To empower unemployed youth and combat economic disparities, the Telangana government has rolled out the Rajiv Yuva Vikasam Scheme 2025, a ₹6,000 crore initiative targeting 5 lakh young entrepreneurs from marginalized communities.
Launched on March 17, 2025, by Chief Minister Revanth Reddy, the scheme provides financial assistance of up to ₹3 lakh to foster self-employment among Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), Minorities, and Economically Backward Classes (EBC).
A key feature of the program, mandated by the state, is the requirement for beneficiaries to link their bank accounts to ensure seamless subsidy and loan disbursements. Here’s a detailed look at the scheme, its bank linkage mandate, and its implications.
The scheme: Empowering youth through entrepreneurship
Announced by Deputy Chief Minister Mallu Bhatti Vikramarka, the Rajiv Yuva Vikasam Scheme aims to reduce unemployment by offering subsidized loans and grants to youth aged 18–35 (up to 60 for agriculture-related ventures) from marginalized communities.
With a budget of ₹6,000 crore, the program supports ventures in sectors like retail, tailoring, transportation, and agriculture, providing financial aid tailored to business scale:
- Up to ₹50,000: 100% subsidy, no loan required.
- ₹50,001–₹1 lakh: 90% subsidy, 10% bank loan.
- ₹1,00,001–₹2 lakh: 80% subsidy, 20% bank loan.
- ₹2,00,001–₹3 lakh: 70% subsidy, 30% bank loan.
- ₹3,00,001–₹4 lakh: 70% subsidy, 30% bank loan (select cases, per revised guidelines).
The scheme, named after former Prime Minister Rajiv Gandhi, seeks to promote economic self-sufficiency and reduce dependency on traditional employment. It includes one-week training programs in collaboration with industrial departments to equip beneficiaries with skills in business planning, marketing, and management. Sanction letters for selected candidates are slated for distribution on June 2, 2025, coinciding with Telangana Formation Day.
Mandatory bank account linkage: Streamlining disbursements
To ensure transparency and efficiency, the Telangana government has made it mandatory for applicants to link their bank accounts to the scheme’s Online Beneficiary Management and Monitoring System (OBMMS) portal (tgobmms.cgg.gov.in). This requirement, outlined in guidelines issued on March 25, 2025, by Principal Secretary N. Sridhar, facilitates direct benefit transfers (DBT) for subsidies and coordinates loan disbursements with banks. The mandate applies to both bank-linked and non-bank-linked schemes, ensuring that funds reach beneficiaries promptly and securely.
Applicants must provide bank account details, verified through Aadhaar linkage, during the online registration process, which closed on April 14, 2025, after an extension from the original April 5 deadline due to an overwhelming response. District-level committees, chaired by District Collectors, will verify these details alongside other documents, such as caste certificates, income certificates (rural: ₹1.5 lakh; urban: ₹2 lakh annually), and Aadhaar cards.
For bank-linked schemes, banks open loan accounts within 15 days of subsidy release, with the subsidy directly credited to the beneficiary’s account post-sanction by the District Collector and approval from the district’s in-charge minister.
A senior official from the SC Development Department emphasized the importance of this linkage, stating, ‘Bank account integration ensures no delays or leakages in fund disbursal, aligning with our goal of empowering youth efficiently.’ Help desks at Seva Kendralu centers assisted applicants with the process, addressing technical issues and ensuring compliance.
Implementation and oversight
The application process, conducted entirely online, saw robust participation, with over 7 lakh applications received by the April 14 deadline. The scrutiny phase, ongoing from April 6 to May 31, 2025, involves Mandal-level committees led by Mandal Parishad Development Officers (MPDOs) or Municipal Commissioners, followed by final selection by District Level Committees (DLCs). District Collectors oversee implementation, ensuring adherence to timelines and equitable distribution across constituencies.
Bankers play a critical role, with the government urging financial institutions to commit ₹1,600 crore in loans to complement the state’s subsidies. A review meeting on April 23, 2025, led by Hanumakonda District Collector P. Pravinya, directed bankers to expedite loan approvals and align with the scheme’s timeline, emphasizing that delays could jeopardize beneficiaries’ ventures. The government has also introduced post-grounding support, including mentorship and monitoring by welfare corporations, to ensure sustainable businesses.
Public response
The mandatory bank linkage has sparked some concerns. Reports indicate that some applicants, particularly in rural areas, faced challenges due to limited banking access or unlinked Aadhaar accounts. Additionally, some bankers expressed caution about loan approvals, citing the need for robust business plans to ensure repayment, as noted in a local media report.
Public sentiment, however, remains largely positive.
Community leaders have praised the scheme’s inclusive approach, with women entrepreneurs, in particular, benefiting from targeted support for ventures like beauty parlors and tailoring units. A candlelight vigil in Hyderabad on April 20, organized by youth groups, celebrated the scheme as a ‘game-changer’ for marginalized communities.