quick success series is an quick success...

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June 4, 2010

Govt Sponsored Schemes

UPDATED UPTO

30 NOVEMBER 2017

Updated By KUMAR PRIYANK Chief Manager, SBLC Deoghar Mobile- 7321805713 Email- [email protected]

QUICK SUCCESS SERIES is an initiative of SBLC Deoghar to facilitate the preparation of promotion seeking personnel of our Bank, appears to have succeeded in its objective to a large extent as the readers are still approaching us for its revision/ updation despite availability of plenty of other study materials. We would not have been able to sustain this unique effort of ours, without the active support and continuous encouragement of our DGM cum Circle Development officer Sri Bijayananda Padhi. We are deeply indebted to him for his co-operation and guidance. Sri Kumar Priyank, Chief Manager (Training), Sri J K Arun, Manager (Training) and Sri S K Sharma, Manager (Training) at this SBLC have owned up this project and have taken pains to keep it relevant to the users by updating & improving it. Though every care has been taken while updating the contents, we request our readers to point out any lapses at the earliest. Needless to mention that this book is not a substitute of circular instructions issued by the Bank from time to time. For detailed guidelines please refer to Bank’s latest circulars. Soft copy of this edition is available on our ftp://10.151.51.33 in QSS folder and on SBI TIMES> PATNA CIRCLE> SBLC Deoghar site. Team SBLC Deoghar is humbled by the response and recognition; it is receiving from readers within and beyond the circle. Our Team wishes the readers grand success in their endeavours. Kumar Umeshwar Singh Assistant General Manager, State Bank Learning Centre, Deoghar- 814112 Phone- 06432-232895 Fax - 06432-231810

E-mail: [email protected]

Quick Success Series

Quick Success Series – Govt Sponsored Schemes

November, 2017

PRADHAN MANTRI MUDRA YOJANA (PMMY) (e-cir 293 dt 09/06/2015) The Micro Units Development and Refinance Agency (MUDRA) has been launched by the Hon’ble Prime Minister on 8th April, 2015 as a new financial entity for developing and refinancing last mile financial intermediaries like Banks, NBFCs, MFIs, who are in the business of lending to smaller of the micro enterprises in manufacturing, trading and services sector. Pradhan Mantri MUDRA Yojana (PMMY) has also been launched to “fund the unfunded”, i. e. to provide credit to micro enterprises / units in the country, which are outside the formal banking fold. It has been decided by GOI that the loans to this segment for income generation will be known as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly. All advances granted on or after 8th April, 2015 to non-farm enterprises in Manufacturing, Trading and Services with credit limits up to Rs 10 lac, are to be classified as MUDRA Loans under PMMY under three categories, such as Shishu, Kishore & Tarun as per the loan value of up to Rs 50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10 lac respectively. All such loans can be covered under refinance and/or credit enhancement products of MUDRA. The application forms for such loans shall carry the name “Pradhan Mantri MUDRA Yojana (PMMY)”. In addition to above, (i) Overdraft amounts of Rs 5000/- sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) are also to be classified as MUDRA loans under PMMY. (ii) Loans with credit limits upto Rs 10 lac sanctioned to non-farm enterprises under Rural Business segment for manufacturing, trading and services shall also be categorized as MUDRA loans with sub-categories such as, Shishu, Kishore & Tarun as per the loan value of upto Rs 50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10 lac respectively. The application forms for such

loans shall also carry the name “Pradhan Mantri MUDRA Yojana (PMMY)”. PMMY MUDRA CARD (e-cir 734 dt 11/09/2015) MUDRA had advised all the Banks for issuance of co-branded RuPay debit cards to all non-farm borrowers with limits up to Rs. 10.00 lacs. Accordingly, our Bank launched co-branded MUDRA cards at Patna. These MUDRA cards are meant to expand the reach of Pradhan Mantri Mudra Yojana (PMMY), launched by the Govt. of India. The cards may be used by the borrowers both at ATMs and PoS. Following limits have been stipulated for cash withdrawals and PoS transactions under the 3 categories of MUDRA cards. (amt in Rs.)

Particulars Shishu Kishore Tarun

Daily cash withdrawal Limits

10000 15000 20000

Daily PoS Limit 15000 25000 30000

AGRI BUSINESS: PMMY (e-cir 144 dt 02/05/2017 As per the direction from Micro Units Development & Refinance Agency Limited (MUDRA), the benefits of MUDRA loans has been extended to Agri-Clinics and Agri-Business centres Scheme for establishment of agri-ventures by the candidates trained under the Scheme provided the loan limit is within Rs.10 lakh per centre. Hence, loans sanctioned under this scheme up to a limit of Rs.10.00 lakh are to be covered under Pradhan Mantri Mudra Yojna (PMMY). PRADHAN MANTRI MUDRA YOJNA (PMMY): MODIFICATION IN REPAYMENT CONDITION (e-cir 500 dt 01/08/2017) Working Capital facility for Kishore and Tarun loans (for all loans above Rs. 50,000 to Rs. 10 lacs, covered under PMMY) will either be payable on demand (subject to review / renewal at the periodicity applicable to the product / scheme) or may have a repayment schedule for 3 - 5 years including a moratorium of up to 6 months depending on the activity / income generation of the borrower. However, Shishu loans will be only


November, 2017

on repayment basis for a period of 3 – 5 years including a moratorium of up to 6 months depending on the activity / income generation of the borrower. PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME (PMEGP) (e-cir 1200 dt 13/12/16)

Introduced by merging 2 schemes that were in operation till 31.03.08 - PMRY (Prime Minister’s Rojgar Yojna) and REGP (Rural Employment Generation Programme) for generating employment through micro-enterprises in rural as well as urban areas. Scheme is administered by Ministry of Micro, Small and Medium Enterprises Eligibility Conditions of Beneficiaries: (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under PMEGP. (iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. (iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP. (v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP. (vi) Institutions registered under Societies Registration Act, 1860; (vii) Production Co-operative Societies, and (viii) Charitable Trusts. (ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible. One person from one family. Family includes self and spouse.

Other Eligibility Conditions: 1. Relevant Caste certificate. 2. Certified copy of bye-laws of the institution

3. Project without capital expenditure is not eligible. Project above Rs 5 lacs not requiring Working capital needs clearance from Controller. 4. Cost of land should not be included in Project 5. All new viable micro-enterprises including village industries

Categories of beneficiaries under PMEGP

Beneficiary’s own cont. (of project cost)

Rate of Subsidy

Urban Rural

General Category 10% 15% 25% Special (including SC/ ST /OBC / Minorities /Women, Ex- servicemen, Physically handicapped, NER, Hill and Border areas etc)

5% 25% 35%

Quantum of Finance: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh. (2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh. (3) The balance amount of the total project cost will be provided by Banks as term loan.

Repayment: 3 to 7 years after an initial moratorium period of maximum 12 months. Nodal Agency: (KVIC), Mumbai, single nodal agency at the national level. Implementing agencies in Rural Areas: State Directorates of KVIC, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres. Implementing Agency in Urban Area - State District Industries Centres (DICs) only. Identification of beneficiaries will be done at district level by a Task Force consisting of representatives of KVIC, DIC and Banks headed by DC. After conduct of Entrepreneur Development Programme training, the beneficiary will deposit owner’s contribution with bank.


November, 2017

Margin Money (Subsidy) claim will be submitted by the Bank after partial/ full finance. Released Subsidy will be kept in TD for 3 yrs favouring the beneficiary. No interest on TD and corresponding amount of loan. Subsidy kept in TD will be transferred to loan a/c after 3 yrs . Effective FY 2013-14, the implementing agencies (KVIC, KVIB and DICs) will forward the PMEGP applications to financing branches only after entering the applications in the e-tracking system. The financing branches should enter the data relating to sanction and disbursement in the e-tracking system. The KVIC has advised that it will not release Margin Money subsidy in respect of those applications which have not been processed through e tracking system. The financing branches should accept the applications of PMEGP scheme only if they are entered in the e-tracking system; otherwise they should reject the application forms outright. (Circular No. : NBG/RRBLBCSB-LB/1/2013 – 14th June 07,2013.) Inclusion of SHGs under the PMEGP: SHGs (including those belonging to BPL) can also be financed under the PMEGP provided, they have not availed benefits under any other scheme. (E-manual, vol 6, page 372) PRADHAN MANTRI FASAL BIMA YOJANA (e-cir 180 dt 12/05/2017) The Government of India has launched ‘Pradhan Mantri Fasal Bima Yojna’ (PMFBY) on the18th February 2016, to enhance crop insurance coverage. The revised scheme replaced the existing schemes of National Agricultural Insurance Scheme (NAIS) & Modified National Agricultural Insurance Scheme (MNAIS) from ensuing Kharif 2016 season. The revised scheme would provide insurance cover for all stages of the crop cycle, including post-harvest risks in specified instances. Weather Based Crop Insurance Scheme (WBCIS) has also been modified and the administrative provisions and operationalization of the scheme have been brought at par with PMFBY.

Implementation of the Scheme: i. The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Government of India (GOI) and the concerned State Government / UT. ii. State Government / UT will issue notification, at least one month in advance, of the commencement of the crop season incorporating all the essential details about insured crops. Coverage of Farmers: i. The scheme is applicable to all farmers, including sharecroppers and tenant farmers, growing the notified crops in the notified areas. ii. Compulsory for loanee farmers and optional / voluntary for non-loanee farmers. Sum Insured / Coverage Limit: i. The Scheme is implemented on an ‘Area Approach Basis’ in the selected defined Areas called Insurance Unit. State Government / UT will notify Crops and Defined Areas covered during the season. ii. Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance (SOF) as decided by the District Level Technical Committee. Sum Insured for individual farmer is equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance. ‘Area under cultivation’ shall always be expressed in ‘hectare’. Coverage of Crops & Risks: i. Food crops (Cereals, Millets and Pulses), Oilseeds & Annual Commercial / Annual Horticultural crops are covered under the scheme. ii. Stages of the crop and risks leading to crop loss covered are: a) Prevented Sowing / Planting Risk (due to deficit rainfall or adverse seasonal conditions) b) Standing Crop (Comprehensive risk insurance to cover yield losses due to non-preventable risk) c) Post-Harvest Losses –


November, 2017

{Coverage available only up to a maximum period of 2 weeks from harvesting of the crop. (Individual farm basis)} d) Localized Calamities (individual farm basis) Indemnity Level & Premium Rates: i. The three levels of Indemnity, viz., 70%, 80% and 90% corresponding to crop Risk in the areas shall be available for all crops. ii. State Government notified seasonality discipline for various activities under the scheme viz. submission of insurance proposals, consolidated declaration by banks, yield data, claim assessment of losses for (i) standing crop (ii) localized calamities (iii) prevented sowing (iv) post-harvest loss, (v) on-account payment for major calamities, etc as per the provision of the scheme. iii. There will be a uniform premium ranging from 2% for Kharif to 1.5% for Rabi for food crop, oilseeds and pulses. In case of annual commercial and horticultural crops, the premium will be 5%. iv. The cut-off date is uniform for loanee and non-loanee cultivators. Loaning period (loan sanctioned) for Kharif April to July and for Rabi October to December. The State –wise cut off dates for difference crops shall be based on Crop Calendar of major crops published from time to time by the Directorate of Economics & Statistics. PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)

National Mission for Financial Inclusion to ensure

access to financial services, namely, Banking/

Savings & Deposit Accounts, Remittance, Credit,

Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or

Business Correspondent (Bank Mitr) outlet.

PMJDY accounts are being opened with Zero

balance. However, if the account-holder wishes

to get cheque book, he/she will have to fulfill

minimum balance criteria.

Benefits: 1. Interest on deposit. 2. Accidental insurance cover of Rs.1.00 lac 3. No minimum balance required. 4. Life insurance cover of Rs.30,000/- 5. Easy Transfer of money across India 6. Beneficiaries of Government Schemes will get direct Benefit Transfer in these accounts. 7. After satisfactory operation of the account for 6 months, an overdraft facility will be permitted 8. Access to Pension, insurance products. 9. Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days. 10. Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household. SBOD (PMJDY) (e-cir 1324 dt 09/02/2015) Eligibility: 1. All FI accounts, which are operated satisfactorily for at least six Months. 2. OD to be granted to the earning member of family, preferably woman of the house. 3. FI account holder should not be maintaining any other SB account with any Bank/branch to ensure compliance with RBI directives. 4. Age of applicant between 18 years to 60 years (Not eligible: Minors, KCC/GCC borrowers, more than one member of the same family) Period of Sanction: 36 Months subject to annual review of account Loan amount: a) 4 times of Average monthly balance b) or, 50% of credit summations in account during the preceding 6 months c) Or, Rs 5000/- whichever is lower Processing Fee: Nil

Accounts under PMJDY-Precautions (e-cir 1223

dt 15/12/2016)

As a temporary measure, the banks are advised to observe the following in respect of the PMJDY accounts:


November, 2017

i. Fully KYC compliant account holders may be allowed to withdraw ₹ 10,000/- from their account, in a month. The branch managers may allow further withdrawals beyond ₹ 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record. ii. Limited or Non KYC compliant account holders may be allowed to withdraw ₹ 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of ₹ 10,000. (SB-OD) – MUDRA LOAN, OVERDRAFT UPTO Rs. 5000/- UNDER PMJDY, MODIFICATIONS IN LOAN PROCEDURE (e-cir dt 1122 dt 09/12/2015) a) The concerned branch will process eligible PMJDY SB OD. There is no need for the customer to visit the branch to avail the loan. b) On getting message from New Project Department for successful OD mapping with NPCI, the branch will approve the limit and send an intimation letter through Registered Post, preferably in local language. Duplicate copy of this letter will be retained by the Branch for record. c) Obtention of loan documents has been dispensed with for these loans.

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (e-

cir 319 dt 07/06/2016)

Insurance Scheme offering life insurance covers for

death due to any reason.

The savings bank account holder of the participating banks aged between 18 years completed) and 50 years (age nearer birthday) and who have given the consent to join the scheme during the ‘enrollment period’ are eligible to join the scheme. Premium to be deducted from member’s SB Account. The premium is Rs.330/- plus Service Tax (if payable)

irrespective of date of entry i.e. during enrollment period or after that date during the first year. Renewal premium is chargeable as per the rate decided from time to time on Annual Renewal dates.

An assurance of Rs.2,00,000/- on death of the

insured member is payable to the Nominee

Upon the death of the Member prior to Terminal Date, the sum assured under the Assurance shall be payable to the nominated Beneficiary, provided the assurance is kept in force by payment of premium for that member provided the claim is otherwise admissible and subject to the 45-days exclusion clause as detailed under exclusions.

The Assurance on the life of a Member shall terminate on an Annual Renewal Date upon happening of any of the following events and no benefit will become payable there under:- a. On attaining age 55 years (age neared birthday) on annual renewal date. b. Closure of account with the Bank or insufficiency of balance to keep the insurance in force. c. In case a member is covered through more than one account and premium is received by SBI Life inadvertently, insurance cover will be restricted to Rs. 2 Lakh only and the premium shall be liable to be forfeited. d. The date on which the claim on insured member is settled by a bank in case the member was insured by more than one bank/ branch of the same bank where he/she was having more than one savings account. The Grace Period for payment of premium to SBI Life shall be 30 days from the due date. In case of death

during Grace Period, assured benefit as defined in rule 7 shall be settled on receipt of premium. There will be no Surrender value or Maturity Value payable under the policy.

It has been decided to incorporate a lien clause in

the rules of PMJJBY with effect from 1st June, 2016,

whereby claims for deaths which occur during the

first 45 days from the date of enrollment will not be

paid, effectively meaning that the risk cover will

commence only after the completion of 45 days

from the date of enrollment into the scheme by the


November, 2017

member. The date of enrolment means date of debit

of premium in customer account. However deaths

due to accidents will be exempt from this Lien

Clause.

PRIME MINISTER KAUSHAL VIKAS JOJANA PROJECT : NEW SAVINGS BANK PRODUCT: NATIONAL SKILL DEVELOPMENT CORPORATION-TRAINEE’S ACCOUNT (e-cir 350 dt 15/06/2016) To facilitate opening of Savings Bank accounts by the beneficiaries/trainees under the scheme.

Indian individual at the age of 18 years &above who undergoes skill development training in an eligible sector by an approved training partner of NSDC. The account holders will be trainees of NSDC. The training will be provided by the training institutions and the cost of the training will be recovered from the monetary incentive released by NSDC, after the successful completion of the course. For this purpose a hold equal to the amount payable to the training centre ,will be created in favour of the training institution, and the money will be transferred to training institution on completion of the training. To this effect a mandate signed by the trainee will be obtained at the time of account opening.

After auto transfer of the specified hold amount, the account will be treated as normal SB account or closed as per the mandate given by the trainee. STAND UP INDIA (SUI) SCHEME :GUIDELINES AND MONITORING UNDER STAND UP INDIA (e-cir 172 dt 05/05/2016) The Stand up India scheme was launched by the Prime Minister on 05.04.2016. The scheme endeavors to create an eco system for SC, ST and women entrepreneurs, which facilitates and continues to provide a supportive environment for doing business. The objective of Stand Up India scheme is to facilitate sanction of bank loans between Rs. 10 lakhs and Rs. 1 crore to atleast one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one women borrower per Bank branch for setting up a Greenfield enterprise in FY 2016-17. The enterprise

may be in manufacturing, services or the trading sector. In case of non-individual enterprises atleast 51% of the shareholding and controlling stake should

be held by either SC / ST or Women entrepreneur. Credit Guarantee Scheme for Stand Up India(CGSSI) A New Credit Guarantee Scheme Launched by GOI Stand Up India Scheme (SUI) (e-cir 731 dt 01/09/2016) The scheme ‘Credit Guarantee Scheme for Stand Up India (CGSSI)’ has come into force from the date of notification by GOI i.e. 25.04.2016. Subsequently, SIDBI has clarified us that the guarantee coverage will be available for all the cases sanctioned since the launch of SUI scheme i.e. 05.04.2016. The National Credit Guarantee Trustee Company (NCGTC) will act as the Trustee and operations of CGSSI scheme would be undertaken by NCGTC on behalf of the said Fund Trust. Our Bank has been enrolled by NCGTC as a Member Lending Institution (MLI) and necessary agreement has been executed by the Bank. Eligible Borrower –SC, ST and Women Entrepreneurs above 18 years of age setting up Greenfield Enterprises in non-farm sector. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held either by SC / ST and / or Women Entrepreneur. Credit Facility: Financial assistance by way of Term Loan and / or fund based and non-fund based working capital (eg. Bank Guarantee, Letter of Credit, etc.). Scope and Extent of the scheme: The Trust shall cover assistance of over Rs. 10 lacs and up to Rs. 100 lacs inclusive of WC extended without any Collateral Security and / or Third Party guarantees or such amount as may be decided by the Trust from time to time, provided that: a) The dues have not become bad or doubtful of recovery at the time of applying for coverage. b) The business activity of the borrower for which the credit facility was granted has not ceased. C) The credit facility has not wholly or partly been utilized for adjustments of any debts deemed bad or doubtful of recovery


November, 2017

without obtaining a prior consent in this regard from the Trust. The following credit facilities shall not be eligible for being guaranteed under the Scheme: a) Any credit facilities in respect of which risks are additionally covered under a scheme operated/administered by Deposit Insurance and Credit Guarantee Corporation or the Reserve bank of India, to the extent they are so covered. b) Any credit facilities in respect of which risks are additionally covered by Government or by any general insurer or any other person or association of persons carrying on the business of insurance, guarantee or indemnity; to the extent they are so covered. c) Any credit facilities, which does not conform to, or is in any way inconsistent with, the provisions of any law, or with any directives or instructions issued by the Central Government or the Reserve Bank of India, which may, for the time being, be in force. d) Any Credit facilities granted to any borrower, who has availed of any other composite loan covered under this Scheme or under the schemes mentioned in clause (i), (ii) and (iii) above, and where the lending institution has invoked the guarantee provided by the Trust or under the schemes mentioned in clause (i), (ii) and (iii) above, but has not repaid any portion of the amount due to the Trust or under the schemes mentioned in clause (i), (ii) and (iii) above, as the case may be, by reason of any default on the part of the borrower in respect of that composite loan. e) Any credit facility which has been sanctioned by the lending institution against collateral security and / or third party guarantee. f) Any credit facility which has been sanctioned by the lending institution which is not conforming to the Stand Up India Scheme. Interest Rate: The interest Rate to be charged by the Member Lending Institution should be the lowest applicable rate for the category (as per rating) and should not in any case, be more than 3% p.a. over the MCLR.

Lock in Period: A lock-in-period of 18 months has been stipulated from the date of commencement of guarantee cover or end of period of moratorium of interest, whichever is later. Time for applying for Guarantee coverage: For availing the guarantee coverage, Bank will have to apply for guarantee cover in respect of credit proposals sanctioned in the quarter April-June, July-September, October-December and January-March prior to expiry of the following quarter viz. July-September, October-December, January-March and April-June respectively. For example facilities sanctioned between 01.04.2016 –30.06.2016should be lodged with the Trust latest by 30.09.2016. Payment norms of Guarantee Fees: As per Bank’s guidelines, guarantee fee is to be borne by the borrower. A risk based guarantee fee (non-refundable) of the sanctioned amount has to be paid within 16 days from the end of the concerned quarter in which the credit facility was sanctioned / renewed. Further, a Management Certificate needs to be furnished to the Trust within 10 days from the end of the quarter. Thereafter, a Credit Guarantee Demand Advice Note (CGDAN) would be issued by NCGTC within 3 days of receipt of Management Certificate and subsequently, the guarantee fee shall be payable within 3 days from the issue of CGDAN. Guarantee Fee with respect to NPA accounts in the batch would continue to be paid till lodgment of claim for such accounts. The Guarantee fee once paid is non-refundable except under certain circumstances like: a) Excess remittance b) Remittance made more than once against the same Stand Up India credit facility c) Annual guarantee fee not due. PRADHAN MANTRI SURAKSHA BIMA YOJANA The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. All savings bank account holders in the age 18 to 70 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank


November, 2017

account only. Aadhar would be the primary KYC for the bank account. Premium: Rs.12/- per annum per member Benefits: Death: Rs. 2 Lakh. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot Rs. 2 Lakh. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot Rs. 1 Lakh. Eligibility: The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme. For the ensuing policy period i.e. from 1st June 2016 to 31st May 2017, insurance cover under PMSBY will start from the date of auto debit, as presently available in case of PMJJBY. e.g. A person enrolling on 15th June 2016 (premium debited on 15th June, 2016), the insurance cover will start on 15th June 2016. Credit Enhancement Guarantee Scheme for the Scheduled Castes (CEGSSC): A New Credit Guarantee Scheme Launched by GOI for SCs Beneficiaries: A social sector initiative by Ministry of Social Justice and Empowerment (hereinafter referred to as MSJ&E) in order to support the banks and financial institutions in the form of credit guarantee, for providing financial assistance to the schedule caste entrepreneurs. Accordingly, a new scheme named as “Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC) has been launched by Ministry of Social Justice and Empowerment (MSJ&E), Government of India. Industrial Finance Corporation of India Limited (ICFI) has been identified as the nodal agency for the scheme to issue guarantee to the banks and FIs who shall be encouraged to finance schedule caste entrepreneurs at reasonable interest rates Our Bank has been enrolled by IFCI as a Member Lending Institution (MLI) and necessary agreement has been executed by the Bank. All our

branches are now eligible to finance to SC beneficiaries under the guarantee cover of CEGSSC scheme & take maximum advantage of the scheme of GOI, while financing Scheduled Caste (SC) borrowers (e-cir.Sl. No. : 735/2015 – 16 dt:11/09/2015)& 988/2015-16 dt:05/11/2015) The scheme was further modified (e-cir 831 dt 18/10/2017) Eligibility Criteria: Shall be extended for loans for Working Capital, Term Loans or Composite Term Loans to SC entrepreneur. Loan Amount: Minimum limit of the loan amount is Rs. 15 lakh. Type of borrower: Individual SC Entrepreneur, Registered Companies/ Societies/ Registered Partnership Firm/ Sole Proprietorship Firms for a guarantee cover of Rs.0.15 to up to 1.00 crore only. Sector covered under scheme: The borrower engaged in Manufacturing/Trading/ Service and also The project units being set-up, promoted and run by Scheduled Castes in Primary Sector such as commercial agriculture, food processing, horticulture, poultry etc. Share holding: The Shareholding of SC Entrepreneur/ Promoter/ Member/ in the Registered Companies/Registered Partnership Firms/Societies/ Sole Proprietorship Firms / Individual SC Entrepreneurs having more than 51% shareholding with management control of 6 months. In order to meet the criteria of a Women Entrepreneur, at least 50% of the 51% of total shareholding held by SC entrepreneur may be held by SC Women with 6 months management control.

Credit Guarantee Fund for Micro Units (CGFMU) New Guarantee Scheme Launched by GOI for providing guarantee to loans under Pradhan Mantri Mudra Yojana (PMMY) (e-cir 733 dt 01/09/2016)

Ministry of Finance (Department of Financial Services) vide notification dated 18th April, 2016, had announced a new Credit Guarantee Scheme to guarantee loans extended under Pradhan Mantri


November, 2017

Mudra Yojana (PMMY). The scheme ‘Credit Guarantee Fund for Micro Units (CGFMU)’ has come into force from the date of notification by Government of India.

As per the scheme micro loans up to the specified limit (currently Rs.10 lakh) extended by Member Lending Institution to an eligible borrower, provided that the lending institution applies for guarantee cover in respect of such loans so sanctioned within such time period and as per procedures prescribed by the Fund for the purpose.

Further, Overdraft loan amount of Rs.5,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit Guarantee Fund. The micro loans under PMMY inclusive of overdraft under PMJDY, sanctioned since 8th April 2015 would qualify for guarantee cover under the scheme.

Guarantee Cover – Maximum cover available per portfolio, based on the amount in default. The first 5% of the amount in default will be borne by the Bank. Above 5% (if applicable) will be settled by the fund to the extent of 50% on pro-rata basis, subject to the receipt of an Auditor’s certificate confirming eligible claim amount. The claim will be in the nature of “First Loss Portfolio Guarantee”, wherein the loss to the extent of 5% of the crystallized portfolio of the Bank, will be borne by the Bank and therefore will be excluded from the claim. Out of the balance portion, the extent of guarantee will be to a maximum extent of 50% of “Amount in Default’ in the portfolio or such percentage as may be advised by the Fund from time to time on pro-rata basis. Invocation of the guarantee –The Bank may invoke the guarantee in respect to the amount in default out of the crystallized portfolio of Micro Loans subject to the condition of First Loss Guarantee, after a lock-in-period of 12 months from the date of crystallization of the portfolio and thereafter, at the end of every financial year. Payment of Claims – The Fund shall pay eligible claim amount within 60 days, subject to the claim being otherwise found in order and complete in

all respects. The Fund shall pay to the Bank interest on the eligible claim amount at the prevailing Bank Rate for the period of delay beyond 60 days. If serious deficiencies are found in appraisal / renewal / follow-up / conduct of Micro Loans or where lodgment of claim was more than once or where there is any suppression of material information by the Bank for settlement of claims then the Bank will have to refund the claim with penal interest.

Deendayal Antyoday Yojana- National Rural Livelihoods Mission (DAY-NRLM) (e-cir dt 363 dt 05/07/2017) The Ministry of Rural Development, Government of India launched a new programme known as National Rural Livelihoods Mission (NRLM) by restructuring and replacing the Swarnjayanti Gram Swarozgar Yojana (SGSY) scheme with effect from April 01, 2013. NRLM was renamed as DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihoods Mission) w.e.f. March 29, 2016 and is the flagship program of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these Institutions to access a range of financial services and livelihoods services. The mission provides a continuous hand-holding support to the institutions of poor for a period of 5-7 years till they come out of abject poverty. Women SHGs and their Federations Women SHGs under DAY-NRLM consist of 10-20 persons. In case of special SHGs i.e. groups in the difficult areas, groups with disabled persons, and groups formed in remote tribal areas, this number may be a minimum of 5 persons.

Financial Assistance to the SHGs Revolving Fund (RF): DAY-NRLM would provide Revolving Fund (RF) support to SHGs in existence for a minimum period of 3/6 months and follow the norms of good SHGs, i.e. they follow ‘Panchasutra’ – regular meetings, regular savings, regular internal lending, regular recoveries and maintenance of proper books of accounts. Only


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such SHGs that have not received any RF earlier will be provided with RF, as corpus, with a minimum of ₹10,000 and up to a maximum of ₹15,000 per SHG. Capital Subsidy has been discontinued under DAY-NRLM: No Capital Subsidy will be sanctioned to any SHG from the date of implementation of DAY-NRLM. Community Investment support Fund (CIF): CIF will be provided to the SHGs in the intensive blocks, routed through the Village level/ Cluster level Federations, to be maintained in perpetuity by the Federations. The CIF will be used, by the Federations, to advance loans to the SHGs and/or to undertake the common/collective socio-economic activities. Introduction of Interest subvention: DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7%, on all credit from the banks/ financial institutions availed by women SHGs, for a maximum of ₹ 3,00,000 per SHG. Lending Norms: The eligibility criteria for the SHGs to avail loans: • SHG should be in active existence at least since the last 6 months as per the books of account of SHGs and not from the date of opening of S/B account. • SHG should be practicing ‘Panchasutras’ i.e. Regular meetings; Regular savings; Regular inter-loaning; Timely repayment; and Up-to-date books of accounts; • Qualified as per grading norms fixed by NABARD. As and when the federations of the SHGs come to existence, the grading exercise can be done by the Federations to support the Banks. • The existing defunct SHGs are also eligible for credit if they are revived and continue to be active for a minimum period of 3 months. Loan amount: Cash Credit Limit (CCL): In case of CCL, banks are advised to sanction minimum loan of ₹5 lakh to each eligible SHGs for a period of 5 years with a

yearly drawing power (DP). The drawing power may be enhanced annually based on the repayment performance of the SHG. The drawing power may be calculated as follows: • DP for First Year: 6 times of the existing corpus or minimum of ₹1 lakh whichever is higher. • DP for Second Year: 8 times of the corpus at the time review/ enhancement or minimum of ₹2 lakh, whichever is higher. • DP for Third Year: Minimum of ₹3 lakhs based on the Micro credit plan prepared by SHG and appraised by the Federations /Support agency and the previous credit History. • DP for Fourth Year onwards: Minimum of ₹5 lakhs based on the Micro credit plan prepared by SHG and appraised by the Federations /Support agency and the previous credit History. Term Loan: In case of Term Loan, banks are advised to sanction loan amount in doses as mentioned below: • First Dose: 6 times of the existing corpus or minimum of ₹1 lakh whichever is higher. • Second Dose: 8 times of the existing corpus or minimum of ₹2 lakh, whichever is higher • Third Dose: Minimum of ₹3 lakhs based on the Micro credit plan prepared by the SHGs and appraised by the Federations /Support agency and the previous credit History • Fourth Dose: Minimum of ₹5 lakhs based on the Micro credit plan prepared by the SHGs and appraised by the Federations /Support agency and the previous credit History Purpose of loan and repayment: The loan amount will be distributed among members based on the Micro Credit Plan prepared by the SHGs. The loans may be used by members for meeting social needs, high cost debt swapping, construction or repair of house, construction of toilets and taking up sustainable livelihoods by the individual members within the SHGs or to finance any viable common activity started by the SHGs. Repayment schedule could be as follows: • The First year/ first dose of loan will be repaid in 6-12 months in monthly/ quarterly installments.


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• The Second year/ Second dose of loan will be repaid in 12-24 months in monthly/quarterly installments • The Third year/ Third dose of loan will be repaid in 24-36 months in monthly/ quarterly installments • The loan from Fourth year/ Fourth dose onwards has to be repaid between 3-6 years based on the cash flow in monthly/ quarterly installments. Security and Margin: No collateral and no margin will be charged up to `10.00 lakhs limit to the SHGs. No lien should be marked against savings bank account of SHGs and no deposits should be insisted upon while sanctioning loans. Reporting to Lead District Managers: The branches may furnish the progress report and the delinquency report under various activities of DAYNRLM in the format at Annex ‘IV’ and ‘Annex V’ to the LDM every month for onward submission to Special Steering Committee/sub-committee constituted by SLBC. Reporting to RBI: Banks may give a state-wise consolidated report on the progress made on DAY-NRLM to RBI/NABARD at quarterly intervals. LBR returns: Existing procedure of submitting LBR returns to be continued duly furnishing the correct code. Key Features of DAY-NRLM: 1. Universal Social Mobilization 2. Participatory Identification of poor (PIP) 3. Promotion of Institutions of the poor 4. Strengthening all existing SHGs and federations of the poor 5. Emphasis on Training, Capacity building and skill building 6. Revolving Fund and Community investment support Fund (C.I.F) 7. Universal Financial Inclusion 8. Provision of Interest Subvention: In order to ensure affordable credit, DAY-NRLM has a provision for subvention on interest rate above 7% per annum for all eligible SHGs, who have

availed loans from mainstream financial institutions. 9. Funding Pattern: financing of the programme would be shared between the Centre and the States in the ratio of 75:25 (90:10 in case of North Eastern States including Sikkim; completely from the Centre in case of UTs). 10. Phased Implementation 11. Intensive blocks 12. Rural Self Employment Training Institutes (RSETIs). RSETI concept is built on the model pioneered by Rural Development Self Employment Institute (RUDSETI) – a collaborative partnership between SDME Trust, Syndicate Bank and Canara Bank. The model envisages transforming unemployed youth into confident self- employed entrepreneurs through a short duration experiential learning programme followed by systematic long duration hand holding support. The need-based training builds entrepreneurship qualities, improves self-confidence, reduces risk of failure and develops the trainees into change agents. Banks are fully involved in selection, training and post training follow up stages. The needs of the poor articulated through the institutions of the poor would guide RSETIs in preparing the participants/trainees in their pursuits of self-employment and enterprises. DAY-NRLM would encourage public sector banks to set up RSETIs in all districts of the country. LEAD BANK SCHEME Fora under Lead Bank Scheme (LBS) (e-cir 483 dt 31/07/2017) Block Level Bankers’ Committee (BLBC) BLBC is a forum for achieving coordination between credit institutions and field level development agencies at the block level. The forum prepares and reviews implementation of Block Credit Plan and also resolves operational problems in implementation of the credit programmes of banks. Lead District Manager of the district is the Chairman of the Block Level Bankers’ Committee. Banks operating in the block including the district central co-operative banks, RRBs, Block Development Officer, technical officers in the block, such as extension officers for agriculture, industries and co-


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operatives are members of the Committee. BLBC meetings are held at quarterly intervals. District Consultative Committee (DCC) The District Collector is the Chairman of the DCC meetings. Reserve Bank of India, NABARD, all the commercial banks in the district, cooperative banks including District Central Cooperative Bank (DCCB), RRBs, various State Government departments and allied agencies are the members of the DCC. The Lead District Officer (LDO) represents the Reserve Bank as a member of the DCC. The Lead District Manager convenes the DCC meetings. The Director of Micro Small and Medium Enterprises Development Institutes (MSME-DI) is an invitee in districts where MSME clusters are located to discuss issues concerning MSMEs. In districts where we have been assigned lead bank responsibility DCC meeting should be convened by our lead banks at quarterly intervals. District Level Review Committee (DLRC) DLRC meetings are Chaired by the District Collector and attended by members of the District Consultative Committee (DCC). Besides above, public representatives i.e. Local MPs/MLAs/ Zilla Parishad Chiefs are also invited to these meetings. The DLRC meetings should be convened by the LDMs at least once in a quarter. State Level Bankers’ Committee (SLBC) The State Level Bankers’ Committee (SLBC) has been constituted in April 1977, as an apex inter-institutional forum to create adequate coordination machinery in all States, on a uniform basis for development of the State. SLBC is chaired by the Chairman & Managing Director (CMD) of the convenor bank/Executive Director of the convenor bank. It comprises representatives of commercial banks, RRBs, State Cooperative Banks, RBI, NABARD, heads of Government departments including representatives from National Commission for Scheduled Castes/Tribes, National Horticulture Board, Khadi & Village Industries Commission etc. and representatives of financial institutions operating in a State, who come together and sort out coordination problems at the policy implementation level. Representatives of various

organizations from different sectors of the economy like industry bodies, retail traders, exporters and farmers’ union etc. are special invitees in SLBC meetings for discussing their specific problems, if any. The SLBC meetings are to be held on quarterly basis. The responsibility of convening the SLBC meetings would be of the SLBC convenor of the State. Service Area Approach (SAA) i) The Service Area Approach (SAA) introduced in April 1989 for planned and orderly development of rural and semi-urban areas was applicable to all scheduled commercial banks including Regional Rural Banks. Under SAA, each bank branch in rural and semi-urban area was designated to serve an area of 15 to 25 villages and the branch was responsible for meeting the needs of bank credit of its service area. The primary objective of SAA was to increase productive lending and forge effective linkages between bank credit, production, productivity and increase in income levels. The SAA scheme was reviewed from time to time and appropriate changes were made in the scheme to make it more effective. ii) The Service Area Approach scheme was reviewed in December 2004 and it was decided to dispense with the restrictive provisions of the scheme while retaining the positive features of the SAA such as credit planning and monitoring of the credit purveyance. Accordingly, under SAA the allocation of villages among the rural and semi-urban branches of banks were made not applicable for lending except under Government Sponsored Schemes. Thus, while the commercial banks and RRBs are free to lend in any rural and semi urban area, the borrowers have the choice of approaching any branch for their credit requirements. Dispensing with No Due Certificate In order to ensure hassle free credit to all borrowers, especially in rural and semi urban areas and keeping in view the technological developments and the different ways available with banks to avoid multiple financing, banks have been advised to dispense with obtaining ‘No Due Certificate’ from the individual borrowers (including SHGs & JLGs) in rural and


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semi-urban areas for all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved unless the Government Sponsored Scheme itself provides for obtention of ‘No Dues Certificate’. Further, it is clarified that the policy of dispensing with No Due Certificate for lending by banks is also applicable to urban areas including metropolitan cities. Branches are encouraged to use an alternative framework of due diligence as part of credit appraisal exercise other than the ‘No Due Certificate’ which could, among others, consist of one or more of the following: • Credit history check through credit information companies • Self-declaration or an affidavit from the borrower • CERSAI registration • Peer monitoring • Information sharing among lenders • Information search (writing to other lenders with an auto deadline) Branches are also advised to submit information/data to all Credit Information Companies (CICs), as required in terms of extant instructions issued by RBI. PRIORITY SECTOR CATEGORIES AND TARGETS UNDER (e-cir 696 dt 29/08/2016) The categories under priority sector are: (i) Agriculture (ii) Micro, Small and Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social Infrastructure (vii) Renewable Energy (viii) Others Targets /Sub-targets for Priority sector

Categories

A) Domestic scheduled commercial banks and B) Foreign banks with 20 branches and above

Total Priority Sector

A) 40 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. B) To achieve the total Priority Sector

Target within a maximum period of five years starting from April 1, 2013 and ending on March 31, 2018

Agriculture

A) 18 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. Within the 18 percent target for agriculture, a target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal Farmers. B)To achieve the Agriculture Target within a maximum period of five years starting from April 1, 2013 and ending on March 31, 2018. The sub-target for Small and Marginal farmers would be Not applicable made applicable post 2018 after a review in 2017.

Micro Enterprises

A) 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure. B) The sub-target for Micro Enterprises for would be made applicable post 2018 after a review in 2017.

Advances to Weaker Sections

A) 10 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. B) To achieve the Weaker Sections Target within a maximum period of five years starting from April 1, 2013 and ending on March 31, 2018

Foreign banks with less than 20 branches : 40 percent of Adjusted Net Bank Credit] or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher; to be achieved in a phased manner by 2020 as indicated below: The Total Priority Sector as percentage of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher 2015-16: 32%, 2016-17: 34%, 2017-18: 36%, 2018-19: 38%, 2019-20: 40%


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Micro Credit – SHG Bank Credit Linkage (e-cir 786 dt 09/10/2017) Micro Credit: Micro Credit can be defined as the provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve their living standards. Micro credit institutions are those which provide these facilities. SHG- Self Help Group: It is a voluntary homogenous group of 10 to 20 individuals from weaker sections, comprising small and marginal farmers, landless labourers and rural poor engaged in agricultural, allied agricultural activities / small business in rural areas, having common interest (among other things, in promoting saving habit, developing self and community assets improving women / weaker section empowerment etc. SHGs are formed with an emphasis on Self-Help. Using Local Book Writers – Sharing of Expenses: The quality of books of accounts maintained by SHGs is an area of concern and “The Advisory Committee on Flow of Credit to Agriculture and Related Activities” has observed that banks may encourage Local Book Writers in association with concerned agencies promoting these SHGs and that such arrangement may be on a cost sharing basis with some support from the Bank. Accordingly, it has been decided to share the cost of book writing paid to Local book writers engaged in maintaining books of accounts to the extent of Rs.25/- per SHG per month. This facility should be made available only to those SHGs which have been directly credit linked with our branches for a period of one year. This amount can be paid by debit to the “Branch Charges Account” and credited to the “SHGs loan account” at the branch concerned. Selection of SHPI / NGO for Collaboration Branches may seek collaboration of SHPIs or NGOs while financing SHGs. Branches should ensure that these institutions satisfy the following criteria. • A good track record

• A proper system of book-keeping and audited balance sheets for at least 3 years. • Necessary ability in basic financial management. • Positive approach to promoting and working with group of people belonging to weaker section. Incentives to NGOs: NGOs need funding to sustain their activities. They have to devote considerable time and energy and have to incur expenditure for formation, nurturing and maintenance of SHGs such as organizing the rural poor into homogenous groups, making field visits, holding meetings and imparting training. Repeated visits are required to far flung areas of often unfriendly terrain. Besides, expenditure for stationery and other administrative and incidental matters have also to be incurred. Different agencies like NABARD, governments and donors are some of the sources for this funding. To supplement the funding an incentive of Rs. 750/- per SHG can be provided by bank as incentive to the NGO concerned. SHG – Bank linkage is of three types: i. SHGs financed directly by the banks i.e. branches themselves have promoted the groups and financed. ii. SHGs financed directly with NGOs facilitation i.e. SHGs promoted by NGOs and introduced to branches for Bank linkages. iii. Indirect finance to SHGs through NGOs / MFIs: NGOs/ MFIs are financed by the bank for on lending to the SHG promoted by them. Purpose of Loan: (i) The purposes for which the group will lend to the members should be left to the common wisdom of the group. (ii) Loans to SHGs for group enterprises should be discouraged in the initial stages as they have usually failed. Exemptions should be very carefully examined and supervised. (iii) Loans to Self Help Groups are purpose neutral loan. Banks shall embrace concept of Total Financial Inclusion and meet the entire credit requirements of the SHG members namely a) income generation activities, b) social needs


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like housing, education, marriage etc., and c) debt swapping. Eligible SHGs can be financed directly and also under the following products, which covers the housing needs, income generating activities and also have component for consumption, to fulfill entire credit requirement of SHG members: i) Sanction of cash credit limit for 3-5 years based on expected future saving corpus of SHGs. ii) Sanction of term loan for project based requirement of SHGs. iii) Sahayog Niwas - For Housing purpose to SHG members. Assessment of Credit/Quantum of Loan: i) NABARD has issued revised guidelines which state that “With the increased capability of mature SHGs to handle higher quantum of funds, shift of SHGs from consumption to micro-enterprise and improved banker borrower relationship, it is felt that banks would be able to transcend the precautionary condition of financing SHGs in multiples of 1 to 4 times their savings which was prescribed in the pilot phase of the SHG-Bank Linkage Programme. Bank may consider higher quantum of loans beyond four times of the group’s corpus to SHGs availing repeat loan from banks after taking into consideration factors such as quality of SHG as reflected in its rating score, credit absorption capacity, managerial ability to handle income generating projects entailing higher outlay, risk taking ability, etc., up to a limit of Rs.50,000 per SHG member as defined by Reserve Bank of India. ii) Group Corpus: Group corpus comprises of the i) Balance in savings account of SHG with the bank, ii) Amount utilized in internal lending by the SHGs and iii) cash balance with the SHG. Margin and Security Norms: As per operational guidelines issued by NABARD, SHGs may be sanctioned savings linked loans by banks (varying from a saving to loan ratio of 1:1 to 1:4). However, in case of matured SHGs, loans may be given beyond the limit of four times the savings as per the discretion of the bank. Experience has shown that group dynamics and peer pressure have brought in excellent recovery from SHG members.

Loan Disbursement: Loan amount can be disbursed fully in ‘cash’. All transactions are routed through the Saving Bank Account of the SHG. Service/inspection/Processing Charges: No loan related and ad hoc service charges/ inspection charges should be levied on priority sector loans up to ₹ 25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per member and not to the group as a whole. DIFFERENTIAL RATE OF INTEREST (DRI) SCHEME (e-cir 401 dt 13/07/2017)

Differential Rate of Interest Scheme Under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 percent per annum to the weaker sections of the community for engaging in productive and gainful activities. In order to ensure that persons belonging to SCs / STs also derive adequate benefit under the Differential Rate of Interest (DRI) Scheme, banks have been advised to grant to eligible borrowers belonging to SCs / STs such advances to the extent of not less than 2/5th (40 percent) of total DRI advances. Further, the eligibility criteria under DRI that size of land holding should not exceed 1 acre of irrigated land and 2.5 acres of unirrigated land are not applicable to SCs / STs. Members of SCs / STs satisfying the income criteria of the scheme can also avail of housing loan up to ₹.20,000/- per beneficiary over and above the individual loan of ₹.15,000/- available under the scheme. The target for lending under DRI scheme will be 1% of the previous years’ total advances. Family income of the borrower from all sources should not exceed Rs.18000/- in Rural areas and Rs. 24000/- in Urban and Semi urban area per annum. Repayment – 5 Yrs including Moratorium Period. Insurance - No insurance except for live stock. If considered necessary, the premium amount should be borne by the Bank.


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Credit Facilities to Minority Communities: (e-cir 472 dt 28/07/2017) In terms of Reserve Bank's extant guidelines on lending to priority sector, a target of 40 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 and above branches. Within this, a sub-target of 10 per cent of ANBC or Credit Equivalent amount of OBE, whichever is higher, as on March 31 of the previous year, has been mandated for lending to weaker sections which includes, among others, persons from minority communities. In 121 districts identified by the Government of India having at least 25% minority population, excluding those States / UTs where minorities are in majority (J&K, Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep). It should be ensured that the minority communities receive a fair and equitable portion of the credit within the overall target of the priority sector. Definition of Minority Communities The following communities have been notified as minority communities by the Government of India, Ministry of Minority Affairs; a) Sikhs, b) Muslims, c) Christians, d) Zoroastrians e) Buddhists, f) Jains In the case of a partnership firm, if the majority of the partners belong to one or the other of the specified minority communities, advances granted to such partnership firms may be treated as advances granted to minority communities. Further, if the majority beneficial ownership in a partnership firm belongs to the minority community, then such lending can be classified as advances to the specified communities. A company has a separate legal entity and hence advances granted to it cannot be classified as advances to the specified minority communities.

National Minorities Development and Finance Corporation (NMDFC): National Minorities Development and Finance Corporation (NMDFC) was established in September 1994 to promote economic and developmental activities for the backward sections amongst the minorities. NMDFC works as an apex body and channelizes its funds to the beneficiaries through the State Minority Finance Corporation of the respective State/Union Territory Governments. The NMDFC is operating, inter-alia, the Margin Money Scheme. Bank finance under the scheme will be up to 60 per cent of the project cost. The remaining amount of the project cost is shared by NMDFC, the State channelizing agency and the beneficiary in the proportion of 25%, 10%, and 5%, respectively. Banks may implement the Margin Money scheme evolved by NMDFC. While extending bank finance, banks should bear in mind the guidelines/instructions issued by RBI from time to time on priority sector advances. It may be ensured that the assets created out of the loan amount are mortgaged / hypothecated to the banks. Where recoveries have been made by the banks, it would be in order if the amounts are appropriated first towards bank dues. SUKANYA SAMRIDDHI ACCOUNT (e-cir 181 dt 14/05/2015 and e-cir 91 dt 21/04/2017)

Objective: To promote the welfare of Girl Child. Authorized Institutions: Post Office and Commercial Bank branches authorized to open PPF accounts. Eligibility: SSA may be opened by the natural / legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child who had attained the age of ten years, one year prior to the commencement of SSA Rules 2014 shall also be eligible for opening of account. i.e. any girl child born after 01.12.2003. Maximum number of accounts: Two accounts in the name of two girl children. Third account in case of twin girl as second birth or if first birth itself results in three girl children.


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Minimum and Maximum Amount of Deposit: (i) Sukanya Samriddhi Account will be opened only with minimum initial deposit of one thousand rupees and thereafter any amount in multiple of hundred rupees, Minimum deposit in a Financial Year is Rs.1000/- and Maximum Rs.150000/- (ii)The total amount deposited in an account shall not exceed one lac fifty thousand rupees in a financial year .If any deposit in excess of one lac fifty thousand rupees is deposited in the account due to any accounting error, it will not be eligible for any interest and may be withdrawn any time by the depositor. (iii)Deposits may be made in an account till the completion of a period of fifteen years from the date of opening of such account. (iv) An account in which minimum amount has not been deposited shall be considered as an account under default, which may be regularized on payment of a penalty of fifty rupees per year along with the such minimum specified amount for the years or years of default. (v) Sukanya Samriddhi Account can only be regularised within 15 years else Post Office Savings Bank interest rate will be applicable at the time of its maturity. Maturity of Deposit: The account shall mature on completion of 21 years from the date of opening the account. In case the account continues after maturity / not claimed on maturity, interest at the prevailing rate will be payable till final closure. Duration of deposits in account: Minimum deposit mandatory till 14 years from the date of opening. Interest on Deposit: (i) Interest on deposit shall be calculated for the calendar month on the lowest balance in an account on the deposits made between the close of the tenth day and the end of the month and shall be credited to the account at the end of

each financial year at the rate notified by the Government in the official Gazette from time to time. (ii) Interest shall be compounded yearly. (iii) Interest is permitted even after the completion of 14 years of the account till the closure of account on maturity. Premature Closure: (i) On the death of the account holder the account shall be closed immediately on production of death certificate issued by competent authority. In this case the interest will be paid till the date of death of account holder. No penalty to be imposed for failure to deposit the minimum stipulated amount of Rs.1000/- in a year. (ii) If the account holder becomes a non-citizen or NRI after opening of account, the account shall deemed to be closed prematurely from the date of change of status & no interest shall be deemed to accrue to the account from such date. (iii) In case of extreme compassionate grounds such as medical support in life threatening disease of the Account holder or the death of the guardian, it may after complete documentation, by order and for reasons to be recorded in writing can allow premature closure of the account without seeking the permission of the Ministry. This can only be allowed on completion of 5 years from the opening of such account. No penalty to be imposed for failure to deposit the minimum stipulated amount of Rs.1000/- in a year. (iv) The premature closure of an account may also be permitted any time for any other reason than provided above (i to iii) without seeking the permission of the Ministry .In this case the whole deposit shall be eligible only for the interest rate prescribed for the Post Office Saving Bank account. Mode of Deposit: Cash/Cheque/ Demand Draft


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Withdrawal: Withdrawal is permissible only after the girl child attains 18 years of age or has passed tenth standard, whichever is earlier. An account under default should be regularised before the withdrawal is allowed. Transfer of Account: (i) The account may be transferred anywhere in India and from or to post offices and from or to Banks and between post office and Bank, free of cost on furnishing of proof of shifting of residence of either the guardian or the account holder and otherwise on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made. ATAL PENSION YOJANA (APY) (e-cir 1119 dt 09/12/2015 & 257 dt 24/05/2016) Background: APY is a fixed pension scheme announced by the Finance Minister in his Budget Speech for 2015-16. APY is for all citizens in the unorganized sector who are not members of any statutory social security scheme. The scheme is administered by Pension Fund Regulatory and Development Authority (PFRDA) and the Central Record Keeping Agency is National Securities Depository Limited (NSDL). All our branches are required to be enabled to offer this product. Eligibility: All citizen of the country (organized & unorganized). Benefit of APY: The guaranteed minimum pension for the subscriber ranging between Rs. 1,000/- to Rs.5,000/- would be available, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late. Central Government co-contribution: The Central Government co-contribution is payable into subscriber’s Savings Bank account at the end of financial year once subscriber has made the entire contribution for the year and

this co-contribution would be transferred to the APY account by the bank. Periodicity of subscription: The subscribers should keep the required balance in their savings bank accounts on the stipulated due dates to avoid any late payment penalty. The monthly / quarterly / half-yearly contribution must be deposited on the first date of month/quarter/half year in the saving bank account. However, if there is inadequate balance in the SB account of the subscriber till the last day of the month /last date of the first month in a quarter /last day of the first month in a half year, it will be treated as default and contribution will have to be paid in a subsequent month along with overdue interest for delayed payment. KYC Document: Aadhaar would be the recommended KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term. However, it is not mandatory at the time of enrolment. Penalty on default of subscription: Overdue interest for delayed contribution Rs. 1/- per month for contribution for every Rs. 100/-, or part thereof, for each delayed monthly payment. Overdue interest for delayed contribution for monthly/ quarterly / half-yearly mode of contribution shall be recovered accordingly. The overdue interest amount collected will remain as part of the pension corpus of the subscriber. Pension Payment on attaining superannuation: i) upon completion of 60 years, the subscriber will submit the request to the Associated Bank for drawing the guaranteed minimum monthly pension or higher monthly pension. If investment returns are higher than the guaranteed returns embedded in APY the same amount of monthly pension amount is payable to spouse (default nominee) upon death of subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60yrs of the subscriber upon death of both the subscriber and spouse.


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ii. Each subscriber under APY shall receive a Central Government Guaranteed minimum pension of Rs 1,000/- per month to Rs 5,000/- per month after attaining the age of 60 years until death. iii. After the subscriber's demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of spouse. iv. After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber. Exit before Superannuation: i. Exit before 60 years of age: In case a subscriber, who has availed of Government co- contribution under APY, choose to voluntarily exit APY before attaining the age of 60 years, he/she shall be refunded the contributions made by him/her to APY along with net accrued income earned on his/her contributions after deducting the account maintenance, investment management, charges etc.. The Government co-contribution and the accrued income earned on the Government co-contribution shall not be given to such subscribers. Funds redeemed will be transferred to the subscriber’s Bank account registered in APY. ii. Death of Subscriber before 60 years of age: If the subscriber dies before the age of 60 years, his/her spouse would be given an option to continue contributing to APY account of the subscriber, which can be maintained in the spouse’s name, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of spouse. DIRECT BENEFIT TRANSFER (DBT) (e-cir 117 dt 08/05/2013) TRANSACTIONS PROCESS The Government of India has rolled-out the Direct Benefit Transfer (DBT) project for

disbursing various government benefits to the beneficiaries through bank accounts. DBT TRANSACTION PROCESS (i) The Implementing Agencies (Govt. departments) intending to transfer benefits directly to the accounts of the individual beneficiaries under various schemes, upload their respective files containing beneficiary details and amount to be credited to the Central Plan Scheme Monitoring System (CPSMS) portal. (ii) CPSMS places files in the SFTP folders of the respective Banks. These hybrid files contain both Aadhaar and Account numbers of our Bank’s customers and also of other Banks. (iii) The accounts are separated into different files as ‘on us’ & ‘off us’. (‘on us’ is for our Bank’s customers and ‘off us’ is for the customers of other Banks’) (iv) Aadhaar numbers in ‘on us’ files are mapped to their respective account numbers and later the trickle feed files are prepared. (v) The files meant for other Banks (‘off us’) are sent to NPCI by IT Spl. Projects deptt, Belapur. (vi) Those files which do not contain aadhaar number but only account number, would be handled internally as per the protocol for handling NEFT and CBS transactions. (vii) The “return & rejected” messages from CBS/NPCI are to be shared with CPSMS. MODES OF PAYMENT The implementing agency’s account gets debited and credits are afforded to: (i) the beneficiaries account in SBI through trickle-feed based on account number or Aadhaar number (converted to account Number by the DBT Application), or (ii) the beneficiaries account in other banks through NEFT (based on the account number) or NPCI (for Aadhaar based entries). CATEGORIES OF TRANSACTIONS A.PRINT PAYMENT ADVICE (PPA) TRANSACSACTIONS (i) All the transactions, that are generated by the implementing agencies but are not authenticated by digital signatures fall under this category. (ii) The summary of these transactions is made available to the branches in the form of hard copy where the Advice Number is mentioned.


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B. INB TRANSACTIONS (i) These transactions are generated by the Implementing Agencies. (ii) The Implementing Agency authenticates these transactions on the portal of SBI, and has a facility to either authenticate either partly (remaining rejected) or complete file. C. DIGITALLY SIGNED PAO FILES (Files coming from Pay & Accounts Office) (i) PAO files are the government credits which are currently being processed by CMP as government transaction. (ii) The settlement process is already in place with the funds being settled by GAD department. NATIONAL PENSION SYSTEM (Source: PFRDA Booklet) STAKEHOLDERN UNDER NPS PFRDA- Regulator of Pension Sector including

NPS

NPS Trust- Beneficial Owner

Points-of Presence (POPs) - Subscriber

Interface

Trustee Bank- Manages the account

Pension Fund (PFs)- Invest the Funds of the

subscribers

Custodian- Custodian of securities

Central Recordkeeping Agency (CRA) -

Recordkeeping and Maintenance of

Subscribers account

Annuity Service Provider (ASP)- Provides

Annuity to the Subscribers

Retirement Advisers- Advisory Services

TYPES OF ACCOUNTS: TIER-I ACCOUNT: Employer / Employee contribute for retirement into this restricted- withdrawal account. Income Tax benefits as per IT Act, 1961 available for both Employer & Employee contributions.

Contributions + Investment Growth – Charges = Accumulated Pension Wealth (Individual & Employer contributions)

TIER-II ACCOUNT: Voluntary saving facility, where the subscriber can avail fund management facility at very low costs. Subscribers are free to

withdraw amount from this account. However, tax benefits are not available. THREE FLEXIBLE VARIATIONS OF CONTRIBUTIONS FROM EMPLOYER TO EMPLOYEE Equal contributions by Employer & Employee

Unequal contributions by the Employer & the

Employee

Contributions from either the Employer or

the Employee

SELECTION OF ANY ONE PF OUT OF THE FOLLOWING: SBI Pension Fund Pvt. Limited

LIC Pension Fund Limited

UTI Retirement Solution Limited

ICICI Prudential Pension Fund Management

Company Limited

Kotak Mahindra Fund Limited

Reliance Capital Fund Limited

HDFC Pension Fund Limited

TAX BENEFITS ON CONTRIBUTION TO EMPOYERS: Contributions made by the employer (up to 10%

of Basic + DA) is allowed as a business expense

under section 36 (1) iv (a) of Income Tax Act

1961.

TO EMPLOYEES Employees own contribution is eligible

for tax deduction under sec 80 CCD (1) of Income

Tax Act up to 10% of Salary (Basic + DA). This is

within the overall ceiling of Rs. 1.50 Lacs under

Sec. 80 CCE of the Income Tax Act.

Employees also get Tax deduction for the

contribution made by the employer under

section 80 CCD (2) of IT act up to 10% of Salary

(Basic + DA) which is in addition to the tax

benefits available under Sec. 80 CCE. No

Monetary ceiling.

TO SELF-EMPLOYED 20% of the Gross Income is eligible for tax deduction under sec 80 CCD (1) of Income Tax Act.


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ADDITIONAL TAX BENEFITS TO NPS

SUBSCRIBERS

Subscriber is allowed tax deduction in

addition to the deduction allowed under

Sec. 80 CCD (1) for additional contribution in

his NPS account subject to maximum

investment of Rs. 50,000/- under sec.

80CCD 1(B).

TAX BENEFITS ON WITHDRAWAL TO SUBSCRIBERS Amount utilized for purchase of Annuity at

the time of exit (Minimum 40% mandatory)

is not treated as income.

No Service Tax on annuity purchase.

40% of the total corpus at the time of exit is

not treated as income.

Partial Withdrawal from NPS is tax-exempt

PARTIAL WITHDRAWAL Partial withdrawal will be allowed subject to: Subscriber should not be in NPS for 10 Years

Amount should not exceed 25 % of the

contributions made by the subscriber

Purpose for which partial withdrawal allowed: For the purpose of higher education of

his/her children

For marriage of his/her children

For purchase or construction of residential

house or flat

For treatment of specific illness.

Frequency of withdrawal: Maximum three times during entire tenure

Minimum 5 years gap between consecutive

withdrawals

ANNUITY PLANS Variants of annuity plans Pension (Annuity) payable for life at a uniform

rate to the Annuitant only.

Pension (Annuity) payables for 5, 10, 15 or 20

years certain and thereafter as long as you are alive.

Pension (Annuity) for life with return of purchase

price on death of the annuitant (policy holder)

Pension (Annuity) payable for life increasing at a

simple rate of 3% p.a.

Pension (Annuity) for life with a provision of 50%

of the annuity payable to spouse during his/her

lifetime on death of the annuitant.

Pension (Annuity) for life with a provision of 100% of

the annuity payable to spouse during his/her lifetime

on death of the annuitant and with return of

purchase price on death of spouse. If the spouse

predeceases the annuitant, payment of annuitant

will cease after the death of the annuitant and

purchase price is paid to the nominee.

EXIT AND WITHDRAWALS

VESTING CRITERIA BENEFIT At any point in time before superannuation (allowed to subscriber who have been in NPS for at least 10 years)

Compulsory Annuitisation- minimum 80% Lumpsum withdrawal- maximum 20% If corpus < Rs. 1.00 Lac, complete withdrawal permitted

On attaining the age of superannuation (as prescribed in service rule) & up to 70 years of age

Annuitisation: minimum 40% Lump sum withdrawal: max 60% If corpus < Rs. 2.00 Lac, complete withdrawal permitted Subscriber can stay invested in the NPS up to the age of 70 years. Fresh contributions are allowed during such a period of deferment. Can defer the withdrawal of eligible lump sum amount till the age of 70 years & withdraw the same in 10 annual installments. Annuity purchase can also be deferred for maximum period of 3 years at the time of exit.

Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/ she shall have to subscribe to NPS individually after following due KYC procedure

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