Why in News?

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has given its approval for continuation and revision of the Centrally Sponsored Scheme of “Post Matric Scholarship for Other Backward Classes Students for studying in India” (PMS-OBC) till 2020.

PMS-OBC:

• PMS-OBC is flagship scheme of Ministry of Social Justice & Empowerment, in operation since 1998-99.
• It fully centrally sponsored scheme that aims to provide financial assistance to OBC students studying at post-matriculation or post-secondary stage to enable them to complete their education.
• It enables approximately 40 lakh OBC students to pursue higher study after class X per year.

The revised PMS-OBC:

• The revised scheme will cover larger numbers of eligible and deserving poor OBC students who will be able to pursue higher studies
• It will ensure effective implementation, achieve de-duplication and enhanced monitoring.
  • The revision in the PMS-OBC scheme to ensure effective implementation and better monitoring of the schemes includes:
  • Annual parental income will be increased from Rs. One Lakh to Rs. 1.5 lakh.
  • 30% of the funds allocated earmarked for girl students and 5% for students with disabilities.
  • Disbursement of scholarships through Aadhaar seeded bank accounts.
  • Since the Scheme is funds-limited, central assistance shall be released according to the Notional Allocation. The concept of Committed Liability shall not apply to States/UTs for releases.