- Why in news
- On 19 June 2026, the Department of Social Justice & Empowerment dropped the domicile certificate requirement for its scholarship schemes. It also launched the SETU portal on the UMANG platform.
- What it is
- The Pre-Matric and Post-Matric Scholarship Schemes for SCs give financial aid to Scheduled Caste students from low-income families to stay in school and pursue higher education. They are run by the Department of Social Justice & Empowerment as Centrally Sponsored Schemes, with costs shared between the Centre and States. Money is paid by Direct Benefit Transfer into students' bank accounts.
- Domicile certificate
- The domicile certificate is no longer required to apply under these scholarship schemes. It was earlier an essential requirement.
- Beneficiaries
- Nearly 1.2 crore students receive scholarship benefits every year under the Pre-Matric and Post-Matric schemes for SCs and OBCs.
- SETU portal
- SETU stands for Scholarship for Educational Transformation and Upliftment. It is hosted on the UMANG platform as a single window for scholarship services.
- Users of SETU
- SETU gives one interface to applicants, Institutional Nodal Officers, District Nodal Officers and State officials, for registration, tracking and validation.
- Who benefits from the reform
- Students who study in institutions outside their home States gain, as they no longer need a domicile certificate.
- DBT start dates
- DBT was introduced in Post-Matric in 2021-22 and in Pre-Matric in 2022-23.
- Mode of payment
- Funds go directly to Aadhaar-seeded bank accounts of beneficiaries.
- Pre-Matric beneficiary growth
- Beneficiaries in April-May rose from 2.36 lakh (2025) to 5.75 lakh (2026), about 143.64 percent.
Don’t confuse with Domicile certificate vs caste certificate: A domicile certificate shows State of residence. A caste certificate shows SC status. This reform removes only the domicile requirement.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts paperwork and cost, so more eligible students, especially migrants studying in other States, can apply.
- A single digital window can improve transparency and tracking of scholarship delivery.
- Direct transfer cuts leakages and delays, improving trust and timely delivery.
- Scholarships lower dropout among SC students and widen access to higher education.
Problems
- Digital portals can exclude students with poor connectivity or low digital literacy.
- Delays in State fund release and verification by institutions can still hold up payments.
- Aadhaar-seeding and bank-linking failures can exclude eligible students.
- Delays in State matching shares and verification can hold up payments.
Way forward
- Provide help desks at institutions and districts to assist first-generation applicants.
- Link SETU with Aadhaar-based and bank systems to ensure timely, tracked payments.
- Fix seeding and verification gaps, with school-level help desks.
- Release funds on a fixed calendar and track timeliness publicly.
Put in your answer
Scale of the scheme: Nearly 1.2 crore SC and OBC students get these scholarships every year, showing the reach of welfare delivery through DBT.
Digital governance example: SETU on UMANG is an example of using a single digital interface to cut procedural barriers in welfare delivery.
Post-Matric DBT release: Record ₹6,208.08 crore Central share in FY 2025-26 shows scale of DBT-led delivery.
- 2013Mains GS2 · Q12Critically evaluate restructuring of Centrally sponsored schemes for vulnerable sections.
- 2024Mains GS1 · Q18Comment on why underprivileged sections don't get affirmative action benefits.
- 2019Mains GS2 · Q18Discuss why welfare schemes for vulnerable sections are ineffective, lacking awareness and involvement.
- 2011Prelims Q30Which statements about Aam Aadmi Bima Yojana's scholarship provision are correct?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting scheme on file with a new reform (no domicile certificate, SETU on UMANG). Few hard facts for a statement; no debate to set a Mains question on.
Worth revising until Prelims 2028: most news questions come within two years of the event.