What changed
The Ministry of Housing & Urban Poverty Alleviation comprehensively revised the SJSRY scheme, effective from April 1, 2009 per the revised guidelines, but the RBI circular instructs banks to implement immediately from October 12, 2009. The revamped scheme emphasizes gainful employment through self-employment ventures (individual or group) with sustainability support, wage employment, skill development training, and community empowerment via self-managed structures. RBI has sought clarifications from the Ministry on subsidy administration and new reporting formats, which will be communicated later.
What it means for you
Banks must immediately align their branch operations with the revised SJSRY guidelines to facilitate urban poverty alleviation through credit-linked self-employment and wage employment schemes. The focus on community structures and skill training may require banks to engage more closely with urban local bodies and community organizations. Pending clarity on subsidy mechanisms and reporting, banks should proceed with implementation based on the guidelines while awaiting further instructions.
What you must do
- Review the enclosed revised SJSRY guidelines and issue instructions to all branches/controlling offices for immediate implementation.
- Ensure branch staff are trained on the new scheme components: USEP, UWSP, STEP-UP, UWEP, and UCDN.
- Coordinate with urban local bodies and community structures (e.g., Neighborhood Groups, Community Development Societies) for effective outreach.
- Monitor loan disbursements under self-employment components and report as per existing formats until new formats are issued.
- Acknowledge receipt of this circular to the RBI regional office.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Bank branches in urban and semi-urban areas, Credit departments handling government-sponsored schemes, Urban poor customers seeking self-employment or wage employment loans
What is the effective date of the revised SJSRY guidelines?
The revised guidelines state an effective date of April 1, 2009, but the RBI circular of October 12, 2009 instructs banks to implement immediately. Banks should follow the circular's directive for immediate implementation.