Women SHGs and their Federations
Women SHGs under NRLM consist of 10-15
persons. Groups in difficult areas, groups with disabled persons, and groups in
remote tribal areas, may have a minimum of 5 persons.
NRLM will
promote affinity based women Self –help groups.
Groups
formed with Persons with disabilities, elders and transgenders, will have both
men and women.
SHG
is an informal group and registration is not mandatory. However Federations of
SHGs formed at village level, cluster level, and at higher levels are to be
registered under appropriate acts prevailing in their States.
Financial
Assistance to the SHGs
Revolving Fund
(RF):
NRLM
would provide Revolving Fund (RF) to SHGs which are in existence for a
minimum period of 3/6 months and follow the norms of ‘Panchasutra’ –
·
regular
meetings,
·
regular
savings,
·
regular
internal lending,
·
regular
recoveries and
·
maintenance
of proper books of accounts.
SHGs
that have not availed RF earlier will be provided with a RF of Rs.10,000 up to a
max of Rs.15,000 as corpus.
Community Investment support Fund
(CIF)
CIF will be
provided to the SHGs in the intensive blocks, routed through the Village level/
Cluster level Federations, to be maintained in perpetuity by the
Federations. This
fund will be used to advance loans to the SHGs and to undertake common
socio-economic activities.
Introduction of Interest
subvention:
NRLM
provides for interest subvention, to cover the difference between the Lending
Rate and 7%, on credit availed by women SHGs, for a maximum of Rs 3,00,000 per
SHG. This will be available in two ways:
(i)
In
150 identified districts, banks will lend to the women SHGs @7% up to an
aggregated loan amount of Rs 3,00,000/-. The SHGs will also get additional
interest subvention of 3% on prompt payment, reducing the effective rate of
interest to 4%.
(ii)
In
the remaining districts, NRLM compliant women SHGs will be registered with
SRLMs. These SHGs are eligible for interest subvention as above, subjected to
the norms prescribed by the respective SRLMs.
Role of banks :
Opening
of Savings accounts: The
role of banks would commence with opening of accounts. The KYC norms are
applicable for identification of the customers.
Lending Norms:
• SHG should be in
active existence at least since the last 6 months as per the books of account
of SHGs and not from the date of opening of S/B account.
•
SHG
should be practicing ‘Panchasutras’.
•
The
defunct SHGs are also eligible for credit if they are revived and continue to
be active for a minimum period of 3 months.
Loan
amount:
Emphasis
is laid on the multiple doses of assistance:
• First dose: 4-8
times of the proposed corpus during the year or Rs. 50,000 whichever is higher.
• Second dose:
5-10 times of existing corpus and proposed saving during
the next twelve months or Rs.1
lakh, whichever is higher.
•
Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan of the SHGs
and appraised by the Federations and credit History.
•
Fourth dose onwards: Between Rs.5-10 lakhs and higher in subsequent doses. The
loan amount will be based on the Micro Credit Plans of the SHGs.
The
loans may be used for meeting social needs, high cost debt swapping and taking
up sustainable livelihoods or to finance any viable common activity started by
the SHGs.
(Corpus
is inclusive of revolving funds, its own savings and funds from other sources)
Type of facility and repayment:
SHGs can avail either Term loan or a CCL
loan or both based on the need. In case of need, additional loan can be
sanctioned even though the previous loan is outstanding.
Repayment
schedule could be as follows:
• The first dose
of loan will be repaid in 6-12 instalments
• Second dose of
loan will be repaid in 12-24 months.
•
Third
dose will be repaid in either monthly/quarterly /half yearly based on the cash
flow in 2 to 5 Years.
• Fourth dose
onwards: repayment has to be either monthly / quarterly / half yearly based on
the cash flow in 3 to 6 Years.
Security and
Margin: No
collateral or margin up to Rs.
10.00 lakhs. No lien should be marked against savings bank account and no
deposits should be insisted upon while sanctioning loans.
Dealing
with Defaulters:
Wilful
defaulters should not be financed under NRLM. In case wilful defaulters are
members of a group, they might be allowed to benefit from the thrift and credit
activities of the group. However, wilful defaulters of the group should not get
benefits under the NRLM Scheme and the group may be financed excluding such
defaulters while documenting the loan.
Further, non-wilful defaulters
should not be debarred from receiving the loan. In case of
default is due to genuine reasons, Banks may follow the norms suggested for
restructuring the account with revised repayment schedule.
Credit Target Planning
Based
on the Potential Linked Plan/State Focus Paper prepared by NABARD, SLBC
sub-committee may arrive at the district-wise, block-wise and branch-wise
credit plan. The sub- committee has to consider the existing SHGs, New SHGs
proposed, and number of SHGs eligible for fresh and repeat loans as suggested
by the SRLMs to arrive at the credit targets for the states. The targets so
decided should be approved in the SLBC and should be reviewed and monitored
periodically for effective implementation.
The district-wise credit plans should be
communicated to the DCC. The Block-wise/Cluster-wise targets are to be
communicated to the bank Branches through the Controllers.
Post credit follow-up
Loan pass books in regional languages
may be issued. Banks should clearly explain the terms and conditions at the
time of documentation and disbursement of loan.
Banks may observe one day in a fortnight
to enable the staff to go to the field and attend the meetings of the SHGs and
Federations.
Repayment:
Banks
shall take all possible measures, i.e. personal contact, organization of joint
recovery camps with District Mission Management Units (DPMUs) / DRDAs to ensure
the recovery of loans. Banks should prepare a list of defaulters under NRLM
every month and furnish the list in the BLBC, DLCC meetings.
Deputation of the bank officials
to SRLMs
Banks may consider deputing officers at
various levels to the State Govts/ DRDAs in consultation with them.
Supervision and monitoring of the
Scheme
Banks
may set up NRLM cells at Regional/Zonal offices. These cells should
periodically monitor and review the flow of credit to the SHGs, ensure the
implementation of the guidelines to the scheme, collect data from the branches
and make available consolidated data to the Head office and the NRLM units at
the districts/ blocks. The cell should also discuss this consolidated data in
the SLBC, BLBC and DCC meetings regularly.
State Level
Banker’s Committee: SLBCs
shall constitute a sub-committee on SHG-bank linkage. The sub- committee shall
meet once in a month with a specific agenda of review. The decisions of SLBCs
should be derived from the analysis of the reports of the sub-committee.
District Coordination Committee: The DCC (NRLM
sub-committee) shall regularly monitor the flow of credit to SHGs at the
district level and resolve issues that constrain the flow of credit to the SHGs.
Block
level Bankers Committee: The BLBC shall meet regularly and take up
issues of SHG bank linkage at the block level. Branch wise status of SHG credit
shall be monitored at the BLBC.
Reporting
to Lead District Managers: The branches may furnish the progress report
and the delinquency report to the LDM every month for onward submission to
Special Steering Committee constituted by SLBC.
Reporting to RBI: Banks may give
a state-wise consolidated report on the progress made to RBI/NABARD at
quarterly intervals.
Reporting
on SHG-Bank linkages:
NABARD shall submit monthly report, data for which shall flow from the CBS
platform to NRLM on regular basis.
LBR returns: Existing
procedure of submitting LBR returns to be continued duly furnishing the correct
code.
Data Sharing:
Data
sharing on a mutually agreed format / interval may be provided to SRLM for
initiating various strategies including recovery etc. The financing banks may
enter into a Memorandum of Understanding (MOU) for regular data sharing with
the State Rural Livelihood Missions, through the CBS platform.
NRLM support to the bankers:
SRLM
would develop strategic partnerships with major banks. It would create enabling
conditions for both the banks and the poor for a mutually rewarding
relationship.
SRLM will assist the SHGs through
imparting Financial literacy, extending counselling services on savings, credit
and training on Micro-investment
Planning
embedded in capacity building.
Improving quality of banking services to
poor clients by positioning customer relationship managers (Bank Mitra).
Leveraging IT mobile technologies and
institutions of poor and youth as business facilitators and business
correspondents.
Community
based recovery mechanism: One exclusive sub - committee for SHG Bank Linkage
may be formed at village/cluster/ block level which will provide support to the
banks in ensuring proper utilization of loan amount, recovery etc. The sub - committee
members along with project staff will meet once in a month under the
chairmanship of the Branch Manager in the branch premises with the agenda items
relating to bank linkage.
Based on RBI
Circular dt 30/06/15.Updated upto 26/10/15. Please visit www.rbi.org.in for any further clarification
if required….. Poppy
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