SWARNJAYANTI GRAM SWAROZGAR YOJANA
(SGSY)
Agenda for the Tenth Meeting of the
Central Level Co-ordination Committee
(CLCC)
Date: 7.02.2007
Venue:
FICCI, Federation House,
Tansen
Marg,
Ministry of Rural Development
Department of Rural Development
INDEX
|
S.No. |
Items |
Page Nos. |
|
1 |
Confirmation of the Minutes of the
9th Meeting of the CLCC |
1 |
|
2 |
Action
Taken Report on the Recommendations made in the 9th Meeting of the
CLCC on |
2-6 |
|
3 |
Financial & Physical
achievement of SGSY during 2006-07 |
7-11 |
|
4 |
Action Research Project by NIBM |
12-15 |
|
5 |
Pilot
Scheme for disbursement of Credit through Village Development Boards/Village
Development Councils in North Eastern Region |
16-18 |
|
6 |
Annexures (i)
Minutes of 9th
Meeting of CLCC of SGSY held in (ii)
Physical and Financial Progress under SGSY since inception
i.e. 1.4.1999 (iii)
Financial Progress of SGSY
during 2006-07. (iv)
Physical Progress of SGSY
during 2006-07. (v)
Credit Targets and Achievements under SGSY during 2006-07 (vi)
Statement showing number of loan applications submitted, sanctioned,
disbursed and pending for the year 2006-07. (vii)
Physical Targets and
Achievements under SGSY during 2006-07 (viii) List of poor performing
Bank Branches for the year
2005-06 |
19-26 27 28-30 31-35 36 37 38 39-76 |
Agenda No.
1
Confirmation of the Minutes of the 9th
Meeting of the CLCC
Minutes
of 9th Meeting of the Central Level Coordination Committee (CLCC) of
Swarnjayanti Gram Swarozgar Yojana (SGSY) held on 28th June, 2006
are placed at Annexure–I. These
Minutes were circulated to all the members of the CLCC for necessary action
and comments.
No objections/comments to the Minutes have
been received from any of the members.
The minutes may now be confirmed.
AGENDA NO. 2
ACTION TAKEN REPORT ON THE RECOMMENDTIONS
MADE IN THE 9TH MEETING OF THE CENTRAL LEVEL CO-ORDINATION COMMITTEE
(CLCC) OF SGSY HELD ON
|
SUGGESTIONS |
ACTION TAKEN |
|
1. Report of
the Committee on relocation of bank branches to their original places at
Tripura was at the final stage of completion. It was decided that feasibility
of relocating bank branches in Tripura would be considered on the basis of
the report of the Committee on this issue. (Action: State Government of
Tripura, RBI and Banks). |
RBI has informed that Committee on
this issue observed that there was no unbanked centre in the State of On the issue of relocation of bank
branches to their original places, Government
of Tripura has proposed for opening of extension counters of the concerned
banks (close to the camps of security forces). CLCC may discuss the progress on this
issue. |
|
2. Possibility of opening of new bank branches in the unbanked areas of (Action: RBI and Banks). |
There are 37 unbanked blocks in i. SBI -6 blocks ii. PNB -12 blocks iii. CBI – 12 blocks iv. BOB – 2 blocks v UCO -1 block vi CANARA -3 block vii Union Bank – 1 block Licences for opening of 9 branches
(PNB-2,SBI-1, CBI-6) have been sent to RBI. Present Status - RBI has issued
licences for opening of 4 branches to Central Bank of It has been decided in the review meeting of
bankers with Ministry of Finance in December, 2006 that commercial banks will
extend banking facilities in unbanked areas by relocating existing branches
before 31.3.2007. The latest position in this regard
may be appraised by RBI to CLCC. |
|
3. Probationary officers of banks
should be given field training in the villages and they should be attached
with NGOs and institutes like RUDSET for proper sensitisation. Training programmes of bank officials would
be conducted at the rural areas. (Action: RBI and Banks). |
RBI has instructed all scheduled
commercial banks to take necessary action in this regard. State Bank of Similarly, Andhra Bank, Allahabad
Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, CANARA Bank,
Central Bank of India, Commercial Bank, DENA Bank, Indian Bank, Oriental Bank
of Commerce, Punjab National Bank, Punjab & Sind Bank, Syndicate Bank,
UCO Bank, Union Bank of India, United Bank of India and Vijaya Bank have
informed that they are sensitizing branch officials besides imparting
training to them at training colleges on the implementation of SGSY. |
|
4. State Government would take necessary steps to augment marketing
infrastructure to enhance marketing of rural products. (Action: States/UTs.) |
Gram Haat
Society is established in Ahmedabad to run Gujarat Gram Haat which is a
permanent marketing outlet and it has been informed by Government of Gujarat
that district level Gram Haat will be set up for marketing of rural products. Government
of Himachal Pradesh is implementing special projects titled Marketing of
Rural Goods whereby 22 Grameen Bhandar and one Central Grameen Bhandar have
been constructed as marketing centres for rural artisans. Government
of Karnataka is also establishing Taluk and District level marketing
complexes. Government
of Government
of Ministry of
Rural Development has sanctioned projects for creation of marketing
infrastructure ranging from establishment of rural haats to permanent
marketing centres for establishing an integrated marketing network for rural
products. Such projects have been
sanctioned in 11 States namely CLCC will
review the efforts made by the State Governments for marketing of rural
products. |
|
5. There should be better monitoring of the banks and simplification of the
procedure for opening bank accounts. (Action: RBI and Banks) |
RBI has
instructed all Scheduled Commercial Banks to take necessary action. State Bank
of Allahabad
Bank, Andhra Bank, Bank
of Baroda, Bank of India, Bank of Maharashtra, CANARA Bank, Central Bank of
India, Commercial Bank, DENA Bank, Indian Bank, Oriental Bank of Commerce,
Punjab National Bank, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union
Bank of India, United Bank of India and Vijaya Bank have advised their bank branches to follow the simplified procedure for
opening of bank accounts of SHGs and managers of Rural Bank Branches are
sensitised to the procedures of opening of SHGs accounts. |
|
6. State Governments would take necessary efforts to create awareness
among the beneficiaries regarding their entitlements and interest calculations on the loans. (Action: States/UTs). |
Governments
of Rajasthan, Karnataka, |
|
7. States/UT Governments should pay special attention to the convergence
of SGSY with other Central/State schemes.
(Action: States/UTs). |
Governments
of Rajasthan, Karnataka, Gujarat, H.P., Goa and West bengal have informed
that implementing agencies are instructed for necessary action and
convergence is being done with State sponsored projects and schemes. Other States have not yet responded. |
|
8. Banks will evolve their own mechanisms for monitoring the performance of
bank branches. (Action: RBI and Banks.) |
RBI has
informed that all Commercial Banks has been instructed to take necessary
action for monitoring the performance of bank branches. State Bank of India, Allahabad Bank, Andhra
Bank, Bank of
Baroda, Bank of India, Bank of Maharashtra, CANARA Bank, Central Bank of
India, Commercial Bank, DENA Bank, Indian Bank, Oriental Bank of Commerce,
Punjab National Bank, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union
Bank of India, United Bank of India and Vijaya Bank had informed that they have put in place mechanism for monitoring of
bank branches. |
|
9. Banks would take necessary action to look into the pendency of loan
applications and State Governments will ensure timely sponsoring of loan
applications.
(Action: States/UTs and All Banks) |
RBI has
instructed all scheduled commercial banks to submit action taken report in
this regard. State Bank
of India, Allahabad Bank, Andhra Bank, Bank of
Baroda, Bank of India, Bank of Maharashtra, CANARA Bank, Central Bank of
India, Commercial Bank, DENA Bank, Indian Bank, Oriental Bank of Commerce,
Punjab National Bank, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union
Bank of India, United Bank of India and Vijaya Bank have informed that their branches have been advised not to keep the
proposals pending beyond 15 days and their branches are maintained proper
liaison with sponsoring agencies to ensure even flow of applications and to
avoid bunching at the fag end of the year. Governments
of Rajasthan, Karnataka, |
|
(Action: States/UTs and Banks) |
State Bank
of India, Andhra Bank, Bank of Maharashtra, Bank of Baroda, CANARA Bank,
Central Bank of India, Dena Bank, Indian Bank, Punjab National Bank, Syndicate Bank, Oriental Bank of Commerce
and UCO Bank have informed that SLBC meetings are held regularly. State Governments
of Rajasthan, Karnataka, |
|
11. Banks would take appropriate action to increase the credit flow under
SGSY and to achieve desired credit subsidy ratio. (Action: All Banks) |
RBI has
instructed all Scheduled Commercial Banks to submit their action taken
reports. State Bank
of India, Allahabad Bank, Andhra Bank, Bank of
Baroda, Bank of India, Bank of Maharashtra, CANARA Bank, Central Bank of India,
Commercial Bank, DENA Bank, Indian Bank, Oriental Bank of Commerce, Punjab
National Bank, Punjab & Sind Bank, Syndicate Bank, UCO Bank, Union Bank
of India, United Bank of India and Vijaya Bank have advised their branches to sanction adequate credit and to ensure
achievements of desired credit subsidy ratio of 3:1. |
|
(Action: States/UTs) |
State Governments
of Rajasthan, Karnataka, |
Agenda No. 3
FINANCIAL & PHYSICAL
ACHIEVEMENTS OF THE SGSY DURING 2006-2007
Financial
and Physical progress under SGSY since inception i.e. 1.4.1999 is given in Annexure-II.
Financial
Achievements
Financial
Progress under SGSY showing State-wise allocation, utilisation of funds along
with data on credit and subsidy disbursed and total investment made during
2006-07 is given in Annexure –III.
Areas of
Concern:
A. Utilisation of funds :
At the national level, it
has been noticed that the percentage of utilisation to total available funds
during the current year 2006-07 (upto December, 2006) is 59.30%. This percentage of utilisation to total funds
is low in
B.Credit
Credit
mobilisation target of Rs.2869 crores has been fixed under SGSY for the year
2006-07. In order to ensure even flow of
credit throughout the year, these credit targets have been fixed for every
quarter also. For the three quarters
ending on
States/UTs
where banks are lagging behind their credit targets are Arunachal Pradesh
(1.26%), Mizoram (6.60%), Meghalaya (7.31%),
C. Poor performance of bank branches in
credit delivery
There are 2643 bank branches
which have disbursed loans less than 25% of credit targets. The details of such
poor performing bank branches for the year 2005-06 are given at Annexure-VIII. Efforts made by the banks and RBI to monitor
the performance of these bank branches during the current year will be
discussed in the meeting.
D. Pendency of Loan applications
During the current year 2006-07 4,18,203
loan applications have been submitted to the banks under SGSY but only 2,25,565
loan applications have been sanctioned and loan has been disbursed in respect
of 1,92,499 loan applications. There
were 1,92,475 loan applications which were pending with banks as on
31.12.2006.
A
state-wise statement showing number of loan applications submitted, sanctioned,
disbursed and pending for the year 2006-07 is given at Annexure –VI.
The pendency of loan applications under
SGSY is a matter of great concern.
Standing Committee of Parliament has expressed concern on the pendency
and rejection of loan applications by the banks. The Committee is of the opinion that
applicants approach the banks with great hope and expectation and they feel let
down when their loan applications are rejected on flimsy grounds or due to
cumbersome procedures. The following suggestions of Standing
Committee will be considered for discussion by CLCC:-
a) Procedure for lending under SGSY should be
simplified and paper work should be reduced so that people are not unnecessarily
harassed.
b) Help counters may be opened either at the
bank or DRDA Office to assist the illiterate applicant in filling up the forms,
explaining them the highlights of the scheme, the liability of the applicant,
the procedure for taking benefit under the scheme etc.
c) The role of DRDAs, Panchayati Raj
Institutions (PRIs) should be strengthened for effective coordination between
them and Banks so that the needy applicants are not unnecessarily turned away
by Banks.
Physical
Achievements -
Physical progress under SGSY
showing State-wise number of SHGs formed, trained and assisted for the year
2006-07 is given in Annexure –IV.
Areas of
Concern:
A. Proportion
of Economic assistance given to SHGs.
During
the current year, 1,49,945 SHGs have been formed and number of SHGs which have
passed Grade I & II are 1,37,453 and 61,006 respectively. Number of SHGs which have taken up economic
activity is 46,627.
Since inception of the programme i.e.
1.4.1999, 24 lakhs of SHGs have been found by the State Governments as well as
other agencies. These SHGs are
subjected to assess whether they have evolved into a good group and are ready
to go into the next stage of evolution. There are 14.77 lakhs SHGs which have passed
Grade I and there are 6.73 lakhs SHGs which have passed Grade II. When SHGs are
mature enough they are assisted for economic activity. At present 3.66 lakhs SHGs have been assisted
for economic activity. The proportion of SHGs which have taken up
economic activity vis-à-vis formation of Self Help Groups formed is 15% which
is very low.
State-wise
position of SHGs formed, that passed Grade-I & II and have taken up
economic activities under SGSY since inception upto December, 2006 is as
under:-
Table:
|
Proportion of SHGs that have passed
Grade-I, II and commenced Economic Activities to the |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
SHGs Formed under the SGSY (since inception
upto Nov'06) |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
It
may be seen that some States which are lagging behind in proportion of SHGs which are economically assisted
vis-à-vis formation of SHGs are:
Manipur (2.41%),
Physical Targets and Achievements
The main objectives of formation of
SHGs is to bring rural poor swarozgaris above the povertyline. However, very few swarozgaris have been
economically assisted under the programme in the last year.
State-wise quarterly physical
targets and achievements regarding SHGs
and swarozgaris assisted are shown in Annexure-VII.
It
may be seen that target of total number of SHGs assisted for the three quarters
was 50062 and 40134 SHGs have been assisted by 31.12.2006. The percentage of achievements on the
physical targets of number of SHGs assisted is 93.14%. States
of Arunachal Pradesh (0.72%),
The
percentage of total number of swarozgaries assisted is 89.97% by the end of the
third quarter of the year. States which
are lagging behind in assisting Swarozgaris are Arunachal Pradesh (1.88%), Tripura
(5.66%), Manipur (10.52%),
Achievements
on the physical targets will be reviewed in the meeting.
Agenda No. 4
Action Research Project by NIBM
An Action Research Project
(ARP) was undertaken by National Institute of Bank Management (NIBM) with
participation of banks operating in different areas. The action research project had been taken
up in nine blocks in nine districts of
nine States. The total ARP project
duration was of three years from 2003-04 to 2005-06.
The following were the objectives of Action
Research Project:-
- To
identify the patterns of access and utilization of major centrally
sponsored micro-finance programme, SGSY across gender;
- To
analyse the structure of interest rates, loan size, loan portfolio,
pattern of collateral, frequency of repayment terms and the lending
methods of micro finance programme, SGSY from a gender perspective;
- To
analyse the process of formation of SHGs and their participatory
management in micro-finance programme, SGSY;
- To
analyse the feedback mechanism of micro-finance and economic activity
whether micro-finance is a strategic tool for income generating activities
and poverty alleviation.
- To
analyse whether access to micro-finance leads to economic empowerment of
women; and
- To
analyse the financial implications of micro-finance on bank branch
business.
The conclusions and recommendations of final
report of Action Research Project are as under:-
(i)
Planning
and implementation of SGSY are not satisfactory.
(ii)
Key
and cluster approach are not working well.
(iii)
Major
portion of lending is tilted towards primary sector and dairy activity within
that.
(iv)
SHGs
are weak; formation and nurturing process are not satisfactory.
(v)
Subsidy
seems to be a major motivation factor
for SGSY- SHGs.
(vi)
Recovery
rate at all
(vii)
Accounting
practice of SHGs needs to be made simple and systematic especially in eastern,
central and north-eastern regions; extra effort is required in northern region
for the development of SHG segment.
(viii) Majority of the Swarozgaris/SHG
have not generated economic surplus from their credit led assets; skill based
training seems to be weak; marketing channel has not been created.
(ix)
Grassroots
functionaries who are responsible for forming and nurturing the groups are not
trained for this purpose.
(x)
Grading
process is not at all scientific; neither it is taken seriously.
(xi)
Mostly
target and achievement of credit, not the strength and maturity of SHGs and the
non-credit issues like infrastructure, training and functioning of line
departments, get discussed in the fora meetings.
(xii)
Release
of subsidy fund is delayed; this affects implementation schedule.
(xiii)
Branches
follow traditional lending methods
based on tangible security rather than microfinance approach emphasizing
collateral substitute, mainly because BMs do not consider them as viable
client.
(xiv)
Both
government functionaries and branch managers find fault with each other
8.9 Recommendation
A1. Since SHG is in the core of SGSY model, philosophy of SHG must
be respected. SHG is a slow process.
A2. Investment credit for asset creation and income generation are
not the main objectives behind SHGs. In
SHG, credit is not supply-led but demand-led.
A3. SHGs must be allowed to mature first with (i) thrift
collection, (ii) internal lending, (iii) record maintenance, (iv) fund
management, and (v) problem solving.
A4. Target must not be `number of groups’ formed or `amount of
credit disbursed’ or `amount of subsidy released’ but `number of groups matured’. Credit is
expected to follow as a natural process.
B1. Since emphasis is on women, it is advisable that more women
are assigned the job of forming and nurturing the groups.
B2. The animators, facilitators and VLWs must be trained first.
B3. There must be enough provision for training of the
animators/VLWs, etc in the training budget.
B4. They must visit each group once in a month at least for the
first three years; maintain the accounts systematically and regularly, and
train them.
B5. They must discuss non-financial social issues regularly in the
SHG meetings, and encourage them to solve their problems.
C1. For BMs to take interest in lending to poor, the corporate
office should come with appropriate performance appraisal and reward policy.
C2. However, they must be guided by banking principles only; and
should be fully accountable to the health of the portfolio.
C3. Bank itself should earmark financial resource for forming and
nurturing groups.
C4. BMs must monitor the interest calculation.
C5. Auditors need to be properly briefed about the rule.
C6. Auditors should mention about health of different portfolios of
branches in the auditor’s report.
D1. A monitoring format needs to be developed through which PDs and
BDOs and other block level officials can evaluate the health of SHGs (Annexure
24).
D2. Whereas an officer at Block office must monitor each SHG, BDOs
must monitor village wise, and PDs block wise.
D3. The findings about SHGs need to be thoroughly discussed in each
BLSC and DLSC meetings.
D4. More emphasis needs to be given on the health and qualitative
aspects of SHGs rather than target and achievement of credit.
D5. Besides credit, infrastructure and training issues must be
given equal emphasis, if not more.
D6. Activities of veterinary doctors and other line department officials
too must be discussed in each meeting.
D7. A grievance cell may be started, which would collect
complaints/problems from each Swarozgari/SHG; they may be discussed in the fora
meetings; and the Swarozgaris/SHGs must
be informed about the discussion/action taken, if any.
D8. DRDA should print uniform accounts book and sell them to
SHGs. Some of the DRDAs have already
done it. A specimen accounts record has
been presented in Annexure 25.
E1. Interactions among SHGs must be conducted atleast twice in a
year.
E2. Two such `conferences’ (get together) at block level and one
at district level should be conducted every year.
E3. One or two members of each group should attend.
E4. There, however, must be well defined agenda item
F1. Credit decision must be left to the credit institutions
only. Whereas government institutions
must focus on developmental role, banks focuses on developing and selling
appropriate financial services products.
F2. Any kind of subsidy targeted at individual level must be stopped. Instead the entire amount of central and
state grant must be utilised for the development of human capital formation of
poor (formation of SHG, training, get-together, etc.).
F3. The banks on the other hand must be monitored rigorously for
their commitment to weaker section credit and mobilization of micro savings. This monitoring instead at corporate level,
needs to be done at state level. SLBC
may allocate the target to each bank in the state. GOI in consultation with RBI
and IBA needs to develop a reward and punishment mechanism for achieving the
weaker section credit, which includes SGSY portfolio also.
F4. ‘Key and Cluster’ approach exclusively for SGSY may be
abandoned. This should be a strategy of
overall district development plan, and SGSY plan, if necessary, may be
dovetailed to that. Focus must be
shifted to credit need and human capital formation from IGA credit and micro
level subsidy.
The major findings and recommendations
of Action Research Project by NIBM will be presented and discussed in the CLCC
Meeting.
Agenda No.5
PILOT SCHEME for disbursement of Credit
through Village Development Boards(VDBs)/Village Development Council(VDCs) in
North Eastern Region.
A pilot scheme was
formulated in the North Eastern region to augment to flow of credit in the
unbanked blocks. Village Development Boards (VDBs) and Village Development
Councils (VDCs) in the states of Nagaland and Mizoram are to act as non banking
financial institutions under the scheme.
The salient features of the
pilot scheme are as under:
(a) A
corpus fund will be contributed by the contribution from VDBs/VDCs/VCs, State
Governments and Ministry of Rural Development.
(b)
State
bank of India/United Bank of
(c)
State
Governments will identify about 25 VDB/VDC/Village Councils in each State for
this purpose.
(d)
(e)
NABARD
will sanction 2.25 times to 4 times of aggregate corpus.
(f)
Guidelines/procedures
for loan and advances by
(g)
(h)
The
Pilot Schemes will be evaluated after two years from the point of view of its
success and replication.
(i)
Rural
Development department of the respective State Governments may act as nodal
department for operationalizing the scheme
The first installment for
this Pilot scheme was released by Govt.
of India in July, 2003. Corpus fund was created out of the contributions from
the Ministry of Rural Development, NABARD, Govt. of Nagaland, and VDBs in the
ratio of
It was informed by NABARD in
the 8th CLCC Meeting that this pilot scheme had been successful in
Nagaland and it was proposed to be extended to other blocks in Nagaland and
Mizoram.
Government of Mizoram has
informed that this pilot scheme for disbursement of credit through VDBs is not
applicable in Mizoram at present unless the Act for constitution of VDBs is
passed by the Mizoram Legislative Assembly.
CLCC would like to review
the progress of Village Development Boards (VDBs) in North Eastern Region.
****
ANNEXURE-I
MINUTES OF THE 9th MEETING OF THE CENTRAL LEVEL COORDINATION
COMMITTEE (CLCC) OF THE SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY) HELD AT
1. Union
Minister of Rural Development presided over the Meeting.
2. The
meeting was chaired by Dr. Renuka Viswanathan, Secretary (RD) and the list of
participants is at Annexure-I.
3. Dr.
Amar Singh, Joint Secretary (SGSY) welcomed Minister (RD) and the
participants. He emphasised the
important role of Central Level Coordination Committee in policy formulation,
monitoring and evaluation of SGSY.
4. In
her opening remarks, Secretary (RD) emphasised that evaluation studies need to
be considered for deriving conclusions and suggestions for the improvement of
the programme. Secondly, she stressed on
evolving innovative measures to increase outreach of micro-finance to BPL
families. Thirdly, she referred to the
linkages between National Rural Employment Guarantee Programme and SGSY,
through involvement of SHGs for
identification of worksites.
5. Shri
R.Bandhopadhyay, Adviser (RD), Planning Commission reiterated the importance of
a Self-employment Programme like SGSY in amelioration of poverty. He expressed concern over the lower
allocation of funds to the SGSY Programme and emphasised the need for a quantum
jump in SHG movement.
6. In
his address, Dr. Raghuvansh Prasad Singh, Hon’ble Minister of Rural Development
emphasised the importance of CLCC in reviewing the performance of the programme
at the end of the Tenth Five Year Plan.
He suggested that solutions to the alleviation of poverty lie in
generation of self-employment opportunities.
Such opportunities can be created by bringing atleast one member of every BPL family into
the fold of SHGs. He suggested that RBI may take necessary steps to ensure that
bank branches are set up in unbanked areas of
7. While
highlighting the anomaly in the rate of interest which is effectively higher for landless and poor
rural population as compared to landed farmers, the Minister (RD) pointed out
that the rate of interest to the BPL borrowers works out to be as high as 12%. Andhra Pradesh model of granting interest subsidy
by the State Government needs to be studied in view of the high rate of
interest being charged by the banks in certain States.
8. He
further emphasised the significant role that banks can play in the formation of
the Self-Help Groups and their training.
He stressed the need for skill development training and appreciated the
efforts made by non-governmental organisations like Dr. Reddy’s Foundation for
skill development training of BPL families. He referred to the importance of
marketing of rural products as a tool for the success of programme.
9. Thereafter
the Agenda Items were taken up for discussion.
10. The
minutes of the 8th CLCC meeting held on
11. The
Action Taken Report on the Recommendations made in the last meeting of the
CLCC was reviewed by Secretary (RD).
12. Executive
Director, RBI informed that relocation of bank branches to their original
location at Tripura is difficult owing to security reasons. It was informed by United Bank of
(Action: State Government of Tripura, RBI and Banks).
13. The
issue of unbanked blocks in the districts of
(Action: RBI and Banks).
14. On
the issue of training, Secretary (RD) emphasised the need for training of bank
officials at rural areas. She suggested
that Bank Probationary officers should be given field training in the villages
and they should be attached with NGOs and Institutes like RUDSET for proper
sensitisation. It was recommended by the
Committee that such training programmes would be conducted for the bank
officials at rural areas.
(Action: RBI and Banks).
15. CMD,
Canara Bank emphasised the need for establishing adequate marketing
infrastructure which will boost the confidence of banks in better lending to
the beneficiaries under SGSY. It was
decided that the State Government would take necessary steps to augment
marketing infrastructure to enhance marketing of rural products.
(Action: States/UTs.)
16, ED,
PRADAN pointed out the weakness of monitoring system and regulation in
banks. He referred to the low average
lending to SHGs and the procedural difficulties faced by SHGs in opening the
bank accounts. It was recommended that
there should be better monitoring of the banks and simplification of the
procedure for opening bank accounts.
(Action: RBI and Banks)
17. Secretary
(RD) suggested that there must be active movement within banks for qualitative
inspection of the procedure of lending to SHGs.
She recommended that SHGs should be imparted standard training on
calculation of interest and their entitlements.
It was decided that State Governments would take necessary efforts to
create awareness among the beneficiaries regarding their entitlements and interest calculations on the loans.
(Action: States/UTs).
18. Convergence
of efforts by various Ministries specially in the field of marketing of
products was emphasised by Addl.Secretary, Ministry of Agriculture. He referred
to the impact evaluation studies which have indicated lack of awareness
regarding SGSY among the beneficiaries.
Therefore, convergence of programmes of different Ministries can help in
promoting better awareness and understanding. It was decided that States/UT Governments
should pay special attention to the convergence of SGSY with other
Central/State schemes.
(Action: States/UTs).
19. The
issue of collateral security was discussed and it was clarified by RBI that
exemption of collateral security for group loan under SGSY has been raised from
Rs.3 lakhs. to Rs.5 lakhs under the revised guidelines dated 4.7.2002. It was informed that for group loans upto
Rs.5 lakhs, the assets created out of bank loan would be hypothecated to the
bank as primary security. However, in
cases where movable assets are not created, mortgage of land may be obtained or
where mortgage of land is not possible, third party guarantee may be obtained
at the discretion of the bank.
20. It
was informed by State Bank of Bikaner & Jaipur that a separate Cell has
been created for monitoring the performance of the bank branches. Secretary (RD) appreciated the efforts in
this direction and it was decided that banks will evolve their own
mechanisms for monitoring the performance of bank branches.
(Action: RBI and Banks.)
21. On
the issue of large pendency of loan applications, representative of Punjab
National Bank informed that adequate number of loan applications are not
sponsored by DRDAs. The need for quality of the loan applications sponsored by
DRDAs was also discussed in the meeting.
Joint Secretary (SGSY) pointed out huge pendency of 2.5 lakh loan
applications under SGSY as on
(Action: States/UTs and All Banks)
22. It
was suggested that SLBC should have regular meetings for discussing credit
related issues. Representative from Dena
Bank suggested that there should be frequent interactions and joint meetings of
the officials of DRDAs and Banks for better coordination and
understanding. It was decided that State
Governments and Banks will ensure that regular meetings of SLBC/SLCC are held.
(Action: States/UTs and Banks)
23. JS(SGSY)
expressed concern over the low credit disbursement under SGSY. He informed that only 72% of credit targets had
been achieved in the year 2005-06 and only two States have achieved more than
100% namely Himachal Pradesh and Rajasthan.
He pointed out that only few States have been able to achieve the desired
credit subsidy ratio of 3:1 which is a matter of great concern. The Committee decided that banks would
take appropriate action to increase the credit flow under SGSY and to achieve
desired credit subsidy ratio.
(Action: All Banks)
24. JS(SGSY)
stressed the need for monitoring the repeated loans and multiple doses of
credit. Therefore, it was suggested that
the State Governments will monitor the frequency of repeated loans under
SGSY and furnish the data to the Ministry in this regard.
(Action: States/UTs)
25. It
was suggested by the representative of Union Bank of
26. Secretary
(RD), Madhya Pradesh suggested formation of smaller sized Self-Help
Groups. He suggested that the minimum
requirement of members in Self-Help Groups should be reduced to
27. Credit
mobilisation targets of 2006-07 under SGSY for all the States were approved by
the Committee.
28. Presentations
were made on the findings of the studies on SGSY conducted by State Bank of
The meeting ended with vote
of thanks.
****
Annexure I
List of Participants of 9th
CLCC meeting held on
|
S.No. |
Name of the Participant
& Designation |
Organisation |
|
|
Representatives
from Govt. of |
|||
|
|
Dr. Raghuvansh Prasad
Singh, Minister (RD) |
Ministry of Rural
Development |
|
|
|
Dr. Renuka Viswanathan,
Secretary (RD) |
Ministry of Rural
Development |
|
|
|
Shri R. Bandhopadhyay,
Adviser(RD) |
Planning Commission |
|
|
|
Shri Alok Sinha,
Addl.Secretary |
Ministry of Agriculture |
|
|
|
Dr. Amar Singh, Joint
Secretary |
Ministry of Rural
Development |
|
|
|
Shri A.Bhattacharya,
Dy.Director General |
CAPART |
|
|
|
Shri Ashok Kumar Singh,
Pr.Secy (RD) |
Government of Jharkhand |
|
|
|
Shri M.N.Roy, Pr.Secy
(RD) |
Government of |
|
|
|
Shri Ram Lubhaya, Pr.
Secretary (RD & PR) |
Government of Rajasthan |
|
|
|
Shri Van Hela Pachuau,
Pr.Secretary(RD) |
Government of Mizoram |
|
|
|
Shri Anup Mukerji,
Commissioner & Secretary (RD) |
Government of |
|
|
|
Shri Pradeep Bharghav,
Secretary (RD) |
Government of Madhya
Pradesh |
|
|
|
Shri Narinder Chauhan,
Secretary (RD) |
Government of Himachal
Pradesh |
|
|
|
Shri Anil Kumar Singh,
Secretary (RD) |
Government of |
|
|
|
Shri. P.K.Mohanty, Secretary
(RD) |
Government of Uttaranchal |
|
|
|
Shri D.S. Grewal,
Spl.Secy (RD) |
Government of |
|
|
|
Shri S.C.Jain, Spl.Secy |
Government of Haryana |
|
|
|
Shri T.Vijay Kumar, CEO,
Society for Elimination of Rural
Poverty |
Government of Andhra
Pradesh |
|
|
|
Shri S.K.Ahilal, Adll.Secy |
Government of |
|
|
|
Shri K.N.Bhatt,
Addl.Commissioner, |
Government of Gujarat |
|
|
|
Ms. Niharika Barik Singh,
Addl.Resident Commissioner |
Government of
Chhattisgarh |
|
|
|
Shri Maong Aier, Dy.RC |
Government of Nagaland |
|
|
|
Shri K.I.Gudagi, JD |
Department of RD,
Karnataka |
|
|
|
Shri K.Ramamurthy, Addl.
Director, |
Government of Tamil Nadu |
|
|
|
Ms. Manisha Mhaiskar,
JS(RD) |
Department of
RD,Maharashtra |
|
|
|
Shri Thiyagarajan, JS |
Department of RD, Tamil
Nadu |
|
|
|
Shri Narendra Kumar
Dube, JC |
Government of Madhya
Pradesh |
|
|
|
Shri R.J.Shah,
JD(Monitoring) |
Government of Gujarat |
|
|
|
Shri Rakesh Chandra,
Chief Development Officer, |
Commissioner of RD,
Government of U.P. |
|
|
|
Shri Vishwas Kumar
Tyagi, OSD (RD) |
Government of
Arunachal Pradesh |
|
|
|
Shri P.R.Poudyal, PD, |
Government of |
|
|
|
Shri Tarun Bajaj,
Director |
Banking Division,
Department of Expenditure |
|
|
|
Dr. Savita Sharma,
Director |
CSO, Ministry of Stat.
& P.I |
|
|
|
Shri. Bharat Lal,
Director (SG) |
Ministry of Tribal
Affairs, GOI |
|
|
|
Dr. V.C.Goyal, Director |
Ministry of Science &
Technology |
|
|
|
Dr. S.C.Pandey, OSD
(Policy & Coordination) |
Ministry of Finance |
|
|
|
Smt. S.Jeyalakshmi,
Statistical Adviser |
Ministry of Women &
Child Development |
|
|
|
Shri T.S.Lally, U.S (ARI) |
Ministry of Agro Rural
Industries |
|
|
|
Ms. Rashmi Priyadarshini,
Director (Marketing) |
Ministry of Rural
Development |
|
|
|
Shri K.N.Kumar,
Director (SGSY)) |
-do- |
|
|
|
Shri A.K.Gupta Director,
(SGSY)) |
-do- |
|
|
|
Smt. Ranjana Gupta,
Director (UNDP& IC) |
-do- |
|
|
|
Smt. Vanita Rattan
Sharma, DS(SGSY) |
-do- |
|
|
|
Shri P.N.Shukla Under Secretary(SGSY) |
-do- |
|
|
Representatives from Banks |
|||
|
|
Shri V.S.Das, Executive
Director |
Reserve Bank of |
|
|
|
Shri A.K.Bhandari, DGM |
Reserve Bank of India |
|
|
|
Shri A.D.Ratnoo, GM |
NABARD |
|
|
|
Shri V. Ramachandran,
Vice President |
Indian Banks Association |
|
|
|
Shri M.B.N.Rao, CMD |
Canara Bank |
|
|
|
Shri G.S.Matta, ED |
Punjab & Sind
Bank |
|
|
|
Shri M.Ramaswamy, CGM |
State Bank of Bikaner
& Jaipur |
|
|
|
Shri M.S. Joshi, GM |
Bank of Maharasthra |
|
|
|
Shri G.M.Garg, GM ( |
Indian Bank |
|
|
|
Shri M.R. Nayak, GM
(Delhi Zone) |
Corporation Bank |
|
|
|
Shri K.Shamsundara
Shetty, GM –Credit (priority) |
Vijaya Bank |
|
|
|
|
Union Bank, Mumbai |
|
|
|
Shri P.K.Tripathy, GM |
Indian Overseas Bank
(Central Office) |
|
|
|
Shri V.K.Nagar, GM |
Punjab National Bank |
|
|
|
Shri I. Pardha
Saradhi, GM |
Syndicate Bank |
|
|
|
Shri R.K.Kalia, GM |
Central Bank of |
|
|
|
Shri S.K.Katiyar, GM |
Allahabad Bank, H.O.( |
|
|
|
Shri B.G. Baria, GM |
Bank of |
|
|
|
Shri K.Pothiraj, GM (O) |
Bank of |
|
|
|
Shri V.K.Upadhyay, GM |
UCO Bank |
|
|
|
Shri Rakesh Sethi, GM |
Andhra Bank |
|
|
|
Shri R.G. Gadkari, GM
(P&D) |
State Bank of
Travancore |
|
|
|
Shri G.K.Sachdeva, GM
(SL&PS) |
Oriental Bank of Commerce |
|
|
|
Shri Ravinder Yadav, GM |
||