Update :In terms of Reserve Bank’s extant guidelines on lending to priority sector, a target of 40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority sector by domestic…
The Ministry of Rural Development, Government of India is operating a scheme namely ‘Interest Subvention Scheme under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)’. The funding for the scheme will be met out of Central Allocation under DAY- NRLM. This scheme is limited to Women Self Help Groups in rural areas only and…
The farmers in India have been inherently facing with on-farm risks like famine; flood, extreme weather etc. Though these types of natural risks cannot be totally avoided, there are many new on-field techniques developed in India to minimize the loss. However, the most important strategy to mitigate the risk is agriculture insurance. The insurance company…
The weaker sections of our society are the socially backward/ minority communities at national level or the people belonging to economically low income group. Normally, such people may not easily get timely and adequate credit without the priority credit dispensation of RBI. As per RBI’s priority sector approved plan, Banks have to achieve weaker section…
The definition of MSMEs revised from July 1, 2020, Please read the following post for latest amendment. New criteria for the classification of MSME effective from July 1, 2020 The new criteria supersede the following article (You may refer following article only for reference to old date details). The MSMED Act 2006 classifies Micro, Small…
Although, commercial banks and other financial institutions have been making steady strides to increase their share of credits to the MSE sector, but they have certain difficulties in sanctioning limits to SME borrowers. In an environment of NPA numbers in the banking sector alarmingly swelling, banks themselves are under stress and facing challenges to raise…
The Sikhs, Muslims, Christians, Zoroastrians, Buddhists, Jains communities in India are classified as minority communities as per notification of Ministry of Welfare, Government of India. In 121 districts in the country, the minority population exceeds 25% of total population of the districts. Further, in the states of J & K, Punjab, Meghalaya, Mizoram, Nagaland and…
[Government’s support to women SHGs in rural area under Deenadayal Anthyodaya Yojana- National Rural livelihoods Mission DAY-NRLM – (Corpus from Revolving Fund, ‘Panchasutra of good SHGs, CIF loan, the maximum amount of loan, repayment schedule, margin and security for the Bank loans)] Who can form SHG under DAY-NRLM? Women Self Help Group (SHG) under DAY-NRLM is the…
The Stand-Up India Scheme is launched by Government of India to generate the profitable employment to hitherto underserved segment of our society. The scheme provides bank loans between 10 lakh and 100 lakh to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting…
[This post answers many questions like ‘What is a PSL certificate?’, ‘Who needs PSLCs?’, ‘How the limit for issuance of each category of PSLC is decided?’ ‘How the PSLC transactions are computed for the determination of PSL target/sub-targets?’, ‘Is there any expiry date for PSLCs?’, ‘Whether the loan assets or risks of loan defaults are…