Implementation of Interest Subsidy and

Roles of RPs

• GO is in Finance Dept. and Expected-by 15th May -2010

• Participating Banks– SBT, FB, DLB, SMGB, IOB, CBI, CB, NMGB,

Syndicate Bank and UBI

• MoU-Draft is circulated to 9 Banks (Feb-2010)

– CB, SBT, SMGB, NMGB suggested modification

– Final MOU is send to CB, and SBT– Other Banks are busy/still vetting the MoU– Indian Bank is Vetting MoU but no participating

letter

Interest Subsidy Status

• Expenditure before march was not possible but before June, it is possible

• CBI is ready, Branches are already instructed

• If the Guidelines is acceptable to Coop Bank, then willing coop banks can link NHGs

• April to June 2010 is crucial for the scheme due to ensuing elections (LSG & MLA)

• In addition to CBI + Coop Bank , State mission would try to get Other banks by April 2010

Interest Subsidy-expenditure

• Available funds is Rs 6.5 Crore for 2009-10• Average Interest Subsidy is Rs 4315 per

NHG for first 12 months period• About 15,000 NHGs to be provided Interest

Subsidy in order to achieve the target by June

• Those districts with Coop Bank + CBI can implement the scheme without delay

• Assessment of eligible NHGs and Bank Branches must be completed before April 2010

Interest Subsidy-Linkage Plan

Interface between HO and Bank

• Role of RP may be restricted to a Block

• Coordination with individual Banks• Participating in Bankers meeting

(Block level)• Planning, implementation and

monitoring of Bank wise performance under interest subsidy scheme

• Resolving issues with Banks if any

District Mission and CDS

• CDS - action plan provides demand for interest subsidy

• Coordinating Accountants in collecting data on Loan applications generated, loan sanctioned and repayment etc

• RPs need to consolidate at district level

• Reporting to District Mission, HO, and participating in periodical review/Orientation meetings