What changed
The Government of India merged the Rural Employment Generation Programme (REGP) with Prime Minister Rozgar Yojana (PMRY) into a single scheme called PMEGP. KVIC is the single national-level nodal implementation agency. Banks are requested to take appropriate action as per the enclosed guidelines and minutes of the September 18, 2008 meeting.
What it means for you
Banks need to align their lending and processing procedures with the new PMEGP framework, replacing the earlier REGP and PMRY schemes. This may involve updating internal guidelines, training staff, and coordinating with KVIC for disbursement and monitoring. The scheme aims to streamline employment generation efforts under one umbrella.
What you must do
- Review the enclosed PMEGP guidelines and minutes from the September 18, 2008 meeting for bank-specific actions.
- Issue instructions to all branches and controlling offices to implement PMEGP as per the new framework.
- Coordinate with KVIC as the nodal agency for scheme implementation and reporting.
- Acknowledge receipt of this circular.
Who it affects
All Indian Scheduled Commercial Banks (including RRBs), Bank branches and controlling offices handling employment generation loans, KVIC (Khadi and Village Industries Commission) as nodal agency
What is the key change with PMEGP compared to earlier schemes?
PMEGP merges REGP with PMRY into a single programme, with KVIC as the sole national nodal agency, simplifying implementation for banks.
Do banks need to take any immediate action?
Yes, banks must review the enclosed guidelines, issue instructions to branches, and coordinate with KVIC for smooth rollout.