Workshop on SHG Bank Linkage and Interest Subvention Uttarakhand State Rural Livelihood Mission Dehradun

15TH December 2015 ICM Rajpur Dehradun

SN ParticularsTraining subject Time Lecture by

1 Registration 1000 AM ndash 1030 AM Mr Narendra Rawat Mr Bhanu Singh Mr Ravikant Pandey and Amit Nautiyal

2 Opening Remarks 1031 AM ndash 10 45 AM Principal Secretary RD amp PR Govt of Uttarakhand

3 Tea Break 1046 AM ndash 11 00 AM

4 Brief on NRLM 1101 AM ndash 1120 AM CEO USRLM

5 Presentation on NRLM Interest Subvention

1121 AM ndash 0130 PM Mr LokeshB Senior Mission Executive-FI NMMU

6 Role of RBI on SHG Bank Linkages 0131 PM ndash 0135 PM Representative of RBI

7 Role of NABARD on SHG Bank Linkages 0136 PM ndash 0140 PM Representative of NABARD

8 Role of SLBC on SHG Bank Linkages 0141 PM ndash 0145 PM Representative of SLBC

9 Lunch Break 0131 PM ndash 0215 PM

10 Demo on the MoRD Bank linkage portal 0216 PM ndash 0315 PM Mr LokeshB Senior Mission Executive-FI NMMU

11 Open discussion 0316 PM ndash 0400 PM Dr Prabhakar Bebni Mr Ravikant PandeyMr LokeshB and all Participants

12 Tea Break 0401 PM ndash 0415 PM

10 Action Plan and closing remarks 0416 PM ndash 0500 PM CEO USRLM

12182015

1

Workshop on SHG Bank Linkageamp

Interest Subvention15th December 2015 Dehradun

Bank Linkage Mandate under NRLM

ldquoEach poor Household is able to access credit of at least Rs 1 lakh in multiple doses (over 4-5

years)rdquo

12182015

2

SRLMUTTARAKHANDYear on Year Comparison

SNo Bank Name2013-14 2014-15 GrowthDecline

Loan Acs

Amt in lakhs

Loan Acs

Amt in lakhs Loan Acs Amount

PUBLIC SECTOR BANKS1 STATE BANK OF INDIA 813 46728 140 6102 -83 -872 CANARA BANK 35 8860 70 17050 100 923 ALLAHABAD BANK 48 7340 68 2308 42 -694 PUNJAB NATIONAL BANK 64 5849 28 2621 -56 -555 UCO BANK 41 4380 1 050 -98 -996 ORIENTAL BANK OF COM 56 2529 4 825 -93 -677 UNION BANK OF INDIA 5 2230 6 315 20 -868 BANK OF BARODA 9 602 23 1850 156 2079 PUNJAB AND SIND BANK 3 600 3 070 0 -88

10 INDIAN BANK 1 500 0 000 -100 -10011 BANK OF INDIA 5 400 3 200 -40 -5012 INDIAN OVERSEAS BANK 2 288 0 000 -100 -10013 CENTRAL BANK OF INDIA 1 015 8 237 700 148014 SYNDICATE BANK 0 000 3 400

REGIONAL RURAL BANKS1 UTTARKHAND GRAMIN BANK 640 71055 0 000 -100 -100

TOTAL 1723151375 357 32028 -79 -79

SRLMUTTARAKHAND2015-16 Bank Wise Achievement

Report up to October 2015

SNo Bank Name Total SHGs Total Amount (Rsin Lakhs)

Public Sector Banks

1 STATE BANK OF INDIA 67 3615

2 ALLAHABAD BANK 28 2667

3 CANARA BANK 20 5150

4 BANK OF BARODA 14 1225

5 PUNJAB NATIONAL BANK 11 370

6 CENTRAL BANK OF INDIA 9 352

7 PUNJAB AND SIND BANK 8 200

8 ORIENTAL BANK OF COMMERCE 4 140

9 UNION BANK OF INDIA 1 020

10 INDIAN OVERSEAS BANK 1 010

Total 163 13749

12182015

3

088

093

084

078

080

082

084

086

088

090

092

094

2013-14 2014-15 2015-16

Rsin

Lak

hs

Years

Per Group Finance

Interest Subvention ndashcategory-1 150 backward districts

12182015

4

Key Features of the Schemebull All women SHGs will be eligible for interest subvention on loans unto Rs 3 lakhs at 7

per annum

bull Banks will lend to all the women SHGs at the rate of 7 in the 150 districts

bull Banks will be subvented to the extent of difference between the WAIC (as specified by the DFS) and 7 subject to the maximum limit of 55

bull This subvention will be available to all the Banks on the condition that they make SHG credit available at 7 pa in the 150 districts

bull SHG availing capital subsidy under SGSY with loan outstanding will not be eligible for benefit under this scheme

Key Features of the Schemehellipbull SHGs will be provided with an additional 3 subvention on the prompt repayment

bull The banks should credit the amount of 3 to the eligible SHG account and seek the reimbursement

bull Criteria for determining Prompt Repayment

For Cash Credit Limit For Term Loans1 Outstanding balance shall not have been remained in

excess of the limitdrawing power continuously formore than 30 days

bull A term loan account where all of the interestpayments and or instalments of principal werepaid within 30 days of the due date during thetenure of the loan would be considered as anaccount having prompt payment2 There should be regular credit and debits in the

accounts In any case there shall be at least onecustomer induced credit during a month

3 Customer induced credit should be sufficient to coverthe interest debited during the month

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

1

Workshop on SHG Bank Linkageamp

Interest Subvention15th December 2015 Dehradun

Bank Linkage Mandate under NRLM

ldquoEach poor Household is able to access credit of at least Rs 1 lakh in multiple doses (over 4-5

years)rdquo

12182015

2

SRLMUTTARAKHANDYear on Year Comparison

SNo Bank Name2013-14 2014-15 GrowthDecline

Loan Acs

Amt in lakhs

Loan Acs

Amt in lakhs Loan Acs Amount

PUBLIC SECTOR BANKS1 STATE BANK OF INDIA 813 46728 140 6102 -83 -872 CANARA BANK 35 8860 70 17050 100 923 ALLAHABAD BANK 48 7340 68 2308 42 -694 PUNJAB NATIONAL BANK 64 5849 28 2621 -56 -555 UCO BANK 41 4380 1 050 -98 -996 ORIENTAL BANK OF COM 56 2529 4 825 -93 -677 UNION BANK OF INDIA 5 2230 6 315 20 -868 BANK OF BARODA 9 602 23 1850 156 2079 PUNJAB AND SIND BANK 3 600 3 070 0 -88

10 INDIAN BANK 1 500 0 000 -100 -10011 BANK OF INDIA 5 400 3 200 -40 -5012 INDIAN OVERSEAS BANK 2 288 0 000 -100 -10013 CENTRAL BANK OF INDIA 1 015 8 237 700 148014 SYNDICATE BANK 0 000 3 400

REGIONAL RURAL BANKS1 UTTARKHAND GRAMIN BANK 640 71055 0 000 -100 -100

TOTAL 1723151375 357 32028 -79 -79

SRLMUTTARAKHAND2015-16 Bank Wise Achievement

Report up to October 2015

SNo Bank Name Total SHGs Total Amount (Rsin Lakhs)

Public Sector Banks

1 STATE BANK OF INDIA 67 3615

2 ALLAHABAD BANK 28 2667

3 CANARA BANK 20 5150

4 BANK OF BARODA 14 1225

5 PUNJAB NATIONAL BANK 11 370

6 CENTRAL BANK OF INDIA 9 352

7 PUNJAB AND SIND BANK 8 200

8 ORIENTAL BANK OF COMMERCE 4 140

9 UNION BANK OF INDIA 1 020

10 INDIAN OVERSEAS BANK 1 010

Total 163 13749

12182015

3

088

093

084

078

080

082

084

086

088

090

092

094

2013-14 2014-15 2015-16

Rsin

Lak

hs

Years

Per Group Finance

Interest Subvention ndashcategory-1 150 backward districts

12182015

4

Key Features of the Schemebull All women SHGs will be eligible for interest subvention on loans unto Rs 3 lakhs at 7

per annum

bull Banks will lend to all the women SHGs at the rate of 7 in the 150 districts

bull Banks will be subvented to the extent of difference between the WAIC (as specified by the DFS) and 7 subject to the maximum limit of 55

bull This subvention will be available to all the Banks on the condition that they make SHG credit available at 7 pa in the 150 districts

bull SHG availing capital subsidy under SGSY with loan outstanding will not be eligible for benefit under this scheme

Key Features of the Schemehellipbull SHGs will be provided with an additional 3 subvention on the prompt repayment

bull The banks should credit the amount of 3 to the eligible SHG account and seek the reimbursement

bull Criteria for determining Prompt Repayment

For Cash Credit Limit For Term Loans1 Outstanding balance shall not have been remained in

excess of the limitdrawing power continuously formore than 30 days

bull A term loan account where all of the interestpayments and or instalments of principal werepaid within 30 days of the due date during thetenure of the loan would be considered as anaccount having prompt payment2 There should be regular credit and debits in the

accounts In any case there shall be at least onecustomer induced credit during a month

3 Customer induced credit should be sufficient to coverthe interest debited during the month

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

2

SRLMUTTARAKHANDYear on Year Comparison

SNo Bank Name2013-14 2014-15 GrowthDecline

Loan Acs

Amt in lakhs

Loan Acs

Amt in lakhs Loan Acs Amount

PUBLIC SECTOR BANKS1 STATE BANK OF INDIA 813 46728 140 6102 -83 -872 CANARA BANK 35 8860 70 17050 100 923 ALLAHABAD BANK 48 7340 68 2308 42 -694 PUNJAB NATIONAL BANK 64 5849 28 2621 -56 -555 UCO BANK 41 4380 1 050 -98 -996 ORIENTAL BANK OF COM 56 2529 4 825 -93 -677 UNION BANK OF INDIA 5 2230 6 315 20 -868 BANK OF BARODA 9 602 23 1850 156 2079 PUNJAB AND SIND BANK 3 600 3 070 0 -88

10 INDIAN BANK 1 500 0 000 -100 -10011 BANK OF INDIA 5 400 3 200 -40 -5012 INDIAN OVERSEAS BANK 2 288 0 000 -100 -10013 CENTRAL BANK OF INDIA 1 015 8 237 700 148014 SYNDICATE BANK 0 000 3 400

REGIONAL RURAL BANKS1 UTTARKHAND GRAMIN BANK 640 71055 0 000 -100 -100

TOTAL 1723151375 357 32028 -79 -79

SRLMUTTARAKHAND2015-16 Bank Wise Achievement

Report up to October 2015

SNo Bank Name Total SHGs Total Amount (Rsin Lakhs)

Public Sector Banks

1 STATE BANK OF INDIA 67 3615

2 ALLAHABAD BANK 28 2667

3 CANARA BANK 20 5150

4 BANK OF BARODA 14 1225

5 PUNJAB NATIONAL BANK 11 370

6 CENTRAL BANK OF INDIA 9 352

7 PUNJAB AND SIND BANK 8 200

8 ORIENTAL BANK OF COMMERCE 4 140

9 UNION BANK OF INDIA 1 020

10 INDIAN OVERSEAS BANK 1 010

Total 163 13749

12182015

3

088

093

084

078

080

082

084

086

088

090

092

094

2013-14 2014-15 2015-16

Rsin

Lak

hs

Years

Per Group Finance

Interest Subvention ndashcategory-1 150 backward districts

12182015

4

Key Features of the Schemebull All women SHGs will be eligible for interest subvention on loans unto Rs 3 lakhs at 7

per annum

bull Banks will lend to all the women SHGs at the rate of 7 in the 150 districts

bull Banks will be subvented to the extent of difference between the WAIC (as specified by the DFS) and 7 subject to the maximum limit of 55

bull This subvention will be available to all the Banks on the condition that they make SHG credit available at 7 pa in the 150 districts

bull SHG availing capital subsidy under SGSY with loan outstanding will not be eligible for benefit under this scheme

Key Features of the Schemehellipbull SHGs will be provided with an additional 3 subvention on the prompt repayment

bull The banks should credit the amount of 3 to the eligible SHG account and seek the reimbursement

bull Criteria for determining Prompt Repayment

For Cash Credit Limit For Term Loans1 Outstanding balance shall not have been remained in

excess of the limitdrawing power continuously formore than 30 days

bull A term loan account where all of the interestpayments and or instalments of principal werepaid within 30 days of the due date during thetenure of the loan would be considered as anaccount having prompt payment2 There should be regular credit and debits in the

accounts In any case there shall be at least onecustomer induced credit during a month

3 Customer induced credit should be sufficient to coverthe interest debited during the month

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

3

088

093

084

078

080

082

084

086

088

090

092

094

2013-14 2014-15 2015-16

Rsin

Lak

hs

Years

Per Group Finance

Interest Subvention ndashcategory-1 150 backward districts

12182015

4

Key Features of the Schemebull All women SHGs will be eligible for interest subvention on loans unto Rs 3 lakhs at 7

per annum

bull Banks will lend to all the women SHGs at the rate of 7 in the 150 districts

bull Banks will be subvented to the extent of difference between the WAIC (as specified by the DFS) and 7 subject to the maximum limit of 55

bull This subvention will be available to all the Banks on the condition that they make SHG credit available at 7 pa in the 150 districts

bull SHG availing capital subsidy under SGSY with loan outstanding will not be eligible for benefit under this scheme

Key Features of the Schemehellipbull SHGs will be provided with an additional 3 subvention on the prompt repayment

bull The banks should credit the amount of 3 to the eligible SHG account and seek the reimbursement

bull Criteria for determining Prompt Repayment

For Cash Credit Limit For Term Loans1 Outstanding balance shall not have been remained in

excess of the limitdrawing power continuously formore than 30 days

bull A term loan account where all of the interestpayments and or instalments of principal werepaid within 30 days of the due date during thetenure of the loan would be considered as anaccount having prompt payment2 There should be regular credit and debits in the

accounts In any case there shall be at least onecustomer induced credit during a month

3 Customer induced credit should be sufficient to coverthe interest debited during the month

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

4

Key Features of the Schemebull All women SHGs will be eligible for interest subvention on loans unto Rs 3 lakhs at 7

per annum

bull Banks will lend to all the women SHGs at the rate of 7 in the 150 districts

bull Banks will be subvented to the extent of difference between the WAIC (as specified by the DFS) and 7 subject to the maximum limit of 55

bull This subvention will be available to all the Banks on the condition that they make SHG credit available at 7 pa in the 150 districts

bull SHG availing capital subsidy under SGSY with loan outstanding will not be eligible for benefit under this scheme

Key Features of the Schemehellipbull SHGs will be provided with an additional 3 subvention on the prompt repayment

bull The banks should credit the amount of 3 to the eligible SHG account and seek the reimbursement

bull Criteria for determining Prompt Repayment

For Cash Credit Limit For Term Loans1 Outstanding balance shall not have been remained in

excess of the limitdrawing power continuously formore than 30 days

bull A term loan account where all of the interestpayments and or instalments of principal werepaid within 30 days of the due date during thetenure of the loan would be considered as anaccount having prompt payment2 There should be regular credit and debits in the

accounts In any case there shall be at least onecustomer induced credit during a month

3 Customer induced credit should be sufficient to coverthe interest debited during the month

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

5

Roll out of the Scheme

bull Canara Bank is appointed as the nodal Bank to rollout IS of PSBs and MoU signed on---bull Canara Bank will manage web portal for receiving and processing claims from public

sector banksbull Canara Bank will submit claims to MORD and settle claims of PSBs

PSBs

RRBs and Cooperative banks

bull RRBs and coop submits the claims (manual) to NABARD state office bull NABARD HO collects the claim from State counterparts and sends to MoRDbull MoRD settles to NABARD and NABARD in turn settle the banksrsquo claimsbull All BANKS submit the ANNUAL audit certificates

Role of Banks bull Banks will lend to all women SHGs at upfront 7 per annum (upto Rs 3 lakhs)bull Banks will also pay additional interest subvention of 3 to SHG loans accounts being

serviced promptlybull Banks will upload the loan account wise information and claims on Canara bank portal on

a monthly basis bull Every bank submits a certificate for the uploaded claims to be correct to Canara Banks

and submits an ANNUAL audit certificate

Role of MoRD amp SRLMsbull MoRD will settle to Canara Bank and Canara Bankin turn settle the banksrsquo claimsbull SRLMs will undertake initiatives for spreading on the scheme

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

6

Interest Subventionin

category-2 districts

Key FeatureshellipThis part of the scheme will be implemented by the State Rural Livelihood Mission (SRLM)

SHGs under NRLM will eligible for Interest Subvention (IS)

Banks will lend to women SHGs at regular lending rates

Prompt repayment SHGs will eligible for IS on credit up to Rs3 lakhs

The difference between lending rate and 7 subject to maximum of 55 will besubvented in the loan accounts of the SHGs by the SRLMs

SHGs availed capital subsidy in their existing credit outstanding will not be eligible forbenefit under this scheme They will be eligible from next loan onwards

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

7

Prompt Repayment meanshellipFor Cash Credit Limit For Term Loans

1 Outstanding balance shall not have beenremained in excess of the limitdrawingpower continuously for more than 30 days

bull A term loan account where all of theinterest payments and or instalments ofprincipal were paid within 30 days of thedue date during the tenure of the loanwould be considered as an accounthaving prompt payment2 There should be regular credit and debits in

the accounts In any case there shall be atleast one customer induced credit during amonth

3 Customer induced credit should be sufficientto cover the interest debited during themonth

Role of Banksbull Banks to regularly share data with NRLM on loans disbursed to women SHGs directly

from CBS platform

Role of SRLMs State Missions will identify lsquoNRLM Women SHGsrsquo

Based on the data shared by banks promptly repaying SHGs will be identified andcalculated IS by the system at NMMU level

State Missions will transfer the amount of interest subvention directly to SHG loan ac

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

8

Bank Data SharingBank Data SharingLoan Data Transaction data

1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6 Closing Balance (Outstanding)

7 Branch Code or IFSC

Calculation of ISCalculation of IS (Eligibility check for TL account)(Eligibility check for TL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

System Generated

EMI

System Generated Repayment Schedule to

calculate regularity of the account

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account = Bank OS le System OS

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

9

Calculation of ISCalculation of IS (Eligibility check for CCL account)(Eligibility check for CCL account)

Bank Data ndash Loan Data1 SHG Loan Ac No2 Type of Loan (TLCC)3 Loan Amount (for TL) DP (for CCL)4 Date of LoanDate of Review5 Repayment holidayMoratorium6 Rate of Interest 7 No of Instalments8 Instalment amount9 Repayment Frequency (MQHY)

10 Name of the SHG11 Village12 Block13 District 14 PIN code15 SB Account No16 SB AC Opening date17 IFSC Code or IFSC18 Branch Code 19 Availed capital subsidy-(SGSY) ndashYN

Comparison of Bank OS with the DP

amount

Transaction data

1 Loan AC No

2 Transaction Date

3 Particulars (Narration)

4 Debit Amount

5 Credit Amount

6Closing Balance (Outstanding)

7 Branch Code or IFSC

Prompt account1 Bank OS le DP2 There should be customer induced credit3 The credit should be equal or more than

interest charged by bank during the month

Step1

Checking for customer induced

credit

Step2

Step3System calculated Interest

Step 1 Derive average outstanding Average outstanding = (month starts day outstanding + month ends outstanding) 2

Step 2 Derive Rate of Interest The difference between the ROI charged by the bank and 7PA

There is a cap of 55PA for calculating interest subvention

Step 3 Interest Subvention amount Interest Subvention amount = (Average outstanding Derived ROI) 12

Step 4 System will generate report as mentioned below

Calculation of ISCalculation of IS

S N

o

Refe

renc

e N

umbe

r

Stat

e N

ame

Dis

tric

t Nam

e

Bloc

k N

ame

Bank

Nam

e

Bran

ch N

ame

IFSC

Cod

e

SHG

Nam

e

SB A

c N

o

Loan

Ac

No

Tota

l Int

eres

t Su

bven

tion

Amou

nt (I

n Rs

)

Fund

s Tra

nsfe

r St

atus

(Pai

d

Reje

ct)

Paid

Rej

ect

Dat

e (D

D-M

M-Y

YYY)

Paid

Rej

ect

Rem

arks

(M

anda

tory

for

Reje

cted

Tr

ansa

ctio

ns)

Bank

Tra

nsac

tion

Num

ber (

Opt

iona

l)

12182015

10

Disbursement of IS Disbursement of IS ndashndash Flow ChartFlow Chart

Calculation of IS ndashResponsibility of NRLM

Marking of WSHGs ndashResponsibility of District level staff

Downloading list of eligible accounts File process Cheque preparation and submission to the Nodal bank-Responsibility of SPM - FI

NEFT transfer to respective accounts and submission of the response file to SRLM-Responsibility of Nodal Bank Branch

Upload the response file to the portal-Responsibility of SPM-FI

Sample Loan Account numberSample Loan Account number

12182015

11

Demo on the Bank Linkage portalDemo on the Bank Linkage portal

wwwnrlmblaajeevikagovinwwwnrlmblaajeevikagovin

Thank you

12182015

11

Demo on the Bank Linkage portalDemo on the Bank Linkage portal

wwwnrlmblaajeevikagovinwwwnrlmblaajeevikagovin

Thank you