RAS question
Which of the following is NOT a poverty alleviation programme?
Correct answer: (B) SARFAESI Act.
The SARFAESI Act, 2002 is a banking law for enforcing security interest and recovering NPAs, not a poverty alleviation programme.
Explanation
SARFAESI stands apart because it is not designed as a welfare or anti-poverty scheme. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is a banking law that enables banks to recover NPAs by enforcing security interest. The RBI FAQ supports this characterisation: it deals with secured assets possessed by regulated entities under the SARFAESI Act, disclosure of such assets, outstanding amounts payable to secured creditors, and removal of entries when the asset is sold or the dues are received. That subject matter is asset enforcement and debt recovery. DAY-NRLM, PM Garib Kalyan Yojana, and MGNREGA are poverty alleviation programmes, while the SARFAESI Act belongs to financial-sector debt recovery.
Why the other options are wrong
- (A) Deendayal Antyodaya Yojana (DAY-NRLM) is a poverty alleviation programme rather than a banking law for NPA recovery.
- (C) PM Garib Kalyan Yojana is a poverty alleviation programme rather than a banking law for NPA recovery.
- (D) MGNREGA is a major poverty alleviation programme rather than a banking law for NPA recovery.
Concept
Indian Economy preparation requires a clear distinction between welfare programmes and financial-sector legal instruments. RAS often uses such classification to check whether candidates can identify schemes and Acts by their real policy function, not just by familiar names.