What changed
Government finalised state-wise credit mobilisation targets under SGSY for 2007-08, totalling ₹3,744 crore. RBI directed SLBCs to allocate these targets among commercial banks, cooperatives, and RRBs based on resources and branch presence. Banks must now meet these indicative targets, with flexibility for states to enhance them via SLBC/DCC.
What it means for you
Banks must prioritise SGSY lending in rural and semi-urban areas, aligning branch-level goals with state targets. The ₹25,000 per family investment norm and subsidy-credit ratio will require careful monitoring. Non-achievement could attract RBI scrutiny, while proactive allocation via SLBCs offers some flexibility.
What you must do
- Allocate state-wise SGSY credit targets to branches based on resources and rural/semi-urban presence via SLBCs.
- Ensure each self-help group family receives at least ₹25,000 investment and maintain minimum subsidy-credit ratio.
- Submit quarterly cumulative progress reports and recovery statements within 45 days of quarter/half-year end.
- Review credit mobilisation performance regularly through SLBC/DCC meetings at state/UT level.
Who it affects
All Indian scheduled commercial banks (excluding RRBs), State Level Bankers’ Committees (SLBCs), Lead banks in each state/UT, Cooperative banks and Regional Rural Banks (via SLBC allocation)
What is the total credit target under SGSY for 2007-08?
The total credit mobilisation target is ₹3,74,355.30 lakh (₹3,744 crore) for all states and UTs combined.
Can states increase their credit targets?
Yes, states/UTs can enhance targets in consultation with their SLBC or DCC if deemed necessary, as targets are indicative.
What reporting is required from banks?
Banks must submit quarterly cumulative progress reports and recovery statements within 45 days from the close of the quarter or half-year.