QUICK SUCCESS SERIES is an Quick Success Series · SBI TIMES>PATNA CIRCLE>SBLC ... products of MUDRA. The application forms for ... (SB-OD) – MUDRA LOAN, OVERDRAFT UPTO Rs

[Type the document title]

June 4, 2010

Page 1

Govt Sponsored Schemes

UPDATED UPTO

31 st OCTOBER 2016

Updated By Kumar Priyank Chief Manager, SBLC Deoghar Mobile- 7321805713 Email- [email protected]

QUICK SUCCESS SERIES is an initiative of SBLC Deoghar to facilitate the preparation of promotion seeking personnel of our Bank, appears to have succeeded in its objective to a large extent as the readers are still approaching us for its revision/updation despite availability of plenty of other study materials. We would not have been able to sustain this unique effort of ours, without the active support and continuous encouragement of our DGM cum Circle Development officer Sri Bijayananda Padhi. We are deeply indebted to him for his co-operation and guidance. Sri Rakesh Roshan, Chief Manager (Training) , Sri Kumar Priyank, Chief Manager (Training) ,Sri Sanjay Kumar Sharma Manager (Training) and Sri Jitendra Kumar Arun Manager (Training) at this SBLC have owned up this project and have taken pains to keep it relevant to the users by updating & improving it at half yearly interval. Though every care has been taken while updating the contents, we request our readers to point out any lapses at the earliest. Needless to mention that this book is not a substitute of circular instructions issued by the Bank from time to time. For detailed guidelines please refer to Bank’s latest circulars. Soft copy of this edition is available on our ftp://10.151.51.33 in QSS folder and on SBI TIMES>PATNA CIRCLE>SBLC Deoghar site. Team SBLC Deoghar is humbled by the response and recognition; it is receiving from readers within and beyond the circle. Our Team wishes the readers grand success in their endeavors. Abhishek Kumar Sharma Assistant General Manager, State Bank Learning Centre, Deoghar- 814112 Phone- 06432-232895 Fax - 06432-231810

E-mail: [email protected]

Quick Success Series

Quick Success Series – Govt Sponsored Schemes

October 31, 2016

Page 2

PRADHAN MANTRI MUDRA YOJANA (PMMY) The Micro Units Development and Refinance Agency (MUDRA) has been launched by the Hon’ble Prime Minister on 8th April, 2015 as a new financial entity for developing and refinancing last mile financial intermediaries like Banks, NBFCs, MFIs, who are in the business of lending to smaller of the micro enterprises in manufacturing, trading and services sector. Pradhan Mantri MUDRA Yojana (PMMY) has also been launched to “fund the unfunded”, i. e. to provide credit to micro enterprises / units in the country, which are outside the formal banking fold. It has been decided by GOI that the loans to this segment for income generation will be known as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly. All advances granted on or after 8th April, 2015 to non-farm enterprises in Manufacturing, Trading and Services with credit limits upto Rs 10 lac, are to be classified as MUDRA Loans under PMMY under three categories, such as Shishu, Kishore & Tarun as per the loan value of upto Rs 50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10 lac respectively. All such loans can be covered under refinance and/or credit enhancement products of MUDRA. The application forms for such loans shall carry the name “Pradhan Mantri MUDRA Yojana (PMMY)”. In addition to above, (i) Overdraft amounts of Rs 5000/- sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) are also to be classified as MUDRA loans under PMMY. (ii) Loans with credit limits upto Rs 10 lac sanctioned to non-farm enterprises under Rural Business segment for manufacturing, trading and services shall also be categorised as MUDRA loans with sub-categories such as, Shishu, Kishore & Tarun as per the loan value of upto Rs 50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10 lac respectively. The application forms for such loans shall also carry the name “Pradhan Mantri MUDRA Yojana (PMMY)”.

(SB-OD) – MUDRA LOAN, OVERDRAFT UPTO Rs. 5000/- UNDER PMJDY, MODIFICATIONS IN LOAN PROCEDURE (e-cir dt 1122 dt 09/12/2015) a) The concerned branch will process eligible PMJDY SB OD. There is no need for the customer to visit the branch to avail the loan. b) On getting message from New Project Department for successful OD mapping with NPCI, the branch will approve the limit and send an intimation letter through Registered Post, preferably in local language. (specimen enclosed) Duplicate copy of this letter will be retained by the Branch for record. c) Obtention of loan documents has been dispensed with for these loans. PRADHAN MANTRI AWAS YOJANA CREDIT LINKED SUBSIDY SCHEME Government of India under the aegis of the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has launched ‘Credit Linked subsidy Scheme (CLSS)’ for Urban Areas under the ambit of Pradhan Mantri Awas Yojana. The CLSS will be implemented upto 31st March, 2022 in all 4041 statutory towns as per 2011 census. The list of all statutory towns eligible under this scheme has been uploaded on REHBU site (under downloads link). Under the Scheme, credit linked interest subsidy @6.50% for a tenor of 15 years or actual tenor of the loan, whichever is lower, will be provided to the eligible beneficiaries in EWS/LIG category by the Government of India. The Net Present Value (NPV) of the subsidy will be calculated at a discount rate of 9% and will be credited to the loan account directly. Eligible Loans under CLSS- Scope and Coverage: Credit Linked Subsidy will be available for housing loans availed for acquisition/construction of house. The credit linked subsidy will be available for loan amount upto Rs. 6 lacs. The Bank may sanction Home Loans more than Rs. 6 lacs also. However,


October 31, 2016

Page 3

wherever the limit is more than Rs. 6 lacs, the subsidy will remain available for loan amount upto Rs. 6 lacs only. The EWS/LIG beneficiaries under this Scheme have been defined as under: (a) EWS households with an annual income upto Rs. 3 lacs, (b) LIG households with an annual income above Rs. 3 lacs and upto Rs. 6 lacs, The beneficiary family should not own a pucca house (an all weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India. For identification of beneficiary under the Scheme, all applicants will be required to submit undertaking on prescribed format (enclosed at Annexure-A) as proof of house hold Income. However, ITR/Form-16/Salary Certificate will continue to be obtained from applicants/co-applicants in terms of extant instruction. All loans accounts under the Scheme will be linked to Aadhaar or Voter Card or PAN Card. The carpet area of house under this Scheme should be upto 30 sq. mts. For EWS beneficiaries and upto 60 sq. mts. for LIG beneficiaries. Subsidy will be disbursed maximum in 4 installments in proportion to the disbursements made in loan account. Bank will directly credit subsidy amount to beneficiary’s loan account which will effectively reduce loan amount of the beneficiaries. The borrower has to complete the construction of house or to take possession of the house within a period of 36 months. CPCs/Branches shall have to submit a consolidated certificate on completion of the housing unit within one year period from the completion of construction or a maximum of 36 months from the date of the disbursement of the 1st installment of the loan amount. In case of default in not providing completion certificate by the CPCs/Branches within stipulated period or the loan account becoming NPA, Bank will

require to recover the subsidy amount already released for refund to the Government of India. In case a borrower who has taken a Home Loan under the Scheme from other Bank and has availed interest subvention benefit under the Scheme but later on switch-over to our Bank, such beneficiary will not be eligible for the benefit of interest subvention again. CPC/Branches will not recover processing fee from the beneficiaries. A lump sum amount of Rs. 1000/- per sanctioned application will be paid to the Bank by the Government in lieu of the processing fee. In the event of default in repayment of the loan by the borrowers and the loan becoming NPA, the CPCs/Branches will proceed for recovery of the dues through appropriate recovery measures. In all such cases, the recovery will be charged to the subsidy amount on a proportionate basis (in proportion to the loan outstanding and subsidy disbursed). ATAL PENSION YOJANA (APY) Background: APY is a fixed pension scheme announced by the Finance Minister in his Budget Speech for 2015-16. APY is for all citizens in the unorganized sector who are not members of any statutory social security scheme. The scheme is administered by Pension Fund Regulatory and Development Authority (PFRDA) and the Central Record Keeping Agency is National Securities Depository Limited (NSDL). All our branches are required to be enabled to offer this product. Eligibility: All citizen of the country (organised &unorganised). Benefit of APY: The guaranteed minimum pension for the subscriber ranging between Rs. 1,000/- to Rs.5,000/- would be available, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late. Central Government co-contribution : The Central Government co-contribution is payable


October 31, 2016

Page 4

into subscriber’s Savings Bank account at the end of financial year once subscriber has made the entire contribution for the year and this co-contribution would be transferred to the APY account by the bank. Periodicity of subscription : The subscribers should keep the required balance in their savings bank accounts on the stipulated due dates to avoid any late payment penalty. The monthly / quarterly / half-yearly contribution must be deposited on the first date of month/quarter/half year in the saving bank account. However, if there is inadequate balance in the SB account of the subscriber till the last day of the month /last date of the first month in a quarter /last day of the first month in a half year, it will be treated as default and contribution will have to be paid in a subsequent month along with overdue interest for delayed payment. KYC Document : Aadhaar would be the recommended KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term. However, it is not mandatory at the time of enrolment. Penalty on default of subscription: Overdue interest for delayed contribution Rs. 1/- per month for contribution for every Rs. 100/-, or part thereof, for each delayed monthly payment. Overdue interest for delayed contribution for monthly/ quarterly / half-yearly mode of contribution shall be recovered accordingly. The overdue interest amount collected will remain as part of the pension corpus of the subscriber. Pension Payment on attaining superannuation : i) upon completion of 60 years, the subscriber will submit the request to the Associated Bank for drawing the guaranteed minimum monthly pension or higher monthly pension. If investment returns are higher than the guaranteed returns embedded in APY the same amount of monthly pension amount is payable to spouse (default nominee) upon death of subscriber. Nominee will

be eligible for return of pension wealth accumulated till age 60yrs of the subscriber upon death of both the subscriber and spouse. ii. Each subscriber under APY shall receive a Central Government Guaranteed minimum pension of Rs 1,000/- per month to Rs 5,000/- per month after attaining the age of 60 years until death. iii. After the subscriber's demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of spouse. iv. After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber. Exit before Superannuation : i. Exit before 60 years of age is generally not permitted, it may be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or specified illness, as in the Pension Fund Regulatory Authority (Exit and withdrawal under the National Payment System) regulation, 2015 before the age of 60. ii. Subject to the conditions as mentioned above (i), in case a subscriber who has availed Government co-contribution under APY, chooses to voluntarily exit APY at a future date, he shall only be refunded the contributions made by him to APY, along with the net actual interest earned on his contributions (after deducting the account maintenance charges). Whereas, the Government co-contribution, and the interest earned on the Government co-contribution, shall not be returned to such subscribers. PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME (PMEGP)

-Introduced by merging 2 schemes that were in operation till 31.03.08 - PMRY (Prime Minister’s Rojgar Yojna) and REGP (Rural Employment Generation Programme) for generating


October 31, 2016

Page 5

employment through micro-enterprises in rural as well as urban areas. -Scheme is administered by Ministry of Micro, Small and Medium Enterprises -Eligibility Conditions of Beneficiaries (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under PMEGP. (iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. (iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP. (v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP. (vi) Institutions registered under Societies Registration Act,1860; (vii) Production Co-operative Societies, and (viii) Charitable Trusts. (ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

One person from one family. Family includes self and spouse. -Other Eligibility Conditions 1. Relevant Caste certificate. 2. Certified copy of bye-laws of the institution 3. Project without capital expenditure is not eligible. Project above Rs 5 lacs not requiring Working capital needs clearance from Controller. 4. Cost of land should not be included in Project 5. All new viable micro-enterprises including village industries

Categories of beneficiaries under PMEGP

Beneficiary’s own contribution (of project cost)

Rate of Subsidy

Urban Rural

General Category 10% 15% 25%

Special (including 5% 25% 35%

SC/ST/OBC / Minorities/ Women, Ex- servicemen, Physically handicapped, NER, Hill and Border areas etc)

Quantum of Finance- (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh. (2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

(3) The balance amount of the total project cost will be provided by Banks as term loan. Repayment: 3 to 7 years after an initial moratorium period of maximum 12 months -Nodal Agency: (KVIC), Mumbai, single nodal agency at the national level -Implementing agencies in Rural Areas: State Directorates of KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres -Implementing Agency in Urban Area - State District Industries Centres (DICs) only -Identification of beneficiaries will be done at district level by a Task Force consisting of representatives of KVIC, DIC and Banks headed by DC -After conduct of Entrepreneur Development Programme training, the beneficiary will deposit owner’s contribution with bank -Margin Money (Subsidy) claim will be submitted by the Bank after partial/ full finance. Released Subsidy will be kept in TD for 3 yrs favouring the beneficiary. No interest on TD and corresponding amount of loan. Subsidy kept in TD will be transferred to loan a/c after 3 yrs . -Effective FY 2013-14, the implementing agencies (KVIC, KVIB and DICs ) will forward the PMEGP applications to financing branches only after entering the applications in the e-tracking system. The financing branches should enter the data relating to sanction and disbursement in the e-tracking system. The KVIC has advised that it will not release Margin Money subsidy in respect


October 31, 2016

Page 6

of those applications which have not been processed through e tracking system. The financing branches should accept the applications of PMEGP scheme only if they are entered in the e-tracking system; otherwise they should reject the application forms outright. (Circular No. : NBG/RRBLBCSB-LB/1/2013 – 14th June 07,2013.) Inclusion of SHGs under the PMEGP: SHGs (including those belonging to BPL) can also be financed under the PMEGP provided, they have not availed benefits under any other scheme. (e-manual, vol 6, page 372)

SWARNA JAYANTI SHAHARI ROJGAR YOJNA -Operative from 1st Dec 1997 in all urban towns after replacing three schemes- Nehru Rojgar Yojna (NRY), Urban Basic Services for the Poor (UBSP) & Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP) -Purpose: To provide gainful employment to unemployed or underemployed urban poor living below the urban poverty line -Funding of Scheme between Centre and States on 75: 25 basis On 90:10 basis for Special Category States (NE, Sikkim, J&K, HP & Uttarakhand) -Components of scheme where credit from banks is involved – Urban Self Employment Programme (USEP) & Urban Women Self- Help Programme (UWSP) URBAN SELF EMPLOYMENT PROGRAMME (USEP) -ASSISTANCE TO INDIVIDUAL URBAN POPULATION BELOW POVERTY LINE AS DEFINED BY PLANNING COMMISSION -Sub target – Women (Not less than 30%), SC/STs (Proportionate to their BPL Population in city), Disabled (3%), Minorities (15% of Physical & Financial Targets) -No Minimum or Maximum Educational Qualification -Age – Min 18 years at the time of applying for loan -Residing in the town for at least 3 years -Should not be a defaulter to any bank/FI -Maximum Project Cost Rs 200000/- for individual

-In case of partnership, share of each person in project should be Rs 200000/- or less -Loan Amount – 95% of Project Cost including subsidy (Interest to be charged on loan component only) -Subsidy- 25 percent of Project Cost subject to a ceiling of Rs 50000/- per beneficiary -In case of partnership, subsidy would be calculated for each partner separately at -Margin Money- 5 percent of project cost per beneficiary -Security – No collateral or Guarantee -Repayment- 3 to 7 years after initial moratorium of 6 to 18 months Urban Women SELF HELP GROUP (UWSP) Assistance to Urban Poor Women taking up any group activity -Age – Members should be of Min 18 years at the time of the group applying for loan -Should not be defaulter to any Bank/FI -Group shall consist of at least 5 urban poor women -Project Cost – No Maximum Limit -Subsidy- 35% of project cost subject to a ceiling of Rs 3.00 Lakhs or Rs 60000/- per beneficiary -Margin money- 5% of project cost by group as a whole -Loan Component: Project Cost - Margin (5% of Project Cost) - Subsidy -Security- No collateral or Guarantee -Repayment - 3 to 7 years after initial moratorium of 6 to 18 months NATIONAL RURAL LIVELIHOOD MISSION ( NRLM) – AAJEEVIKA ( E circular 339/ July 12, 2013) - CBS Scheme Code – 09097 -The Ministry of Rural Development, Government of India has launched National Rural Livelihood Mission (NRLM) by restructuring Swarnajayanti Gram Swarozgar Yojana (SGSY) replacing the existing SGSY scheme, effective from April 1, 2013. - NRLM is the flagship program of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services and livelihoods services.


October 31, 2016

Page 7

KEY FEATURES : -Universal Social Mobilization: To begin with, NRLM would ensure that at least one member from each identified rural poor household, preferably a woman, is brought under the Self Help Group (SHG) network in a time bound manner. NRLM would ensure adequate coverage of vulnerable sections of the society such that 50% of the beneficiaries are SC/STs, 15% are minorities and 3% are persons with disability, while keeping in view the ultimate target of 100% coverage of BPL families. -Participatory identification of poor (PIP): NRLM will undertake community based process i.e. participation of the poor process to identify its target group. Up to 30% of the total membership of the SHGs may be from among the population marginally above the poverty line, subject to the approval of the BPL members of the group. This 30% also includes the excluded poor, those who are really as poor as those included in BPL list but their name does not figure in the list. -Promotion of Institutions of the poor: NRLM would promote specialized institutions like Livelihoods collectives, producers’ cooperatives/companies for livelihoods promotion -Strengthening all existing SHGs and federations of the poor -Emphasis on Training, Capacity building and skill building -Revolving Fund and Community investment support Fund (C.I.F): Revolving Fund would be provided to eligible SHGs as an incentive to inculcate the habit of thrift and accumulate their own funds towards meeting their credit needs in the long-run and immediate consumption needs in the short-run. Universal Financial Inclusion: NRLM would work towards achieving universal financial inclusion, beyond basic banking services to all the poor households, SHGs and their federations. -Provision of Interest Subvention: NRLM has a provision for subvention on interest rate above 7% per annum for all eligible SHGs, who have availed loans from mainstream financial institutions. - Funding Pattern between Centre and States on 75: 25 basis (90:10 in case of North Eastern

States including Sikkim; completely from the Centre in case of UTs). -Phased Implementation: -Intensive blocks : The blocks that are taken up for implementation of NRLM, ‘intensive blocks’, would have access to a full complement of trained professional staff and cover a whole range of activities. Rural Self Employment Training Institutes (RSETIs) : The model envisages transforming unemployed youth into confident self- employed entrepreneurs through a short duration experiential learning programme followed by systematic long duration hand holding support. -Eligibility: upto 30% of the total membership of the SHGs may be from among the population marginally above the poverty line, subject to the approval of the BPL members of the group. -Loan amount: First dose: 4-8 times to 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 lakhs, whichever is higher. Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan prepared by the SHGs and appraised by the Federations/Support agency and the previous credit history Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs for fourth dose and/or higher in subsequent doses. The loan amount will be based on the Micro Credit Plans of the SHGs and their members. Type of facility and repayment : either Term loan or a CCL loan or both. 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 sanctioned based on the micro credit plans, the repayment has to be either monthly/quarterly /half yearly based on the cash flow and it has to be between 2 to 5 Years. Fourth dose onwards: repayment has to be either monthly/quarterly /half yearly based on the cash flow and it has to be between 3 to 6 Years Security and Margin:


October 31, 2016

Page 8

No collateral and no margin will be charged upto Rs. 10.00 lakhs limit to the SHGs.

DIFFERENTIAL RATE OF INTEREST (DRI) SCHEME The target for lending under DRI scheme will be 1% of the previous years’ total advances. -Family income of the borrower from all sources should not exceed Rs.18000/- in Rural areas and Rs. 24000/- in Urban and Semi urban area per annum -Land holding should not exceed 1 acre of irrigated land or 2.5 acres of non irrigated land

-SC/ST borrowers are eligible for finance irrespective of their land holdings -Applicant should not have been assisted under any of the subsidy linked scheme -Orphanages and women’s homes where saleable goods are made and for which no adequate and dependable source of finance exist & Institutions of physically handicapped persons pursuing a gainful occupation are also eligible -Banks may also route credit under the scheme through State Corporations for the welfare of Scheduled Caste and Scheduled Tribes subject to the beneficiaries of the corporation meeting the eligibility criteria indicated above -Quantum of Finance – For Housing Purpose – Rs 20,000/- For Others Purpose – Rs 15,000/- -Target i) Minimum of 40% of DIR advances to SC/ST beneficiaries. 2/3rd of the advances should be routed through Rural/Semi urban branch. ii) Overall target for the Bank: 1% of the total advances of the bank as on previous year -Subsidy – NIL -Margin – NIL -Rate of Interest – 4% p.a. at simple rate -Repayment – 5 Yrs including Moratorium Period -Insurance - No insurance except for live stock. If considered necessary, the premium amount should be borne by the Bank SCHEME FOR FINANCING AGRICULTURE MARKETING INFRASTRUCTURE (AMI) NABARD has advised that Gramin Bhandaran Yojana & Scheme for Development/ Strengthening of Agriculture Marketing Infrastructure, Grading and Standardization

(AMIGS) are Subsumed in Scheme for Financing Agriculture Marketing Infrastructure (AMI) w.e.f. 01/04/2014 into a new Scheme named Agricultural Marketing Infrastructure (AMI) for implementation during the 12th Plan period. Nodal agency for subsidy management will be NABARD. Min contribution of the promoter- 20% of the project cost, min TL including subsidy- 50% of the project cost. Will be classified under Indirect Agri Advances except in case Loans to farmers for pre and post-harvest activities which will be classified under Direct Agri Advances. (e-Circ- 402 dt 17/07/2014) PRADHAN MANTRI FASAL BIMA YOJANA The Government of India has launched ‘Pradhan Mantri Fasal Bima Yojna’ (PMFBY) on the18th February 2016, to enhance crop insurance coverage. The revised scheme replaced the existing schemes of National Agricultural Insurance Scheme (NAIS) & Modified National Agricultural Insurance Scheme (MNAIS) from ensuing Kharif 2016 season. The revised scheme would provide insurance cover for all stages of the crop cycle, including post-harvest risks in specified instances. Weather Based Crop Insurance Scheme (WBCIS) has also been modified and the administrative provisions and operationalization of the scheme have been brought at par with PMFBY. Implementation of the Scheme: i. The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Government of India (GOI) and the concerned State Government / UT. ii. State Government / UT will issue notification, at least one month in advance, of the commencement of the crop season incorporating all the essential details about insured crops. Coverage of Farmers:


October 31, 2016

Page 9

i. The scheme is applicable to all farmers, including sharecroppers and tenant farmers, growing the notified crops in the notified areas. ii. Compulsory for loanee farmers and optional / voluntary for non-loanee farmers. Sum Insured / Coverage Limit: i. The Scheme is implemented on an ‘Area Approach Basis’ in the selected defined Areas called Insurance Unit. State Government / UT will notify Crops and Defined Areas covered during the season. ii. Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance (SOF) as decided by the District Level Technical Committee. Sum Insured for individual farmer is equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance. ‘Area under cultivation’ shall always be expressed in ‘hectare’. Coverage of Crops & Risks: i. Food crops (Cereals, Millets and Pulses), Oilseeds & Annual Commercial / Annual Horticultural crops are covered under the scheme. ii. Stages of the crop and risks leading to crop loss covered are: a) Prevented Sowing / Planting Risk (due to deficit rainfall or adverse seasonal conditions) b) Standing Crop (Comprehensive risk insurance to cover yield losses due to non-preventable risk) c) Post-Harvest Losses – {Coverage available only up to a maximum period of 2 weeks from harvesting of the crop. (Individual farm basis)} d) Localized Calamities (individual farm basis) Indemnity Level & Premium Rates: i. The three levels of Indemnity, viz., 70%, 80% and 90% corresponding to crop Risk in the areas shall be available for all crops.

ii. State Government notified seasonality discipline for various activities under the scheme viz. submission of insurance proposals, consolidated declaration by banks, yield data, claim assessment of losses for (i) standing crop (ii) localized calamities (iii) prevented sowing (iv) post-harvest loss, (v) on-account payment for major calamities, etc as per the provision of the scheme. iii. There will be a uniform premium ranging from 2% for Kharif to 1.5% for Rabi for food crop, oilseeds and pulses. In case of annual commercial and horticultural crops, the premium will be 5%. iv. The cut-off date is uniform for loanee and non-loanee cultivators. Loaning period (loan sanctioned) for Kharif April to July and for Rabi October to December. The State –wise cut off dates for difference crops shall be based on Crop Calendar of major crops published from time to time by the Directorate of Economics & Statistics. SUKANYA SAMRIDDHI ACCOUNT

Sukanya Samriddhi Account has been introduced vide Government of India Notification No. G.S.R.863(E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2014-15 dated 11th March 2015 which was received by us on 17th March 2015. The salient features of the Account in brief are enumerated below: Objective: To promote the welfare of Girl Child Authorized Institutions: Post Office and Commercial Bank branches authorized to open PPF accounts. Who can open the account: A natural/ legal guardian on behalf of a girl child Maximum number of accounts: Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children Minimum and Maximum Amount of Deposit: Min.1000 of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.150000 in a financial year Tenure of the Deposit: 21 years from the date of opening of the account


October 31, 2016

Page 10

Maximum period upto which deposits can be made: 14 years from the date of opening of the account Interest on Deposit: As notified by the GOI, compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands, w.e.f 01/10/2016-8.5% p.a. Premature Closure: Allowed in the event of death of the depositor. Also allowed in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government Irregular Payment/ Revival of account: By payment of penalty of Rs.50 per year along with the minimum specified amount per year Mode of Deposit: Cash/Cheque/ Demand Draft Withdrawal : 50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)

National Mission for Financial Inclusion to ensure

access to financial services, namely, Banking/

Savings & Deposit Accounts, Remittance, Credit,

Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or

Business Correspondent (Bank Mitr) outlet.

PMJDY accounts are being opened with Zero

balance. However, if the account-holder wishes

to get cheque book, he/she will have to fulfill

minimum balance criteria.

Benefits:

1. Interest on deposit.

2. Accidental insurance cover of Rs.1.00 lac

3. No minimum balance required.

4. Life insurance cover of Rs.30,000/-

5. Easy Transfer of money across India

6. Beneficiaries of Government Schemes will get

Direct Benefit Transfer in these accounts.

7. After satisfactory operation of the account for 6

months, an overdraft facility will be permitted

8. Access to Pension, insurance products.

9. Accidental Insurance Cover, RuPay Debit Card

must be used at least once in 45 days.

10. Overdraft facility upto Rs.5000/- is available in

only one account per household, preferably lady

of the household.

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (e-

cir 319 dt 07/06/2016)

Insurance Scheme offering life insurance cover for

death due to any reason.

The savings bank account holder of the participating banks aged between 18 years completed) and 50 years (age nearer birthday) and who have given the consent to join the scheme during the ‘enrollment period’ are eligible to join the scheme. Premium to be deducted from member’s SB Account. The premium is Rs.330/- plus Service Tax (if payable) irrespective of date of entry i.e. during enrollment period or after that date during the first year. Renewal premium is chargeable as per the rate decided from time to time on Annual Renewal dates.

An assurance of Rs.2,00,000/- on death of the

insured member is payable to the Nominee

Upon the death of the Member prior to Terminal Date, the sum assured under the Assurance shall be payable to the nominated Beneficiary, provided the assurance is kept in force by payment of premium for that member provided the claim is otherwise admissible and subject to the 45-days exclusion clause as detailed under exclusions.

The Assurance on the life of a Member shall terminate on an Annual Renewal Date upon happening of any of the following events and no benefit will become payable thereunder:- a. On attaining age 55 years (age neared birthday) on annual renewal date. b. Closure of account with the Bank or insufficiency of balance to keep the insurance in force.


October 31, 2016

Page 11

c. In case a member is covered through more than one account and premium is received by SBI Life inadvertently, insurance cover will be restricted to Rs. 2 Lakh only and the premium shall be liable to be forfeited. d. The date on which the claim on insured member is settled by a bank in case the member was insured by more than one bank/ branch of the same bank where he/she was having more than one savings account. The Grace Period for payment of premium to SBI Life shall be 30 days from the due date. In case of death

during Grace Period, assured benefit as defined in rule 7 shall be settled on receipt of premium. There will be no Surrender value or Maturity Value payable under the policy.

It has been decided to incorporate a lien clause in

the rules of PMJJBY with effect from 1st June, 2016,

whereby claims for deaths which occur during the

first 45 days from the date of enrollment will not be

paid, effectively meaning that the risk cover will

commence only after the completion of 45 days

from the date of enrollment into the scheme by the

member. The date of enrolment means date of debit

of premium in customer account. However deaths

due to accidents will be exempt from this Lien

Clause.

PRIME MINISTER KAUSHAL VIKAS JOJANA PROJECT : NEW SAVINGS BANK PRODUCT: NATIONAL SKILL DEVELOPMENT CORPORATION-TRAINEE’S ACCOUNT (e-cir 350 dt 15/06/2016) To facilitate opening of Savings Bank accounts by the beneficiaries/trainees under the scheme.

Indian individual at the age of 18 years &above who undergoes a skill development training in an eligible sector by an approved training partner of NSDC. The account holders will be trainees of NSDC. The training will be provided by the training institutions and the cost of the training will be recovered from the monetary incentive released by NSDC, after the successful completion of the course. For this purpose a hold equal to the amount payable to the training

centre ,will be created in favour of the training institution, and the money will be transferred to training institution on completion of the training. To this effect a mandate signed by the trainee will be obtained at the time of account opening.

After auto transfer of the specified hold amount, the account will be treated as normal SB account or closed as per the mandate given by the trainee. STAND UP INDIA (SUI) SCHEME :GUIDELINES AND MONITORING UNDER STAND UP INDIA (e-cir 172 dt 05/05/2016) The Stand up India scheme was launched by the Prime Minister on 05.04.2016. The scheme endeavours to create an eco system for SC, ST and women entrepreneurs, which facilitates and continues to provide a supportive environment for doing business. The objective of Stand Up India scheme is to facilitate sanction of bank loans between Rs. 10 lakhs and Rs. 1 crore to atleast one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one women borrower per Bank branch for setting up a Greenfield enterprise in FY 2016-17. The enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises atleast 51% of the shareholding and controlling stake should

be held by either SC / ST or Women entrepreneur. Credit Guarantee Scheme for Stand Up India(CGSSI) A New Credit Guarantee Scheme Launched by GOI Stand Up India Scheme (SUI) (e-cir 731 dt 01/09/2016) The scheme ‘Credit Guarantee Scheme for Stand Up India (CGSSI)’ has come into force from the date of notification by GOI i.e. 25.04.2016. Subsequently, SIDBI has clarified us that the guarantee coverage will be available for all the cases sanctioned since the launch of SUI scheme i.e. 05.04.2016. The National Credit Guarantee Trustee Company (NCGTC) will act as the Trustee and operations of CGSSI scheme would be undertaken by NCGTC on behalf of the said Fund Trust. Our Bank has been enrolled by NCGTC as a Member Lending Institution


October 31, 2016

Page 12

(MLI) and necessary agreement has been executed by the Bank. Eligible Borrower –SC, ST and Women Entrepreneurs above 18 years of age setting up Greenfield Enterprises in non-farm sector. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held either by SC / ST and / or Women Entrepreneur. Credit Facility – Financial assistance by way of Term Loan and / or fund based and non-fund based working capital (eg. Bank Guarantee, Letter of Credit, etc.). Scope and Extent of the scheme – The Trust shall cover assistance of over Rs. 10 lacs and up to Rs. 100 lacs inclusive of WC extended without any Collateral Security and / or Third Party guarantees or such amount as may be decided by the Trust from time to time, provided that: a) The dues have not become bad or doubtful of recovery at the time of applying for coverage. b) The business activity of the borrower for which the credit facility was granted has not ceased. C) The credit facility has not wholly or partly been utilised for adjustments of any debts deemed bad or doubtful of recovery without obtaining a prior consent in this regard from the Trust. The following credit facilities shall not be eligible for being guaranteed under the Scheme: a) Any credit facilities in respect of which risks are additionally covered under a scheme operated/administered by Deposit Insurance and Credit Guarantee Corporation or the Reserve bank of India, to the extent they are so covered. b) Any credit facilities in respect of which risks are additionally covered by Government or by any general insurer or any other person or association of persons carrying on the business of insurance, guarantee or indemnity, to the extent they are so covered. c) Any credit facilities, which does not conform to, or is in any way inconsistent with, the provisions of any law, or with any directives or instructions issued by the Central Government or the Reserve Bank of India, which may, for the time being, be in force. d) Any Credit facilities granted to any borrower, who has availed of any other composite loan covered under this Scheme or under the schemes mentioned in clause (i), (ii) and (iii) above, and where the lending institution has invoked

the guarantee provided by the Trust or under the schemes mentioned in clause (i), (ii) and (iii) above, but has not repaid any portion of the amount due to the Trust or under the schemes mentioned in clause (i), (ii) and (iii) above, as the case may be, by reason of any default on the part of the borrower in respect of that composite loan. e) Any credit facility which has been sanctioned by the lending institution against collateral security and / or third party guarantee. f) Any credit facility which has been sanctioned by the lending institution which is not conforming to the Stand Up India Scheme. Interest Rate – The interest Rate to be charged by the Member Lending Institution should be the lowest applicable rate for the category (as per rating) and should not in any case, be more than 3% p.a. over the MCLR. Lock in Period – A lock-in-period of 18 months has been stipulated from the date of commencement of guarantee cover or end of period of moratorium of interest, whichever is later. Time for applying for Guarantee coverage – For availing the guarantee coverage, Bank will have to apply for guarantee cover in respect of credit proposals sanctioned in the quarter April-June, July-September, October-December and January-March prior to expiry of the following quarter viz. July-September, October-December, January-March and April-June respectively. For example facilities sanctioned between 01.04.2016 –30.06.2016should be lodged with the Trust latest by 30.09.2016. Payment norms of Guarantee Fees – As per Bank’s guidelines, guarantee fee is to be borne by the borrower. A risk based guarantee fee (non-refundable) of the sanctioned amount has to be paid within 16 days from the end of the concerned quarter in which the credit facility was sanctioned / renewed. Further, a Management Certificate needs to be furnished to the Trust within 10 days from the end of the quarter. Thereafter, a Credit Guarantee Demand Advice Note (CGDAN) would be issued by NCGTC within 3 days of receipt of Management Certificate and subsequently, the guarantee fee shall be payable within 3 days from the issue of CGDAN. Guarantee Fee with respect to NPA accounts in the batch would continue to be paid till lodgement of


October 31, 2016

Page 13

claim for such accounts. The Guarantee fee once paid is non-refundable except under certain circumstances like: a) Excess remittance b) Remittance made more than once against the same Stand Up India credit facility c) Annual guarantee fee not due. PRADHAN MANTRI SURAKSHA BIMA YOJANA The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. All savings bank account holders in the age 18 to 70 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account. Premium: Rs.12/- per annum per member Benefits: Death : Rs. 2 Lakh Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot Rs. 2 Lakh Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot Rs. 1 Lakh Eligibility: The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme. Deendayal Antyodaya Yojana -National Urban Livelihoods Mission (DAYNULM) : SELF EMPLOYMENT PROGRAMME (SEP Financial assistance to individuals/groups of urban poor for setting up gainful self-employment ventures/ microenterprises, suited to their skills, training, aptitude and local conditions. The percentage of women beneficiaries under SEP shall not be less than 30 percent. SCs and STs must be benefited at least to the extent of the proportion of their strength in the city/town population of poor. A special provision of 3 percent reservation should be made for the differently-abled under this program. In view of the Prime Minister’s 15-Point Program for

the Welfare of Minorities, at least 15 percent of the physical and financial targets under this component shall be earmarked for the minority communities. The financial assistance available to urban poor in setting up individual and group enterprises will be in the form of Interest subsidy on the bank loans. Interest subsidy, over and above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises. The difference between 7% p.a. and the prevailing rate of interest will be provided to banks under DAY-NULM. Interest subsidy will be given only in case of timely repayment of loan. Suitable certification from banks will be obtained in this regard.

INDIVIDUAL APPLICANT : Age: The prospective beneficiary should have attained the age of 18 Years at the time of applying for loan. Project Cost (PC): The Maximum unit Project Cost for individual microenterprises cases is ₹ 2,00,000 (₹ Two Lakhs). Collateral on Bank Loan: No collateral required. As per RBI guidelines, banks are mandated not to accept collateral security in the case of loans up to ₹ 10 lakhs extended to units in the MSE sector. Therefore, only the assets created would be hypothecated/ mortgaged/ pledged to banks for advancing loans. The banks may approach Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) setup by Small Industries Development Bank (SIDBI) and Government of India for the purpose of availing guarantee cover for SEP loans as per the eligibility of the activity for guarantee cover. Repayment: Repayment schedule ranges from 5 to 7 Years after initial moratorium of 6-18 months as per norms of the banks. Margin Money: No margin money should be taken for loans up to ₹ 50,000 and for loans ranging from ₹ 50,000 - ₹ 10 lakhs, preferably 5% should be taken as margin money and it should in no case be more than 10% of the Project cost. Type of Loan Facility: Bank may extend finance to individuals for capital expenditure in the form of Term Loan and Working Capital loans through Cash Credit. Banks may also extend Composite Loans consisting of Capital Expenditure and Working Capital components, depending upon individual’s requirement.


October 31, 2016

Page 14

Group Enterprises (SEP-G) -Loan & Subsidy A Self Help Group (SHG) or members of an SHG constituted under DAY-NULM or a group of urban poor for self-employment can avail benefit of subsidized loans under this component from any bank. The norms/ specifications for group microenterprise loans are as follows: Eligibility Criteria: The group should have minimum 5 members with a minimum of 70% members from urban poor families. More than one person from the same family should not be included in the same group. Age: All members of the group enterprise should have attained an age of 18 years at the time of applying for bank loan. Project Cost (PC): The Maximum unit Project Cost for a group finance for enterprise is ₹ 10,00,000 (₹ Ten Lakhs). Type of Loan: Loan can be extended either as a single loan to the group functioning as one borrowing unit or each member of the group can be provided individual loans based on mutual trust and collateral substitute among the group. The principles laid down in the RBI circular on “Budget (2014-15) Announcement Financing of Joint Farming Groups of ‘Bhoomi Heen Kisan’ dated 13th November, 2014” and subsequent revisions should be followed in case of loans to a group. Type of Loan Facility: Bank may extend finance to groups for capital expenditure in the form of Term Loan and for Working Capital, through Cash Credit Facility. Banks may also extend Composite Loans for Capital Expenditure and Working Capital, depending upon Group’s requirement. Loan and Margin Money: Project Cost less the beneficiary contribution (Margin Money) would be made available as loan amount to the group enterprise by the bank. No margin money should be taken for loan up to ₹ 50000 and for higher amount loans, preferably 5% should be taken as margin money and it should in no case be more than 10% of the project cost. Collateral Guarantee on Bank Loan: No collateral/ guarantee required. Only the assets created would be hypothecated/ mortgaged/ pledged to banks for advancing loans. The banks may approach Credit

Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Repayment: Repayment schedule ranges from 5 to 7 Years after initial moratorium of 6-18 months as decided by banks.

Credit Enhancement Guarantee Scheme for the

Scheduled Castes (CEGSSC): A New Credit Guarantee Scheme Launched by GOI

for SCs Beneficiaries: A social sector initiative by Ministry of Social Justice and Empowerment (hereinafter referred to as MSJ&E) in order to support the banks and financial institutions in the form of credit guarantee, for providing financial assistance to the schedule caste entrepreneurs. Accordingly, a new scheme named as “Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC) has been launched by Ministry of Social Justice and Empowerment (MSJ&E), Government of India. Industrial Finance Corporation of India Limited (ICFI) has been identified as the nodal agency for the scheme to issue guarantee to the banks and FIs who shall be encouraged to finance schedule caste entrepreneurs at reasonable interest rates Our Bank has been enrolled by IFCI as a Member Lending Institution (MLI) and necessary agreement has been executed by the Bank. All our branches are now eligible to finance to SC beneficiaries under the guarantee cover of CEGSSC scheme & take maximum advantage of the scheme of GOI, while financing Scheduled Caste (SC) borrowers (e.cir.Sl. No. : 735/2015 – 16 dt:11/09/2015)& 988/2015-16 dt:05/11/2015)

Eligibility criteria and amount of guarantee cover of the scheme : • Small and Medium Enterprises, projects/units being set up, promoted and run by Scheduled castes in manufacturing and services sectors in the form of Registered Companies, Societies, Partnership firms (none of the partner shall be below the age of 18 years) having more than 75% shareholding held by Scheduled Caste entrepreneurs/ promoters/ members with management control for the past 12 months OR sole proprietorships firms being into existence and proprietorship of a scheduled caste entrepreneur for past 12 months, ensuring asset creation out of the funds deployed in the unit, which


October 31, 2016

Page 15

are not covered under any State/Central Government Subsidy/Grant Scheme shall be considered;

• Documentary proofs of being SC will have to be mandatorily submitted by the entrepreneurs/ promotes/society members at the time of submitting the proposals; • The Scheduled Caste promoter(s)/ Partners/ Society members shall not dilute their stake below 75% in the company/enterprise during the currency of the loan. • To be eligible for Guarantee Cover under the Scheme, the banks/FIs shall submit to IFCI a copy of the valid sanction letters/LoI issued to Scheduled Caste beneficiary/ enterprise/ company/firm/society. (e-cir 363 16/06/2016)

Credit Guarantee Fund for Micro Units (CGFMU) New Guarantee Scheme Launched by GOI for providing guarantee to loans under Pradhan Mantri Mudra Yojana (PMMY) (e-cir 733 dt 01/09/2016) Ministry of Finance (Department of Financial Services) vide notification dated 18th April, 2016, had announced a new Credit Guarantee Scheme to guarantee loans extended under Pradhan Mantri Mudra Yojana (PMMY). The scheme ‘Credit Guarantee Fund for Micro Units (CGFMU)’ has come into force from the date of notification by Government of India. As per the scheme micro loans up to the specified limit (currently Rs.10 lakh) extended by Member Lending Institution to an eligible borrower, provided that the lending institution applies for guarantee cover in respect of such loans so sanctioned within such time period and as per procedures prescribed by the Fund for the purpose. Further, Overdraft loan amount of Rs.5,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit Guarantee Fund. The micro loans under PMMY inclusive of overdraft under PMJDY, sanctioned since 8th April 2015 would qualify for guarantee cover under the scheme. Guarantee Cover – Maximum cover available per portfolio, based on the amount in default. The

first 5% of the amount in default will be borne by the Bank. Above 5% (if applicable) will be settled by the fund to the extent of 50% on pro-rata basis, subject to the receipt of an Auditor’s certificate confirming eligible claim amount. The claim will be in the nature of “First Loss Portfolio Guarantee”, wherein the loss to the extent of 5% of the crystallized portfolio of the Bank, will be borne by the Bank and therefore will be excluded from the claim. Out of the balance portion, the extent of guarantee will be to a maximum extent of 50% of “Amount in Default’ in the portfolio or such percentage as may be advised by the Fund from time to time on pro-rata basis. Invocation of the guarantee –The Bank may invoke the guarantee in respect to the amount in default out of the crystallized portfolio of Micro Loans subject to the condition of First Loss Guarantee, after a lock-in-period of 12 months from the date of crystallization of the portfolio and thereafter, at the end of every financial year. Payment of Claims – The Fund shall pay eligible claim amount within 60 days, subject to the claim being otherwise found in order and complete in all respects. The Fund shall pay to the Bank interest on the eligible claim amount at the prevailing Bank Rate for the period of delay beyond 60 days. If serious deficiencies are found in appraisal / renewal / follow-up / conduct of Micro Loans or where lodgment of claim was more than once or where there is any suppression of material information by the Bank for settlement of claims then the Bank will have to refund the claim with penal interest.

NOTE : MARGINAL COST OF FUNDS BASED LENDING RATE (MCLR), REVISED INTEREST RATE STRUCTURE FOR GOVT SCHEMES W.E.F. 01.04.2016 has been provided in the e-cir 118/2016-17 dt 27th April, 2016.

Documents

QUICK SUCCESS SERIES is an Quick Success Series · SBI TIMES>PATNA CIRCLE>SBLC ... products of MUDRA. The application forms for ... (SB-OD) – MUDRA LOAN, OVERDRAFT UPTO Rs