What changed
Following a meeting on February 10, 2005 chaired by Jt. Secretary (ARI), Government of India, modifications were suggested: SLBC conveners should reconcile data with state governments and RBI; banks must reduce sanction-disbursal gap; all agencies should ensure full target achievement with sanctions by March 31, 2005 and disbursements by June 30, 2005.
What it means for you
Banks must prioritize closing pending PMRY loans to meet government targets, which may require faster processing and disbursement. Failure to reconcile data or reduce the sanction-disbursal gap could lead to scrutiny from RBI and state governments. This directive reinforces the government's focus on employment generation through timely credit delivery.
What you must do
- Instruct regional offices and branches to follow SLBC convener-led data reconciliation with state governments and RBI.
- Accelerate disbursement of sanctioned PMRY cases to meet the June 30, 2005 deadline.
- Monitor and report the gap between sanctions and disbursements to ensure reduction.
- Ensure all allocated targets for 2004-05 are fully achieved with sanctions by March 31, 2005.
Who it affects
All Indian scheduled commercial banks (excluding RRBs), State Level Bankers' Committee (SLBC) conveners, Regional and controlling offices of banks
What is the key deadline for PMRY disbursement under this circular?
All sanctioned cases must be disbursed by June 30, 2005, with sanctions completed by March 31, 2005.
Why is data reconciliation with state governments important?
SLBC conveners must reconcile data to ensure accurate tracking of PMRY progress and avoid discrepancies between bank records and government figures.