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

RBI/2013-14/85 RPCD CO GSSD.BC. No. 04/09.03.01/2013-14 July 01, 2013 The Chairman/ Managing Director All Indian Public Sector Banks (Excluding RRBs) Dear Sir, Master Circular on “Self Employment Scheme for Rehabilitation of Manual Scavengers” (SRMS) Reserve Bank of India had issued instructions in April 2008 to banks regarding operationalisation of the 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, 2013 ( Annexure IV ). 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 . The reporting proforma for the performance and recovery of the Scheme is given in Annexure II and Annexure III , respectively. Yours faithfully, (Madhavi Sharma) Chief General Manager Encls: Annexure I to IV            Appendix I Annexure 1 Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS) 1. Introduction 1.1 The National Scheme for Liberation and Rehabilitation of Scavengers (NSLRS) was 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 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. As the Government of India, Ministry of Social Justice & Empowerment decided to continue the scheme beyond September 30, 2009, banks were advised to complete implementation of the scheme up to December 31, 2009 and the spillover in inevitable cases up to March 31, 2010 (vide Circular RPCD.SP.BC.No.47/09.03.01/ 2009-10 dated December 18, 2009 ). The scheme contains provisions for capital subsidy, concessional loans and capacity building for rehabilitation of manual scavengers in alternative occupations. 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. 1.3 The Ministry has since advised that as per information provided by the States / Union Territories all eligible and willing beneficiaries were assisted by June 2010. However, Scheme is still functioning to cover residual cases of manual scavengers reported by States / UTs. Banks are, therefore, advised to continue financing the projects under SRMS. Objective of the Scheme The objective of the scheme is to assist the remaining scavengers for rehabilitation, which are yet to be assisted. 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 I. 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 Channelising 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 lakhs. 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 lakhs) 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)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/85 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.

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