What changed
Government allocated a fresh target of 3,84,340 beneficiaries under PMRY for 2006-07, based on 2004-05 performance. For states with recovery below 30% (as per half-year ending March 2005), targets are frozen at actual 2004-05 levels, with a possibility of revision if recovery improves by September 2006. A revised quarterly schedule mandates 125% sponsorship of targets and completion of sanctions by December 31, 2006.
What it means for you
Banks in low-recovery states face tighter scrutiny and must prioritize loan recovery to unlock higher targets. The strict quarterly schedule and December 31 sanction deadline reduce flexibility, pushing banks to front-load processing. Lenders must coordinate with DICs to clear pending applications and ensure 22.5% SC/ST and 27% OBC reservation, along with fair shares for women and minorities.
What you must do
- Achieve full loan disbursement and subsidy release by March 31, 2007, adhering to the quarterly schedule.
- Sponsor 125% of assigned targets and complete all sanctions by December 31, 2006, except for replacement of rejected applications.
- Formulate action plans for improving loan recovery in states with recovery below 30% and report to the Ministry.
- Ensure 22.5% SC/ST and 27% OBC reservation, with adequate allocation for women and minorities.
- Coordinate with DICs to consider pending applications and avoid fresh applications from existing candidates.
Who it affects
All Indian Scheduled Commercial Banks (excluding RRBs), State-level implementing agencies (DICs), Branches in low-recovery states (Sikkim, Nagaland, Bihar, West Bengal, Meghalaya, Arunachal Pradesh, Assam, Orissa, Manipur), Borrowers under PMRY scheme
What happens if my state's recovery is below 30%?
Your target for 2006-07 is capped at actual 2004-05 performance. If recovery improves substantially by September 2006 (based on RBI reports), a higher target may be considered. You must submit an action plan to the Ministry.
What is the deadline for sanctioning loans under PMRY 2006-07?
All sanctions must be completed by December 31, 2006, except for replacement of rejected applications. Disbursement must be fully done by March 31, 2007. The quarterly schedule must be strictly followed to avoid year-end bunching.
Are there any reservation requirements for this scheme?
Yes, 22.5% reservation for SC/STs and 27% for OBCs. Banks must also ensure a fair and adequate share for women and minorities.