Lok Sabha Question No. 3390 (UNSTARRED), answered on 2016-08-05
Subject: Rashtriya Mahila Kosh
Ministry: WOMEN AND CHILD DEVELOPMENT
Asked by: Richard Hay

## GOVERNMENT OF INDIA MINISTRY OF WOMEN AND CHILD DEVELOPMENT

## LOK SABHA ADMITTED UNSTARRED QUESTION No.3390

TO BE ANSWERED ON 05.08.2016

## RASHTRIYA MAHILA KOSH

3390. PROF. RICHARD HAY

Will the Minister of WOMEN AND CHILD DEVELOPMENT be pleased to state:

- a) the  details  of  the  loan  schemes  operating  under  Rashtriya  Mahila  Kosh  (RMK)  and  the eligibility  criteria  for  availing  loans  including  the  number  of  beneficiaries  under  the  schemes during the last three years and the current year, State/UT-wise;
- b) whether  involvement  of  certain  fake/bogus  Non-Governmental  Organization  (NGOs)  in  the implementation of various schemes under RMK has come to the notice of the Government;
- c) if  so,  the  details thereof, State/UT-wise and the action taken or proposed to be taken by the Government against such NGOs;
- d) whether the Government has received any proposal from some of the States to increase the amount of loan being providing under RMK schemes;
- e) if so, the details and the action taken by the Government in this regard; and
- f) the further measures taken by the Government to improve the functioning of RMK and remove the deficiencies found therein?

## ANSWER

## MINISTER OF STATE IN THE  MINISTRY OF WOMEN AND CHILD DEVELOPMENT (SHRIMATI KRISHNA RAJ)

- a) The details of loan schemes being run under the Rashtriya Mahila Kosh (RMK) along with eligibility criteria for availing such loan are given at    Annexure 1.

The  number  of  women  beneficiaries  covered  during  the  last  three  years  and  the  current  year, State/UT-wise are given at Annexure 2.

- b) No Madam.
- c) Not applicable.
- d) No madam. Government has not received any proposal from the States to increase the amount of loan being providing under RMK schemes.
- e) Not applicable
- f) Steps taken for recovery of loans, loan guidelines revised and downward revision of interest rates.

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## A) Loan schemes of Rashtriya Mahila Kosh (RMK):

- i) Loan  Promotion  Scheme:  RMK  provides  smaller  loan,  maximum  upto  Rs.10  lakh,  to  promote  the activity of thrift and credit among new and smaller but potentially capable organisations having at-least six months experience in formation of SHGs, thrift, credit and recovery management.
2. ii) Main  Loan  Scheme:  IMOs  having  minimum  3  years'  experience  in  thrift  and  credit  activities  are considered under the scheme for loan upto Rs. 200 lakh per state and a maximum of Rs. 600 Lakhs for multistate operations.
3. iii)  Refinance Scheme: RMK provides 100% refinance assistance to Mahila Urban Co-operative Bank on finances provides by them to poor women either directly or through SHGs within the norms of the RMK Main Loan Scheme.
4. iv)  Franchisee Scheme: Smaller NGOs of the State can avail loan directly from franchisee appointed by RMK for that particular State without sending their proposal to RMK office at New Delhi. RMK gives the Credit Limit upto Rs 500 lakh to the Franchisee who in turn extend loan to smaller & potential NGOs in the State.
- v) Gold  Credit  Card  Scheme:  This  Scheme  of  providing  hassle  free  finance  has  been  designed  for medium and large NGOs so as to provide extended moratorium and credit on easier terms by RMK, for 3 years period. Maximum credit limit under this scheme is Rs 500 lakh.
6. vi)  Housing Loan Scheme: Through its partner organizations, RMK provides loans upto a maximum Rs 1,00,000/- per beneficiary to SHG members for construction of low cost house and repairs.
7. vii) Working Capital Term Loan (WCTL):  WCTL is provided to the organisations for backward and forward marketing  linkages  of  products  of  women  SHGs/  individuals  and  group  of  entrepreneurs,  including technology transfer,  education  for  skill  up-  gradation  and  infrastructure  development.  The  borrowing organisation  should  have  availed  of  a  minimum  loan  of  Rs  25  lakhs  or  above  under  micro-credit schemes  of  RMK/  SIDBI  /  NABARD  /  Commercial  Banks.  The  condition  is  not  applicable  to Government  organisations.  The  maximum  loan  that  can  be  sanctioned  under  this  scheme  is  Rs  6 crores for multistate operations and Rs 2 crore per State per IMO.

## B) Eligibility criteria for availing loans:

The intermediary micro-financing organization (IMO) should have:-

- i. Objectives  for  serving  the  social  and  economic  needs  of  the  poor  women.  It  must  not  work  for profit.
- ii. Necessary  professional  competence,  basic  financial  management  capability  and  organizational skills to implement the lending programme.
- iii. Be registered for more than 3 years on the date of application to RMK.
- iv. Experience in thrift and credit management for 3 years or more. (Six months for applying under the Loan Promotion Scheme).
- v. Recoveries for the loans given to its members earlier should be at least 90%.
- vi. Proper  and  specific  clause  /  provision  in  the  Bye-laws  /  Memorandum  of  Association  of  the organization having power to borrow or raise loans from any outside agency.
- vii. Proper system of maintaining accounts, which should have been audited and published every year and there should not have been any serious irregularities.
- viii. The office bearers of IMO should not be elected representatives of any political party.
- ix. The organization's audited accounts and balance sheet should reflect its experience in providing credit and recoveries, etc. and sound financial management / health.
10. x.
11. Loan limit per beneficiary:(a) first loan - upto Rs. 35,000/-; (b) Repeat loan(s) Rs 50,000/-.

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The State/  UT-wise and Scheme-wise loan sanctioned, released and no. of women beneficiaries* covered during the last three years is given below .

a) For the year 2013 - 2014

(Rs. In Lakhs)

| S. No.   | State/UT-wise   | Sanctioned   | Released   | Beneficiaries   |
|----------|-----------------|--------------|------------|-----------------|
| 1        | Bihar           | 50.00        | 35.00      | 350             |
| 2        | Delhi           |              | 15.00      |                 |
| 3        | Gujarat         |              | 10.00      |                 |
| 4        | Haryana         |              | 20.00      |                 |
| 5        | Jammu & Kashmir | 70.00        |            | 218             |
| 6        | Jharkhand       | 99.00        | 49.50      | 650             |
| 7        | Karnataka       | 45.00        |            | 303             |
| 8        | Madhya Pradesh  |              | 55.00      |                 |
| 9        | Maharashtra     |              | 70.00      |                 |
| 10       | Odisha          | 7.30         | 213.65     | 126             |
| 11       | Rajasthan       | 20.00        | 225.00     | 177             |
| 12       | Tamil Nadu      | 522.50       | 234.25     | 3,417           |
| 13       | Uttar Pradesh   | 19.40        | 19.70      | 114             |
| 14       | West Bengal     | 196.00       | 295.50     | 2,725           |
|          | Total           | 1,029.20     | 1,242.60   | 8,080           |

## b) For the year 2014 - 2015

(Rs in Lacs)

| S. No.   | State/UT-wise   |   Released |
|----------|-----------------|------------|
| 1        | Bihar           |       25   |
| 2        | Jammu & Kashmir |       35   |
| 3        | Jharkhand       |       49.5 |
| 4        | Karnataka       |        7.5 |
| 5        | Rajasthan       |       10   |
| 6        | Tamil Nadu      |      142   |
| 7        | West Bengal     |       65   |
|          | Total           |      334   |

## c) For the year 2015 - 2016

Since  the  lending  guidelines  of  RMK  were  under  revision,  no  fresh  loan  has  been  sanctioned during the financial year 2015-16 and also current year.

*As  per  loan  norms  of  RMK,  Sanctioned  loan  is  disbursed  in  two  parts.  50%  of  the  sanctioned  loan  is released  immediately  after  sanction  and  execution  of  necessary  loan  documents  by  the  NGOs.  The remaining 50 % of the sanctioned loan amount is released after the terms and conditions of first release are met. The total no. of beneficiaries is updated against sanction of loan.

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