PM-YASASVI Top Class College Education: Bridging The Excellence Gap For Marginalized Communities

Policy Update
Yashkirti Pal

BACKGROUND

The Central Sector Scheme of Top Class Education in College for Other Backward Classes, Economically Backward Classes, and De-notified, Nomadic, and Semi-Nomadic Tribes is a flagship sub-scheme under the overarching PM Young Achievers Scholarship Award Scheme for Vibrant India (PM-YASASVI). Launched by the Ministry of Social Justice and Empowerment (MSJ&E) for the 2021-22 to 2025-26 cycle, the policy was designed to dismantle the financial barriers preventing meritorious students from marginalised backgrounds from entering premier educational institutions.

The fundamental objective is to recognise and promote quality education among these categories by providing comprehensive financial support for studies beyond Class XII. The scheme explicitly targets students who have secured admission in notified “Top Class” institutions, ranging from IITs to IIMs to premier medical colleges and commercial pilot training institutes. By focusing on students with a family income ceiling of ₹2.5 lakh per annum, the policy ensures that high-quality professional education becomes a tool for upward mobility rather than a privilege of the affluent.

FUNCTIONING

The PM-YASAVI scheme was launched by consolidating five sub-schemes of the Ministry of Social Justice and Empowerment under the Government of India. The scheme operates on a 100% Central Sector funding model, ensuring that the financial burden of higher education is entirely absorbed by the Union Government. Its mechanism is centered around the National Scholarship Portal (NSP), which serves as a unified digital gateway for applications, verification, and disbursement.

The selection of institutions is strictly merit-based, including those with NAAC A++ and A+ accreditation, the top 100 institutions in the National Institutional Ranking Framework (NIRF), and all Institutions of National Importance as designated by the Ministry of Education. The financial package is holistic; it covers full tuition fees and non-refundable charges–capped at ₹2 lakh per annum for private institutions–alongside a monthly living allowance of ₹3,000, an annual book grant of ₹5,000, and a one-time assistance of ₹45,000 for a laptop and related accessories.

PERFORMANCE

The performance of the PM-YASASVI Top Class College Education scheme over the last three years reflects a deliberate scaling of social investment. According to the MSJ&E’s Year-End Review 2025 and recent PIB updates, the scheme has seen a substantial increase in both budgetary outlays and physical targets.

For the fiscal year 2024-25, total funds of ₹158 crores were released for pre-matric scholarship and ₹892 crores for post matric scholarship for 16,20,000 and 15,73,000 beneficiaries respectively. While, there was a 105.80 per cent increase in expenditure under Top Class Education in Colleges for OBCs, EBCs and DNTs, as compared to FY 2024-25. Union Minister Dr Virendra Kumar stated that during the financial year 2025-2026, an amount of Rs. 2042.08 crore has been disbursed under the Top Class Education schemes for OBC, EBC and DNT students.

ANNUAL REPORT 2025-26 Government of India Ministry of Social Justice
and the Empowerment Department of Social Justice and Empowerment

Data analysis from the National Scholarship Portal (NSP) dashboard reveals that while the uptake in Central Government institutions like the IIT’s and NITs is high, private sector institutions show a more varied performance. This is partly due to the ₹2 lakh fee ceiling, which often falls short of the actual tuition costs in premier private medical or design colleges. This suggests that while the policy is performing well in terms of total fund utilization, the reach toward the most marginalised tribes requires more localised interventions.

EMERGING ISSUES

Despite a robust digital architecture, an evaluation of the scheme’s functioning through administrative reviews highlights several procedural complexities. The reliance on the NSP requires a high degree of digital literacy from students who often come from backgrounds with limited technological exposure.

Furthermore, the dual-level verification process involving both the institution and the district or state nodal officer can lead to administrative bottlenecks. Issues can also arise from the time lag between an institution gaining a top-tier NIRF ranking and its subsequent inclusion in the MSJ&E’s notified list often leaves students in limbo.

Disaggregated analysis by the community suggests that while OBC and EBC students are increasingly utilizing the scheme, the DNT category remains underrepresented due to several social, economic and political reasons. The requirement for a valid income certificate issued specifically by a “competent authority” remains a significant hurdle for DNT communities, whose nomadic lifestyle often makes obtaining permanent residency-based documentation nearly impossible.

Many nomadic tribes do not possess standardised community certificates that are “legible” to the National Scholarship Portal’s automated verification systems. The government should allow for alternative documentation, such as certifications from local community heads or simplified tribal status affidavits, to ensure that technicalities do not override intent.

The fixed income ceiling of ₹2.5 lakh has not adjusted for inflation in several years, leading to the exclusion of many “lower-middle-class” EBC families who are struggling with rising education costs but fall just above the eligibility line. A tapered support model, where students from families earning between ₹2.5 lakh and ₹5 lakh receive partial tuition support, can be implemented.

Another emerging issue is the delay in the “renewal” process. While the scheme promises support until the completion of the course, students are required to apply for renewal every year on the NSP. Any delay in the institution’s performance entry can lead to a gap in fund disbursement, causing financial distress mid-semester. There can be a “single-click renewal” system where the scholarship is automatically extended upon the submission of a passing marksheet by the college authorities.

Finally, there is a lack of localised “Scholarship Helpdesks” in tier-3 cities and rural blocks. While the portal is central, the grievances are local. Establishment of PM-YASASVI facilitation centers at the district level to assist students with Aadhar-seeding, bank account linking, and income certificate rectifications will be helpful.

IMPACT

The impact of PM-YASASVI in the professional education sectors has been transformative, particularly in fostering a “merit-only” culture in India’s most competitive campuses. By providing a one-time laptop allowance and monthly living expenses, the policy has successfully reduced the “digital and social divide” within elite institutions, allowing scholarship recipients to compete on equal footing with their peers.

Furthermore, the inclusion of commercial pilot training (CPT) with a higher fee ceiling of ₹3.72 lakh has opened a prestigious and high-income career path for students from the EBC and DNT categories, which was historically out of reach due to exorbitant training costs. Thus, this scheme has played a great role in transforming the academic experience of students, coming from marginalized communities, from one of mere survival to one of competitive excellence.

On a broader scale, the scheme serves as a power engine for social upliftment by facilitating rapid intergenerational mobility. For many families from such communities, having a family member graduate from high-end institutions is a historic milestone. This success challenges long-standing societal prejudices and replaces a sense of historical marginalisation with one of professional achievement.

The policy also serves as a critical pillar of gender empowerment; with 30% of slots reserved for girl students, there has been a noticeable increase in female representation from OBC/DNT backgrounds in STEM fields. However, there are issues regarding the skewed nature of the scheme towards the urbanised OBC groups who have better access to coaching and information. The “vibrant India” envisioned by the policy is being realised in pockets, but the full impact will only be felt when the DNT and rural EBC clusters are integrated more aggressively into the beneficiary net.

WAY FORWARD

The PM-YASASVI Top Class College Education scheme is a milestone in India’s journey toward an inclusive knowledge economy. By aligning the aspirations of the most marginalized with the nation’s premier educational resources, the policy is effectively creating a new generation of professionals who are not limited by their birth. As we move toward the next policy cycle, the focus must shift from mere financial disbursement to a more holistic “hand-holding” approach that includes mentorship and career counselling for scholarship recipients.

The overall contribution of this scheme to a “New India” lies in its ability to convert demographic diversity into a demographic dividend. By refining the documentation process for DNTs, adjusting income criteria for the EBCs, and ensuring faster renewal cycles, the government can ensure that the “YASASVI” tag truly reflects the reality of every meritorious student in India.

REFERENCES

PIB (2025). Year-End Review 2025: Overview of Schemes and Key Achievements of the Department of Social Justice and Empowerment

https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2209488&reg=3&lang=2

MyScheme. PM-YASASVI: Top Class College Education for OBC, EBC and DNT Students
https://www.myscheme.gov.in/schemes/pm-yasasvitcceobcebcdnts

PIB (2023). EVALUATION OF VARIOUS SCHEME/PROGRAMMES
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=1913930&reg=3&lang=1

PIB (2024). PM Young Achievers’ Scholarship Award Scheme for a Vibrant India (PM YASASVI) for OBC, EBC and DNT Students.
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1999638&reg=3&lang=2#:~:text=The%20scheme%20is%20to%20recognize,2%2C50%2C000%2F%2D%20per%20annum.

IDR (2024). Why are NT-DNT communities still excluded from education?
https://idronline.org/article/inequality/why-are-nt-dnt-communities-still-excluded-from-education/

Ministry of Social Justice and Empowerment. PM YOUNG ACHIEVERS SCHOLARSHIP AWARD SCHEME FOR VIBRANT INDIA FOR OBCs AND OTHERS (PM –YASASVI) (2021-2022 to 2025-26)
https://socialjustice.gov.in/public/ckeditor/upload/65661651839791.pdf

PIB (2026). The Department of Social Justice & Empowerment increased spending to ₹2042.08 crore in FY 2025–26, with significant growth across scholarship and “Top Class Education” schemes for OBC, EBC, and DNT students.
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2256689&reg=22&lang=1

Government of India. Lok Sabha UNSTARRED QUESTION NO.4295.
https://sansad.in/getFile/loksabhaquestions/annex/185/AU4295_GX1Gx8.pdf?source=pqals

Government of India. ANNUAL REPORT 2025-26: Ministry of Social Justice and Empowerment Department of Social Justice and Empowerment

https://socialjustice.gov.in/writereaddata/UploadFile/71441776233188.pdf

About the Contributor

Yashkirti Pal is a Research and Editorial Intern at Impact and Policy Research Institute (IMPRI).

Acknowledgement

The author sincerely thanks Sana Ansari and Mehul Rastogi for their valuable feedback, as well as the IMPRI faculty for providing this platform and opportunity to share my work.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.