Master Circular on Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

RBI/2009-10/34 RPCD.SP.BC. No.6/09.03.01/ 2009-10 July 1, 2009 The Chairman/ Managing Director All Indian Public Sector Banks ( Excluding RRBs) Dear Sir, Master Circular on New “Self Employment Scheme for Rehabilitation of Manual Scavengers” (SRMS) from the Ministry of Social Justice & Empowerment for rehabilitation of all the remaining scavengers and their dependents by September 2009 Reserve Bank of India had issued instructions in April 2008 to banks regarding operationalisation of the new Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS). To enable banks to have current instructions at one place, a Master Circular incorporating all the existing guidelines/ instructions/ directives/ reporting formats has been prepared and is appended. We advise that this Master Circular has been updated and consolidates all previous instructions on the subject issued by Reserve Bank up till June 30, 2009. Particulars of the Scheme as well as the broad guidelines to be followed by the banks in implementing this Scheme are given in the Annexure I to this circular. The reporting proforma for the performance and recovery of the new scheme is given at Annexure II and Annexure III respectively. Since Government of India has stopped funding the existing National Scheme for Liberation and Rehabilitation of Scavengers (NSLRS) since 2005-06, you are advised to henceforth implement the SRMS scheme in place of SLRS (Scheme for Liberation and Rehabilitation of Scavengers). Please acknowledge receipt. Yours faithfully, (B.P. Vijayendra) Chief General Manager Annexure 1 SELF EMPLOYMENT SCHEME FOR REHABILITATION OF MANUAL SCAVENGERS (SRMS) 1.Introduction 1.1 As you are aware, the National Scheme for Liberation and Rehabilitation of Scavengers (NSLRS) is being implemented by all Public Sector banks since 1993 with an objective to liberate all scavengers and their dependents from their existing hereditary and obnoxious occupation of manually removing night soil and filth and to provide for and engage them in alternative and dignified occupations within a period of five years. Government of India stopped funding the existing NSLRS since 2005-06 and approved the Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) with an objective to rehabilitate the remaining scavengers and their dependents by March 2009. The Government of India, Ministry of Social Justice & Empowerment has decided to continue the scheme beyond March 31, 2009 till September 30, 2009. Accordingly, banks have been advised to complete implementation of the scheme by the stipulated date (vide Circular RPCD.SP.BC.No.117/09.03.01/2008-09 dated June 30, 2009).The approved scheme contains provisions for capital subsidy, concessional loans and capacity building for rehabilitation of manual scavengers in alternative occupations. Further, the Government of India desires that the scheme should be administered as a national priority with a resolute sense of purpose for surmounting any obstacles in its implementation. 1.2 The successful implementation of the Scheme would depend upon effective participation and monitoring of the scheme by public sector banks at all controlling levels. Banks should therefore pay particular attention to this aspect since the scheme is to be implemented in fixed time period by identifying scavengers and their dependents and their aptitude for alternative trade by September 2009. 1.3 As per survey reports received from States, there are 7,70,338 scavengers and their dependents in India. Taking into account  manual scavengers numbering 4,27,870 already assisted under NSLRS and ineligible for assistance the number of Manual Scavengers yet to be rehabilitated is 3,42,468 as per State wise details given in Appendix-I . The Statement of Fund Requirement for Rehabilitation of the remaining nos. (342468) of Manual Scavengers has been provided in Appendix-II . Objective of the Scheme The objective of the scheme is to assist the remaining scavengers for rehabilitation, which are yet to be assisted, in a time bound manner by September 2009. Eligibility Scavengers and their dependents, irrespective of their income, who are yet to be provided assistance for rehabilitation, under any scheme of Government of India/State Governments will be eligible for assistance. Definition of scavenger A “Scavenger” means one who is partially or wholly engaged in the obnoxious and inhuman occupation of manually removing night soil and filth. The dependent of Scavengers is one who is a member of their family or is dependent on them irrespective of the fact whether they are partially or wholly engaged in the said occupation. Each individual scavenger and his/her children who are of 18 years of age and above, who are not employed (other than as scavengers) will be identified and rehabilitated. 2 . Salient features 2.1 The Self Employment Scheme for rehabilitation of Manual Scavengers is applicable to Public Sector Banks. 2.2. The scheme is being implemented through the apex corporations of the Ministry of Social Justice and Empowerment as per the list enclosed at Appendix III . The eligible beneficiaries will be sponsored by the State Channelising Agencies for availing loans from banks. Self Help Groups (SHGs) may be involved in implementation of the new scheme, within the overall parameters of the scheme. Since it is a time bound scheme, norms applicable to SHGs under other schemes will not apply. 2.3 The identified scavengers will be provided training, loan, and subsidy. Banks will provide loans to candidates sponsored by State Channelising agencies only. After sanction of the loan, bank will claim amount of capital subsidy from the State Channelising Agencies who in turn will provide admissible capital subsidy, which will be disbursed to the beneficiary alongwith the loan amount. After disbursement of loan to the beneficiaries, the concerned branch of the bank will claim interest subsidy from the State Channelising Agency on a quarterly basis. 2.4 Credit will be provided by the banks, which will charge interest from the beneficiaries at the rates prescribed under the scheme. National Safai Karmacharis Finance and Development Corporation (NSKFDC) or any other identified agency at the apex level, will provide interest subsidy to the banks through its State Chanelising Agencies (SCAs) or any other identified agency at the State level, for the difference between the interest chargeable by bank and the interest to be charged from the beneficiaries under the scheme. However, the procedures indicated for claiming interest and capital subsidy are suggestive in nature. The concerned State Governments and SLBC have the option of evolving any alternative procedure in the interest of smoother implementation of the scheme with mutual consent. 3. Funding 3.1 The scheme provides for projects costing upto Rs. 5.00 lakh. The loan amount will be the remaining portion of the project cost, after deducting the admissible capital subsidy. No margin money/ promoter’s contribution is required to be provided under the scheme. 3.2 Both, term loan (upto a maximum cost of Rs. 5 lakh) and micro financing (upto a maximum of Rs.25,000) will be admissible under the scheme. Micro financing will also be done through self help groups (SHGs) and reputed Non Governmental Organisations(NGOs) 3.3 The rate of interest chargeable from the beneficiaries will be as follows:- (a) For projects upto Rs. 25,000/-

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/34 · issued 01 Jul 2009. The plain-English explanation above is BankPulse’s own independent summary.

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