Index To RBI Circulars

April 19, 2004

The Chairman/Managing Director
All Indian Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

We advise that Government of India have set a target of 2,89,100, self-employment ventures for the country as a whole under PMRY for the year 2004-2005. The State/Union territory-wise physical targets are indicated in the Annexure 'A'. In order to prevent bunching of cases at the end of the year, banks should aim at achieving quarterly progress of sponsoring of applications/sanctioning and disbursement of loans as per schedule prescribed in the Annexure 'B'. Sponsoring shall be limited to 125% of targets and completed by December end. Thereafter, States/UTs may only replace rejections received from banks.

2. We further advise that :-

1. The scheme will be implemented in the rural as well as in the urban areas of the country.
2. All efforts should be made to achieve the target by the end of the year 2004-2005.
3. While processing fresh applications you may instruct the DICs of your States/UTs to take into account already pending applications with them so that the people need not apply afresh.
4. The Scheme envisages 22.5% reservation for SC/STs and 27% reservation for Other Backward Classes (OBCs). A fair and adequate share may be ensured for women and minorities.
5. The State should continue to make efforts to improve loan recovery under the Scheme.
6. Quarterly Progress of sponsoring, sanctioning and disbursement should be aimed at to prevent bunching of applications at the end of the year. Sponsoring shall be limited to 125% of target and completed till December end. Thereafter States/UTs may only replace rejections received from banks. A schedule is prescribed at Annexure - 'C'.
7. The implementing agencies would try to sponsor/sanction more and more applications under the Industry Sector in view of higher employment potential in this sector.

3. Other terms and conditions of the scheme will remain the same as during the year 2003-2004 subject to instructions from time to time.

4. Please issue necessary instructions to your Regional/Controlling Offices/ Branches for active participation and achievement of allocated targets by 31.03.2005.

5. Please acknowledge receipt.

Annexure - A