The Chairman and Managing Director
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir,
A Review of Swarnjayanti Gram Swarozgar Yojana
(SGSY)- Central Level Coordination Committee (CLCC) meeting held on Feb 7, 2005
at NABARD Mumbai
Please refer to our circular RBI/2004-05/307;Ref.RPCD.SP.BC
66 dated December 21, 2004 wherein we have advised the banks to take appropriate
action to ensure successful implementation of Swarnjayanti Gram Swarozgar Yojana
(SGSY). However, the Central Level Coordination Committee (CLCC) under SGSY
while reviewing the performance under the scheme in the captioned meeting, again
identified the same critical areas and expressed concern over the unsatisfactory
performance in terms of credit mobilisation and pendency of applications etc.
2. The Committee made the following recommendations
during the course of its deliberations.
i. Banks may review the delegation of powers
granted to branch managers and ensure that they are able to sanction all SGSY
applications with out making any reference to higher authorities.
ii. Banks may ensure that all the pending applications
at the end of the year should be brought forward and disposed of in the first
quarter of the succeeding year.
iii. Banks may explore the possibility of utilising
micro-finance institutions for bridging the credit gap.
iv. Banks may take appropriate action to achieve
the desired credit to subsidy ratio of 1:3.
v. Banks may furnish a status report to Ministry
of Rural Development on the under-performance of their branches in lending under
the scheme during the last two years.
vi. Banks should maintain separate record for
recovery data in respect of SGSY distinct from IRDP.
3. You are therefore, requested to take necessary
action on the recommendations made at para 2.
4. Banks are further advised to utilize the
Non-Public Business Working Day to attend to the problems of Swarozgaris under
SGSY also.
5. Since SGSY is the major poverty alleviation
and employment generation programme being implemented in rural areas of the
country banks are requested to show keen interest in achieving the targets fixed
under the scheme and make earnest efforts to increase the credit flow under
the scheme.
6. Please acknowledge the receipt and advise
us the action taken in this regard.
Yours faithfully,
(G.Srinivasan)
Chief General Manager