Daily PIB Highlights (29-05-2025)

Topic- 1: Modified Interest Subvention Scheme (MISS)

GS- 3: Economy

The context: The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26. Under this scheme, 1.5% interest subvention will continue to be provided to banks for short-term crop loans up to ₹3 lakh issued through the Kisan Credit Card (KCC) platform.

• • This decision ensures that farmers will continue to get short-term agricultural loans at an effective interest rate of just 4%, provided they repay on time and avail the 3% Prompt Repayment Incentive (PRI).

About the Modified Interest Subvention Scheme (MISS):

• • MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through Kisan Credit card (KCC).

Significance of the Scheme: 

• • Farmers received short-term loans of up to Rs.3 lakhthrough Kisan Credit Cards (KCC) at a subsidized interest rate of 7%, with 5% interest subvention provided to eligible lending institutions.
  • Affordable Loans:Farmers can access working capital at just 4% interest, among the lowest rates globally.
  • Flexible Credit Access:KCC offers revolving credit for up to five years, letting farmers withdraw funds as needed.
  • Disaster Support:In case of natural calamities, interest relief continues for up to one year, and up to five years in severe disasters.
  • Support for Small and Marginal Farmers:With 76% of agri-credit accounts now held by small farmers, the scheme continues to empower the backbone of Indian agriculture.
  • No Collateral Needed:Farmers can avail loans up to ₹2 lakh without collateral.
  • Boost in Farming Productivity:Easy credit allows use of better seeds, fertilizers, and tools, helping farmers improve yields and incomes.
  • The Cabinet’s decision reinforces the Government’s unwavering commitment to doubling farmers’ income, strengthening the rural credit ecosystem,and boosting agricultural growth through timely and affordable credit access.

Key highlights of Agriculture Credit:

• • Institutional credit disbursement through KCC increased from 4.26 lakh crore in 2014 to Rs. 10.05 lakh crore by December 2024.
  • Overall agricultural credit flow also rose from 7.3 lakh crore in FY 2013-14to Rs.25.49 lakh crore in FY 2023-24.
  • Digital reforms such as the launch of the Kisan Rin Portal (KRP)in August 2023 have enhanced transparency and efficiency in claim processing.

Credit Growth Reflects Success:

• • Credit flow through KCC has more than doubledfrom ₹4.26 lakh crore (2014) to ₹9.81 lakh crore (2024).
  • Overall agricultural credit flow has risen from ₹7.3 lakh crore to ₹25.49 lakh croreduring the same period.
  • The share of institutional credit has grown to over 75%, reducing dependence on informal moneylenders.
  • Non-Performing Assets (NPAs) in the agriculture sector improved from 8.9% in 2019 to 7.2% in 2023, while KCC NPAs declined from 12.66% in 2021–22 to 11.5% in 2023–24, indicating better credit performance and recovery.

Digital Reform for Transparency – Kisan Rin Portal (KRP):

• • The government has also launched the Kisan Rin Portal (KRP)to track interest subvention claims digitally. This portal ensures faster disbursement, greater transparency, and accountability, benefiting both farmers and banks.

Looking Ahead:

The government remains committed to enhancing the KCC limit to ₹5 lakh, as announced in the Union Budget 2025. While this proposal is under active consideration, today’s Cabinet decision ensures seamless continuation of support to farmers under existing provisions.

Source: PIB, PIB

Topic- 2: Inter-Services Organisations (Command, Control and Discipline) Act 2023

GS-3: Internal Security

The context: The Rules formulated under the Inter-Services Organisations (Command, Control and Discipline) Act 2023 have been notified through a Gazette Notification and will come into effect from May 27, 2025. This significant step aims to bolster effective command, control, and efficient functioning of Inter-Services Organisations (ISOs), thereby strengthening jointness among the Armed Forces.

• • The Bill was passed by both Houses of Parliament during the Monsoon Session of 2023.
  • It received the assent of the President on August 2023, and the Act came into force with effect from May 2024, as per the Gazette Notification dated May 2024.
  • The Act empowers the Commanders-in-Chief and Officers-in-Command of the ISOs to exercise command and control over the service personnel serving under them, ensuring effective maintenance of discipline and administration within the organisations.
  • This is achieved without altering the unique service conditions applicable to each branch of the Armed Forces.
  • The newly notified subordinate Rules, framed under Section 11 of the Act, are intended to facilitate the effective implementation of the provisions laid down in the legislation.
  • These Rules are a critical enabler for the functioning of the ISOs and establish a comprehensive framework for discipline, administrative control, and operational synergy.
  • With the notification of these Rules, the Act is now fully operational. This will empower the heads of the ISOs, enable the expeditious disposal of disciplinary cases, and help avoid the duplication of proceedings.

Source: PIB