NABARD Grade A Exam: Learn About Panchayats, PESA Act 1996, 5th Schedule, SVAMITVA Scheme, Rastriya Gram Swaraj Scheme, Panchayat Advancement Index (PAI) and GPDP in Detailed.
Preparing for the NABARD Grade A exam means understanding some of India’s most important rural governance laws. Two topics that appear often are Panchayati Raj Institutions and the PESA Act 1996. Both shape how local communities make decisions, manage resources, and participate in development. A solid grasp of these concepts not only strengthens your exam score but also helps you see how rural administration works on the ground. This Article gives you a clean, focused information on both Panchayati Raj System in India and PESA Act 1996 along with 5th Schedule States, so you can study smarter and stay aligned with NABARD’s expectations.
❇️Panchayati Raj System
The Panchayat Raj system was first adopted and formally inaugurated in the Nagaur district of Rajasthan on 2 October 1959 by Jawaharlal Nehru. Rajasthan was the first state to implement this system. Andhra Pradesh was the second state to adopt the Panchayat Raj system, with Nehru inaugurating it there later on 11 October 1959.
Father of Panchayati Raj System ➖ Balwant Rai Mehta
Balwant Rai Mehta Committee➖3-tier Panchayati Raj system
- Gram Panchayat
- Block Samiti
- Panchayat Samiti & Zila Parishad
The Balwant Rai Mehta Committee was appointed in 1957 and recommended decentralization in the delegation of power and functions at divisional and sub-divisional levels.
L.M. Singhvi Committee ➖ Constitutional Status
- The L.M. Singhvi Committee was formed in 1986 by the Rajiv Gandhi government to recommend ways to revitalize Panchayati Raj institutions (PRIs) for democracy and development in India. Its key recommendations included granting constitutional recognition to PRIs, establishing judicial tribunals for election and other disputes, and increasing the financial resources of village panchayats.
- The committee's work was pivotal in the passage of the 73rd Constitutional Amendment Act of 1992, which gave constitutional status to Panchayati Raj institutions.
Ashok Mehta Committee➖2-tier Panchayati Raj system
- In December 1977, the Janata Party Government appointed a committee on Panchayati Raj institutions under the chairmanship of Ashoka Mehta. The committee submitted its report in August 1978 and made 132 recommendations to revive and strengthen the declining Panchayati Raj system in the country.
❇️73rd Constitutional Amendment 1992
It added a new Part IX to constitution “The Panchayats” covering provisions from Article 243 to 243(O) & a new 11th Schedule covering 29 subjects
- The amendment mandates regular elections every five years, reservation of seats for Scheduled Castes (SCs), Scheduled Tribes (STs), and women to ensure inclusive participation, and the formation of State Finance Commissions to oversee financial matters related to Panchayats.
- The Panchayati Raj Institutions (PRIs) are empowered to prepare plans for economic development and social justice regarding subjects listed in the Eleventh Schedule of the Constitution, such as agriculture, education, health, and rural development.
- At present, Panchayati Raj System exists in almost all states in India except Nagaland, Meghalaya and Mizoram as well as Delhi.
- Following are the features of 73rd Constitutional Amendment Act:
- Gram Sabha (Article 243A): The Gram Sabha consists of people listed in the electoral rolls of a village within a Panchayat’s jurisdiction. It forms the core of the Panchayati Raj system and may exercise powers and perform functions as provided by State legislation.
- Three-Tier System (Article 243B): The Constitution mandates a three-tier Panchayati Raj structure—village, intermediate, and district levels—for all States. However, States with populations below 20 lakhs can skip the intermediate level.
- Election of Members and Chairpersons (Article 243C): Panchayat members at all levels are directly elected. Chairpersons at the intermediate and district levels are elected indirectly from among elected members. The method of electing village-level Chairpersons is determined by the State.
- Reservation of Seats (Article 243D): Seats are reserved for Scheduled Castes and Scheduled Tribes in proportion to their population in each Panchayat. One-third of all seats are reserved for women. States may provide further reservations for backward classes.
- Duration of Panchayats (Article 243E): The standard term is five years. If dissolved prematurely, elections must be held unless the remainder of the term is less than six months.
- Disqualification of Members (Article 243F): A person is disqualified if deemed so under State law. However, those above 21 years of age cannot be disqualified solely for not having reached 25 years.
- Powers and Functions (Article 243G): State legislatures may empower Panchayats to function as institutions of self-government. This includes preparing plans for economic development, social justice, and implementing government schemes.
- Finances (Article 243H): States may allow Panchayats to collect taxes, receive State-assigned revenues, grants, and establish local funds.
- Finance Commission (Article 243I): The Governor appoints a Finance Commission to evaluate Panchayat finances and recommend tax-sharing principles and permissible levies.
- Audit of Accounts (Article 243J): State legislatures decide procedures for maintaining and auditing Panchayat accounts.
- State Election Commission (Article 243K): Responsible for preparing electoral rolls and conducting Panchayat elections in a free and fair manner.
- Application to Union Territories (Article 243L): The President may apply the 73rd Amendment to Union Territories with necessary modifications.
- Exempted States and Areas (Article 243M): The Act does not apply to Nagaland, Meghalaya, Mizoram, and certain scheduled and tribal areas, unless Parliament decides otherwise.
- Continuance of Existing Laws (Article 243N): Existing State laws related to Panchayats remain valid for one year post-implementation, unless repealed earlier.
- Judicial Non-Interference (Article 243O): Courts cannot interfere in Panchayat elections or challenge seat allocations and delimitation. Election disputes must follow procedures laid out by State law.
74th Amendment Act, 1992
- The act granted municipalities constitutional status. It has brought them under the purview of the Constitution's justiciable provisions.
- This act added Part IX-A to the COI which contained provisions from Articles 243P to 243ZG.
- It also added 12th schedule to the COI containing 18 functional items which are to be placed within the purview of municipalities.
❇️24 April: National Panchayati Raj Diwas
⚡️1st National Panchayati Raj day Celebrated in 2010
⚡️Panchayati Raj Day 2025:
- The theme for National Panchayati Raj Day 2025 was "Water Sufficient Villages,".
- National Panchayati Raj Day was observed on April 24, 2025, with the main event taking place in Lohna Uttar Gram Panchayat, Madhubani-district, Bihar, and attended by Prime Minister Narendra Modi. During the event, he launched multiple development projects worth over Rs. 13,480 crores and emphasized the government's commitment to strengthening grassroots democracy.
- A major highlight of the event was the conferring of the Climate Action Special Panchayat Award (CASPA), Atma Nirbhar Panchayat Special Award (ANPSA), and Panchayat Kshamta Nirman Sarvottam Sansthan Puraskar (PKNSSP), recognizing exemplary contributions in Climate Action (CASPA), Self-Reliance (ANPSA), and Capacity Building (PKNSSP).
- A total of six Gram Panchayats and three institutions from eight States were felicitated. Notably, three award-winning Panchayats – Motipur (Bihar), Dawwa S (Maharashtra), and Hatbadra (Odisha) are headed by women Sarpanches, exemplifying the role of women leadership in driving local development.
Previously On 24th April 2020 PM Narendra Modi had Launched the Swamitva scheme
The SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas) Scheme was launched by the Prime Minister on April 24, 2020, on National Panchayati Raj Day. This year, SVAMITVA is celebrating its 5th anniversary! The scheme helps people in villages get legal ownership papers for the houses and land they live on. It uses drones and special mapping tools to clearly mark property boundaries. With these papers, people can take bank loans, settle land disputes, and even use their property to earn more. It also helps in better village planning.
- The SVAMITVA Scheme is implemented by the Survey of India (SoI) with the National Informatics Centre Services Inc. (NICSI) as the technology partner. The total cost is ₹566.23 crores from Financial Year (FY) 2020-21 to FY 2024-25, with an extension until FY 2025-26.
Key Achievements Under Scheme
- On 18th January 2025, 65 lakh SVAMITVA property cards were distributed across more than 50,000 villages in 10 States (Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Mizoram, Odisha, Punjab, Rajasthan, Uttar Pradesh) and 2 Union Territories (Jammu & Kashmir and Ladakh).
- As of 2nd April 2025, drone surveys have been completed in 3.20 lakh villages under the SVAMITVA Scheme. These surveys have covered an estimated area of 68,122 square kilometers, based on the average size of the inhabited areas in each village.
- As of 11th March 2025, 31 States and Union Territories have signed Memorandums of Understanding (MoUs).
- Drone surveys have been completed in 3.20 lakh villages, with full coverage in the Union Territories of Lakshadweep, Ladakh, Delhi and the states of Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. A total of 2.42 crore property cards have been issued for 1.61 lakh villages.
Need for SVAMITVA
- For decades, many village homes and lands in India were never properly recorded. Without legal documents, people couldn’t prove ownership or use their property to get bank loans or government help. This lack of records slowed down the economic growth of rural areas and led to frequent land disputes. To solve this, the SVAMITVA Scheme gives people legal ownership papers, helping them secure their rights and build a better future.
SVAMITVA Components
The SVAMITVA Scheme is built on key components that ensure accurate land mapping, efficient implementation, and community awareness:
- Establishment of Continuously Operating Reference Stations (CORS) network: The CORS network support in establishing Ground Control Points, which is an important activity for accurate Geo-referencing, ground truthing and demarcation of Lands.
- Large Scale Mapping using Drones: Rural inhabited (abadi) area is being mapping by Survey of India using drone Survey. It generates high resolution and accurate maps to confer ownership property rights. Based on these maps or data, property cards issue to the rural household owners.
- Information, Education, and Communication (IEC) Initiatives: Awareness program to sensitize the local population about the scheme methodology and its benefits.
- Enhancement of Spatial Planning Application “Gram Manchitra”: Leveraging digital spatial data/maps created under drone survey for creation of spatial analytical tools to support preparation of Gram Panchayat Development Plan (GPDP).
- Online Monitoring System: Online Monitoring and reporting dashboard is monitored to track the progress of activities.
- Project Management: Programme Management Units at the National and State levels for supporting Ministry & State respectively with scheme implementation.
Success Stories
The SVAMITVA Scheme is transforming rural governance by providing clear property rights and improving land management. These examples underscore the scheme's role in driving rural progress and fostering self-reliance.
- Dispute Resolution: After 25 years of uncertainty, Smt. Sunita from Taropka village in Himachal Pradesh got legal ownership of her ancestral land through the SVAMITVA Scheme. With her property card, she settled a long-standing dispute with her neighbor, bringing peace and security to her family’s future. The SVAMITVA Scheme gave her clear ownership, improving her life.
- Financial Inclusion: Sh. Sukhlal Pargi from Falated village in Rajasthan received a Patta and Property Card through the SVAMITVA Scheme. With these documents, he was able to access financial services. He used the property card to get a bank loan of Rs 3 lakh quickly. The SVAMITVA Scheme gave him legal ownership and helped improve his financial stability.
❇️Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA)
- While Article 243M(1) of the Constitution of India excludes the application of the provisions of the Part IX of the Constitution to ‘Scheduled Areas’ referred to in Article 244(1) of the Constitution, Article 243M(4)(b) of the Constitution empowers Parliament to extend, by law, the provisions of Part IX to such Schedule Areas subject to certain exceptions and modifications as may be specified in such law.
- Accordingly, the Parliament enacted “The Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996”, thereby giving legal recognition to tribal self-governance.
- Gram Sabha as the cornerstone – every village in the Fifth Scheduled Area must have a Gram Sabha, competent to safeguard and preserve the traditions and customs, their cultural identity, community resources and the customary mode of dispute resolution.
- Control over resources – Gram Sabhas are vested with powers to manage minor water bodies, minor forest produce (MFP), minor minerals, and village markets.
- Consent-based decision making – Prior approval of the Gram Sabha is mandatory for land acquisition, resettlement, and rehabilitation in Fifth Scheduled Areas.
- Social justice functions – Gram Sabha has the authority to regulate money lending, intoxicants, and prevent land alienation.
- Alignment with State laws – States are required to amend their Panchayati Raj laws to bring them in conformity with PESA.
❇️5th Schedule of Indian Constitution Provisions
- The Fifth Schedule provides for the administration of tribal Areas in ten states in India, including Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana.
- Article 244(1): The provisions of the Fifth Schedule shall apply to the administration and control of the Scheduled Areas and Scheduled Tribes in any State other than the States of Assam, Meghalaya, Tripura, and Mizoram.
- The President of India is empowered to declare an area a Scheduled Area. He can direct that the whole or any specified part of a Scheduled Area shall cease to be a Scheduled Area.
- The President can increase or decrease the area of any Scheduled Area in a State after consultation with the Governor of that State and also alter its boundary lines but only by way of rectification of boundaries.
- Preponderance of tribal population, which should not be less than 50 percent.
- Compactness and reasonable size of the area.
- Underdeveloped nature of the area.
- Marked disparity in the economic standard of the people as compared to the neighboring Areas.
- A Tribes Advisory Council has to be established in each State, having Scheduled Areas to deal with the welfare and advancement of Scheduled tribes in states.
- It consists of a maximum of 20 members. Three-fourths of the members should be representatives of Scheduled tribes in the State legislative assembly.
- The Governor may make rules
- Regarding the number of members of the Council.
- The mode of their appointment and the appointment of the Chairman of the Council and of the officers and servants thereof.
- The conduct of its meetings and its procedure in general, all other incidental matters.
❇️6th Schedule of Indian Constitution Provisions
6th Schedule provides administration of tribal areas in Assam, Meghalaya, Tripura & Mizoram. Recently On September 24, 2025, in Leh city, Union Territory of Ladakh, a protest demanding inclusion in 6th Schedule of Constitution. The Sixth Schedule represents a specialized framework for autonomous governance in tribal areas, currently applicable only to regions in Assam, Meghalaya, Tripura, and Mizoram.
The Sixth Schedule, enshrined under Article 244(2) and Article 275(1) of the Constitution, provides for the administration of tribal areas through autonomous governance structures. This framework emerged from the Bardoloi Committee's recommendations, recognizing the need for differentiated governance for tribal communities.
The Schedule empowers state Governors to establish Autonomous District Councils (ADCs) and Autonomous Regional Councils (ARCs) in designated tribal areas. Currently, ten such ADCs operate across the four northeastern states, demonstrating the framework's practical implementation over decades.
- These councils possess powers across four key domains:
- Legislative Powers include authority to make laws regarding land management, forest administration (excluding reserved forests), shifting cultivation, village administration, inheritance laws, marriage and divorce regulations, and social customs. However, all such laws require gubernatorial assent.
- Executive Functions encompass establishing and managing essential public services including primary schools, dispensaries, markets, roads, and waterways. Councils also regulate road transport and have authority over local infrastructure development.
- Judicial Authority allows councils to constitute their own courts for handling disputes involving Scheduled Tribes, though they cannot adjudicate cases involving offenses punishable by death or imprisonment exceeding five years.
- Financial Autonomy grants councils power to assess and collect land revenue, impose taxes on professions and trades, collect tolls, and grant licenses for mineral extraction within their jurisdiction.
- Loss of Representation: After Jammu and Kashmir’s 2019 reorganization, Ladakh became a Union Territory without a legislature, reducing local autonomy and representation.
- Previously, it had four assembly members and a more empowered LAHDC. Now, decision-making is largely bureaucratic, causing fears of outsider dominance, creating a sense of distance from governance.
- Land Protection and Tribal Identity Concerns: Changed domicile policy in J&K has sparked fears over land ownership, jobs, and demography in Ladakh. Communities fear dilution of their cultural and linguistic heritage.
- The National Commission for Scheduled Tribes (NCST) in 2019 suggested including Ladakh under the Sixth Schedule, since Over 97% of Ladakh’s population is tribal. Land ownership was already restricted to protect locals. The region’s unique culture and ecology require special safeguards.
- Limited Autonomy of Existing Councils: Ladakh has two Hill Councils (Leh and Kargil), but they are not under the Sixth Schedule and have very restricted powers, mostly related to local taxation and land allotment.
- Environmental Safeguards: Ladakh’s fragile ecosystem is under growing pressure from mass tourism (5.25 lakh tourists in 2023) and large-scale infrastructure projects such as the proposed mega solar park and geothermal energy zones.
- Incorporating the Sixth Schedule could empower local councils to enforce sustainable development and protect traditional land-use practices.
❇️Rastriya Gram Swaraj Scheme
Rashtriya Gram Swaraj Abhiyan (RGSA) was launched on 24th April 2018 'National Panchayat Day' by the Hon'ble Prime Minister, an umbrella scheme of the Ministry of Panchayati Raj, Govt. of India. It is a unique scheme proposed to develop and strengthen the Panchayati Raj System across India in rural areas.
The scheme of RGSA aims to strengthen the capacities of institutions for rural local governance to become more responsive towards local development needs, prepare participatory plans leveraging technology, and efficiently utilize available resources for realizing sustainable solutions to local problems linked to SDGs.
- RGSA was proposed to be implemented as a core Centrally Sponsored Scheme (CSS) for four years viz., from 2018-19 to 2021-22 with State and Central shares.
- The sharing ratio for the State components will be in the ratio of 60:40 except for NE and Hilly States where the Central and State Ratios will be 90:10.
Centrally Sponsored Scheme of Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) was approved on 13.04.2022 for implementation from 01.04.2022 to 31.03.2026 (co-terminus with XV Finance Commission period).
- The focus of Revamped scheme is on re-imagining Panchayati Raj Institutions as vibrant center's of local self-governance and economic growth with special focus on localization of Sustainable Development Goals (SDGs) at grassroot level adopting thematic approach through concerted and collaborative efforts of Central Ministries and State line departments with ‘whole of Government’ approach at all levels.
- Under the scheme basic orientation training for Elected Representatives (ERs) of Panchayats to be ensured within 6 months of election and refresher training within 2 years.
❇️People’s Plan Campaign: Gram Panchayat Development Plan (GPDP)
Article 243G of the Constitution recognizes Panchayats as institutions of local self-government and entrusts them with the preparation of plans for economic development and social justice. Being the closest tier of government to the people, Gram Panchayats are responsible for addressing the needs of marginalized groups and ensuring effective delivery of basic services.
- Gram Panchayats have been mandated for the preparation of Gram Panchayat Development Plan (GPDP) for economic development and social justice utilizing the resources available to them. The GPDP planning process has to be comprehensive based on participatory process and Panchayats have a significant role to play in the effective and efficient implementation of schemes.
- A well-structured and inclusive planning process lies at the heart of Panchayat functioning. The Gram Panchayat Development Plan (GPDP) is expected to reflect the needs and priorities of the community, align them with available resources, and be prepared in a fair, transparent and participatory manner.
- For effective implementation of schemes on subjects of national importance, Panchayat Development Plans (PDPs) must be comprehensive and participatory. These plans cover the 29 subjects listed in the Eleventh Schedule of the Constitution. While Gram Panchayats prepare GPDPs, Block Panchayats prepare Block Panchayat Development Plans (BPDPs), and District Panchayats prepare District Panchayat Development Plans (DPDPs).
To carry the SDG agenda to the grassroots, the Ministry of Panchayati Raj has adopted a thematic approach, which groups the 17 SDGs into nine broad themes. This approach enables Panchayats to prepare development plans under a ‘whole of government and whole of society’ framework.
Since 2018, Self-Help Groups (SHGs) have also been engaged in preparing Village Prosperity and Resilience Plans (VPRPs), further supporting holistic development and resilience at the village level.
People’s Plan Campaign: Sabki Yojana, Sabka Vikas
- To enhance people’s participation in preparing Panchayat Development Plans, the People’s Plan Campaign (PPC) was launched on 2nd October 2018 under the theme “Sabki Yojana, Sabka Vikas”. Encouraged by the positive outcomes of Gram Sabhas, stakeholder engagement, and participatory planning, the Campaign has since been conducted annually in a mission mode with active involvement of Elected Representatives, frontline workers, Self Help Groups (SHGs), Community-Based Organizations (CBOs), and other local stakeholders.
People’s Plan Campaign 2025–26
The Ministry of Panchayati Raj launched the People’s Plan Campaign (PPC) 2025–26: “Sabki Yojana, Sabka Vikas” Abhiyaan on 2nd October 2025 across all States and Union Territories, thereby initiating the nationwide process for preparing Panchayat Development Plans (PDPs) for the Financial Year 2026–27.
- The PPC 2025–26 is designed to strengthen participatory, transparent, and accountable local governance. Under this initiative, Gram Sabhas are tasked with reviewing earlier Gram Panchayat Development Plans (GPDPs) using digital platforms such as eGramSwaraj, Meri Panchayat App, and Panchayat NIRNAY. They are expected to assess progress on works, identify delays, and prioritize unfinished projects, especially those linked with unspent Central Finance Commission grants. The planning process will be guided by the Panchayat Advancement Index (PAI), while tools like SabhaSaar will be encouraged to make deliberations more effective. Efforts will also focus on improving Panchayats’ Own Source Revenue (OSR) and ensuring deeper community involvement in decision-making.
A special emphasis of the campaign is on tribal empowerment, with focused activities under the Adi Karmayogi Abhiyaan. By ensuring the active participation of Panchayat representatives, line department officials, community members, Self Help Groups (SHGs), and frontline workers, the campaign aims to further deepen transparency, convergence, and accountability in grassroots planning. It is expected to pave the way for stronger service delivery mechanisms, inclusive development, and improved outcomes for rural communities across India.
❇️Panchayat Advancement Index (PAI)
In a major stride towards localizing Sustainable Development Goals (SDGs) and empowering grassroots governance, the Ministry of Panchayati Raj has launched the Panchayat Advancement Index (PAI) — a transformative tool to measure the progress of over 2.5 lakh Gram Panchayats (GPs) across India.
The PAI captures Panchayats’ performance across nine themes of Localized SDGs (LSDGs) i.e. Poverty-Free and Enhanced Livelihoods in Panchayat, Healthy Panchayat, Child-Friendly Panchayat, Water-Sufficient Panchayat, Clean and Green Panchayat, Panchayat with Self-Sufficient Infrastructure, Socially Just and Socially Secured Panchayat, Panchayat with Good Governance and Women-Friendly Panchayat. These themes align global goals with rural realities, helping local governments tailor their strategies for holistic development.
Panchayat Advancement Index (PAI) is a composite Index & has been compiled based on 435 unique local Indicators (331 mandatory & 104 optional) consisting of 566 unique data points across 9 themes of LSDGs (Localization of Sustainable Development Goals) aligned with National Indicator Framework (NIF) of the Ministry of Statistics and Programme Implementation (MoSPI), the PAI reflects India’s commitment to achieving the SDG 2030 Agenda through participatory, bottom-up development.
Based on the PAI scores & thematic Scores achieved by different Gram Panchayats, these GPs are grouped into one of the categories of performance – Achiever: (90+), Front Runner: (75 to below 90); Performer: (60 to below 75); Aspirant: (40 to below 60) and Beginners (below 40).
The PAI serves as a tool for assessment and promotes healthy competition among Panchayats.
Baseline Report for FY 2022-23:
- State-wise, Gujarat led the pack with 346 Gram Panchayat as Front Runners, followed by Telangana with 270 Front Runners.
- States with a high number of Performers include Gujarat (13781), Maharashtra (12,242), Telangana (10099) along with Madhya Pradesh (7,912), and Uttar Pradesh (6593) while Bihar, Chhattisgarh, and Andhra Pradesh have a significant share of Aspirant Gram Panchayats, highlighting areas needing focused development efforts.
- The 2022-23 PAI data reveals that out of 2,55,699 Gram Panchayats, 2,16,285 submitted validated data.
- While 699 (0.3%) Panchayats emerged as Front Runners, 77,298 (35.8%) were Performers, 1,32,392 (61.2%) were Aspirants while 5,896(2.7%) Gram Panchayats were at the Beginner Level. None of the Gram Panchayat is qualified as an Achiever.
