EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 1127 CUTTACK, SATURDAY, JUNE 29, 2019 / ASADHA 8, 1941

[No.845-WCD-MS-0070/2019/(DMS) WCDMS.]

WOMEN & CHILD DEVELOPMENT AND MISSION SHAKTI DEPARTMENT

RESOLUTION

The 27th June, 2019

Sub: Guidelines for “Mission Shakti Loan”– Interest Subvention Scheme for

Women Self Help Groups (WSHGs)

1. Overview:―

Odisha is one of the pioneer states in the Women’s Self Help Group movement in the

country through which there has been remarkable progress in empowerment of women in the

State. Since 2001, “Mission Shakti” has been a noteworthy endeavour for women’s

empowerment in the State of Odisha. Under Mission Shakti, the SHG-Bank Linkage

Programme is a major Financial Inclusion initiative, aiming at ensuring access to institutional

credit by Women Self Help Groups, thereby promoting sustainable livelihoods.

In recognition of women members’ efforts towards entrepreneurship at SHG level, the

State Government announced the Interest Subvention Scheme for Women Self Help Groups

(WSHGs) with effect from 1st April, 2013, making the effective rate of interest as 2% for loans

up to Rs. 3 lakhs. Subsequently, considering the growth in credit off take of SHGs and to

further reduce the interest burden, to encourage SHGs to invest more capital in livelihood

activities, the effective annual interest rate was reduced to 1% for women SHGs in the State,

for loans up to Rs 3 lakhs from 1st April, 2015. In the meantime, the State Government has

approved to provide interest free loans i.e. at 0% per annum for Women Self Help

Groups, for loans up to Rs. 3 lakhs effective from 1st April, 2019 to accelerate the SHG bank

linkage programme in the State and to further livelihood promotion of women SHGs.

For better visibility, creation of greater awareness among WSHGs, increased response

of banks to SHG Bank linkage and improved monitoring, the State Government has renamed

the Interest Subvention Scheme as “Mission Shakti Loan” – Interest free loan for WSHGs.

2. Objectives:―

2.1.

To reduce the interest burden on WSHGs.

2.2.

To enable WSHGs to invest more capital in livelihoods activities resulting in

improved quality of life.

2.3.

To enhance credit access to WSHGs at an affordable cost, to meet their credit

requirement, creating an enabling environment for enhancing productivity and

reducing vulnerability.

2.4.

To inculcate prompt repayment culture among WSHGs availing credit from

Banks.

3. Target:―

The Mission Shakti Loan (State Interest Subvention Scheme) is aimed at benefiting

all prompt and regular repaying WSHGs functioning in the State of Odisha (both rural and

urban areas), irrespective of their promoting agency.

4. Interest Rate:―

4.1. The effective rate of interest for all WSHGs will be at 1% per annum only on

prompt and regular repayment for a loan. This benefit is available for loans up to

Rs. 3 lakhs. Beyond loan limit of Rs. 3 lakhs, Banks will charge the usual lending

rate. This is applicable from 1st April, 2015 to 31st March, 2019.

4.2. From 1st April, 2019 the effective rate of interest to WSHGs for loans up to

3 lakhs will be at 0% (interest free) with other conditionalities remaining the

same.

5. Period of Implementation:―

WSHGs, who have outstanding loans as on 1st April, 2009 and availing loan on or

after 1st April, 2009 and repaying promptly are eligible for benefit under the Mission Shakti

Loans at 0% interest rate per annum from 1st April, 2009.

6. Participating Banks:―

Scheduled Commercial Banks (Public Sector Banks, Private Sector Banks, and

Regional Rural Banks) and Co-operative banks, who are operating on the Core Banking

Solutions (CBS) can participate and avail the interest subvention under the scheme.

7. Implementation:―

7.1. To reduce the interest burden on all Women SHGs (both rural and urban) and to

enhance the economic viability of their livelihoods activities, Government of

Odisha has extended Interest Subvention benefit bringing down the effective rate

of interest to 0% (Interest free) per annum for prompt & regular paying WSHGs.

The benefit will be available up to Rs.3 lakhs. Excess of loan amount above

Rs.3 lakhs, will be charged at normal rate of Bank interest.

7.2. To administer “Mission Shakti Loan”, a dedicated SHG Bank Linkage and Interest

Subvention MIS portal will be created covering all Banks of the State for better

monitoring and on time delivery of the Mission Shakti Loan benefits to WSHGs.

7.3. Willful defaulters of Women SHGs may not be financed under this scheme. The

willful defaulter of the Groups shall not generally get benefit of further assistance

until the outstanding loans are repaid. In case of defaulters due to genuine

reasons, Banks may follow the norm suggested for restructuring the account with

revised repayment schedule of RBI. However, the WSHG loan should not be

linked to the loans of Individual members or their family members.

8. Prompt/ Regular Repayment:―

8.1. For Cash Credit Limit:―

Outstanding balance shall not have remained in excess of the limit/drawing

power continuously for more than 30 days.

ii. There should be regular credit and debit transactions in the account. In any

case there shall be at least one customer induced credit during a month.

iii. Customer induced credit should be sufficient to cover the interest debited

during the month.

8.2. For the Term Loans:―

A term loan account, where all of the interest payments and/or instalments of

principal were paid within 30 days of the due date during the tenure of loan, would be

considered as an account having prompt payment.

9. Nodal Agency and Nodal Officer:―

Directorate Mission Shakti will be the Nodal Agency to implement the “Mission Shakti

Loan” (State Interest Subvention Scheme). Commissioner-cum-Director, Directorate of

Mission Shakti, will be the Nodal officer for the scheme. The existing human resources

engaged under the Directorate of Mission Shakti shall be utilized to roll out the scheme in the

State. As the nature of work is technical in nature to monitor online transactions, support of

outside consultants/agency will be taken from time to time as per the requirement.

10. Role of the Banks:―

All Banks who are operating on the Core Banking Solution (CBS), are required to

furnish the details of Credit disbursement and Credit outstanding of the WSHGs across all

Districts in the desired format as suggested by the Directorate of Mission Shakti directly from

the CBS platform (through FTP or Interface). The information should be provided on a

monthly basis to facilitate the calculation and disbursement of the Interest Subvention amount

to WSHGs.

11. Data Sharing:―

Data sharing on a mutually agreed format/interval may be provided to the Directorate

of Mission Shakti for initiating various strategies including recovery etc. The financing banks

are advised to regularly share data on loans to WSHGs & prompt / regular repayment with the

Directorate, Mission Shakti, directly from the CBS platform, till the installation and stabilization

of Mission Shakti Interest Subvention portal. Thereafter, the data has to be uploaded directly

from CBS platform by Banks to facilitate calculation and release of interest subvention to

eligible WSHGs.

12. Settlement of Claims:―

The settlement of claims of the banks would be done on quarterly basis.

12.1. After disbursement of “Mission Shakti Loan” to the WSHG, the Controlling

Heads of the Bank operating in the state will send details of disbursed loan

cases to Directorate Mission Shakti periodically.

12.2. Banks shall claim the interest subvention amount from the Directorate of

Mission Shakti for prompt payee WSHGs to make the effective rate 0% per

annum for WSHGs. This shall be submitted on a quarterly basis.

12.3. The claims submitted by Banks for the last quarter of the accounting year shall

be accompanied by the Statutory Auditor’s Certificate (in original) certifying the

claims for subvention as true and correct as per the prescribed format for

interest subvention claims for loans under this component.

12.4. Any claim pertaining to the disbursements made during the financial year and

not included in the report during the year, may be consolidated separately and

marked as an 'Additional Claim' and submitted to Nodal Agency latest by June

every year, duly certified by Statutory Auditors on time and correctness.

12.5. Any corrections in claims by PSBs and Pvt. Sector Banks shall be adjusted

from later claims based on auditor’s certificate. The corrections must be made

on the MIS portal accordingly.

12.6. Interest subvention under “Mission Shakti Loan” will be to the extent of

difference between the lending rate and 0% per annum to be released by the

Directorate of Mission Shakti, directly to the WSHGs’ accounts through the

Nodal Banks on quarterly basis. Concerned Nodal Banks shall not claim the

same amount from any other agency. In case the loan account is already

closed, or e-transfer to the loan account is not successful due to any reason,

the subvention amount may be transferred to the corresponding saving account

of the concerned WSHG.

12.7. Pending uploading in the Mission Shakti interest subvention portal, banks shall

submit claims in physical form on quarterly basis with a list of eligible WSHGs in

soft copy for release of interest subvention. On release of amount to all

WSHGs, bank would submit a utilization certificate (in the prescribed format

devised by Directorate of Mission Shakti). Any unutilized amount would be

returned to Mission Shakti with list of concerned WSHGs with reasons.

13. Source of Funding:―

The project cost of Interest Subvention will be met from the State Plan.

14. Monitoring:―

14.1. Directorate of Mission Shakti, State Level Bankers’ Committee & Bankers will

conduct sensitization programmes on Mission Shakti Loan among bankers, staff

and other stakeholders for successful implementation of the scheme.

14.2. Financial Literacy programme will be organized on a regular basis for WSHGs to

sensitize them on “Mission Shakti Loan”. SLBC will also organize Financial

Literacy workshop, regular women SHG–Bank Interface Meet and joint recovery

camps with the support of Banks and other Government agencies.

14.3. A 360° communication Strategy for Interest Subvention under “Mission Shakti

Loan” will be rolled out by Directorate Mission Shakti.

14.4. Data sharing will be through Core Banking Solutions platform by PSU Banks,

RRBs, Co-operative Banks & Private Banks.

14.5. Monitoring of Interest Subvention claims under “Mission Shakti Loan” would be

conducted every quarter on the basis of report submitted to the Directorate of

Mission Shakti / Nodal Banks which shall be Bank-wise and District wise for

better monitoring of the Scheme.

14.6. The Rural and Urban Sub-Committee of SLBC at State Level, similarly at District

and Block level the DCC & BLBC shall monitor the scheme. Directorate of

Mission Shakti will conduct periodic (monthly/Quarterly) review and hold

meetings for effective implementation of the Scheme.

14.7. A State level joint monitoring committee shall be formed for effective

implementation of the programme with all stakeholders including banks.

14.8. A dedicated portal for “Mission Shakti Loan” will be designed in due course in

consultation with Bankers and accordingly, all the Banks will consolidate data on

Bank Linkage and Interest Subvention amount from their database and upload

the same on the portal. Till such arrangement, the existing practice of data

sharing and claim settlement process shall be followed.

14.9. Once, the portal is in place, the detailed modalities shall be shared with the

banks for effective implementation of the programme.

14.10. The best performing Banks and Districts shall be rewarded at State and District

level on International Women’s Day (IWD) celebration for outstanding

performance and implementation. Detailed Standard Operating Procedures

(SoP) for selection of best Bank and District will be issued separately.

15. Flow of Funds:―

Government of Odisha W&CD and MS Department Directorate Mission

Shakti Nodal Banks WSHG

16. Audit and Evaluation:―

Audit will be conducted through the internal audit wing of the Department to see that

funds reach to WSHG. Mid-term evaluation of the scheme will be conducted by the

Department through a 3rd party agency.

17. Miscellaneous:―

17.1. In case of any clarification, on any provision of this resolution, the matter shall

be referred to the Government and the decision of the Government in Women &

Child Development and Mission Shakti Department shall be final.

17.2. Government in the Department of Women & Child Development and Mission

Shakti can make any modification & alteration that requires for smooth and

effective implementation of the scheme.

ORDER

It is ordered that this Resolution be published in the Extraordinary Gazzette of the

Government of Odisha for the general information of public and copy be communicated to all

the Departments of Government/all Heads of Departments / all Collectors and Other

concerned.

By Order of the Governor

CHITHRA ARUMUGAM

Commissioner-cum-Secretary to Government

Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

Ex. Gaz. 458-173+500