What changed
RBI issued detailed guidelines for operationalising the Interest Subvention Scheme under the restructured National Rural Livelihoods Mission (NRLM) for Self-Help Group (SHG) credit during 2013-14. This follows the earlier circular on restructuring SGSY into NRLM.
What it means for you
Banks must implement the interest subvention scheme for SHG loans under NRLM as per the annexed guidelines from the Ministry of Rural Development. This ensures subsidised credit reaches rural SHGs, aligning with the government's poverty alleviation mission.
What you must do
- Review and implement the annexed detailed guidelines for the Interest Subvention Scheme under NRLM for SHG credit.
- Ensure compliance with the operational instructions for the 2013-14 period as specified.
- Coordinate with NABARD for separate guidelines applicable to RRBs and cooperative banks.
Who it affects
All Public Sector Banks, Regional Rural Banks (via NABARD), Cooperative Banks (via NABARD)
What is the purpose of this circular?
It provides detailed guidelines for banks to operationalise the Interest Subvention Scheme under NRLM for SHG credit during 2013-14, as received from the Ministry of Rural Development.
Who will issue guidelines for RRBs and cooperative banks?
NABARD will issue separate guidelines to Regional Rural Banks and Cooperative Banks regarding this scheme.