Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) - Aajeevika - Interest Subvention Scheme

भारतीय �रज़व र् बक� ----------------------------------- RESERVE BANK OF INDIA ------------------------------------- www.rbi.org.in 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 �वत् तीय समावेशन और �वकास �वभाग, केन्द्र�य कायार्लय,10 वी मंिजल, क�द्र�य कायालर् य भवन, शह�द भगत�सहं माग,र्पोस्ट बॉक्स सं. 10014,मंबु ई -400001 Financial Inclusion & Development Dept.,Central Office,10th Floor, Central Office Building,Shahid Bhagat Singh Marg,P.B.No.10014,Mumbai-1 टेल� Tel:022-22601000 फैक्सः 91-22-22621011/22610943/22610948 ई -मेल : cgmincfidd@rbi.org.in �हदं � आसान है,इसका प्रयोग बढ़ाइए। “चेतावनी : �रज़व र् बक� द्वारा मेल-डाक, एसएमएस या फोन कॉल के ज�रए �कसी क� भी व् यिक्तगत जानकार� जैसे बक� के खाते का ब् यौरा, पासवड र् आ�द नह�ं मांगी जाती है। यह धन रखने या देने का प्रस् ताव भी नह�ं करता है। ऐसे प्रस् ताव� का �कसी भी तर�के से जवाब मत द�िजए।" Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.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. 1vi. 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% 2subjected 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. 3b. 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. 4Annexure I List of 250 eligible Districts for the Interest Subvention on the loan at 7% and additional interest Subvention of 3% on the prompt repayment Sl Sl States Name of districts No No 1 ANDHRA PRADESH 1 Guntur 2 Krishna 3 Srikakulam 4 East Godavari 5 Vijaynagram 6 Visakhapatnam 2 ARUNACHAL PRADESH 1 East Siang 2 East Kameng 3 Papumpare 4 Lohit 3 ASSAM 1 Chirang 2 Karbi Anglong 3 Sonitpur 4 Tinsukiya 5 Hailakandi 6 Dhemeji 7 Jorhat 8 Nagaon 4 BIHAR 1 Saharsa 2 Supaul 3 Madhepura 4 Nalanda 5 Khagria 6 EastChamparan (Motihari) 7 Arwal 8 Aurangabad 9 Gaya 10 Jamui 11 Jehanabad 12 Kaimur 13 Munger 14 Nawada 15 Rohtas 16 Paschim Champaran 17 Sitamarhi 5 CHATTISGARH 1 Balarampur 2 Surajpur 3 Sukama 4 Kondagaon 5Sl Sl States Name of districts No No 5 Gariyaband 6 Baloda Bazar 7 Dhamtari 8 Raigarh 9 Bastar 10 Bijapur 11 Dantewada 12 Jashpur 13 Kanker 14 Kawardha 15 Koriya 16 Narayanpur 17 Rajnandgaon 18 Sarguja 6 GUJARAT 1 Chhotaudepur 2 Mahisagar 3 Mehsana 4 Junagadh 5 Vadodara 6 Banaskantha 7 Panchmahal 7 JHARKHAND 1 Pakkur 2 Dumka 3 Godda 4 Bokarao 5 Chatra 6 Garhwa 7 Giridh 8 Gumla 9 Hazaribagh 10 Khunti 11 Kodarma 12 Latehar(N) 13 Lohardaga 14 Paschim Singhbhum 15 Palamu 16 Purbi Singhbhum 17 Ramgarh 18 Ranchi(Rural) 19 Saraikela(N) 20 Simdega(N) 8 KARNATAKA 1 Bijapur 2 Chamrajnagar 3 Chitradurga 6Sl Sl States Name of districts No No 4 Gulbarga 5 Mysore 6 Tumkur 7 Gadag 8 Koppal 9 MADHYA PRADESH 1 Sager 2 Damoh 3 Tikamgarh 4 Panna 5 Chahatapur 6 Jhabua 7 Dhar 8 Annupur 9 Balaghat 10 Dindori 11 Mandala 12 Seoni 13 Shahdol 14 Sidhi 15 Umaria 16 Chhindwara 17 Singrauli 18 Badwani 19 Sheopur 20 Alirajpur 10 MAHARASHTRA 1 Solapur 2 Ratnagiri 3 Thane 4 Wardha 5 Beed 6 Sindhurdurg 7 Chandrapur 8 Gadchiroli 9 Gondia 10 Jalna 11 Osmanabad 12 Nandurbar 13 Yavatmal 11 ODISHA 1 Angul 2 Bhadrak 3 Balasore 4 Cuttack 5 Balangir 6 Devagarh 7Sl Sl States Name of districts No No 7 Gajapati 8 Ganjam 9 Jaipur 10 Kalahandi 11 Kandhamal 12 Kendujhar 13 Koraput 14 Malkangiri 15 Mayurbhanj 16 Nabarangpur 17 Nayagarh 18 Nuapada 19 Rayagada 20 Sambalpur 21 Sonapur 22 Sundargarh 12 RAJASTHAN 1 Dungarpur 2 Banswara 3 Dholpur 4 Jhalawar 5 Baran 6 Ajmer 7 Alwar 8 Dausa 9 Udaipur 13 TAMIL NADU 1 Cuddalore 2 Nagapattinam 3 Thanjaore 4 Trichy 5 Dindugal 6 Vilupuram 7 Vellore 8 Thiruvannamalai 9 Dharmapuri 14 UTTAR PRADESH 1 Agra 2 Aligarh 3 Auraiya 4 Basti 5 Bijnor 6 Lakhimpur Kheri 7 Unnao 8 Varanasi 9 Bara banki 10 Gorakhpur 8Sl Sl States Name of districts No No 11 Lucknow 12 Chandauli 13 Mirzapur 14 Sonbhadra 15 Badaun 16 Hardoi 17 Etwah 18 Azamgarh 19 Allahabad 20 Ambedkarnagar 21 Bahraich 22 Deoria 23 Jalaun 24 Hamirpur 25 Banda 15 WEST BENGAL 1 Alipurdwar 2 Purba Medinipur 3 South 24 Parganas 4 Bankura 5 Medinipur West 6 Coochbehar 7 Birbhum 8 Puruliya 16 TELANGANA 1 Mahabubnagar 2 Adilabad 3 Warangal 4 Khammam 5 Karimnagar 17 KERALA 1 Idukki 2 Vayanadu 3 Pallakkad 4 Mallapuram 18 HARYANA 1 Mahendergarh 2 Karnal 3 Jind 4 Mewat 5 Bhiwani 6 Jhajjar 19 HIMACHAL PRADESH 1 Kangra 2 Una 3 Shimla 4 Mandi 20 JAMMU & KASHMIR 1 Kupwara 2 Poonch 9Sl Sl States Name of districts No No 3 Kistwar 4 Ganderbal 5 Budgam 6 Udhampur 21 PUNJAB 1 Patiala 2 Sangrur 3 Bathinda 4 Tarn Taran 5 Gurdaspur 6 Ferozepur 22 UTTRAKHAND 1 Pithoragarh 2 Pohri Garwal 3 Chamoli 4 Bageshwar 23 MANIPUR 1 Chandel 2 Imphal East 24 MEGHALAYA 1 West Garo Hills 2 South West Khasi Hills 3 West Khasi Hill 25 MIZORAM 1 Serchhip 2 Aizwal 3 Lunglei 26 NAGALAND 1 Kiphere 2 Longleng 3 Peren 4 Tuensang 5 Mon 27 TRIPURA 1 Dhalai 2 West Tripura 3 North Tripura 28 PUDUCHERRY 1 Puducherry 29 ANDAMAN & NICOBAR 1 North & Middle Andhman Dist ISLANDS 30 SIKKIM 1 South Sikkim 2 East Sikkim 31 GOA 1 North Goa 10Annexure-II Weighted Average Interest Charged (WAIC) for 2017-18 SL Name of Bank Weighted Interest to be subvented above Average Interest 7% based on WAIC, subjected Charged (WAIC) to a cap of 5.5% Public Sector Banks 1 Allahabad Bank 9.25 2.25 2 Andhra Bank 12.50 5.50 3 Bank of Baroda 9.10 2.10 4 Bank of India 8.80 1.80 5 Bank of Maharashtra 10.50 3.50 6 Canara Bank 10.15 3.15 7 Central Bank of India 9.50 2.50 8 Corporation Bank 10.85 3.85 9 Dena Bank 10.12 3.12 10 Indian Bank 11.83 4.83 11 Indian Overseas Bank 11.46 4.46 12 Oriental Bank of Commerce 10.10 3.10 13 Punjab National Bank 10.76 3.76 14 Punjab & Sind Bank 10.71 3.71 15 State Bank of India 11.50 4.50 16 Syndicate Bank 10.25 3.25 17 UCO Bank 11.34 4.34 18 Union Bank 9.10 2.10 19 United Bank of India 10.63 3.63 20 Vijaya Bank 11.45 4.45 21 IDBI 11.55 4.55 Private Sector Banks 1 The Karur Vyasa Bank 12.07 5.07 2 Kotak Mahindra Bank NA* NA* 3 Dhan Laxmi Bank 12.50 5.50 4 Tamilnad Merchantile Bank 12.50 5.50 5 Yes Bank NA* NA* 6 Indusind Bank NA* NA* 7 Axis Bank 12.48 5.48 8 HDFC Bank 15.25 5.50 9 ICICI Bank 14.48 5.50 10 Lakshmi Vilas Bank 11.05 4.05 11 J&K Bank 12.50 5.50 12 City Union Bank 11.50 4.50 13 Karnataka Bank Ltd 11.50 4.50 14 DCB Bank 26.00 5.50 15 RBL Bank 18.00 5.50 16 Bandhan Bank NA* NA* 17 IDFC Bank NA* NA* 18 Capital Small Finance Bank NA* NA* 19 South Indian Bank 12.35 5.35 NA* - Banks with NIL exposure to WSHG 11Annexure III C laim for Interest Subvention on loans to women SHGs at 7% per annum, for the credit up-to ₹3 Lakhs, for the year 2017-18 Name of Bank: Statement for claims for the period ……………. to …………………: Loans disbursed/outstanding up-to ` 3 lakhs New loan accounts opened Outstanding as at ……….. (end Total outstanding as at ………. Amount of during the period ………to of previous period) interest ……… subvention No of Amount No of Amount No of Amount Amount Accounts Accounts Accounts We hereby certify that loans to women SHGs up-to ₹3 lakhs were charged Interest @ 7% per annum on the above disbursement/outstanding in the year 2017-18. We certify that the above claimed amount and the accounts are from the Category-I districts only and all the accounts claimed are eligible for interest subvention as per RBI guidelines. We also certify that there is no duplication in the claims and minimal human intervention while submitting the regular claim or additional interest subvention claim from the branch level onwards Dated Authorized Signatory (This claim format, consolidated for the entire year, needs to be duly certified by Statutory Auditors and submitted along with the th claims for the quarter ending March 31, 2018, within June 30 of the next financial year) 12Annexure IV Claim for additional Interest Subvention @ 3% on the prompt repayment, for the credit up-to ₹ 3 Lakhs, for the year 2017-18 Name of Bank: Statement for claims for the period ……………. to …………………: Loans disbursed/outstanding up to ₹ 3 lakhs New loan accounts Outstanding as at Total outstanding as at Regular / eligible Amount of opened during the ……….. (end of previous ………. women SHGs interest period ………to period) subvention ……… No of Amount No of Amount No of Amount No of Amount Amount Accounts Accounts Accounts Accounts We certify that the above loans were repaid on time and the benefit of additional 3% interest subvention has been passed on to the women SHG’s account, reducing the effective rate of interest to 4% for the prompt payee women SHGs. We also certify that there is no duplication in the claims and minimal human intervention while submitting the regular claim or additional interest subvention claim from the branch level onwards. Dated Authorized Signatory (This claim format, consolidated for the entire year, needs to be duly certified by Statutory Auditors and submitted along with the th claims for the quarter ending March 31, 2018, within June 30 of the next financial year) 13