RBI/2017-18/80
FIDD.GSSD.CO.BC.No.17/09.01.03/2017-18
October
18, 2017
The Chairman / Managing Director
Public and Private Sector Banks
(As per list in Annexure II)
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.13/09.01.03/2016-17 dated August 25, 2016 on
Interest Subvention Scheme under Deendayal Antyodaya Yojana - National
Rural Livelihoods Mission (DAY-NRLM).
2. The revised guidelines for
the year 2017-18 on Interest
Subvention Scheme under DAY- NRLM, as received from the
Ministry of Rural Development, Government of India, are annexed for
implementation by 21 Public Sector Banks and 19 Private Sector Banks (as
per list attached). The circular in respect of RRBs and Co-operative banks
will be issued by NABARD.
Yours faithfully
(Ajay Kumar Misra)
Chief General Manager
Encl: As above
Interest
subvention scheme for Women SHGs - Year 2017-18
I. Interest subvention scheme on
Credit to Women SHG during the year 2017-18 in 250 districts as per Annexure I
i. All women SHGs will be
eligible for interest subvention on credit upto ? 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. Banks will lend to all the
women SHGs in rural areas at the rate of 7%.
iii. 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 2017-18 – Annexure
II) and 7% subject to the maximum limit of 5.5% for the year
2017-18. This subvention will be available to banks on the condition that
they make SHG credit available at 7% p.a.
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.
v. 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.
vi. The scheme is limited to
Women Self Help Groups in rural areas only
vii. The funding for the scheme
will be met out of Central Allocation under DAY- NRLM
viii. The interest subvention
scheme shall be implemented 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 2017-18,
Canara bank has been nominated as the Nodal bank by MoRD.
ix. To be eligible for interest
subvention under the scheme, banks will have to operate under a Core
Banking Solutions (CBS).
x. In order to avail the
Interest Subvention on credit extended to the SHGs @ 7%, banks are required
to upload the SHG loan account information on the Nodal Bank’s portal as
per the required technical specification. The claim for additional
subvention of 3% for prompt repayment by SHGs should also be uploaded on
the same portal. Both the regular claims (difference between WAIC or
lending rate and 7%) and additional claims (@ 3% on prompt repayment)
should be submitted on a quarterly basis as on June 30, 2017, September 30,
2017, December 31, 2017 and March 31, 2018 by last week of the subsequent
month.
xi. The claims submitted by
banks should be accompanied by claim certificate (in original) certifying
the claims for subvention as true and correct (Annexure-III & IV). The claims of any Bank for
the quarter ending March 2018 will be settled by MoRD only on receipt of
the Statutory Auditor’s certificate for the complete FY17-18 from the Bank.
xii. Any remaining claim
pertaining to the disbursements made during the year 2017-18 and not
included during the year, may be consolidated separately and marked as an
'Additional Claim' and submitted to Nodal Bank latest by June 30, 2018,
duly audited by Statutory Auditor’s certifying the correctness. No claims
from banks pertaining to interest subvention for Financial Year 2017-18 are
admissible after June 30, 2018
xiii. Any corrections in claims
by Banks shall be adjusted from later claims based on auditor’s certificate
and 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 SHGs
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 (SRLMs) 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
FY17-18 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 2017-18 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 or interface)
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 from rural
areas, 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 and 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 2017-18 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. In case the loan account is already closed, or e-transfer
to the loan account is not successful due to any reason, the subvention
amount may be transferred to the corresponding savings account of the
concerned SHG.
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. Ministry of Rural Development (MoRD) in consultation
with State Governments will harmonize State specific interest subvention
schemes (if any) in line with the Central scheme.
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