Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

The *PM Surya Ghar: Muft Bijli Yojana* (PMSG-MBY) is a flagship initiative under the Ministry of New and Renewable Energy aimed at enhancing energy accessibility by promoting rooftop solar (RTS) systems for middle-income and economically weaker households. The scheme provides substantial central financial assistance for the first 2 kWp of RTS capacity, along with collateral-free loans at concessional interest rates—currently 5.75% per annum for 10 years—linked to the repo rate with a 50 bps reduction, offered by nationalized banks. Additionally, it incorporates RESCO and utility-led aggregation models to streamline adoption. As of July 22, 2026, over 39.72 lakh RTS systems have been installed across 48.02 lakh households, significantly reducing electricity bills, with 18.93 lakh beneficiaries reporting zero bills in certain months due to self-consumption.

For banking and financial examinations like Bank PO, IBPS, SBI, RBI Grade B, and SSC, this scheme is highly relevant as it intersects with financial inclusion, credit facilitation, and sustainable development goals. The provision of low-interest loans without collateral highlights the government’s push for affordable credit, a key topic in banking awareness sections. For SSC aspirants, questions may arise on the scheme’s budgetary allocations—₹6,250 crore (2024-25), ₹20,000 crore (2025-26), and ₹22,000 crore (2026-27)—and its impact on rural electrification and energy transition. RBI Grade B candidates may focus on the monetary policy linkage (repo rate-based loans) and its role in promoting green financing, aligning with India’s climate commitments.

Source: PIB (Press Information Bureau)

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