legislative, executive and judicial . Self-sufficiency: The
in 1920. The object of Sriniketan programme is to bring back life in its to Rural Development. vi. Integrated Development Approach. ix. X xi. xii. village should be self-sufficient as far as its basic needs food, clothing, shelter
completeness into the villages making them self-reliant and self respectful. The Growth Center Approach. Community-Driven Development (CDD) or Approach. and other necessities are concerned. 2. 3. 4 5 D. The village should produce
objectives of the mission were : i. iüi. iv. V. To win the friendship and affection Gandhian Approach. Tagore Approach. food-crops and cotton in order to meet its requirements. Some lands should
of villagers and cultivators by talking a real interest in all that concerns their also be earmarked for cattle and for a playground for adults and children.
lives and welfare, To take the problem of the village and the field to the class Village economy should be planned with a view to providing full employment
room for study and discussion and to the experimental farm for solution. To broad-front development appoach. Answer 1 2 3 4. 5. 6 Community to all the adults of the village. Industrialization : 1. Industrialization leads to
put the students in the way of acquiring practical experience in cultivation, Development and Panchayat Raj were often deseribed as broad-front passive or active exploitation of the 2 3 4 5 6 E. villages. Industrialization
dairy, animal husbandry, poultry keeping, carpentry, and smithing, weaving development strategies as they aimed at development of villages covering all replaces manpower and hence it adds to unemployment. In order to avoid
and tannery; in practical sanitation work; and in the art and sprit of the major spheres like Agriculture, Animal Husbandry, Rural Industries, such a catastrophe, village and cottage industries should be revived. They
cooperation. The experiment was strongly supported by a team of foreigners Communication, Health, Education, Women Welfare and Social Welfare. In provide employment to meet the needs of the villagers and facilitate village
and Bengalis. The Sriniketan programme covered broadly four general areas: early fifties, rural development efforts begun with brond-front development self-sufficiency.
agriculture, crafts and industries, village welfare and education. The approach. The Community Development Programmes (CDP) and National
agricultural activities were based on three phases: experiment; training, and ii. Extension Service (NES) initiated in 1952 fell under this approach. Though CDP,
extension. Extension activities were given much priority. A Demonstration Plot as a holistic approach, did not succeed as expected. The impact ofprogramme C. Subramanian the then Finance Minister of India, means 'A systematic,
was created to impart training and education to all the farmers through real was ephemeral. It could not make a dent into social fabric as was expected. scientific and integrated use of our natural resources enabling every person to
life situation. 11. One or two agricultural workers from Sriniketan often used to The critics also point out that : It brought about a great disparity between the engage himself in a productive and socially useful occupation and earn an
go to the villages and farmers to supervise all activities. rich and the poor, It hardly touched the problem of meeting the felt needs of income that would meet at least the basic needs'. Integrated Rural
the people, ii. iv. It failed to bring about the process ofmodernizantion through Development is a strategy which focuses attention on the rural poor and
social education, and Lack of people's participation. In spite of the criticisms attempts to improve the quality of life of the weaker sections of the society.
Gurgaon Experiment. 1 Answer Rural upliftment movement on a mass scale thes programme's added a new dimension to the process of change and The strategy isjust not an attempt of increasing agricultural productivity but
was first started by Mr. F. L. Brayne in 1920. 2 3 4 5. 6 7 He was prompted by generated community conseiousnesa to solve community problems. ensuring that the poor and the weaker sections share the benefits of economic
the backwardness, poverty and misery of the people. After seven years of and social progress. The concept of Integrated Rural Development came into
study he developed a scheme called "The Gurgaon scheme" with the following vogue with the need for a multi-purpose thrust to rural planning. It is a 'multi-
objectives : To increase crop production, ii ii. iv V. To control extra expenditure, Sectoral Approach. Answer 1. 2. 3 4. 5 6 7 8 9. Sectoral development planning level, a multi-sector, and multi-section concept'. As a multi-level concept, it
To improve the health, To develop the feeling of women-education, and Home in individual sectors like education, health, housing and social security are encompasses rural development at various levels in the spatial hierarchy such
development work. He took the whole district as the field of operation and included in sectoral approach of development. This approach advocates as the viable cluster of village communities, blocks and districts. Asamulti-
approached the area with every form of propaganda and publicity. Under his compartmentalization of development in different sectors. Its inadequacies sector concept, it encompasses agriculture, industry, education, health and
programme village guides' were posted in each village, who acted as the stem from this compartmentalized approach. By 1960's the situation was transportation. As a multi-section concept, it encmpasses socio-economic
channel to pass on the information to villagers. The programme introduced rather critical on the food front. The need for great concentration on food development of the target group of the weaker sections or sub-sections of the
improved seeds, implements, methods of cultivation, etc. The activities production led to strategy for locating potential sectors and well-endowed rural population, such as, landless labourers, artisans, small farmers, marginal
introduced by Brayne were : A school of rural economy to train the village districts and areas capable of yielding higher agricultural production. More farmers, Scheduled Tribes and Scheduled Castes.
guides in 1925. i. üi. iv. A domestic school of economy to train groups of attention was paid in improving productivity per acre than on extending the
women under women and children welfare work in 1926. Health association, acreage. For this purpose Intensive Agriculture Development Programme
which ran five health centres in the district. Drawbacks: 1. 2 3 4. A women's (IADP) and Intensive Agricultural Area Programme (IAAP) were launched. Both
Institute at Gurgaon to manage the ladies' garden in Gurgaon. IADP and IAAP constituted landmarks in the development of agriculture. The
Marthandam Experiment. Answer 1 2 3 4 The work was commenced by Dr. programmes placed agriculture on a qualitatively different footing with wide
Spencer Hatch an American Agricultural expert in Travancore under the ranging repercussions on rural scenario.
auspicious of YMCA in 1921. The villages in Marthandam area were
undeveloped economically and the economic condition of the native majority
was poor. The main objectives of this project were : i Spiritual development ii. Participatory Approach. Answer 1 2. 3 4. 5 6. 7 This concept has been
Physical development V. Economic development iü. iv. Mental development developed from Participatory Development (PD). Participatory development is
Social development Dr. Hateh implemented an all round development in a process through which stakeholders can influence and share control over
agriculture, public health and education. 5 6. 7 8 9. 10. 11. For this project, the development initiatives, and over the decisions and resources that affect
extension secretary was appointed to supervise the activities of the group. themselves. Participatory Development (PD) is a process to engage local
Marthandam was in a strategic position to serve the villages. It kept prize bulls populations in development projects. PD uses local decision making and
and goats, model bee-lives, demonstration plots for improving grain and capacities to steer and define the nature of an intervention. PD aims at
vegetable seeds, poultry runs with prize laying hens, a weaving shed, etc. achieving a localized capital accumulation process based on the skills
Inside the centre, there was equipment like honey extractors, health charts development and local resources generation. The essential feature of PD is
and the items needed for other cottage vocations. social mobilization. PD gives a new self-confidence through which the
community can engage in more ambitious projects involving collective action
and management.
Baroda Experiment. This movement was started by V.T. Krishnachari in 1932 in
the Baroda state where he was Dewan at that time. 2 3 4 5. 6 7. The first
objective was to bring about a rapid increase in standards of living, The Target Group Approach (also known as the Target-Oriented Approach) in
industrialization and rapid expansion of the educational system. The second rural development is a strategy that focuses on identifying and assisting
objective was to increase agricultural production through the provision of basic specific groups within rural populations who are particularly vulnerable,
necessities. This Project was started in the district ofNavsari in the Gujarat disadvantaged, or marginalized. Unlike the Area Development Approach,
State. Many programmes such as gardening, poultry-farming, bee-keeping, which aims to uplift an entire region, the Target Group Approach zeroes in on
spinning and weaving were organized. Re-stabilization of Panchayats and other specific beneficiaries based on criteria such as income level, occupation, caste,
programmes of village progress were organized. The adult education had been gender, or social status.Key Features of the Target Group
extended. Working System : 1. 2 3. By personal education and contact by the Approach:Beneficiary Identification: Clearly defined target groups, such
village guides. To use the school teacher of village in the extension of as:Small and marginal farmers Landless laborers Scheduled Castes (SCs) and
programme. To use the traditional means of extension. Scheduled Tribes (STs) Women Unemployed youth Below Poverty Line (BPL)
familiesObjective-Based Planning: Program goals are set based on the needs
of the identified groups (e.g., poverty alleviation, skill development, access to
Firkha Development Scheme. The Firka Development Scheme launched by credit).Specific Schemes and Interventions: Programs are designed with
Madras Government in 1946 aimed at the attainment of the Gandhian ideal focused support like subsidies, training, employment, health, or education.Use
of"Village Swaraj". 2 3. This scheme aimed at bringing educational, economic, of Data and Surveys: Socio-economic surveys help identify and monitor target
sanitary and other developmental activities in villages and also revitalise the groups accurately.Measurable Outcomes: Easier to measure success based on
spirit of the people and make them self-confident and self-reliant. Among Pre- the number of beneficiaries reached and changes in their standard of living.
Independence project, this was the biggest project. The short term objectives Tagore approach to rural community development. First phase of Rural
of the scheme was to develop basic amenities and an institutional framework Reconstruction - East Bengal Experiment : 1 2 3 4 5. Tagore came into direct
for carrying out communication, water supply, sanitation, formation of contact with the rural Bengal after he took the charge of their Zamindari estate
panchayats and cooperatives. 5 6 7. The long term objectives were to attain at East Bengal. It was during that period the idea of rural reconstruction came
self-sufficiency in food, clothing, shelter, development of agriculture, animal to his mind. That was the beginning of his rural reconstruction programme. His
husbandry, khadi and village industries. programme included health, education, cottage industries, agriculture,
fisheries, weaving etc. He introduced the experiment of tractor for cultivation,
furnace for potteries and ceramics, a husking machine for paddies. An all-
Etawah Pilot Project. Answer This project was started in 1948 by Mr. Albert round development of a village was his ultimate objective which to his mind
Mayer of USA who came to India with the American forces in 1944. 2 3 4. 5. 6 was necessary for making a self-suficient and self-confident society. Rural Bank
He was the originator of this project at a village called Mahewa in UP. A pilot : 1 2 3 4. The concept of rural bank occupies a very significant place in Tagore's
project for development of Etawah district in UP was formulated i. by him with Rural Reconstruction Programme. While acting as a Zamindar, he observed
the following objectives : To know the degree of productive and social that one of the main reasons of rural poverty was the ruthless exploitation by
improvements, through self confidence and cooperatives; To find how quickly the Zamindars, the middlemen and the money lenders. The only way to rescue
these results could be attained; ii. iv. To know whether the results remain the villagers was to lend money at a rate of lower interest. With this objective,
permanent even after the special pressure is withdrawn; and To assess how far Tagore established Patisar Bank in 1905. C. Sriniketan Experiment: D Rural
the results were reproductive in other places. In the project, development Industries : E Institute of Rural Reconstruction: F Rural Library :
officers at various levels were posted. At village level, there was a 'multi-
purpose' village level worker (VLW) with four or five villages under him. This
programme works were, by and large, similar to earlier projects; introduction
of improved variety seeds, chemical fertilizers, improved implements, plant
protection measures, horticultural development, soil conservation, improved
cultural practices and the like. There were projects in animal husbandry,
cooperation, credit provision, water supply, improvements of road, drainage
This project was finally merged with the National Extension Service (NES)
block.

Panchayati Raj (Council of five officials) is the system of local self government The Ashok Mehta Committee was appointed by the Government of India in
of villages in rural India. It consists of the Panchayati Raj Institutions (PRIs) 1977 under the chairmanship of Ashok Mehta, a prominent political leader
through which the self-government of villages is realized. 3. 4. 5. PRIs are and socialist thinker, to examine the weaknesses in the existing Panchayati Raj
tasked with economic development, strengthening social justice and system and to recommend measures to strengthen it. The committee observed
implementation of Central and State Government Schemes. Part X of the that the earlier system had become ineffective due to irregular elections, lack
Indian Constitution is the section of the Constitution relating to the of financial resources, bureaucratic control, and political interference. It
Panchayats. It stipulates that in states or Union Territories with more than two recommended replacing the three-tier structure with a two-tier system
million inhabitants there are three levels of PRIs: The Gram Panchayats at comprising the Zila Parishad (district level) as the principal body of governance
village level : A Gram, meaning a village or a cluster of villages, is divided into a and the Mandal Panchayat (group of villages) at the lower level. It emphasized
minimum of five constituencies depending on the number of voters the Gram the district as the key unit of planning and administration, with the Zila
is having. From each of these constituencies one member is elected. Body of Parishad acting as the executive body. The committee suggested regular and
these elected members is called the Gram Panchayat. ii. The Panchayat Samiti direct elections to these bodies, a strong role for political parties in local
at block level : Panchayat samiti is a rural local government (panchayat) body elections, and greater involvement of weaker sections like Scheduled Castes,
at the intermediate tehsil (taluka/mandal) level in India. ii. The Zila Parishad at Scheduled Tribes, and women. It also proposed the creation of a State
district level : The Zila Panchayat or District Council or Mandal Parishad or Panchayati Raj Development Corporation for funding and capacity-building,
District Panchayat is the third tier of the Panchayati Raj system and functions and the constitutional protection of Panchayati Raj institutions to ensure their
at the district levels in all states. A Zila Parishad is an elected body. continuity and independence. Though many of its recommendations were not
fully implemented, the Ashok Mehta Committee significantly influenced later
Gram Panchayats. Answer 1. 2. 3. 4. 6. A Gram, meaning a village or a cluster of reforms and laid the intellectual foundation for the 73rd Constitutional
villages, is divided into a minimum of five constituencies depending on the Amendment Act, 1992, which gave constitutional status to Panchayati Raj in
number ofvoters the Gram is having. From cach of these constituencies one India.
member is elected. Body of these elected members is called the Gram
Panchayat. Size of the Gram Panchayats varies widely from state to state. It is a
democratie structure at the grass-roots level in India. 6. 7. Panchayati Raj & The L.M. Singhvi Committee was appointed by the Government of India in
Rural Administration It is a political institute, acting as cabinet of the village. 1986 under the chairmanship of Dr. Laxmi Mall Singhvi, a renowned jurist and
The Gram Sabha work as the general body of the Gram Panchayat. 8. The parliamentarian, to study the revitalization of Panchayati Raj institutions and
members of the Gram Panchayat are elected by the Gram Sabha. Functions of make them more effective. The committee recognized that democratic
Gram Panchayats : 1 2. 3. 4. 5. 6 7. 8. 9 Preparation of Annual Plans for the decentralization was essential for effective governance and recommended that
development of the village Panchayat area. Preparation Annual Budget of Panchayati Raj should be constitutionally recognized, which was a significant
Village Panchayat. Mobilization of relief in natural calamities. Removal of step beyond previous committees. It emphasized the need for Gram Sabha
encroachments on public properties. Organizing voluntary labours and (village assembly) as the foundation of the Panchayati Raj system and
contribution for community works. Maintenance of essential statistics of advocated for greater devolution of powers and responsibilities to local
villages. Service or developmental function, such as promotion of education, bodies. The committee stressed the importance of regular elections, financial
health, agriculture, etc. Representative function, where the main role is to autonomy, and judicial safeguards to prevent arbitrary dissolution of elected
voice and represent the opinion. panchayats. It also highlighted the need for training and awareness programs
to build capacity among elected representatives and suggested that Panchayati
Panchayat Samiti. Answer 1 2 3. 4. 5 6 Panchayat samiti is a rural local Raj institutions should have a clear role in planning and implementation of
government (panchayat) body at the intermediate tehsil (taluka/mandal) level development programs. Although its recommendations were not immediately
in India. It works for the villages ofthe tehsil that together are called a implemented, the L.M. Singhvi Committee played a crucial role in shaping the
development block. It has been said to be the "panchayat of panchayats". 73rd Constitutional Amendment Act, 1992, which gave constitutional status to
Typically, panchayat samiti is composed of elected members of the area : the PRIs and established a uniform structure across India. The committee's work is
block development officer, members of the state's legislative assembly, considered a turning point in the history of local self-governance in India.
members of parliament belonging to that area, otherwise unrepresented
groups (Scheduled Castes, Scheduled Tribes and women), associate members
and the elected members ofthat panchayat block on the zila parishad. The The 73rd Amendment Act, 1992 is a landmark constitutional reform in India
samiti is elected for five years and is headed by a chairman and deputy that gave constitutional status to Panchayati Raj Institutions (PRIs), making
chairman elected by the members of the panchayat samiti. Functions of grassroots democracy a fundamental part of the Indian political system. The
Panchayat Samiti : 1. The main functions of the Panchayat Samitis are planning, amendment, which came into effect on April 24, 1993, introduced several key
execution and supervision of all developmental programmes in the Block. 2. 3 provisions to strengthen and institutionalize local self-governance in rural
3-5 P (HSMC-Sem-7& 8) It also supervises the works of Gram Panchayats within areas. It mandated a three-tier structure of Panchayati Raj at the village (Gram
its Jurisdiction. It has to instill among people within its jurisdiction a spirit of Panchayat), intermediate/block (Panchayat Samiti), and district (Zila Parishad)
self-help and initiative and work for raising the standard of living. 4 5. 6 It has levels. The Act provided for regular elections every five years to these bodies,
to support for the implementation of development programmes. It has the ensuring democratic continuity. It also introduced reservations for Scheduled
welfare and development activities in the fields of agriculture, animal Castes (SCs), Scheduled Tribes (STs), and women (not less than one-third of
husbandry, health, sanitation, elementary education, cottage industries and the seats) to promote inclusiveness and social justice. The Act established
social. It has to use the village housing project funds and loans. independent State Election Commissions to conduct elections and State
Finance Commissions to recommend the distribution of financial resources
Zila Parishad. 1 Answer The Zila Panchayat or District Council or Mandal between the state government and Panchayats. Additionally, it added the
Parishad or District Panchayat is the third tier of the Panchayati Raj system and Eleventh Schedule to the Constitution, listing 29 subjects (such as agriculture,
functions at the district levels in all states. 2. 3 4. 5. 6 7. 8 9 A Zila Parishad is an health, sanitation, education, and social welfare) on which Panchayats have
elected body. Block Pramukh of Block Panchayat are also represented in Zila authority to plan and implement development programs. By giving
Parishad. The members of the State Legislature and the members of the constitutional backing, the 73rd Amendment aimed to empower rural local
Parliament of India are members of the Zila Parishad. The Zila parishad is the bodies, promote decentralization, enhance accountability, and encourage
top most tier of the panchayat raj system and acts as the link between the greater participation of local communities in governance and development.
state government and the village-level Gram Panchayat. Zila Parishad are
Panchayats at Apex or District Level in Panchayat Raj Institutions. The
Chairman of all the Panchayat Samitis under the district are the ex officio Panchayati Raj Institutions (PRIs) in India are facing several challenges that
menmbers of Zila Parishad. The deputy chief executive oficer from General limit their effectiveness in rural governance and development. Key issues
Administration department at district level is ex-officio secretary of Zila include inadequate devolution of powers, functions, and finances from state
Parishad. The chief executive officer, who is an IAS officer or senior state governments, which restricts their autonomy and decision-making capacity.
service officer, heads the administrative setup of the Zila Parishad. Funetions Many PRIs suffer from insufficient financial resources and dependence on
of Zila Parishad: 1. 2 3. 4 5 6. It works as advisory body for blocks. It approves state funds, leading to delays and underfunding of local projects. There is often
budget and plan of blocks. It allots funds to the blocks. It approves budget and a lack of capacity and training among elected representatives, many of whom
plan of blocks. Secondary education is the responsibility of this council. are new to governance and administration. Political interference and
bureaucratic control also undermine the independence of PRIs, with higher
The emergence and growth of Panchayati Raj Institutions (PRIs) in India reflect authorities sometimes overriding local decisions. Additionally, social
the country’s deep-rooted tradition of local self-governance, which dates back inequalities, such as caste, gender, and class divisions, can affect participation
to the Vedic period when village communities managed their own affairs and representation despite reservation policies. Issues like irregular elections,
through panchayats. During British rule, traditional systems declined, but Lord weak accountability mechanisms, and poor infrastructure further hamper
Ripon’s 1882 resolution on local self-government laid the foundation for their functioning. To make PRIs truly effective, these challenges need to be
modern democratic decentralization. After independence, the Indian addressed through stronger legal backing, better financial support, capacity
leadership recognized the need for empowering rural areas, and the building, and genuine decentralization of power.
Balwantrai Mehta Committee in 1957 formally recommended a three-tier
Panchayati Raj system comprising the Gram Panchayat at the village level, structure of rural finance in India. Reserve Bank of India (RB), National Bank for
Panchayat Samiti at the block level, and Zila Parishad at the district level, Agriculture and Rural Development (NABARD), Public and Private Sector
focusing on local planning and development. This system was first Commercial Banks, Regional Rural Banks (RRB), Land Development Banks
implemented in Nagaur district of Rajasthan in 1959 and gradually adopted by (LDB), State Cooperative Banks (SCB), Central Cooperative Banks (CCB),
other states. The real turning point came with the 73rd Constitutional Primary Agricultural Cooperative Banks (PACB), Central and States
Amendment Act in 1992, which gave constitutional status to PRIs, mandated Governments, Life Insurance Corporation (LIC), Post Office Savings Bank,
regular elections every five years, provided for reservation of seats for
Scheduled Castes, Scheduled Tribes, and at least one-third for women, and
established State Election Commissions and State Finance Commissions to
oversee elections and financial devolution. The Eleventh Schedule was added The National Bank for Agriculture and Rural Development (NABARD) is a
to the Constitution, assigning 29 subjects to PRIs, including agriculture, rural premier financial institution in India, established in 1982 under an Act of
housing, water management, and education. Since its constitutionalization, Parliament. Its primary objective is to promote sustainable and inclusive rural
Panchayati Raj has grown significantly, fostering greater political participation development by providing and regulating credit and other facilities for
at the grassroots, especially among marginalized groups and women, with agriculture, small-scale industries, cottage and village industries, handicrafts,
several states even increasing women’s reservation to 50%. Additionally, and other rural crafts. NABARD acts as an apex institution for financing and
digital initiatives like e-GramSwaraj and the SVAMITVA scheme have further supporting rural development activities through cooperative banks, regional
strengthened transparency and efficiency. However, despite these rural banks, and other financial institutions. It plays a vital role in refinancing
advancements, challenges such as limited fiscal autonomy, capacity gaps agricultural loans, supporting rural infrastructure projects, and facilitating
among elected representatives, bureaucratic dominance, and uneven microfinance and self-help groups (SHGs). Besides credit support, NABARD also
devolution of power persist, requiring continuous reforms and support to undertakes initiatives in rural innovation, capacity building, and policy
realize the full potential of decentralized governance in India. advocacy to strengthen rural economies. By bridging the credit gap in rural
areas and encouraging sustainable development, NABARD significantly
contributes to improving the livelihood of rural populations and fostering
The Balwantrai Mehta Committee, appointed by the Government of India in overall agricultural growth in India
January 1957 under the chairmanship of Balwantrai G. Mehta, was tasked with
examining the functioning of the Community Development Programme (1952)
and the National Extension Service (1953), and recommending steps to
improve democratic decentralization in rural India. The committee's most Regional Rural Banks (RRBs) were established in 1975 by the Government of
important recommendation was the introduction of a three-tier Panchayati Raj India to provide banking and financial services specifically to rural areas,
system consisting of the Gram Panchayat at the village level, the Panchayat especially targeting small and marginal farmers, agricultural laborers, and rural
Samiti at the block level, and the Zila Parishad at the district level, designed to artisans. The primary objective of RRBs is to promote financial inclusion by
promote local self-governance and participatory development. It proposed delivering credit and banking facilities to the rural poor who traditionally had
direct elections for members of the Gram Panchayat and indirect elections for limited access to formal banking. RRBs operate under the joint ownership of
the higher tiers, along with the transfer of administrative powers and the Central Government (50%), the State Government (15%), and a sponsor
responsibilities from the state governments to these local bodies. The bank (35%), which is usually a public sector bank. They offer a range of services
committee emphasized the need for Panchayati Raj institutions to play a including crop loans, term loans, and working capital loans for agriculture and
central role in local planning and development, with elected representatives at allied activities, as well as loans for rural industries and small businesses. RRBs
the core and government officials acting as advisors rather than controllers. It also help in implementing government schemes and subsidies for rural
also stressed financial empowerment through local taxation and resource development. Their localized presence and focus on rural clients make them
mobilization. Based on these recommendations, the first Panchayati Raj crucial institutions for empowering rural economies and fostering sustainable
system was launched in Nagaur district of Rajasthan on October 2, 1959, by development in India’s villages
Prime Minister Jawaharlal Nehru. The Balwantrai Mehta Committee is widely
regarded as a landmark in India’s journey toward grassroots democracy and
laid the groundwork for the later constitutional recognition of Panchayati Raj
through the 73rd Amendment Act of 1992.