April 01, 2021
The Chairman/ Managing Director & CEO
Public Sector Banks,
Private Sector Banks (including Small Finance Banks)
Madam/Dear Sir
Please refer to the Master Circular FIDD.GSSD.CO.BC.No.06/09.01.01/2020-21 dated September 18, 2020 on Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
The Master Circular has been suitably updated by incorporating the modifications in DAY-NRLM scheme issued up to April 01, 2021, which are listed in the appendix and also been placed on website (https://www.rbi.org.in).
Yours faithfully,
(Kaya Tripathi)
Chief General Manager
Master Circular
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
1.Background
The Ministry of Rural Development (MoRD), Government of India launched the National Rural Livelihood Mission (NRLM) by restructuring Swarnajayanti Gram Swarojgar Yojana (SGSY) with effect from 01st April 2013 (RBI Circular No. RBI/2012- 13/559 dated 27 June 2013). NRLM was renamed as DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) w.e.f. March 29, 2016. The DAY-NRLM is the flagship program of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services and livelihoods. DAY-NRLM adopts a demand driven approach, enabling the States to formulate their own State specific poverty reduction action plans. The blocks and districts in which all the components of DAY-NRLM would be implemented, either through the SRLMs or partner institutions or NGOs, would be the intensive blocks and districts, whereas remaining would be nonintensive blocks and districts. The key features of DAY-NRLM have been furnished in Annex I.
Women SHGs and their Federations
2.1 Women SHGs under DAY-NRLM consist of 10-20 persons. In case of special SHGs i.e. groups in the difficult areas, groups with disabled persons, and groups formed in remote tribal areas, this number may be a minimum of 5 persons.
2.2 DAY-NRLM promotes affinity-based women Self Help Groups (SHGs).
2.3 Only for groups to be formed with Persons with disabilities, and other special categories like elder, transgender, DAY-NRLM will have both men and women in the Self-Help Groups
2.4S HG is an informal group and registration under any Societies Act, State cooperative Act or a partnership firm is not mandatory vide Circular RPCD.No. Plan BC.13/PL-09.22/90-91 dated July 24th, 1991. However, Federations of Self Help Groups formed at Village, Gram Panchayat, Cluster or higher level may be registered under appropriate acts prevailing in their respective states.
Financial Assistance to the SHGs
3. Revolving Fund: DAY-NRLM, MoRD, would provide Revolving Fund (RF) support to SHGs in existence for a minimum period of 3/6 month and follow the norms of good SHGs, i.e. they follow ‘Panchasutra’ – regular meetings, regular savings, regular internal lending, regular recoveries and maintenance of proper books of accounts. Only such SHGs that have not received any RF earlier would be provided with RF, as corpus, with a minimum of ₹10,000 and up to a maximum of ₹15,000 per SHG. The purpose of RF is to strengthen their institutional and financial management capacity and build a good credit history within the group.
4. Capital Subsidy has been discontinued under DAY-NRLM:
No Capital Subsidy would be sanctioned to any SHG from the date of implementation of DAY-NRLM.
5. Community Investment Support Fund (CIF)
CIF would be provided by MoRD to the SHGs promoted under DAY – NRLM in all blocks (intensive and non-intensive) and would be routed through the Village level/ Cluster level Federations, to be maintained in perpetuity by the Federations. The CIF would be used, by the Federations, to advance loans to the SHGs and/or to undertake the common/collective socio economic activities
6. Introduction of Interest subvention:
DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7%, on all credit from the banks/ financial institutions availed by women SHGs, for a maximum of ₹ 300,000/- per SHG. This would be available across the country in two ways:
(i) In 250 identified districts, banks may lend to the women SHGs @7% up to an aggregated loan amount of ₹300,000/-. The banks would be subvented to the extent of difference between the Weighted Average Interest Charged and 7%, subject to the maximum limit of 5.5%. An additional interest subvention of 3% is also available on prompt repayment by the SHGs, reducing the effective rate of interest to 4%.
To Read More :
Click below :
https://www.dropbox.com/s/3qgd1t8uwpogb9v/Master%20circular-Deendayal%20Antyodaya%20yojana.PDF?dl=0
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