implementation of interest subsidy and roles of rps
TRANSCRIPT
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