Current · Source: Reserve Bank of India · RBI/2008-09/211 · issued 10 Oct 2008 · ~1 min read
Quick answerRBI requests all scheduled commercial banks (including RRBs) to take appropriate action for the new Prime Minister Employment Generation Programme (PMEGP), which merges REGP with PMRY, with KVIC as the single national-level nodal implementation agency.
The rule, in the simplest words
Banks need to follow the new Prime Minister Employment Generation Programme (PMEGP) framework, which combines REGP and PMRY.
KVIC is the single national-level nodal implementation agency for PMEGP.
Banks must update their lending and processing procedures to align with the new PMEGP framework.
How it plays out — a real example
Rahul, an agri & priority-sector lending officer in Indore, received the updated guidelines for PMEGP and immediately informed his team about the changes. He ensured that all loan applications were processed according to the new framework, which streamlined the employment generation efforts in their region. Rahul's efforts helped in the successful implementation of PMEGP in their branch.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/211
RPCD.PLNFS.BC. No . 41 /09.04.01/2008-2009
October 10, 2008
The Chairman / Managing Director
All Indian Scheduled
Commercial Banks (including RRBs)
Dear Sir,
Prime Minister's
Employment Generation Programme (PMEGP)
As you are aware, Government
of India, have merged Rural Employment Generation Programme ( REGP) with Prime
Minister Rozgar Yojana (PMRY) and introduced a new scheme called Prime Minister
Employment Generation Programme (PMEGP).
2.
A copy of the
guidelines on PMEGP , released by the Ministry of Micro, Small and Medium Enterprises
(MSME), Government of India, along with a copy of the minutes
of the meeting under the Chairmanship of Secretary, Ministry of MSME held on September
18, 2008 regarding the modalities for implementation of PMEGP, is enclosed. As
may be observed, Khadi and Village Industries Commission (KVIC) is the single
national level nodal implementation agency for PMEGP.
3.
You are requested to take appropriate action as envisaged for banks in the said
documents and issue necessary instructions to your branches/controlling offices
for successful implementation of the scheme.
4. Kindly
acknowledge receipt.
Yours faithfully,
( R. Sebastian )
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/211 · issued 10 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.
Issue instructions to all branches and controlling offices to implement PMEGP as per the new framework.
📜 Compliance
Review the enclosed PMEGP guidelines and minutes from the September 18, 2008 meeting for bank-specific actions.
Coordinate with KVIC as the nodal agency for scheme implementation and reporting.
Acknowledge receipt of this circular.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (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), your first concrete step on “PMEGP Scheme Implementation for Banks” is: “Review the enclosed PMEGP guidelines and minutes from the September 18, 2008 meeting for bank-specific actions.” (RBI issued this 10 Oct 2008).
Circular: RBI/2008-09/211 -- PMEGP Scheme Implementation for Banks
Issued: 10 Oct 2008
Action required: Review the enclosed PMEGP guidelines and minutes from the September 18, 2008 meeting for bank-specific actions.
Action required: Issue instructions to all branches and controlling offices to implement PMEGP as per the new framework.
Action required: Coordinate with KVIC as the nodal agency for scheme implementation and reporting.
Action required: Acknowledge receipt of this circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4535&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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