RBI/2016-17/42
FIDD.GSSD.CO.BC.No.13/09.01.03/2016-17
August
25, 2016
The Chairman / Managing Director
Public and Private Sector Banks
Dear Sir / Madam,
Deendayal
Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) –
Aajeevika - Interest Subvention Scheme
Please refer to our circular FIDD.GSSD.CO.BC.NO. 19/09.01.03/2015-16 dated
January 21, 2016 on interest subvention scheme under National
Rural Livelihoods Mission (NRLM).
2. The revised guidelines for
the year 2016-17 on Interest Subvention
Scheme under DAY- NRLM, as received from the Ministry of Rural
Development, Government of India, are annexed for implementation by all
Public Sector Banks and 15 Private Sector Banks (as per list attached).
Yours faithfully
(Uma Shankar)
Chief General Manager
Encl: As above
Interest
subvention scheme for Women SHGs - Year 2016-17
I. Interest subvention scheme on
Credit to Women SHG during the year 2016-17 for all Commercial Banks (only
Public Sector Banks, Private Sector Bank and Regional Rural Banks) and
Co-operative banks in 250 districts
i. All women SHGs will be
eligible for interest subvention on credit upto Rs. 3 lakhs at 7% per
annum. SHG availing capital subsidy under SGSY in their existing credit
outstanding will not be eligible for benefit under this scheme.
ii. The Commercial Banks and
Cooperative Banks will lend to all the women SHGs in Rural areas at the
rate of 7% in the 250 districts is provided at Annexure I
iii. All Commercial Banks will
be subvented to the extent of difference between the Weighted Average
Interest Charged (WAIC as specified by Department of Financial Services,
Ministry of Finance for the year 2016-17 – Annexure
II) and 7% subject to the maximum limit of 5.5% for the year
2016-17. This subvention will be available to all the Banks on the
condition that they make SHG credit available at 7% p.a. in the 250
districts.
iv. Further, the SHGs will be
provided with an additional 3% subvention on the prompt repayment of loans.
For the purpose of Interest Subvention of additional 3% on prompt
repayment, an SHG account will be considered prompt payee if it satisfies
the following criterion as specified by Reserve Bank of India (RBI).
a. For Cash Credit Limit:
i. Outstanding balance shall not
have remained in excess of the limit/drawing power continuously for more
than 30 days
ii. There should be regular
credit and debits in the accounts. In any case there shall be at least one customer induced credit during a month
iii. Customer induced credit should be sufficient to cover the interest debited
during the month.
b. For the Term loans: A term
loan account where all of the interest payments and/or instalments of
principal were paid within 30 days of the due date during the tenure of the
loan, would be considered as an account having prompt payment.
The prompt payment guidelines
would continue to be guided by RBI guidelines on the subject in the future.
All prompt payee SHG accounts as
on the end of the reporting quarter will be eligible for the additional
interest subvention of 3%. The banks should credit the amount of 3%
interest subvention to the eligible SHG loan accounts and thereafter seek
the reimbursement.
v. The scheme is limited to
Women Self Help Groups in rural areas only
vi. The funding for the scheme
will be met out of Central Allocation under DAY- NRLM
vii. The interest subvention
scheme shall be implemented for all Public Sector Banks and Private sector
Banks through a Nodal Bank selected by the Ministry of Rural Development
(MoRD). The Nodal Bank will operationalize the scheme through a web based
platform, as advised by MoRD. For the year 2016-17, Canara bank has been
nominated as the Nodal bank by MoRD.
viii. All Banks, who are
operating on the Core Banking Solutions (CBS) can avail the interest
subvention under the scheme.
ix. In order to avail the
Interest Subvention on credit extended to the SHGs @ 7%, regular
subvention, all Public Sector Banks are required to upload the SHG loan
account information on the Nodal Bank’s portal as per the required
technical specification. Public Sector Banks should also submit the claims
for 3% additional subvention on the same portal. Public Sector Banks must
submit the regular claims (difference between WAIC or lending rate and 7%)
and additional claims (@ 3% on prompt repayment) on a quarterly basis as on
June 30, 2016, September 30, 2016, December 31, 2016 and March 31, 2017 by
last week of the subsequent month.
x. In order to avail the
interest subvention on credit extended to the SHGs @7% and additional
subvention claims of 3%, all Public Sector Banks and Private Sector Banks
are required to submit claim certificate on quarterly basis to the nodal
bank. The claims submitted by any bank should be accompanied by claim
certificate (in original) certifying the claims for subvention as true and
correct (Annexure-III to V). The claims of
any Bank for the quarter ending March 2017 will be settled by MoRD only on
receipt of the Statutory Auditor’s certificate for the complete FY16-17
from the Bank.
xi. Any remaining claim
pertaining to the disbursements made during the year 2016-17 and not
included during the year, may be consolidated separately and marked as an
'Additional Claim' and submitted to Nodal Bank by Public Sector Banks and
Private Sector Banks latest by June 30, 2017, duly audited by Statutory
Auditor’s certifying the correctness.
xii. Any corrections in claims
by Banks shall be adjusted from later claims based on auditor’s
certificate. For Public Sector Banks and Private sector Banks, the
corrections must be made on the Nodal Bank’s portal accordingly.
II. Interest subvention scheme
for Category II Districts (Other than 250 districts).
For category II districts,
comprising of districts other than the above 250 districts, all women
S.H.Gs under DAY- NRLM will be eligible for interest subvention to avail
the loan facility at an interest rate of 7%. The funding for this
subvention will be provided to the State Rural Livelihoods Missions
(S.R.L.Ms) from the allocation for DAY- NRLM. In the Category II districts,
Banks will charge the SHGs as per their respective lending norms and the
difference between the lending rates and 7% subjected to a maximum limit of
5.5% for the FY16-17 will be subvented in the loan accounts of the SHGs by
the SRLM. In pursuance of the above, the salient features and the
operational guidelines in respect of the interest subvention for the
category II districts, for the year 2016-17 are as follows:
(A) Role of the Banks:
All banks who are operating on
the Core Banking Solution (CBS) are required to furnish the details of the
Credit disbursement and Credit outstanding of the SHGs across all districts
in the desired format as suggested by the MoRD, directly from the CBS
platform, to the Ministry of Rural Development (through FTP) and to the
SRLMs. The information should be provided on a monthly basis to facilitate
the calculation and disbursement of the Interest Subvention amount to SHGs.
(B) Role of the State
Governments:
i. All women SHGs, are regarded
as SHGs under DAY- NRLM and will be eligible for interest subvention on
credit upto ? 3 lakhs at the rate of 7% per annum on prompt repayment.
ii. This scheme will be
implemented by the State Rural Livelihood Missions (SRLMs). SRLMs will
provide interest subvention to the eligible SHGs who have accessed loan
from Commercial and Cooperative Banks. The funding for this subvention will
be met out of the Central Allocation and State Contribution as per the
norms of Government of India.
iii. The SHGs will be subvented
with the extent of difference between the lending Rate of the banks and 7%
subject to a maximum limit of 5.5% for the year 2016-17 by the SRLMs,
directly on a monthly/quarterly basis. An e-transfer of the subvention
amount will be made by the SRLM to the loan accounts of the SHGs who have
repaid promptly.
iv. For the purpose of the
Interest Subvention, an account will be considered as prompt payee if it
satisfies the following criterion as specified by RBI:
a. For Cash Credit Limit:
1. Outstanding balance shall not
have remained in excess of the limit/drawing power continuously for more
than 30 days
2. There should be regular
credit and debits in the accounts. In any case there shall be at least one
customer induced credit during a month
3. Customer induced credit
should be sufficient to cover the interest debited during the month.
b. For the Term loans: A term
loan account where all of the interest payments and/or instalments of
principal were paid within 30 days of the due date during the tenure of the
loan, would be considered as an account having prompt payment
The prompt payment guidelines
would continue to be guided by RBI guidelines on the subject in the future.
v. Women SHGs who have availed
capital subsidy under SGSY in their existing loans, will not be eligible
for benefit of Interest Subvention for their subsisting loan under this
scheme.
vi. SRLMs should submit
Quarterly Utilization Certificate indicating subvention amounts transferred
to the Loan accounts of the eligible SHGs.
III. The States with state specific interest subvention
schemes are advised to harmonize their guidelines with the Central scheme.
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