What changed
RBI issued a Master Circular consolidating all existing guidelines on SJSRY, replacing earlier circulars listed in Annexure III. The scheme itself, launched December 1, 1997, remains unchanged in structure and eligibility criteria.
What it means for you
Banks now have a single reference document for SJSRY lending, simplifying compliance and training. The scheme continues to require banks to lend up to Rs 50,000 per individual for self-employment ventures, with subsidy at 15% of project cost (max Rs 7,500 per beneficiary) and margin money of 5% of project cost from borrower. Administration of subsidy and monitoring unchanged.
What you must do
- Replace all previous SJSRY circulars with this Master Circular for internal reference and training.
- Ensure loan officers are familiar with eligibility criteria: urban poor families below poverty line, education up to ninth standard.
- Continue to process subsidy claims as per Annexure I guidelines and submit monthly progress reports in Annexure II format.
- Coordinate with Urban Local Bodies and Community Development Societies for beneficiary identification and project implementation.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Priority sector lending departments, Branch managers in urban areas, Credit officers handling government scheme loans
What is the maximum loan amount under SJSRY for an individual?
The project cost for an individual beneficiary is up to Rs 50,000 under the Urban Self-Employment Programme component.
Which urban areas are covered under SJSRY?
The scheme applies to all urban towns in India, covering all areas under Urban Local Bodies. The wage employment component is limited to towns with population less than 5 lakh as per 1991 census.
What is the funding ratio between Centre and States for SJSRY?
The scheme is funded on a 75:25 basis between the Central Government and State Governments.