Lok Sabha Question No. 1483 (UNSTARRED), answered on 2021-12-07
Subject: Interest Subvention Scheme under DAY-NRLM
Ministry: RURAL DEVELOPMENT
Asked by: Rajyavardhan Singh Rathore

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA

## UNSTARRED QUESTION NO. 1483 ANSWERED ON 07/12/2021

## 1483.   COL. RAJYAVARDHAN RATHORE:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) the  total  amount  of  funds  disbursed  to  State  Governments  under  the  Interest Subvention Scheme under the Deendayal AntyodayaYojana-National Rural Livelihoods Mission (DAY-NRLM) up to October 2021 scheme since its inception;
- (b) the total number of regional rural banks and cooperatives collaborated with under the scheme, Statewise and down to district level distribution for the State of Rajasthan;
- (c) whether  the  Government  intends  to  provide  75  per  cent  of  the  amount  of  Interest Subvention in the beginning of the Financial Year (calculated on the basis of previous year's  data)  or  to  provide  75  per  cent  of  Interest  Subvention  as  interest  free 'Revolving Fund' to Cooperative Banks?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SADHVI NIRANJAN JYOTI)

(a) Interest Subvention to women SHGs under the Deendayal AntyodayaYojana-National Rural Livelihoods Mission (DAY-NRLM) is provided in two ways:

(i)      In  250  backward  districts  referred  as  category-I  districts,  all  women  SHGs  are eligible for upfront loans upto Rs 3 lakhs at 7% per annum. Banks are subvented to the extent  of  the  difference  between  lending  rate  and  7%  subject  to  a  ceiling  of  5.5%. SHGs repaying promptly are also provided additional  subvention  of  3%  per annum. This part of the scheme is implemented directly by the Ministry of Rural Development through participating Banks and  entirely funded from the Central Component of the annual  budget  of  DAY-NRLM.  Subvention  amount  is  directly  given  to  the  banks lending  to  SHGs.  Since  April  2013  to  October,  2021,  a  total  amount  of Rs  6750.62 crore has been transferred to various participating Banks.

(ii)    In  the  remaining  districts  of  the  country  referred  to  as  Category-II  districts, women SHGs under DAY-NRLM availing loans upto Rs 3 lakhs, interest subvention is given to the extent of the difference between bank's lending rate and 7% subject to the maximum ceiling of 5.5% per annum. This part of the interest subvention scheme is  implemented  by  State  Rural  Livelihoods  Missions  (SRLMs)  set  up  by  respective State  Governments  and  budgetary  provisions  are  made  out  of  the  annual  grants received  by  them  from  Central  and  state  governments,  not  exceeding  50%  of  the annual  allocation.   A  sum  of  Rs.  538.30  crores  has  been  given  by  the  various  State Governments  to  the  women  SHGs  since  inception  of  the  scheme  in  April,  2013  to October, 2021.

(b) All 43 Regional Rural Banks and 31 State Cooperative banks, including the District Cooperative  Banks  lending  to  Self  Help  Groups  in  respective  states,  are  eligible  for submitting claims under interest subvention schemes.In Rajasthan, two Regional Rural Banks (Rajasthan Marudhara  Gramin  Bank,  Baroda Rajasthan Kshetriya  Gramin  Bank)  and Rajasthan Apex Cooperative Bank, including associated District Central Cooperative Banks lending to  women SHGs, in rural area are eligible for submission of claims under interest subvention Scheme. For category-I districts, claims are submitted by banks to the Ministry of Rural Development (MoRD). Since April 2013 to Oct 2021, a total amount of Rs 1880.07 Lakhs  has  been  released  by  MoRD  to  various  banks  on  account  of  interest  subvention  to women SHGs in the state of Rajasthan.

(c) No,  Sir.  The  Guidelines  in  this  regard  are  issued  by  RBI  &  NABARD  and  are followed. These do not have the provision of payment in advance or creation of a revolving facility therefore.

******