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AGENDA: 1 130th SLBC CONFIRMATION OF THE MINUTES OF THE EARLIER MEETINGThe minutes of the 129th State Level Bankers’ Committee Meeting convened on 19.03.2012 (already circulated vide SLBC letter dated 26.04.2012) may be confirmed.

AGENDA No: 2

New Issues

1. Setting up of Rural Self-Employment Training Institutes (RSETIs)

All the Four Banks having Lead District responsibilities have since opened RSETIs in the lead districts allotted to them (Total 31 RSETIs).

In addition to the 12 Lead districts allotted, IOB has recently opened a RSETI (13th) at Kothagiri in Nilgiris District to impart skill training to Tribal People of the Nilgiris District.

Performance of the RSETIs during 2011-12:

Sl No

Total Number of

RSETI

No of training programme conducted

during 2011-12

No of persons trained

No of persons secured

employment/self employment

1 31 311 9276 5663

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New Issues 130th SLBC

2. Financial Inclusion & Green Initiatives - Electronic transfer of benefit payments

Banks have already opened a large number of no-frills accounts for reaching out to the door steps of the people in villages having population of over 2000. The State Government already commenced disbursement of Old Age Pension through Banks from September, 2011 on a pilot basis in one taluk each in three Districts viz. Trichy, Cuddalore and Kanyakumari. Now, it has been decided to expand the scheme to all the villages with a population of 2000 or more identified under the Financial Inclusion Plan in the State which is scheduled to be completed before June, 2012.

The payment of grants / subsidies is routed through banks accounts in the following schemes also:

1. Dr. Muthulakshmi Maternity benefit scheme2. Lean period assistance for coastal fisherman

The State Government is also contemplating to launch a pilot project of electronic payment of NREGA payments in 2 Districts in Tamil Nadu initially.

B) RBI, Chennai vide letter dated 17.12.2009 has called for statistical data (in a prescribed format) on ICT based Financial Inclusion from member Banks in Tamil Nadu. SLBC is collecting, compiling and submitting to RBI. Member Banks are requested to furnish the data on time to SLBC.

C) The progress made by the Member Banks under Financial Inclusion as of March 2012 is furnished in the Annexure.

Progress under Financial Inclusion by Banks - Cumulative position As of March 2012

S.No Name of the Bank 'No-Frills’ a/c

opened

General Purpose Credit

Overdraft granted in No-Frills

Smart Cards

2

(Nos)Cards issued (Nos)

SB a/c(Nos)

issued (Nos.)

1 Allahabad Bank 12128 0 2 Andhra Bank 3948 4 13 3243 Axis Bank Ltd. 23637 0 4 Bank of Baroda 52124 125 54125 Bank of India 190452 2451 11445 80656 Bank of Maharashtra 1314 0 295 7 Canara Bank 326118 60353 732 533838 Central Bank of India 55879 5124 73 225209 Corporation Bank 84226 4991 186

10Catholic Syrian Bank Ltd. 1954 2

11 City Union Bank Ltd. 65506 772912 Dena Bank 23914 20

13Dhanalakshmi Bank Ltd. 16841 16841

14 Federal Bank Ltd. 7785 5 015 HDFC Bank Ltd. 97204 2663 25516 ICICI Bank Ltd. 135122 33 17 Indian Bank 1997930 3084 18144 41629918 Indian Overseas Bank 1880008 4732 1647 12779319 Indus Ind Bank Ltd. 15218 0 20 IDBI Bank 19802 1 21 ING Vysya Bank Ltd. 453 0 8

22Jammu & Kashmir Bank Ltd. 2

S.No Name of the Bank'No-Frills’

a/c opened(Nos)

General Purpose Credit Cards issued (Nos)

Overdraft granted in No-

Frills SB a/c

(Nos)

Smart Cards issued (Nos.)

23 Karur Vysya Bank Ltd. 42763 0 0 3659

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24 Karnataka Bank Ltd. 14561 0 3 25 Kotak Mahindra Bank Ltd. 7702 0 26 Lakshmi Vilas Bank Ltd. 28513 2930

27Oriental Bank of Commerce 1160 1

28 Pallavan Grama Bank 236006 491 8732 38429 Pandyan Grama Bank 528314 350 588330 Punjab National Bank 85371 1251 0 195131 Punjab & Sind Bank 1519 32 South Indian Bank Ltd. 71461 643 1 190333 State Bank of India 827701 92 23824 13652

34State Bank of Bikaner & Jaipur 2074

35 State Bank of Mysore 3485 126 17 36 State Bank of Patiala 718 11 1 37 State Bank of Travancore 81881 1070 38 Syndicate Bank 56037 2792 109 1161

39Tamil Nadu Mercantile Bank Ltd. 130979 489 1693

40Tamil Nadu State Apex Co.op Bank 36847

41 Union Bank of India 142817 675 4843842 United Bank of India 921 43 UCO Bank 83534 4 5 521044 Vijaya Bank 15784 406 161 0 Total 7411713 91989 65396 745485

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3. Sanction of Revolving Fund to SHGs comprising Sri Lankan Tamil Refugees

Reserve Bank of India in their letter addressed to TNCDW has advised that sanction of Revolving Fund to SHGs comprising of Sri Lankan Tamil Refugees can be treated at par with other SHGs and disbursement of revolving fund and granting of banks loans to such SHGs is a normal credit decision, which the sanctioning authority can take along with usual KYC norms.

A copy the letter dated 02.05.2012 from Reserve Bank of India and letter dated 21.05.2012 received from Tamil Nadu Corporation for Development of Women Ltd are given as an annexure for adoption.

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PLEASE REFER SCANNED IMAGE NO.1

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4. Setting up of Financial Literacy & Credit Counselling Centres (FLCCC)

In order to provide free financial literacy /education and credit counselling, RBI had advised Banks to set up FLCCC. The High Level Committee set up by RBI had also reiterated the necessity to cover initiatives under financial literacy and credit counselling while broad basing the Lead Bank scheme. On the basis of the above recommendation, RBI advised Lead Banks to open a Financial Literacy and Credit Counselling Centre (FLCCC) in every district where they have lead responsibility.

Three Lead banks namely IOB, Indian Bank and Canara Bank have completed establishment of FLCCCs in their lead districts (29 districts) well ahead.

State Bank of India is the only lead Bank which has not set up any FLCCC in Tamil Nadu (Ariyalur & Thoothukudi districts). State Bank of India is advised to take steps for establishing FLCCCs in their lead districts as per RBI guidelines at least by 30-06-2012.

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5. Extension of Swabhiman – providing banking services in remaining villages of Tamil NaduA) Directions from Ministry of Finance, GOIMinistry of Finance, Government of India, have advised the revised guidelines on financial inclusion - “Extension of Swabhiman” for providing banking services in every village having population of over 1600 by March, 2013. The copy of the MOF letter is enclosed as an annexure. On the basis of the above guidelines the revised list of villages identified and allotted to various banks stands at 1676 (villages with population over 1600 to 2000) as per 2001 census. Numbers of Villages allotted to various Banks in Tamilnadu are furnished in the annexure. The list is also displayed in SLBC website (www.slbctn.com).B) Directions from Govt of Tamil NaduThe Chief Minister of Tamil Nadu has advised the banks operating in Tamil Nadu to provide banking outlets in all villages in Tamil Nadu at the earliest. Although she has not given a timeline for such coverage; it has to be done expeditiously as the e-payment requirement for the central scheme and state government scheme will necessitate 100% coverage of villages. SLBC had convened a meeting of participating banks on 11.05.2012 for discussing this matter. All banks accepted the views of the Chief Minister. Our CMD had also addressed personal letter to his counterparts in other banks who have responded conveying their willingness. The total remaining villages to be covered (population within 1600) is about 6500. SLBC has advised all DCC Convenors and LDMs to identify the villages and allot to different banks. Now SLBC may decide a date for its implementation. Member banks are requested to cover all the villages allotted to them before December, 2012.

C) The member banks are requested to commence/continue the process of providing banking outlets in their allotted villages and also requested to submit the monthly progress report (SW3- format enclosed) by the 5th of the succeeding month i.e. beginning from 5th June, 2012 onwards.

F.No.3/5/2012-FI(C 52937)Government of IndiaMinistry of Finance

Department of Financial ServicesJeevan Deep Building, Sansad Marg,New Delhi, dated the 18th May, 2012

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http://www.slbctn.com/

ToAll SLBC Conveners.

Sub: Extension of “Swabhimaan”.

Sir,I am directed to refer to this Department’s earlier communications

regarding provision of banking facilities to rural habitations. The instructions are now being consolidated here for convenience and facilitating implementation.

2. In terms of para 5.2(i) of the Strategy and Guidelines on Financial Inclusion issued in October, 2011, it was, inter-alia, advised that considering the

population distribution in Chhattisgarh, Andaman & Nicobar, Daman & Diu,

Pudducherry and Lakshadweep, all villages of 1000 and above population must be

covered by September 2012. The SLBC conveners of these 5 States/UTs were

accordingly advised vide this Department’s letter F.No.21/1/2011-FI dated 17 th

November, 2011 and progress is being sought on monthly basis.

3. In terms of para 45 of Budget Speech 2012-13 to extend the “Swabhimaan” campaign to habitations with population of more than 1000 in North Eastern and hilly States, and to other habitations which have crossed

population of 2,000” suitable instructions have already been issued to concerned

SLBC Conveners of 8 States of North East Region and 3 hilly States viz. Jammu &

Kashmir, Himachal Pradesh, and Uttarakhand, vide letter of even number dated 1 st

May, 2012 to provide banking facilities in these States by March, 2013.

4. As regards extending “Swabhimaan” to other habitations which have crossed population of 2000 as per Census 2011, it has been observed that as the

Census Data 2011 is not yet finalized, and as per the office of the Registrar General

of India, the information regarding list of villages which have crossed population of

2000 in Census 2011 could be provided only after some time, it has been decided

that all villages of 1600 to 2000 population (as per 2001 census) be covered

under “Swabhimaan”, the financial inclusion campaign, as these are likely to have

crossed the population of 2000 by 2011.

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5. All SLBC Conveners are, therefore, requested to take immediate necessary action in

regard to para 4 above, viz. Identify all the villages with population of 1600-2000 (2001

census), and allocate these villages among banks for provision of banking facilities under

“Swabhimaan” by March, 2013. The State-wise information of identification and allocation of

villages among banks must reach this office by 31st May, 2012 and instructions be issued

to all concerned banks accordingly.

6. For sake of convenience, the aforesaid instructions have been segregated into three

categories viz. A, B and C and tabulated in Annexure I attached to this letter. The progress

on monthly basis be sent to this Department in the enclosed formats SW1, SW2 and SW3 by

the respective SLBC Conveners. While SW3 Statement is applicable to all SLBC

Conveners, SW1 is applicable to SLBC Conveners of 5 States/UTs and SW2 Statement

applicable to SLBC Conveners of 11 States/UTs, mentioned in Annexure I. Thus, SLBC

Conveners of the 5 Category A States/UTs will be furnishing the progress in two formats viz.

SW1 and SW3, those of the 11 Category B States/UTs will be furnishing the progress in two

formats viz. SW2 and SW3, while the remaining SLBC Conveners of 19 States/UTs will

furnish the progress in only one format viz. SW3.

7. All SLBC Conveners are, therefore, requested to send the progress on monthly basis by the 10th of the succeeding month i.e. beginning from 10th June, 2012 onwards.

Yours faithfully,

(Jitendar Kumar Mehan) Under Secretary to the Government of India

Tel: 23748767/71Fax: 23742207/ 23747008

Emal: [email protected]

Copy forwarded to: CEOs of all PSBs for further necessary action in consultation with SLBC Conveners.

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADUCONVENOR: INDIAN OVERSEAS BANK

EXTENSION OF “SWABHIMAAN” PROVIDING BANKING SERVICES IN VILLAGE HAVING

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mailto:[email protected]

POPULATION OF OVER 1600 TO 2000BANKWISE ALLOCATION OF VILLAGES – 12.06.2012

S.No Name of the Bank

No. of Villages

allocated1 Allahabad Bank 12 Andhra Bank 13 Axis Bank 14 Bank of Baroda 345 Bank of India 436 Canara Bank 1657 Catholic Syrian Bank Ltd. 28 Central Bank of India 519 City Union Bank Ltd. 28

10 Corporation Bank 2811 Dena Bank 112 Dhanalakshmi Bank Ltd. 113 Federal Bank Ltd. 114 HDFC Bank Ltd. 115 ICICI Bank 2116 Indian Bank 38017 Indian Overseas Bank 30418 ING Vysya Bank Ltd. 319 Karur Vysya Bank Ltd. 1520 Lakshmi Vilas Bank Ltd. 1721 Oriental Bank of Commerce 222 Pallavan Grama Bank 3223 Pandyan Grama Bank 7024 Punjab National Bank 1925 South Indian Bank Ltd. 526 State Bank of India 34027 State Bank of Mysore 528 State Bank of Travancore 629 Syndicate Bank 2930 Tamilnad Mercantile Bank 1131 UCO Bank 1132 Union Bank of India 4633 Vijaya Bank 2

Total No of Villages 1676

STATE LEVEL BANKERS' COMMITTEE, TAMIL NADUCONVENOR: INDIAN OVERSEAS BANK

EXTENSION OF “SWABHIMAAN” PROVIDING BANKING SERVICES IN VILLAGE HAVING

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POPULATION OF OVER 1600 TO 2000DISTRICTWISE ALLOCATION OF VILLAGES – 12.06.2012

S.No Name of the District

No. of Villages

allocated1 Ariyalur 422 Coimbatore 343 Cuddalore 1034 Dharmapuri 305 Dindigul 276 Erode 327 Kancheepuram 498 Kanyakumari 49 Karur 13

10 Krishnagiri 10511 Madurai 6212 Nagapattinam 6613 Namakkal 2514 Nilgiris 915 Perambalur 1116 Pudukottai 6517 Ramanathapuram 6818 Salem 3019 Sivaganga 5120 Thanjavur 11221 Theni 722 Thiruvannamalai 11523 Tiruchirapalli 3024 Tirunelveli 3825 Tiruppur 2626 Tiruvallur 10427 Tiruvarur 9128 Tuticorin 4429 Vellore 8430 Villupuram 14131 Virudhunagar 58

Total No of Villages 1676

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6. Common Request For Proposal (RFP) for selection of BC services:Ministry of Finance, Government of India, have directed that Banks should engage one Business Correspondent through a common RFP for a cluster of villages, each cluster comprising of about 5000 villages. This BC will be normally a corporate entity who in turn will engage individual BCAs (Business Correspondent Agents) in villages. A common Request for Proposal (RFP) for engagement of Business Correspondents should be floated for each geographical cluster in the country.

For this purpose, all BC locations in the country are divided into 20 clusters. For each cluster, a Leader Bank with the support of 4 other leading Banks in the cluster; will prepare the RFP. Indian Overseas Bank, has been nominated as Leader Bank for floating RFP for the cluster consisting of Tamil Nadu, Kerala and Puducherry.

Dates of floating RFP, opening of bids and reverse auction were specified by the MOF for every cluster. Accordingly, the common RFP was floated on 07.05.2012 by Indian Overseas Bank on behalf of the cluster consisting of Tamil Nadu, Kerala and Puducherry. The Common RFP is displayed on Bank’s website (www.iob.in).

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7. Capturing of data entry module for Geographical Information System (GIS) for Financial Inclusion through Web site of DFS, MOF, Government of India

Ministry of Finance, Government of India, have directed the Public Sector Banks to identify geographical location and enter data for every bank branch, ATM, Business Correspondent, Clearing House and Currency Chest in the Districts where they have Lead Bank responsibility.

The URL (Uniform Resource Locator) for the application is http://financialservices.gov.in/gis/default.aspx. List of user ids / passwords for PSBs and the State/Districts where these banks are lead banks along with a write up containing the process flow for entering the data by the DLCC convenor Bank was furnished to all Banks. Salient features of GIS for Financial Inclusion:1) A web based application is accessible through a hyper link on website of Department of Financial Services (http://financialservices.gov.in).

2) Public Sector Banks (PSB) are provided with the Login ID and Password.3) Each Bank is required to enter the data in respect of the district(s) for which it is the Lead Bank.

4) The guidelines required for user-ids and passwords were provided to respective Banks directly.

A live demonstration of the data entry was done by SLBC for the benefit of all the LDMs of the State during the LDMs’ conference held on 11.04.2012.

All member banks are requested to issue direction to the respective district coordinator of the bank to provide the necessary data such as bank branch, ATM, Business Correspondent, Clearing House and Currency Chest in the Districts to the Lead District manager. LDMs are also advised to ensure completion of uploading the data in the MOF website immediately.

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http://financialservices.gov.in/

http://financialservices.gov.in/gis/default.aspx


8. Strategy and Guidelines on Financial Inclusion- Opening of Branches by Banks:

Ministry of Finance, Government of India vide their letter dated 21.10.2011 advised that in the under banked districts, all villages with population of 5000 and above should have a bank branch by September 2012. List of such underbanked districts was given by MOF, which includes 13 districts of Tamil Nadu.

Now, Ministry of Finance, Government of India vide their letter dated 16.05.2012, have advised the revised guidelines as follows:

Banks can start with Ultra Small Branch in these villages where opening of a regular brick & mortar branch is not considered viable at present and then convert it into a full-fledged branch when the branch reaches the desired level of business.

In other districts, the banks must try to open as many brick and mortar branches as possible in their service areas, in habitations having population of 10,000 and above by September 2012.

SLBC vide letter dated 18.05.2012 advised the member banks to take note of the changes in the guidelines and initiate necessary steps to open Ultra Small Branches / Brick and Mortar branches as the case may be in their service area by September, 2012. Member banks are advised to submit the monthly progress report to SLBC.

LDMs of respective districts are requested to monitor this and keep SLBC informed.

List of Under banked Districts in Tamil Nadu (based on 2001 Population census)

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(As per RBI Notification No.RBI/2011-12/100 DBOD.No.BL.BC.33/22.01.001 /2011- dated 12 July 1, 2011,

Annexure-IV)

TAMIL NADU1. CUDDALORE2. DHARMAPURI3. KANCHEEPURAM4. NAGAPATTINAM5. PERAMBALUR6. PUDUKKOTTAI7. RAMANATHAPURAM8. SALEM9. THIRUVALLUR10. THIRUVARUR11. TIRUVANNAMALAI12. VELLORE13. VILLUPURAM

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9. Financial Inclusion – Drive to open Bank Accounts for Migrant labourers, Street Vendors / Hawkers in Urban Areas

Ministry of Finance, Government of India advised Banks to initiate a special drive to open accounts of migrant labour and street vendors / hawkers in Urban Areas in order to inculcate saving habits and to extend banking facilities to them.

The Government desires that to begin with, accounts of all migrant labour and street vendors / hawkers who are working within 500 metres of the bank branches in Urban and Metro areas should be opened. The Government also directed that, the marketing staff of branches should contact personally all street vendors / hawkers who are working within 500 meters of the branch to open their accounts. Thereafter the process should be extended to beyond 500 meters to get all such persons financially included.

All banks are requested to issue directions to all the branches in Tamil Nadu State to launch special campaigns in all the urban centers.

Copy of the letter dated 26.04.2012 from Ministry of Finance is enclosed as an annexure.

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PLEASE REFER SCANNED IMAGE NO. 3

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10. Launch of campaign to ensure at least one Bank Account for each family in FI Villages

Ministry of finance, Government of India advised to launch a campaign to ensure that each family living in the FI villages has a bank account to facilitate electronic benefit transfer of subsidies under the 32 schemes of Govt. of India. For such electronic transfer of subsides, it is important that the beneficiaries have accounts with the service area banks in tune with the guidelines of the Reserve Bank of India on “ One District- Many Banks-One Leader Bank” Model .

All the member banks are advised to comply with the above guidelines and ensure opening of new account and changes in the existing account by end of June, 2012. Copy of the letter on the above subject received from Ministry of Finance dated 15.05.2012 is enclosed.

F.No.8/11/2011-FIGovernment of IndiaMinistry of Finance

Department of Financial Services******

3rd Floor, Jeevan Deep Building,

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New Delhi, dated the 15th May, 2012 To

All CMDs of PSBsChairmen, RRBs(through sponsor banks)

Sub: Launch of campaign to ensure at least one bank Account for each family in FI Villages – regarding -

Sir,

Attention of all the Banks is invited to para 7 of the Master Circular on Strategy and Guidelines on Financial Inclusion (issued on 4th April, 2012) relating to Electronic Benefit Transfer wherein Convener Banks of SLBC have been advised to take up the matter of electronic transfer of subsidies under the 32 Schemes of Govt. of India in which benefits are to be given directly into the accounts of the beneficiaries who can then withdraw it from the bank branch or the ATM or the micro ATM. For such electronic transfer of subsidies, it is important that the beneficiaries have an account in the service area bank in tune with the guidelines of the Reserve Bank of India on “One District – Many Banks – One Leader Bank” model. 2. In view of the above, it has been decided by this Department that :-

I. Each bank will launch a campaign to ensure that each family living in the service area of a branch having rural villages attached to it has an account with the branch. If the family already has an account, no new account need to be opened.

II. In cases where the family already has more than one account in the name of its member(s), they may be encouraged to combine these into a Joint Family Account. However, in case the family wishes to continue with the separate account(s), they should be allowed to maintain such account(s).

III. There are no requirements of Government of India to open separate account for each benefit, hence, no account be opened of the family scheme-wise.

IV. For this purpose, the last electoral roll of each village may be obtained and they may be assigned to respective BCA for the sub-service area assigned to them and where there is no BCA to any other staff of nearby branch for opening of bank account.

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V. Wherever the account holder has obtained an Aadhaar number, the same should also be obtained at the time of opening of account and included in the account details.

VI. During the campaign, people may be motivated to get their account opened in banks considering that banks are already on the Core Banking Solution and electronic transfer of subsidies to the account of the beneficiary and its withdrawal through the huge network of branches/ATM/micro ATMs will be convenient.

3. It needs to be ensured that opening of new account and changes in the existing account is completed by June, 2012.4. In the light of the above, you are requested to take further necessary action as per para-2 above and intimate this Department of the action being taken in the matter.

Yours faithfully,

(Jitendar Kumar Mehan)Under Secretary to the Government of India

Telephone [email protected]

Copy for information/necessary action to:-

1. All Chief Secretaries of States/UTs2. Chairman, NABARD3. CGM, RPCD, RBI4. All SLBC Conveners

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11. Dairy Entrepreneurship Development Scheme (DEDS)The Commissioner for Milk Production and Dairy Development, Tamil Nadu has requested the bankers to sanction loans to the tune of Rs.150.30 crores under the above scheme for the year 2012-13.

The copy of the letter from The Commissioner for Milk Production and Dairy Development, Tamil Nadu is enclosed as an annexure. The members are advised to issue necessary instructions/guidelines to their branches in the state immediately.

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New Issues 130th SLBC12. Government of India’s Revised KCC Scheme Implementation of First Phase in Select 4 DistrictsReserve Bank of India has issued guidelines on the revised Kisan Credit Card Scheme to all the Banks vide their letter dated 11.05.2012. Ministry of Finance, Government of India advised that SLBC in each State should select 2-4 districts, and every eligible household in such select districts should be issued a KCC as per the new scheme before June, 2012. This must be expanded to cover remaining districts by September, 2012.Accordingly SLBC in consultation with all the four lead banks in the State selected the following 4 districts for the implementation of the revised KCC scheme:

1) Kanyakumari - Lead Bank, Indian Overseas Bank2) Salem - Lead Bank, Indian Bank3) Theni - Lead Bank, Canara Bank4) Ariyalur - lead Bank, State Bank of India

The member banks are requested to instruct all their branches and Regional / Zonal Offices in the four districts to launch campaigns immediately to cover all the eligible households in their service area under KCC before June, 2012.We also advise DCC Convenors and Lead District Managers of the above four districts to convene special DCC meeting for this purpose and monitor the progress with the banks in their district. The LDMs are requested to submit a report to SLBC before 05.07.2012 in the following format:S.No

Name of the District

No. eligible

households

No. of households covered under

revised KCC scheme

% of coverag

e

Further, in view of revised KCC guidelines, NABARD has modified the MIS (monthly as well as Quarterly) on KCC to be submitted by the banks the same was circulated among the banks. The revised reporting system is effective from 01.04.2012 and the banks are required to submit monthly /quarterly statements to NABARD before 10th of the succeeding month (in the case of monthly stt.) and before 10th of the first month of next quarter (in the case of quarterly stt.).

F.No.3/27/2011-ACGovernment of IndiaMinistry of Finance

Department of Financial Services--------

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Jeevan Deep Building, Parliament street,New Delhi, dated 30th May,2012

To,The CMD’s/CEO’s of all Public Sector Banks.

Subject: Revised KCC scheme.

Sir, I am directed to refer to the Circular No.

RPCD.FSD.BL.No.77/05/05/09/ 2011-12 dated 11th May, 2011 issued by RBI

to all the Scheduled Commercial Banks on the revised KCC scheme.

2. All PSBs are advised to immediately take up the issuance of KCC as

per the new scheme. While adopting the revised KCC scheme, the banks may

consider the following:

i) The validity period of KCC may be kept at 5 years.

ii) For crop loans, no separate margin need be insisted as the margin is

inbuilt while fixing the scales of finance.

iii) For term loan component the margin may be decided by the banks

keeping in view the guidelines of RBI issued from time to time.

iv) There should be no processing fee upto a card limit of Rs. 3 lakh.

v) Farmers may be provided with KCC Short-Term sub-limit cum SB

account so as to allow credit balance in KCC-cum-SB accounts to

fetch interest at savings bank rate. A separate account needs to be

maintained for the long term sub-limit. Where possible a common

debit card can be issued for both the accounts.

vi) Some banks require the farmers to produce copies of documents

related to land title at the stage of annual renewal of KCC even when

the land is already hypothecated to the bank by virtue of a charge

created against a previous loan. Since a charge in favour of the bank

has already been created, no change in the land ownership is

possible, and there should be no need of asking the farmer to

produce another copy of land title.

3. It needs to be ensured that all new KCC accounts and those due for

annual renewal this year are issued KCC as per this scheme. SLBCs may

select a few districts,(say2-4) in every State where every eligible household

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should be issued a KCC as per the new scheme by June, 2012. This must be

expanded to cover remaining districts latest by September, 2012.

4. All the banks are requested to take a decision on the above mentioned

points immediately and circulate the revised KCC scheme to their branches

for implementation.

Yours faithfully

(M.S.Azad)

Under Secretary to Government of India

Tel:23748758

E-mail: [email protected]

Copy for information to,

1. Chairman, NABARD,H.O. Mumbai.

2. CGM,RPCD,RBI,C.O., Mumbai.

3. Convenor Banks of SLBCs in all States/UTs

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13. Credit Linked Capital Subsidy Scheme (CLCSS) of GOI:

The Ministry of Micro, Small & Medium Enterprises, Government of India is providing subsidy under CLCSS for four categories of borrowers viz., 1) General (Other than NER), 2) Scheduled Caste Sub-Plan (SCSP), 3) Tribal Sub-Plan (TSP) and 4) North Eastern Region (NER).

Ministry of MSME observed that nodal agencies are demanding funds only under the General Head and the progress of the scheme in respect of other categories under SCSP, TSP has not been satisfactory.

The copy of the NABARD letter is enclosed as an annexure.

Member banks are requested to actively implement the above scheme. Lead District Managers are also requested to discuss the above scheme in DCC and monitor the progress in all four categories.

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14. Target for Farm Sector Lending in line with Hon’ble Union Finance Minister’s Budget announcement – 2012-13- Tamil Nadu

NABARD vide their letter dated 01.06.2012 advised the sub targets under farm sector for Tamil Nadu out of the total out lay of Rs.5,75,000 crores announced by Hon’ble Union Finance Minister during his budget speech.The agency wise break up of Target is under:

(Rs. In crore)Agency Crop Loan Term Loan Total

Co-operative Banks 3,300 900 4,200Regional Rural banks 3,400 850 4,250Commercial Banks 22,000 21,460 43,460Total 28,700 23,210 51,910

As the district-wise farm sector budget under ACP aggregated to Rs 43,206.78 crores; SLBC had to increase it to Rs 51,910 crores on receipt of communication from NABARD. Details are given in agenda 4A in subsequent pages.

SLBC had already advised the revised targets to the DCC Convenors and LDMs. The DCC Convenors and LDMs are requested to allocate the revised targets to the member banks in the district and place the same in the DCC meeting.

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15. Meetings of LDMs by various Departments of State Government:

It has been represented to SLBC by some LDMs that they are being asked to attend separate meetings at Chennai by Departments of State Government with short notice. They are not able to give feedback on individual schemes without collecting information from member banks. Thus these meetings do not serve any significant purpose.

SLBC suggests that matters relating to the State be brought to SLBC for discussion and matters relating to districts be discussed in DCC instead of convening separate meetings of LDMs and other officials. SLBC and DCC are the available fora whose decisions will be more effective and fruitful.

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16. Revival, Reform and Restructuring Package for Handloom Sector

NABARD had advised the following on the captioned relief package:

The said package is announced by Government of India to promote the weavers/handloom sector and the implementation process of the same has already commenced from 2011-12. Government of Tamil Nadu has vide their letter dated 19.01.2012 given letter of commitment conveying willingness of the State Govt. towards implementation of the Handloom package in Tamil Nadu.

Operational guidelines in respect of claims for interest subvention and waiver of individual weaver loans have been issued to all banks vide our letters dated 25 January 2012 and 17.02.2012.

Lending Institutions were expected to assess the claims in their branches strictly in terms of the Govt. of India Scheme. Banks are requested to submit their consolidated claims to NABARD/SLBC in the prescribed format, duly certified by Statutory Auditor/Chartered Accountant, in respect of loans eligible to be covered under the Scheme to place the same before the State Implementation Monitoring and Review Committee (SIMRC) for recommendation for sanction/release of the amount.

Member banks are advised to submit the consolidated claim to NABARD at the earliest.

Government of India allocated a target of 20,000 Weavers Credit Cards for Tamil Nadu. The districtwise allocation of the target is enclosed as annexure.

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TENTATIVE TARGETS FOR WCC TO BE ISSUED (DISTRICT WISE)

Sl NO District Name Total WCC Cards to be issued (Tentative Target)

1 Kancheepuram 28702 Vellore 7203 Tiruvallur 3604 Salem 14305 Coimabtore 14306 Erode 35807 Trichy 3608 Madurai 3609 Virudhunagar 86010 Thanjavur 107511 Karur 72012 Cuddalore 107513 Tiruvarur 14514 Tiruppur 107515 Tiruvannamalai 36016 Nagercoil 57017 Tirunelveli 36018 Ramnad 86019 Namakkal 143020 Dindigul 360

TOTAL 20000

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17. GOI Subsidy Schemes implemented through NABARD

NABARD advised that the following schemes are implemented by them with Government of India subsidy:

Subject CommentsCapital Subsidy/ Refinance Scheme for Installation of Solar Off Grid Home Lighting System and Water Heating Systems under Jawaharlal Nehru National Solar Mission (JNNSM) of the Ministry of New and Renewable Energy, GoI

The Scheme has not yet picked up in Tamil Nadu . Commercial Banks and Regional Rural Banks are requested to popularise the scheme of Solar Off Grid Home Lighting System and Water Heating Systems under Jawaharlal Nehru National Solar Mission (JNNSM) of the Ministry of New and Renewable Energy, GOI.

Solar Home Lighting - Capital Subsidy increased to 40 % and interest subsidy withdrawn.Water Heating System - 30 % of Capital Subsidy .

Government Sponsored Scheme- Animal Husbandry Sector

1. As per the instructions received from Government of India, the implementation of the following subsidy schemes under Animal Husbandry sector have been extended for the year 2012-13 with the existing guidelines : Animal Husbandry Sectori. Poultry Venture Capital Fund (Subsidy) ii. Dairy Entrepreneurship Development Scheme (DEDS)iii.Integrated Development of Small Ruminants and Rabbits (IDSRR), now extended to all districts of Tamil Nadu with unit sizes of (10+1), (20+1) for sheep/goat rearing units and (100+5), (200+10), (300+15), (400+20) for sheep/goat breeding units apart from the unit sizes of (40+2) and (500+25) already available under the Scheme.The subsidy component shall be proportionately reduced.iv. Pig Development

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Subject Commentsv. Poultry Estates and Mother Units for Rural Backyard PoultryRegarding continuation of other two schemes viz. (i) Rearing of Male Buffalo Calves and (ii) Utilisation of Fallen Animals, we are yet to receive communication from Government of India and the same will be intimated to you soon after receipt of the same.2. Further, following Central Sector Schemes have also been extended for implementation for the year 2012-13.1. Dev./Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization. 2. Scheme for capital investment subsidy for Construction/Renovation/Expansion of Rural Godowns.3. Agri Clinic and Agri Business Centres

Member banks are requested to advise their branches in the State about the abovementioned schemes and also to advise them to utilize the subsidy available to the maximum level.

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18. Training programme for BC/BF/BCAs conducted by NABARD:

In terms of GOI instructions, NABARD, Tamil Nadu Regional Office has identified State Level trainers for training of district level trainers who in turn will train the BC/BF/BCAs in the districts. Training of first batch of district level trainers of Tamil Nadu was launched on 28/05/2012. Three more batches will be trained by end June. Around 100 district level trainers have been identified. Banks are requested to advise their LDMs to work in close coordination with DDMs of NABARD in identification and training of BC/BF/BCAs. The training to BC/BF/BCAs is based on IIBF module and will be conducted in three phases. Certificates will be issued to BC/BF/BCAs on successful completion of training and passing the exam which will be conducted by IIBF.

Member banks are advised to utilize the training programme to train their Business Correspondents.

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19. Exemption of stamp duty for documents executed by Joint Liability Groups (JLG) for borrowing loan from banks:

Government of Tamil Nadu vide G.O.(Ms) No.158 dated 05.11.2009 exempted stamp duty for the following documents executed by Self Help Groups / Panchayat Level Federations (PLF) promoted by Panchayat Raj Department:

1. Instruments of Agreement for Finance2. Inter-se Agreement among others3. Deed of Hypothecation4. Deed of Mortgage executed by SHGs / PLFs

Member banks have requested that the banks are also lending through a new model namely Joint Liability Groups (JLG) and the documents executed by them also may be exempted from stamp duty as in the case of SHGs.

The Commercial Taxes & Registration Department, Government of Tamil Nadu is requested to examine and accept the request.

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20. Swavalamban /NPS-Lite

Swavalamban / NPS–Lite has been introduced in the Budget 2010 as part of Financial Inclusion, as a simplified version of NPS (National Pension System) to help the economically weaker section of population. NPS was introduced in July 2008 for Central Government Employees and extended to all citizens w.e.f 01.05.2009. NPS-Lite is a non-incentive model. Under Swa-Avalamban, an Old Age Self-reliant Income Security Plan (OASIS), Govt of India provides a motivating incentive. With this financial inclusion covers access to banking- No-Frills account (Swa Abhiman), Overdraft in No-frills a/c. Gneneral Credit Card, remittance, micro-insurance (eg Janashree), Outreach (BC/BF/USB) And Old age income security. The followings are the salient features of the above scheme.

Eligible persons: Any citizen of India of 18 years to 60 years of age.

Target group is farmers, labours and self-employed citizens of unorganized sector.

Each subscriber is issued an identity card (PRAN CARD-Permanent Retirement Account Number) establishing membership.

Contribution: A subscriber can contribute as little as Rs. 100/ per month. There is no fixed monthly contribution.

Subscribers contributing a minimum of of Rs. 1000/ to Rs.12,000/ per annum during each of the year 2010-11, 2011-12, 2012-13 and 2013-14 will receive the benefit of Govt contribution of Rs. 1000/- for each of these years. (Banks may suggest to extend the benefit to every subscriber for a fixed period of four years irrespective of year of joining.)

Closing date for incentive: Four years from 2010. Money will be collected by organizations known as

“Aggregators” approved by PFRDA. Banks can also be come aggregators.

The ‘Aggregator’ will collect the money, and issue a receipt to the customer. The ‘Aggregator’ will deposit the collections every FRIDAY (by uploading on the system) in a designated NPS-Lite Bank Account.

The subscriber receives a SMS-confirmation upon registering mobile telephone number.

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Duration of subscription: Upto the age of 60 years. Rate of Return: Rate of return is envisaged at 8% p.a.(as

per the brochure of PFRDA, similar to the interest rate for PPF accounts prior to Dec’11).

Pay out period for pension: Pension is available after a minimum of 20 years of investment or 50 years of age whichever is later.

How much to withdraw/ Annuitization: at the age of 60, the subscriber can withdraw 60% of the pension wealth in lump sum and a minimum of 40% has to be annuitized. Exit before 60 years requires a minimum annuitization of 80%. In the case of death of subscriber, the entire money can be withdrawn by his /her heirs/nominees immediately without annuitisation. The annuity has a variety – pure income, combination of return of capital/premium and income, annuity provided to surviving spouse, etc similar to the case of schemes of LIC.

Pension amount: It will be the annuity payable on the wealth retained. A minimum of Rs. 1000/ per month is contemplated. If the annuitized wealth does not yield a minimum of Rs. 1000/ per month, annuitisation will be increased suitably. This minimum pension scaling may be revised from time to time.

Investment of subscription: Currently, Swavalamban/NPS-Lite is the extension of the NPS scheme available to Govt employees as per which 85% of money will be invested in debt and 15% on equity as per the government guidelines.

Aggregator will choose Fund Manger either out of SBI, UTI, ICICI, Reliance & IDFC (or) any one of the Pension Fund Managers viz SBI, UTI & LIC.

Information to subscribers: Once a year, a Statement of account of the entire transaction and the market value of the corpus will be sent to the Aggregator for distribution to subscribers.

Member banks are requested to take note of the above scheme.The details of the above scheme given by PFRDA is enclosed as an annexure.

Pension Fund Regulatory and Development Authority

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First Floor, ICADR Building, Phase II, Plot No 6, Vasant Kunj Institutional Area,

New Delhi-110070Introduction to Swavalamban Scheme

1. National Pension System (NPS)The National Pension System is an attempt towards providing adequate retirement income to every citizen of India. NPS aims at ensuring financial security to every citizen by encouraging them to start contributing towards the old age saving. NPS has been designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their employment. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.Initially launched for Central Government employees, later it was offered to employees of various State Governments, corporate, and individuals belonging to unorganized sector and economically disadvantaged sections (NPS-Lite). In order to promote NPS and extend NPS benefits to maximum possible target beneficiaries, Government of India has recently launched “Swavalamban” scheme.

2. Swavalamban SchemeGovernment of India announced a scheme under the name of ‘Swavalamban Yojana’ in which government has made a provision to pay an incentive contribution to each subscriber of Unorganized sector and NPS Lite sector who is willing to participate in this scheme and also fulfilling eligibility criterion. All subscribers registered in FY 2010-11 will be eligible for getting the Swavalamban contribution for the financial years 2010-11, 2011-12, 2012-13, 2013-14 and the subscribers getting registered after FY 2010-11 will be eligible to get Swavalamban contribution upto FY 2013-14.Also as a special consideration, subscribers already registered in FY 2009-10 will also be eligible to participate in this scheme.“Following the announcement in the Union Budget 2010, Union Finance Minister ShriPranab Mukherjee inaugurated “Swavalamban”, a Pension Scheme for theunorganized Sector on 26th September, 2010 at Raghunathganj under the Jangipur SubDivision of Murshidabad District and distributed PRAN Cards to a few beneficiaries.”Under Swavalamban scheme GOI will contribute Rs. 1000 per year (for a period of four years) to every National Pension System (NPS) account opened subject to below mentioned conditions;-

Subscriber is not covered under employer assisted retirement benefit scheme and also not covered by social security schemes under any of the following laws:

> Employee Provident Fund and Miscellaneous Provision Act, 1952> The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948> The Seamen’s Provident Fund Act, 1966> The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955> The Jammu & Kashmir Employee Provident Fund Act, 1961

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Subscriber contribution in NPS is minimum Rs. 1000 and maximum Rs.12000 per annum, for both Tier1 and Tier II taken together, provided subscriber makes minimum contribution of Rs.1000 per annum to his Tier 1 account

Also there is provision for recovery of Swavalamban benefits with penal interest in case the subscriber gives false declaration.Detailed Guidelines are provided in section 4

3. Modes to enroll for Swavalamban schemeAs per existing scheme under National Pension System (NPS), Swavalamban could be availed either in unorganized sector or in NPS Lite. In unorganized sector it can be availed through Point of Presence and In NPS Lite it can be availed through Aggregators.

NPS Lite Model: For the weaker and economically disadvantaged sections of the society with their limited investment potential there was need to engage the individuals in pension schemes. PFRDA, being conscious of its ultimate responsibility in providing a uniform platform for old age income security to all sections of society has developed a cost effective and feature optimized model of NPS which facilitates economically weaker sections of the society to join the NPS platform NPS Lite is a model specifically designed to bring NPS within easy reach of the economically disadvantaged sections of the society. NPS Lite is extremely affordable and viable due to its optimized functionalities available at reduced charges.

Aggregator: NPS Lite is extended to its target population through specific entities identified by PFRDA, termed as “aggregators” who would enroll their underlying subscribers in NPS Lite as groups. The aggregators shall be the main interface between the NPS Lite subscriber and NPS architecture. Aggregator would be an agency which takes on the NPS related responsibility on behalf of its constituent’s viz. Self Help Groups and their federations, MFIs, NGOS, Nodal Offices of Govt. Sponsored schemes etc.

For details about NPS Lite Model and documents prescribed under NPS Lite, please refer Section A

Unorganized Sector Model: National Pension System (NPS) was rolled out from 1st May 2009 for all citizens of India, other than Government employees covered under NPS. This was called as unorganized sector under NPS. For this purpose PFRDA selected and authorize entities as Points of Presence (POPs) to extend customer interface for non-government subscribers/individual citizens.

Points of Presence: Points of Presence (POPs) are appointed by the PFRDA to provide various facilities to all citizens (known as ‘Subscribers’ in the NPS architecture) at various locations across India. POPs provide the services under NPS through their network of branches called POP Service Providers (POP-SP). A POP acts as the first point of interface between voluntary subscriber and NPS architecture

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For details about NPS – Unorganized Model and documents prescribed, please refer Section B

4. Prescribed Guidelines for Swavalamban scheme

The Scheme and its applicability1. The scheme will be called Swavalamban Yojana. It will be applicable to all citizens in the unorganised sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatory and Development Authority (PFRDA).Benefits under the Scheme

2. Under the scheme, Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. The benefit will be available only to persons who join the NPS with a minimum contribution of Rs. 1,000 and maximum contribution of Rs. 12,000 per annum.

Definitions:

3. Unorganised sector: For the purpose of this scheme, a person will be deemed to belong to the unorganised sector if that person: is not in regular employment of the Central or a state government, or

an autonomous body/ public sector undertaking of the Central or state government having employer assisted retirement benefit scheme, or

is not covered by a social security scheme under any of the following laws:

* Employees' Provident Fund and Miscellaneous Provisions Act,1952* The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948* The Seamen's Provident Fund Act, 1966* The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955* The Jammu and Kashmir Employees' Provident Fund Act, 1961

4. All other definitions as given in the NPS offer document will apply to the terms used in this scheme.

Eligibility:

5. The scheme will be applicable to all persons in the unorganised sector subject to the condition that the benefit of Central Government contribution will be available only to those persons whose contribution to NPS is minimum Rs.1,000 and maximum Rs. 12,000 per annum, for both Tier I and II taken together, provided that the person makes a minimum contribution of Rs. 1000 per annum to his Tier I NPS account.

6. As a special case and in recognition of their faith in the NPS, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government

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contribution under this scheme as if they were opened as new accounts in 2010-11 subject to the condition that they fulfill all the eligibility criteria prescribed under these guidelines.

Funding

7. The scheme will be funded by grants from Government of India. The grants would be given such that monthly payment in the subscriber accounts would be possible.

Operation

8. A person will have the option to join the NPS as an individual as per the existing scheme or through the CRA Lite approved by PFRDA.

9. At the time of joining the NPS the subscriber will have to declare whether he/she falls within the definition of unorganised sector as defined in para 3 above and would also declare that his contribution would range between Rs. 1,000 to Rs. 12,000 per annum. If subsequent to opening the NPS account it is found that the subscriber has made a false declaration about his eligibility for the benefits under this scheme or has been wrongly given the benefit of government contribution under this scheme for whatsoever reason, the entire government contribution will be deducted along with penal interest as may be specified from time to time. If the status of the subscriber changes to ineligible after joining the NPS, he/she should immediately declare so and the benefit of government contribution will not accrue to the subscriber's account after the date on which the subscriber becomes ineligible.

10. At the end of each financial year the CRA will, by 7th April of the following year, send to the PFRDA details of the NPS accounts opened during the year, showing separately the number of eligible NPS accounts in which the subscriber's contribution has been between Rs. 1,000 and Rs. 12,000. CRA will also send these details with individual PRAN to the Trustee Bank.

Exit from NPS

11. The exit from the Swavalamban Scheme would be on the same terms and conditions on which exit from Tier-I account of NPS is permitted, that is, exit at age 60 with 40% minimum annuitisation of pension wealth and exit before age 60 with 80% minimum annuitisation of pension wealth. However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If the annuitised pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time.

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Miscellaneous

12. PFRDA may permit members of an existing pension scheme to migrate to NPS under such terms and conditions as may be approved by the Government.

Removal of Doubts

13. In case of any doubts on the eligibility, operation of the scheme or any other issue, the Central Government will decide the matter in consultation with PFRDA and the decision of the Central Government will be final.

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21. Tamil Nadu Government’s Dr.Muthulakshmi Maternity Benefit Scheme

Department of Public Health, Govt. of Tamil Nadu is implementing Dr.Muthulakshmi Maternity Benefit Scheme. Under this scheme, each pregnant woman of below poverty line is eligible to receive Rs 12,000 in three installments at Rs 4000/ per installment for taking nutritional foods in order to deliver healthy babies as well as to compensate wage loss. Annually about 8 lakhs pregnant women are benefited by this scheme. Tamil Nadu Govt. is allocating Rs 620 crore under State Budget per annum.The list of eligible pregnant women are generated through web based Software and the amount is claimed from treasury and deposited into Medical Officers Bank Account. In turn, it is distributed to the beneficiaries thro transfer of funds to the bank where the beneficiaries are holding the accounts. As per the Government Order, each eligible pregnant woman should open Bank account only in Nationalized Banks. The Joint Director of Public Health advises that there are certain issues being faced with the banks at the field level in implementation of the scheme: 1. Delay in opening of accounts: Certain Bank branches are not

opening accounts of the beneficiaries with the introduction of Block Medical Officers. Banks are requested to accept the introduction of Block Medical Officer for opening of accounts of the beneficiaries.

2. There is a delay in transfer of funds from the Block Medical Officer’s account to the beneficiaries ‘accounts in some branches. Banks are advised to avoid delay in transfer of funds to the beneficiaries’ accounts. The grant amount should be transferred immediately on the request of the Block Medical Officer.

3. The transfer should be done as and when the amount is deposited and the lists given to banks for transfer of funds to enable the Poor pregnant mother to get benefits in time.


22. Creation / Release of Online charge by banks on land holdings:

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Ministry of Finance, Government of India desires that mortgage on land holdings of farmers are to be created online by banks to secure the loans availed by the farmers. As a first step the land records should be made available online for the entire State and the same should be integrated with the banking system for easy verification and creation of online charge over the landed properties. This would help the farmer to avail loans easily from the banks and he need not go to various places and spend time and money for this purpose.At present the mortgages created in favour of the banks are registered with a Central Registry under SARFAESI Act, 2002. Steps may be initiated to integrate the State Registration Offices with the Central Registry to facilitate hassle free registration of mortgages.The State Government is requested to provide the details of land records and creation of mortgage online at the earliest.

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23. Convergence of Insurance facilities with FI initiatives:

Ministry of Finance, Government of India issued Strategies & Guidelines on Financial Inclusion vide their letter dated 21.10.2011. They have issued the following guidelines regarding preparation of District / State Financial Services Plan:Quote:At present the District and State Level Plans are being prepared for the banks, NABARD etc. Similarly, the Public Sector Insurance Companies are also preparing their field level plans. In order to develop a comprehensive frame work for delivery of financial services and, hence, promote Financial Inclusion, it is necessary that comprehensive Financial Services Plan for the entire District and State is also prepared.

It has therefore been decided that:

The District Lead Bank Officer, Officer In charge of NABARD and Nodal Officers of Public Sector Insurance Companies, both life and non life, would prepare a comprehensive Annual District Financial Services Plan covering banking, rural development, insurance, etc. These officers would also meet once every month to review the progress and resolve inter agency issues.

At the State Level, SLBC Convener, NABARD and State In-charge of Public Sector Insurance Companies, both life and non life, would prepare similar Annual State Financial Services Plan. At the State level also, these officers would meet once every month to review the progress and resolve inter-agency issues. The objective of the exercise is to ensure Financial Inclusion by ensuring bank account for every household, Kisan Credit Card to every farmer’s family, General Credit Card to other households and extensive coverage under micro-insurance and micro-pension scheme. Unquote:

Public Sector insurance companies are advised to finalise the District Insurance plans for all the 31 districts both life and non life at the earliest.

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24. Ultra Small Branch (USB)

Ministry of Finance, Government of India issued the following Guidelines for opening of Ultra Small Branches (USBs) in Rural Areas:

At places where the opening a conventional Brick & Mortar Branch is presently not viable, the Bank may set up USBs, which will have the following characteristics.

1) The Bank Branch will have an area of 100-200 square feet.2) A BCA should be opened for the service area to deal with all

cash transaction and other routine work. The BCA shall operate from the USB.

3) One of the Officers of the Bank will visit the Branch on predetermined day, at least once a week, along with a laptop which should have VPN connectively to the CBS. He would clear applications for new account opening, loans, recovery follow-up and business development. He can give information to the account holders about the account balance or a print out of the bank statement, etc.

4) The Officer would not be dealing with cash transactions, which would be handled by the BCA.

5) The frequency of visit by the Bank Officer can be progressively enhanced depending upon the business growth in the service area of the bank.

6) When the Bank reaches the desired level of business, the USB can be upgraded into a regular Bank Branch.

In Tamil Nadu banks have covered 4445 villages with a population of 2000 and above under Financial Inclusion. Banks have opened 893 USBs in the State as on 30.04.2012.

Member banks are requested to expedite opening of Ultra Small Branches in the remaining villages and ensure 100 % achievement before June, 2012 as per the guidelines of Ministry of Finance.

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AGENDA No: 3 130th SLBC

REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU ON KEY PARAMETERS AS OF MARCH 2012

KEY PARAMETERS (Amount – Rs.in Crores)

Parameters MARCH2011

MARCH2012

VARIATION & % OF GROWTH

No. of Branches 6699 7402 703 Deposits

328419.16 429072.09100652.9

3(30.65%

)Advances

375997.61 449262.27 73264.66(19.49%

)CD Ratio

114.49% 104.71% -9.78% Investments 1980.36 3178.32 1197.96 Credit + Investment to Deposit Ratio 115.09% 105.45% -9.64% Priority Sector Advances

146577.37 176509.53 29932.16(20.42%

)% of Priority Sector Advances to Total Advances 47.49 46.94 Agricultural Advances

59181.56 78241.15 19059.59(32.21%

)% of Agricultural Advances to Total Advances 19.18 20.81 Micro & Small Enterprises (MSE) 52564.45 58722.19 6157.74

(11.71%)

Of which Micro Enterprises 15214.49 19430.89 4216.40 27.71Micro Credit

4047.32 3292.66 -754.66Education

9698.87 11871.22 2172.35(22.40%

)Housing

21085.17 23867.54 2782.37(13.20%

)Advances to Weaker Sections 36545.79 51053.07 14507.28

(39.70%)

% of Weaker Section Advances to Total Advances 11.84 13.58

DRI Advances 150.68 241.28 90.60(60.13%

)% of DRI Advances to Total Advances 0.05 0.06

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BRANCH NETWORK

As at the end of March 2012, the total number of Bank Branches in Tamil Nadu increased to 7402 from 6699 in March 2011. Group wise spread of Bank branches in Tamil Nadu as of March 2011 and March 2012 are given below:

Name of the Group MARCH2011

MARCH 2012

Variation

State Bank Group 987 1042 55Nationalised Banks 3702 4074 372Other Public Sector Banks 52 65 13Private Sector Banks 1621 1854 233RRBs 313 343 30Foreign Banks 24 24 0Total 6699 7402 703

DEPOSIT GROWTH

Deposits of the Banks in Tamil Nadu have increased from Rs.328419.16 crores as of March 2011 to Rs.429072.09 crores as at March 2012, registering an increase of Rs.100652.93 crores. The year on year incremental deposit growth is 30.65% as against the growth of 16.09% from March 2010 to March 2011.

CREDIT EXPANSION

The total advances increased from Rs.375997.61 crores as of March 2011 to Rs.449262.27 crores as of March 2012, an increase of Rs.73264.66 crores. The incremental growth is 19.49% as against the growth rate of 21.83% recorded in the previous year.

CD RATIO

The Credit Deposit Ratio of Commercial Banks in Tamil Nadu decreased from 114.49% as of March 2011 to 104.71 % as of March 2012.

PRIORITY SECTOR ADVANCES

The percentage of priority sector advances is 46.94% as against the national norm of 40%.

Priority Sector Advances have grown by 20.42% Y.O.Y as against 21.91% during March 2010 to March 2011.

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AGRICULTURAL ADVANCES

The aggregate of agricultural advances extended by Banks in Tamil Nadu have increased from Rs.59181.56 crores as of March 2011 to Rs.78241.15 crores as of March 2012, thus registering an increase of Rs.19059.59 crores in absolute terms and 32.21 % in percentage terms. [The growth rate during the period March 2010 to March 2011 was 19.05%]. The share of agricultural credit in total advances as of March 2012 is 20.81% against the national norm of 18%.

MICRO & SMALL ENTERPRISES (MSE)

The advances to Micro & Small Enterprises sector (MSE) during the period under review has witnessed an increase by Rs.6157.74 crores, from Rs.52564.45 crores as at March 2011 to Rs.58722.19 crores as at March 2012, thus showing a growth of 11.71 %. The share of MSE advances in total advances as of March 2012 was 13.07%. The share of Micro Enterprises in Micro & Small Enterprises (MSE) is only 33.09% as against the norm of 55%. During the current year 2012-13, the share of Micro Enterprises among MSE has to be 60%. Banks are advised to concentrate more on Micro Enterprises.

EDUCATION

Educational Loans have increased from Rs.9698.87 crores in March 2011 to Rs.11871.22 crores as of March 2012. The increase of Rs.2172.35 crores under Educational Loans represents a growth rate of 22.40%.

Year-on-year (March 2010 to March 2011), there is an increase of Rs.2352.85 crores in Educational Loans outstanding, recording a growth rate of 32.03%.

HOUSINGThe outstanding under Housing Loans has registered an increase of Rs.2782.37 crores from Rs.21085.17 crores in March 2011 to Rs.23867.54 crores in March 2012, registering a growth rate of 13.20%. During the corresponding period of the previous fiscal, there was an increase of Rs.1399.32 crores in Housing Loans outstanding with 7.11% growth rate.

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ADVANCES TO WEAKER SECTIONS

The advances to Weaker Sections increased from Rs.36545.79 crores as of March 2011 to Rs.51053.07 crores as at the end of March 2012, registering a growth rate of 39.70%. At this level, advances to Weaker Sections constituted 13.58% of the total credit against the national norm of 10%.

The growth during last year (March 2010- March 2011) was 31.35%.

DRI ADVANCES

The outstanding advances under DRI has increased from Rs.150.68 crores as on March 2011 to Rs.241.28 crores as of March 2012, registering a growth rate of 60.13%

The percentage of DRI advances to total advances has slightly improved to 0.06% as against the bench mark level of 1%.

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NATIONAL NORMS

PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED NATIONAL NORMS ARE AS UNDER:

ParticularsNational Norms

Percentage

Achievement %March 2011 March 2012

Priority Sector Advances to Total Advances 40 47.49% 46.94%Agricultural Advances to Total Advances 18 19.18% 20.81%Weaker Section to Total Advances 10 11.84% 13.58%DRI Advances to Total Advances of previous year 1 0.05% 0.06%

The share of Priority Sector advances stands at 46.94% which is above the National Norm of 40%.

The share of Agricultural Advances and Advances to Weaker Sections to total credit as at the end of March 2012 was 20.81% & 13.58% respectively, thereby surpassing the national norm of 18% & 10% respectively.

DRI advances continue to remain below the Norm of 1%. The performance of Banks under DRI is being reviewed in every meeting of SLBC. RBI and Government authorities have been expressing their concern about the low progress under the scheme and non achievement of National goal of 1%.

Member Banks are requested to take up the matter with their branches and ensure progress under the scheme.

Target for the year ended March 2013

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ParticularsNational Norms

Percentage

Target for 2012-13(Amt. Rs. in Crores)

Priority Sector Advances 40 179704.91Agricultural Advances 18 80867.21Weaker Section Advances 10 44926.23DRI Advances to Total Advances 1 4492.62

DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU

A comparative analysis of the performance of the Commercial Banks in Tamil Nadu indicates the following:

a) Tiruppur district has the highest CD ratio at 182% followed by Ariyalur district (177%) & Dharmapuri district (167%).

b) Of the 31 lead districts, the CD ratio of 30 districts is above the RBI norm of 60%.

c) Kancheepuram District is having CD ratio of 56% which is less than the National Norm of 60% and Member Banks are requested to evolve suitable strategies to improve their lending so as to achieve the National Norm for CD Ratio in that district.

Agricultural advances to total advances in the following districts is below 18% norm.

Coimbatore -- 12.27%Tiruppur -- 15.52%

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REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF MARCH 2012

As at the end of March 2012, there were 794 branches of Co-operative Banks (both, District Central Co-operative Banks and State Agricultural and Rural Development Banks) in Tamil Nadu. The details are furnished for the information of the members.

Classification of Branches MARCH 2011 MARCH 2012Rural 262 259Semi-Urban 203 202Urban 184 193Metro 139 140TOTAL 788 794

(Amount – Rs. in Crores)Particulars MARCH 2011 MARCH 2012

Deposits 18775.58 21927.76Advances 25225.06 28586.28Investments 8035.40 6909.82CD Ratio 134.35% 130.37%Credit + Investment to Deposit Ratio 177.15% 161.88%

(Amount – Rs. in Crores)S.No. Particulars MARCH 2011 MARCH 2012

1 Agricultural Advances 3000.75 3751.64 Of which, Direct Advances 600.54 539.522 Micro & Small Enterprises 1588.70 2251.343 Education 172.23 23.494 Housing 144.74 176.125 Micro Finance & Others 1848.17 926.30

TOTAL 6754.59 7128.89

ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS

(Amount – Rs. in crores)

MARCH MARCH

58

2011 2012Total Advances to Weaker Sections 7525.13 5063.96 Of which, (i) Advances under SC/ST 793.31 1249.87 (ii) Advances under IRDP/SGSY 169.18 201.86 (iii) Advances under DRI 10.56 122.87

NPA POSITION IN PRIORITY SECTOR ADVANCES – DECEMBER 2011(Amount Rs. in Crores)

NPA Amount

% of NPA

i) NPA in Housing loans 12.83 24.12%ii) NPA in Education loans 1.93 9.32%iii) NPA in Agriculture Loans 389.99 11.19%iv) NPA in Loans to MSE 13.47 0.74%v) NPA in Loans under Weaker Section of Priority Sector Lending

93.15 1.84%vi) NPA in over all Priority Sector Lending 418.22 6.17%

59

PLEASE REFER DATA SHEET NO.1

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61


62


REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN 2011 – 2012: APRIL 2011 TO MARCH 2012

As per the quick information report obtained from the Lead District Managers, Banks in Tamil Nadu have disbursed total credit of Rs.60598.92 crores under Annual Credit Plan during 2011-12 as against the plan allocation of Rs.56621.64 crores, representing 107% achievement under ACP for the year 2011-12.

Amount in Rs. crores

SectorCredit Allocation

Credit Disbursed % of

AchievementApril 2011 to March 2012

April 2011 to March 2012

Farm 31017.09 36358.39 117Non-Farm 12582.48 11212.45 89OPS 13022.07 13028.08 100TOTAL 56621.64 60598.92 107

A comparative position of disbursement under ACP during 2010-11 & 2011-12 is furnished below:-

Amount Rs. in crores

Sector

Credit disbursed from April

2010 to March 2011

Credit disbursed from April

2011 to March 2012

Variation in percentage

Farm 32923.55 36358.39 10.43Non-Farm 10421.84 11212.45 7.59OPS 10772.97 13028.08 20.93TOTAL 54118.36 60598.92 11.97

District wise performance:

District wise/Major Sector wise performance for the period ended March 2012 is furnished in Annexure – I. Banking System in Tamil Nadu has achieved 107% of the plan allocation during the period

63

under review. The performance of the individual districts varies from 65% to 181%. 27 districts have achieved more than 100% of the target. Under Farm Sector, 28 districts have achieved more than 100% of the target & under Non-farm sector 12 districts have achieved more than 100% of the target. Sector wise performance:

A. Non-Farm Sector – Industries:

The performance of Banks in Tirunelveli district under Non-Farm Sector is much below 50%, i.e. 17%. LDM need to bestow his attention and impress upon Member Banks in Tirunelveli district to improve the performance under Non-Farm Sector during the current year.

B. Other Priority Sector:

Under OPS category during the current year, Tirunelveli district has recorded lower performance of 48%. Banks in Tirunelveli district have to increase their disbursement under OPS category during the current year.

The details of progress made under ACP 2011-12 upto the quarter ended December 2011 (District-wise / Bank-wise / Activity-wise) have also been furnished in the Annexure for information.

64


65

PLEASE FER DATA SHEET NO.4

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67


68


69

AGENDA: 4A 130th SLBC

ANNUAL CREDIT PLAN 2012-13

The consolidated Annual Credit Plan for the financial year 2012-13, based on the District level ACP prepared by LDMs, for the State of Tamil Nadu is placed below for the approval of the forum.

The credit plan for the year 2012-2013 envisages a total credit flow of Rs.73213.50 crores under the 3 major sectors which represents an increase of Rs.16591.86 crores in absolute terms representing an incremental growth of 29.30% over the previous year’s ACP outlay. The sector-wise details are given below: (Rs.in Crores)

Sector Allocation % of Increase2011-12 2012-13Farm Sector 31017.09 43206.78 39.30%Non-Farm Sector

12582.48 14195.27 12.82%

OPS 13022.07 15811.45 21.42%Total 56621.64 73213.50 29.30%

The District-wise Allocation under ACP for 2012-13 is enclosed.

Active involvement of all the Banks in Tamil Nadu is sought for the successful implementation of the Annual credit plan 2012-13. Various Departments and agencies of the Government are also requested to extend support in filling up the infrastructure gaps, if any.

Revised allocation of target by NABARD for 2012-13 under Farm Sector (In tune with the Hon’ble Union Finance Minister’s budgetary announcement of Rs 5.75 lacs crores.)

CATEGORY OF LOAN UNDER FARM SECTOR

AMOUNT(in crores)

Crop loan 28700Term loan 23210Total 51910*

*This shows an increase of 42.77% over last year’s achievement

Accordingly the farm target for the district is revised and given as an annexure below. The DCC convenors and Lead District Managers are advised to reallocate the farm target to the member banks in their districts and inform SLBC.

70

ANNUAL CREDIT PLAN 2012-13 (DISTRICTWISE -

SECTORWISE)

(Rs.in Crores)Sl.No. DISTRICT NAME

* FARM SECTOR NFS OPS TOTAL

1 ARIYALUR 561.67 22.00 60.50 644.17

2 COIMBATORE 2726.052690.0

0 1291.006707.0

5

3 CUDDALORE 2369.22 74.95 620.593064.7

6

4 DHARMAPURI 1295.12 106.99 377.701779.8

1

5 DINDIGUL 2053.55 224.35 556.882834.7

8

6 ERODE 2342.781224.9

9 827.024394.7

9

7KANCHEEPURAM 1019.09 440.48 672.32

2131.89

8 KANYAKUMARI 2905.00 229.26 620.923755.1

8

9 KARUR 827.04 579.74 282.321689.1

0

10 KRISHNAGIRI 1619.04 282.99 468.172370.2

0

11 MADURAI 2630.08 646.92 1063.034340.0

3

12NAGAPATTINAM 1351.06 38.69 218.74

1608.49

13 NAMAKKAL 1227.41 453.44 479.852160.7

0

14 NILGIRIS 852.90 163.90 187.501204.3

015 PERAMBALUR 832.24 32.58 84.74 949.56

16 PUDUKOTTAI 1308.86 46.05 113.551468.4

6

17RAMANATHAPURM 1258.32 94.00 223.71

1576.03

18 SALEM 2179.18 226.77 508.282914.2

3

19 SIVAGANGA 1522.21 143.00 400.002065.2

1

20 T.V.MALAI 1880.31 62.34 226.822169.4

7

71

21 THANJAVUR 1864.00 108.91 558.942531.8

5

22 THENI 1881.32 85.73 250.302217.3

5

23TIRUCHIRAPPALLI 1937.66 292.24 777.39

3007.29

24 TIRUNELVELI 2280.51 225.24 724.673230.4

2

25 TIRUPPUR 1803.313660.3

8 640.036103.7

2

26 TIRUVALLUR 1022.15 299.56 551.011872.7

2

27 TIRUVARUR 1320.35 40.70 172.591533.6

4

28 TUTICORIN 1603.27 490.23 1062.153155.6

5

29 VELLORE 2150.08 203.74 1077.263431.0

8

30 VILLUPURAM 2307.13 93.76 240.042640.9

3

31VIRUDHUNAGAR 979.07 911.34 473.43

2363.84

TOTAL 2012-13 51910.0014195.

2715811.4

581916.

72

*Revised farm sector target as per NABARD allocation.

72


Prime Minister’s Employment Generation Programme (PMEGP)

KVIC, Chennai vide their letter dated 05.06.2012 has recently advised the Revised Target for the year 2011-12. As per that, against the target of 5275 projects with margin money assistance of Rs.7383.00 lacs, 3228 Projects with margin money assistance of Rs.7164.15 lacs have been sanctioned. (Details furnished in annexure).

Member Banks are also requested to ensure

Expeditious release of first stage of loans sanctioned. Claim of margin money immediately after first disbursement. Immediate settlement of margin money claim of branches by

their respective nodal branches.

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74


SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)

SJSRY Programme consists of two special schemes namely (i) Urban Self-Employment Programme (USEP) and (ii) Urban Women Self-Help Programme (UWSP).

The progress made under SJSRY for the programme year 2011-12 as on 31.03.2012 is furnished below: (Amount Rs.in Lacs)NO. PARTICULARS SJSRY-

USEPSJSRY-UWSP TOTAL

1 Applications sent to Banks 14430 2253 166832 Applications sanctioned 11930 1717 136473 Applications rejected 2500 536 30364 Applications Pending 0 0 05 Subsidy allotted 1222.67 917.55 2140.226 Subsidy utilized 912.33 748.78 1661.117 Subsidy pending 310.34 168.77 479.118 % of subsidy utilization 75 82 78

Subsidy utilization level for the Programme year 2011-12 as on 31.03.2012 so far is 75% & 82% under USEP and UWSP scheme respectively. Member Banks are advised to speed up the sanction / disposal of the pending loan applications and ensure 100% utilization of the subsidy allotted under SJSRY.

75


SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY 2011-12)

Performance

During the year 2011-12, Banks in Tamil Nadu have disbursed credit to the extent of Rs.389.55 crores under SGSY against the credit mobilisation target of Rs.297.38 crores thereby achieving 130.99% of the annual target for the financial year 2011-12.

Performance of the Banking System in Tamilnadu under SGSY 2011-12 as on 31.03.2012

Amount in Rs. Lacs

S.No. PARTICULARSMARCH 2012

ECONOMIC ACTIVITY REVOLVING FUND TOTALSHG INDIVIDUALS TOTAL

1 No. of Loans granted 7871 5442 13313 22263 355762 Swarozgaris 99834 5442 105276 350963 456239

3 Amount Disbursed26555.8

0 1267.9927823.7

9 11131.45 38955.24

4 % of Credit disbursement to Annual Target130.99

%5 Subsidy Utilized 9339.08 578.03 9917.11 3339.44 13256.556 Credit Subsidy Ratio 2.84 2.19 2.81 3.33 2.947 Coverage Under:- SC/ST 53208 2626 55834

% (Norm 50%) 53.30 48.25 53.04 WOMEN 99834 3554 103388 % (Norm 40%) 100.00 65.31 98.21 DISABLED 3331 2123 5454 % (Norm 3%) 3.34 39.01 5.18

I. Performance under Economic Activity:

a. For the period ended 31.03.2012, Banks have extended credit assistance to the tune of Rs.26555.80 lacs along with subsidy assistance of Rs.9339.08 Lacs for taking up economic activities to 7871 Self Help Groups benefiting 99834 swarozgaris.

b. During this period, Rs.1267.99 lacs with a subsidy of Rs.578.03 Lacs has been granted to 5442 individual swarozgaris to take up economic activities.

II. Performance under Revolving Fund:

76

Revolving Fund assistance of Rs.11131.45 lacs has been extended to 22263 Self Help Groups with a subsidy assistance of Rs.3339.44 Lacs.III. Achievement under Sub-sector Norms:The achievement under coverage of SC/ST is 53.04% as against the norm of 50%. Banks have also surpassed the 40% norm fixed for Women & 3% norm for Disabled Persons, achieving 98.21% and 5.18% respectively.

DETAILS OF ECONOMIC ASSISTANCE (AGENCY WISE) AND REVOLVING FUND DISBURSED UNDER SGSY 2011-12 AS AT THE END OF MARCH 2012

Amount in Rs. Lacs

AGENCYCREDIT

DISBURSEDEconomic ActivityCommercial Banks 16336.59RRBs 2308.43Co-operative Banks 9154.77Other Banks 24.00TOTAL CREDIT UNDER ECONOMIC ACTIVITY

27823.79

CREDIT UNDER REVOLVING FUND 11131.45TOTAL CREDIT TO SGSY 38955.24

Districtwise /Agencywise credit disbursed upto the month of March 2012 is furnished in annexure.

Subsidy Credit Ratio: The stipulated subsidy credit ratio under the scheme is 1:3. As of March 2012, Banks in Tamilnadu have achieved a Credit Subsidy Ratio of 1 : 2.94. Member Banks have been advised to increase the credit under SGSY and achieve the National Norm of 1 : 3 in the current year.

Annexure (Amount Rs. in Lacs)

DISTRICT / AGENCYWISE CREDIT DISBURSED UPTO THE MONTH OF MARCH 2012

77

S.No District Revised

Target

Revolving Fund

Credit Disbursed for Economic Activity

Total Credit

Com.Bks Co-op Bks

RRBs Others

1 Ariyalur 506.62 196.33 133.20 340.56 0.00 0.00 670.092 Coimbatore 905.72 520.00 496.10 320.20 195.16 1531.463 Cuddalore 1308.59 482.50 723.75 502.50 0.00 0.00 1708.754 Dharmapuri 775.55 290.50 472.12 119.50 148.47 0.00 1030.595 Dindigul 964.83 365.00 512.28 477.48 59.41 0.00 1414.166 Erode 731.44 400.50 695.57 382.70 0.00 0.00 1478.777 Kancheepuram 1453.77 544.00 835.92 401.31 218.33 0.00 1999.568 Kanniyakumari 646.70 242.00 108.60 538.05 0.00 21.01 909.669 Karur 563.89 211.00 522.42 21.70 0.00 0.00 755.12

10 Krishnagiri 813.76 304.50 631.01 39.44 118.31 0.00 1093.2611 Madurai 1055.96 395.50 253.15 143.08 362.27 0.00 1154.0112 Nagapattinam 810.97 303.50 565.04 247.12 0.00 0.00 1115.6613 Namakkal 781.99 292.50 293.40 402.09 0.00 0.00 987.9914 Nilgiris 240.63 70.62 146.34 55.61 0.00 0.00 272.5715 Perambalur 287.48 107.50 129.00 145.56 0.00 0.00 382.0616 Pudukkottai 786.10 294.50 431.32 256.64 0.00 0.00 982.4617 Ramanathapuram 703.43 263.50 159.47 231.53 172.87 0.00 827.3718 Salem 1347.20 504.50 1066.75 198.55 0.00 0.00 1769.8019 Sivagangai 693.23 265.00 646.68 76.08 38.04 0.00 1025.8020 Thanjavur 796.83 443.50 736.93 66.17 2.16 0.00 1248.7621 Theni 1184.32 203.00 515.88 25.80 0.00 0.00 744.6822 Tirunelveli 541.96 490.50 824.85 87.69 398.33 0.00 1801.3723 Tiruvallur 1310.87 426.50 1014.45 89.94 0.00 0.00 1530.8924 Tiruvannamalai 1128.27 483.00 346.74 871.37 0.00 0.00 1701.1125 Tiruvarur 1289.98 316.50 428.64 384.92 0.00 0.00 1130.0626 Thoothukudi 845.53 348.00 511.91 453.03 0.00 0.00 1312.9427 Tiruchirapalli 967.94 331.00 514.24 345.39 0.00 0.00 1190.6328 Vellore 884.04 801.00 752.55 1026.51 450.07 3.00 3033.1329 Villupuram 2111.47 926.00 1713.29 734.27 0.00 0.00 3373.5530 Virudunagar 2473.69 309.00 155.00 170.00 145.00 0.00 779.0031 Tirupur 825.56 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL29738.

30 11131.4516336.5

9 9154.77 2308.43 24.0138955.2

4

78


Interest Subsidy for Housing the Urban Poor (ISHUP)

As per the information given by Tamil Nadu Housing Board, the target upto 31.03.2012 is 200000 against which No. of applications received is 72269. Of these, 55680 applications were sent to Banks and 4596 loans were sanctioned to the tune of Rs.41.30 crores. 16890 applications were returned by Banks.

District-wise and Bank-wise details of applications as on 31.03.2012 is furnished as detailed below:-

Annexure 1 – Progress Report on ISHUP Annexure 2 – Details of applications sent to BanksAnnexure 3 – Valid applications ReceivedAnnexure 4 – Applications returned by Banks

The scheme was in operation only upto 31.03.2012. All the banks who have disbursed the loan, even if it is first stage are advised to submit the subsidy claim immediately.

79


80


81


82


83


84


85


86


87


BANK FINANCE UNDER HOUSING SCHEME:In tune with the National Agenda 'HOUSING FOR ALL' Credit Flow to Housing Sector is identified as one of the major thrust areas by the Banks.As per Reserve Bank of India guidelines, each bank should reach 3% of their incremental deposits of the previous year under housing finance. Accordingly, it is estimated that Rs.1365.27 crores should be extended to Housing Sector from banking system in Tamil Nadu during the year 2011-12.As per the feedback received from member banks, disbursement to the tune of Rs.939.29 crores has been made during the quarter ended March 2012, and the cumulative disbursement made for the period April 2011 to March 2012 is Rs.3694.97 crores

The Bank wise disbursement details for the last quarter is furnished in the Annexure. It may be noted that 6 Banks marked (*) have not submitted any data as a result of which the aggregate disbursement might have been understated. These banks are requested to submit the data immediately.Break-up of the portfolio on the basis of loan size is as follows:-

(Amount Rs.in Lakhs)Disbursement made during the quarter ended March 2012 (Jan.’12 to Mar.’12)

Limit Upto Rs.5 Lacs

Limit above Rs.5 lacs - upto Rs.10

Lacs

Limit above Rs.10 Lacs - upto Rs.15

Lacs

Limit above Rs.15 Lacs - upto Rs.20

LacsTotal

No.Amoun

t No. Amount No. Amount No.Amoun

t No. Amount

6862 15280.60 4976 25465.43 2842 23735.37 2329 29448.07 17009 93929.47

Henceforth all banks are requested to submit the above statement revising the last slab as “Limit above Rs.15 lacs upto Rs.25 lacs”, since, as per RBI guidelines limits sanctioned upto Rs.25 lacs is classified as priority sector.Banks are also advised to include in the above statement, loans given for repairs to damaged dwelling units of families upto Rs 1 lac in rural and semi urban areas and Rs. 2 lacs in urban and metropolitan areas.

88

Bank Finance under Housing Scheme – Direct Housing Finance

For the quarter ended March 2012 Amount Rs.in

Lacs

Sl. No.

Name of the Bank

Disbursement made during the quarter ended March

2012 (January’12 to March’12)No. Amount

1 Allahabad Bank 153 11872 Andhra Bank 278 11183 Axis Bank Ltd. * 0 04 Bank of Baroda 887 37115 Bank of Maharashtra 22 2656 Bank of India 787 56947 Canara Bank 1694 62588 Catholic Syrian Bank 16 2819 Central Bank of India 506 313110 City Union Bank Ltd. 657 244211 Corporation Bank 785 267212 Dena Bank 57 39513 Dhanalakshmi Bank Ltd. 2 2814 Federal Bank Ltd., 180 92815 HDFC Bank Ltd. * 0 016 ICICI Bank Ltd. 613 419917 Indian Bank 2013 839918 Indian Overseas Bank 994 1420219 IDBI Bank Ltd. 286 195820 Indus Ind Bank Ltd. 8 7021 Ing Vysya Bank Ltd. * 0 022 Jammu & Kashmir Bank

Ltd.9 42

23 Karur Vysya Bank Ltd. 517 433524 Karnataka Bank Ltd., 70 54725 Lakshmi Vilas Bank Ltd. * 0 026 Oriental Bank of

Commerce55 307

27 Pandyan Grama Bank 21 88

89

Amount Rs.in Lacs

Sl. No.

Name of the Bank

Disbursement made during the quarter ended March

2012 (January’12 to March’12)

No. Amount28 Pallavan Grama Bank 7 3429 Punjab National Bank 143 113930 Punjab & Sind Bank 16 18731 South Indian Bank Ltd. 33 16932 State Bank of Bikaner &

Jaipur 29 37733 State Bank of Hyderabad 183 206334 State Bank of India 3782 1448435 State Bank of Mysore 72 70736 State Bank of Patiala 22 16837 State Bank of Travancore 219 306138 Syndicate Bank * 0 039 Tamilnadu Mercantile

Bank 1361 482340 UCO Bank 118 124041 Union Bank of India 350 254242 United Bank of India 64 67543 Vijaya Bank * 0 0 GRAND TOTAL 17009 93929.47

AGENDA No: 9 (A) 130th SLBC

90

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)

The National Housing Bank has formulated the Golden Jubilee Rural Housing Finance Scheme (GJRHFS) in August 1997 on the occasion of the Golden Jubilee of India's Independence.

As per the feedback received from the member banks, 1931 loans amounting to Rs.5096.64 lacs were disbursed under Golden Jubilee Rural Housing Finance Scheme during the quarter ended March 2012 as shown below:

Cumulatively 6526 loans amounting to Rs.15178.82 lacs have been disbursed during the period from April 2011 to March 2012.

(Amount in Rs. Lacs)

ParticularsScheduled

CastesScheduled

Tribes Others Total

No. Amt. No. Amt. No. Amt. No. Amt.Total Loans sanctioned during the Quarter 352 849.55 44 119.50 1538 4337.74 1934 5306.79Total Loans disbursed during the Quarter 352 849.55 44 119.50 1535 4127.59 1931 5096.64

Member Banks are requested to furnish the details of housing loans under Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC.

91


Educational Loans

A) The details of educational loans granted by member banks are furnished in the annexure.

As per the reports received, 138869 loans to the tune of Rs.1721.58 crores have been granted during the financial year 2011-12 of which Engineering/Medical account for 100457 loans amounting to Rs.1102.75 Cr, 3832 loans for study in Abroad amounting to Rs.248.58 Cr and 34580 loans to Others, to the tune of Rs.370.25 Cr.

Out of 138869 Educational loans granted to the tune of Rs.1721.58 crores, SC/ST, Minority Communities & Women accounts for 18269 loans amounting to Rs.232.49 Cr, 14722 loans amounting to Rs.235.30 Cr and 41450 loans to the tune of Rs.467.69 Cr respectively.

The following Banks who have not furnished the data on Educational Loans as of March 2012 are requested to submit the same immediately.

Sl. No.

Name of the Bank Sl. No.

Name of the Bank

1 Allahabad Bank 5 Lakshmi Vilas Bank Ltd.2 City Union Bank Ltd. 6 Syndicate Bank3

HDFC Bank Ltd.7 Tamilnad Mercantile Bank

Ltd.4 Indus Ind Bank Ltd. 8 United Bank of India

The following Banks who have not furnished the break-up regarding SC/ST, Minority & Women are requested to submit the data without fail.

Sl. No.


Name of the Bank

1 HDFC Bank Ltd. 3 J & K Bank Ltd.2 ICICI Bank Ltd. 4 Pallavan Grama Bank

Member Banks are requested to advise the progress made in granting of Educational Loans promptly to SLBC and DCCs.

92

B) As per the details received from the Member Banks the status of loan applications received / sanctioned / rejected / pending are as under:-

(Amount in Lacs)Loan

Applications Received

Education Loans

Sanctioned

Loan Applications

Rejected

Loan Applications

Pending

No. Amount No. Amount No.Amoun

t No. Amount14593

8191352.

5013886

9172158.

16476

710886.

85230

28307.4

9

Member Banks are requested to expedite disposal of the pending loan applications.

93


94


95


MICRO & SMALL ENTERPRISES (MSE) SECTOR

Credit flow to MSE Sector during 2011-12 is furnished in the annexure. Credit flow to Micro and Small Enterprises amount to Rs.8035.60 Crores & Rs.12822.38 Crores respectively.

The MSE disbursement made during the year 2011-12 is Rs.20857.98 crores compared to Rs.14555.82 crores disbursed during the last year 2010-11.

Member Banks’ attention is drawn to the directive of Reserve Bank of India that the share of Micro Enterprises should be 55% by March 2012 and 60% by March 2013 and requested to enhance the share of micro enterprises accordingly.

The share of Micro Enterprises in credit flow to MSE are furnished in the annexure (Bankwise). The share of Micro enterprises for the quarter ended March 2012 was to the extent of 38.53% Member Banks are requested to enhance the share of micro enterprises to 60% during 2012-13.

96


97


CREDIT FLOW TO WOMEN

Government of India and Reserve Bank of India have advised banks to strengthen the credit flow to women and ensure that their share in Bank Credit is increased to 5%.

The details of performance of the Banks in Tamil Nadu under credit flow to women entrepreneurs as of March 2012 are furnished below:

(Amount in Rs. Crores)

S.No PROGRAMME

Disbursement made during the Quarter ended March 2012

Outstanding position as of March 2012

Accounts

Amount Accounts

Amount

1 SGSY 2044 109.72 144264 717.032 PMRY */PMEGP 487 7.05 19717 202.393 SJSRY 344 1.97 26088 44.974 DRI 1373 2.19 28336 46.635 MSE 4599 124.31 165011 2804.566 OTHERS 341595 3140.68 4309835 31357.11

TOTAL 350442 3385.92 4693251

35172.69

* PMRY was discontinued w.e.f 01.04.2008

At the level of Rs.35172.69 crores, advances to women constitute 9.35% of total Bank credit as against the national norm of 5%.

98


CREDIT FLOW TO MINORITY COMMUNITIES

As per the feedback received from the member banks, 460702 Loans amounting to Rs.4017.51 crores were disbursed to Minority Communities during the quarter ended March 2012 as shown below:-

Amount in Rs.CroresSl. No.

Name of the Community

Disbursement during the quarter endedMARCH 2012 (Jan’12 to Mar’12)All Banks Public Sector Banks

Account Amount Account Amount

1 Muslim 221565 1822.07 205222 1695.092 Christian 238696 2190.65 222736 2076.203 Sikh 172 2.20 167 1.924 Zorastrian 42 0.62 42 0.625 Neo Buddist 227 1.97 191 1.49 Total 460702 4017.51 428358 3775.32

The progress made by the banks in Tamil Nadu under credit flow to Minority Communities as of March 2012 is furnished below:-

Amount in Rs.Crores

Sl. No.

Name of the Community

Outstanding Position as ofMARCH 2012

All Banks Public Sector BanksAccount Amount Account Amount

1 Muslim 969404 9110.55 647552 7394.67

2 Christian 121839610119.8

4 639691 7800.673 Sikh 799 23.55 691 20.544 Zorastrian 911 119.93 79 1.415 Neo Buddist 11657 24.06 789 9.27

Total 220116719397.9

2 1288802 15226.56

Ministry of Finance, Govt. of India has advised that the share of credit flow to minority communities of Public Sector Banks (PSB) should be 15% of the Priority Sector Advances. Accordingly the

99

annual outstanding target of credit to Minority Communities is Rs.16281 Crores. However credit outstanding as on 31.03.2012 to minority communities by Public Sector Banks amount to Rs.15226.56 Crores only. Public Sector Bank wise outstanding credit to Minority Communities is furnished in the annexure. The share of credit to minority Communities is 15% or more only in respect of 5 PSBs. The other PSBS are requested to enhance the share of credit to Minority Communities so as to attain 15%.

100

ANNEXURE

OUTSTANDING ADVANCES TO SPECIFIED MINORITY COMMUNITIES BY PUBLIC SECTOR BANKS – MARCH 2012

(Amount Rs.in Crores)

S.NO

NAME OF THE BANK

PRIORITY SECTOR

ADVANCES AS ON 31.03.11

TARGET (15% OF

PSA)ACHIEVE

MENT% OF

ACHIEVEMENT

1 STATE BANK OF INDIA 23679.76 3551.96 3125.76 13.20

2STATE BANK OF BIKANER & JAIPUR 188.44 28.27 11.95 6.34

3 STATE BANK OF HYDERABAD 550.78 82.62 81.23 14.754 STATE BANK OF MYSORE 680.22 102.03 31.47 4.635 STATE BANK OF PATIALA 251.86 37.78 13.26 5.266 STATE BANK OF TRAVANCORE 2193.97 329.10 1164.42 53.077 ALLAHABAD BANK 1001.96 150.29 20.28 2.028 ANDHRA BANK 800.03 120.00 115.47 14.439 BANK OF BARODA 3243.81 486.57 135.98 4.19

10 BANK OF INDIA 4403.59 660.54 385.11 8.7511 BANK OF MAHARASHTRA 324.1 48.62 13.21 4.0812 CANARA BANK 17264.95 2589.74 1913.21 11.0813 CENTRAL BANK OF INDIA 3671.88 550.78 601.07 16.3714 CORPORATION BANK 3510.14 526.52 249.82 7.1215 DENA BANK 594.59 89.19 88.72 14.9216 INDIAN BANK 13924.57 2088.69 2081.31 14.9517 INDIAN OVERSEAS BANK 15241.33 2286.20 3619.43 23.7518 ORIENTAL BANK OF COMMERCE 1003.47 150.52 52.26 5.2119 PUNJAB NATIONAL BANK 2423.32 363.50 163.34 6.7420 PUNJAB & SIND BANK 163.5 24.53 1.79 1.1021 SYNDICATE BANK 3064.66 459.70 469.56 15.3222 UCO BANK 2006.49 300.97 384.93 19.1823 UNION BANK OF INDIA 3648.62 547.29 220.90 6.0524 UNITED BANK OF INDIA 231.63 34.74 0.00 0.0025 VIJAYA BANK 1469.5 220.43 131.11 8.9226 IDBI BANK LTD. 3003.18 450.48 150.96 5.03

TOTAL PUBLIC SECTOR BANKS 108540.3516281.0

615226.5

6 14.03

101

AGENDA No:14 130th SLBC KISAN CREDIT CARD SCHEME (KCC)

Kisan Credit Card Scheme introduced in August 1998 has since stabilized with major share of crop loans being routed through this scheme. Reserve Bank of India has advised that investment credit requirements of farmers viz. allied and non farm activities may also be covered under the Scheme. All KCC Holders have to be covered under Personal Accident Insurance Scheme (PAIS).

As per the progress report submitted by Member Banks, during the period from April 2011 to March 2012, Banks in Tamil Nadu have issued 1822960 Kisan Credit Cards to the tune of Rs.13837.29 crores. The details are furnished in the annexure.

Member Banks are requested to furnish the data to SLBC in time for timely review.

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PERFORMANCE OF BANKS UNDER KISAN CREDIT CARD SCHEME FROM APRIL 2011 TO MARCH 2012 (Amount in Rs.Lacs)

Sl. No.

Name of the BankCrop Loans Term Loan Total

No Amount NoAmoun

t NoAmoun

t1 Allahabad Bank * 415 326 0 0 415 3262 Andhra Bank 300 236 152 210 452 4463 AXIS Bank 365 2537 307 3765 672 63024 Bank of Baroda 1454 1414 106 159 1560 15735 Bank of India 72050 37850 47244 40225 119294 780756 Bank of Maharashtra 0 0 0 0 0 07 Canara Bank * 23978 17035 48 187 24026 172228 Catholic Syrian Bank Ltd. 215 177 0 0 215 1779 Central Bank of India 10707 5454 0 0 10707 545410 City Union Bank Ltd. 123 94 246 190 369 28511 Corporation Bank 7379 15036 0 0 7379 1503612 Dena Bank 72 45 31 40 103 8513 Dhanalakshmi Bank Ltd. 4 1 126 19 130 2014 Federal Bank Ltd. 68 838 6 137 74 97515 HDFC Ltd. 140 725 54625 246947 54765 24767216 ICICI Bank Ltd. 43874 20775 0 0 43874 2077517 Indian Bank 71293 43384 505 756 71798 4414018 Indian Overseas Bank 210980 450886 23084 10645 234064 46153119 Indus Ind Bank Ltd. 0 0 0 0 0 020 IDBI Bank Ltd. * 2205 1615 34 273 2239 188821 ING Vysya Bank Ltd. * 52 36 65 37 117 7322 Jammu & Kashmir Bank Ltd. 0 0 0 0 0 023 Karnataka Bank Ltd. 0 0 0 0 0 024 Karur Vysya Bank Ltd. 263 311 11 76 274 38725 Lakshmi Vilas Bank 176 380 0 0 176 38026 Oriental Bank of Commerce 162 228 0 0 162 22827 Pallavan Grama Bank 42852 22628 14668 21898 57520 4452528 Pandyan Grama Bank 41338 8115 0 0 41338 811529 Punjab National Bank 2144 2306 0 0 2144 230630 Punjab & Sind Bank 0 0 0 0 0 031 South Indian Bank Ltd. 0 0 0 0 0 032 State Bank of India 157345 94594 1644 946 158989 9554033 State Bank of Bikaner & Jaipur 0 0 0 0 0 034 State Bank of Hyderabad 0 0 0 0 0 035 State Bank of Mysore 395 263 226 344 621 60736 State Bank of Patiala 0 0 0 0 0 037 State Bank of Travancore 250 248 0 0 250 24838 Syndicate Bank * 9982 6159 0 0 9982 615939 Tamilnadu Mercantile Bank Ltd. 135 100 32 14 167 11440 TNSC Bank Ltd. 873546 237814 24991 10859 898537 24867341 UCO Bank 46230 42458 414 668 46644 4312642 Union Bank of India 30889 11412 1235 1024 32124 1243643 Vijaya Bank 1535 11087 244 7744 1779 18831

TOTAL16529

16103656

61700

44 34716218229

6013837

29 Banks marked * not submitted the data for March 2012

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SELF HELP GROUPS (SHGs)

ACHIEVEMENT DURING 2011-12

The approved target for SHG credit linkage 2011-12 is Rs.4000 Crores including the Non Mahalir Thittam Groups. Credit disbursement to SHGs during the year ended 31.03.2012 amounted to Rs.4030.30 Crores surpassing the annual target of Rs.4000 crores.

The District wise performance to Self Help Groups under Mathi (through Tamil Nadu Women Development Corporation Ltd.) and Non-Mathi (direct lending) as on 31.03.2012 is furnished in the Annexure,I.

TARGET FOR 2012-13

MD, Tamil Nadu Corporation for Development of Women Ltd has advised that State Government has fixed SHG credit linkage target of Rs.4000 Crores for the current year (2012-13) and requested to place the same as an agenda item in the SLBC Meeting. District-wise Credit linkage Targets advised by TNCDW are furnished in the Annexure II.

The forum is requested to deliberate and offer its views on the suggested target as well as the strategies for achieving the same.

The nodal agency viz., TNCDW Ltd is also requested to furnish the details like number of SHGs formed, graded and credit linked cumulatively during the current year.

If accepted, the district-wise target will be forwarded to respective DCCs for allocation among participating Banks at district level.

Annexure I

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SHGs-Bank Credit linkage-District wise Performance – 2011-12(As on 31.03.2012) (Rs.in Crores)

Sl. No. District Mahalir Thittam

Non - Mahalir Thittam Total

Target Achvt. % Target Achvt. % Target Achvt. %1. Ariyalur 31.00 27.31 88 6.00 4.22 70 37.00 31.53 85

2. Chennai 164.00 165.51 101 57.00 57.42101 221.00 222.93

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3. Coimbatore 86.00 73.65 86 37.00 58.21157 123.00 131.86

107

4. Cuddalore 96.00 88.84 93 24.00 18.77 78 120.00 107.61 90

5. Dharmapuri 115.00 77.45 67 171.00 210.11123 286.00 287.56

101

6. Dindigul 49.00 50.88 104 46.00 54.37118 95.00 105.25

111

7. Erode 65.00 61.21 94 21.00 25.46121 86.00 86.67

101

8. Kancheepuram 135.00 166.60 123 41.00 18.46 45 176.00 185.06105

9. Kanyakumari 106.00 75.36 71 60.00 41.90 70 166.00 117.26 7110. Karur 49.00 54.78 112 17.00 7.97 47 66.00 62.75 95

11. Krishnagiri 70.00 85.33 122 292.00 285.32 98 362.00 370.65102

12. Madurai 80.00 85.63 107 44.00 45.41103 124.00 131.04

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13. Nagapattinam 70.00 70.81 101 25.00 25.26101 95.00 96.07

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14. Namakkal 50.00 43.28 87 9.00 5.43 60 59.00 48.71 83

15. Nilgiris 24.00 24.56 102 22.00 23.73108 46.00 48.29

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16. Perambalur 18.00 18.32 102 4.00 3.89 97 22.00 22.21101

17. Pudukottai 55.00 55.24 100 31.00 32.81106 86.00 88.05

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18. Ramnad 44.00 50.33 114 36.00 37.32104 80.00 87.65

110

19. Salem 90.00 90.49 101 84.00 83.89100 174.00 174.38

100

20. Sivagangai 67.00 62.67 94 27.00 30.53113 94.00 93.20 99

21. Thanjavur 83.00 77.11 93 43.00 49.06114 126.00 126.17

100

22. Theni 102.00 106.05 104 74.00 72.41 98 176.00 178.46101

23. Thirunelveli 142.00 150.23 106 68.00 73.08107 210.00 223.31

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24. Thiruvallur 85.00 83.64 98 26.00 29.89115 111.00 113.53

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25.Thiruvannamalai 95.00 106.93 113 47.00 39.84 85 142.00 146.77

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26. Thiruvarur 54.00 55.01 102 21.00 16.31 78 75.00 71.32 95

27. Thoothukudi 63.00 78.85 125 23.00 9.72 42 86.00 88.57103

28. Tiruppur 38.00 29.62 78 13.00 19.84153 51.00 49.46 97

29. Trichy 69.00 84.69 123 17.00 16.01 94 86.00 100.70 11

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7

30. Vellore 113.00 116.47 103 36.00 36.91103 149.00 153.38

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31. Villupuram 128.00 117.36 92 45.00 61.68137 173.00 179.04

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32. Virudhunagar 64.00 68.25 107 33.00 32.61 99 97.00 100.86104

Total2500.

002502.

4610

01500.0

01527.

84102

4000.00

4030.30

101

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Annexure II

SHGs – CREDIT LINKAGE TARGET FOR THE YEAR 2012-13

(Rs. in crores)Sl.No. District Credit Linkage Target

Mathi SHGs Target

Non-Mathi SHGs Target

Total Credit Target

1 Ariyalur 31.00 6.00 37.002 Chennai 164.00 57.00 221.003 Coimbatore 86.00 37.00 123.004 Cuddalore 96.00 24.00 120.005 Dharmapuri 115.00 171.00 286.006 Dindigul 49.00 46.00 95.007 Erode 65.00 21.00 86.008 Kancheepuram 135.00 41.00 176.009 Kanyakumari 106.00 60.00 166.00

10 Karur 49.00 17.00 66.0011 Krishnagiri 70.00 292.00 362.0012 Madurai 80.00 44.00 124.0013 Nagapattinam 70.00 25.00 95.0014 Namakkal 50.00 9.00 59.0015 Nilgiris 24.00 22.00 46.0016 Perambalur 18.00 4.00 22.0017 Pudukottai 55.00 31.00 86.0018 Ramnad 44.00 36.00 80.0019 Salem 90.00 84.00 174.0020 Sivagangai 67.00 27.00 94.0021 Thanjavur 83.00 43.00 126.0022 Theni 102.00 74.00 176.0023 Thirunelveli 142.00 68.00 210.0024 Thiruvallur 85.00 26.00 111.0025 Thiruvannamalai 95.00 47.00 142.0026 Thiruvarur 54.00 21.00 75.0027 Thoothukudi 63.00 23.00 86.0028 Tiruppur 38.00 13.00 51.0029 Trichy 69.00 17.00 86.0030 Vellore 113.00 36.00 149.0031 Villupuram 128.00 45.00 173.0032 Virudhunagar 64.00 33.00 97.00

Total 2500.00 1500.00 4000.00

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Progress Report on Economic Development Schemes implemented by TAHDCO

The details of performance under various economic development schemes implemented by TAHDCO during the financial year 2011-12 are furnished in the annexure.

Member Banks are requested to actively involve themselves in the implementation of these schemes.

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109


REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING – DECEMBER 2011

The position of NPA under categories of Priority Sector Advances as on December 2011 is furnished below.

NPA POSITION AS ON December 2011

S No. Particulars (Rs in Crore)

% of NPA

1 NPA in Housing loans 758.63 3.56%2 NPA in Education loans 793.52 6.37%3 NPA in Agriculture Loans 2749.67 3.90%4 NPA in Loans to MSE 2827.68 5.21%

5 NPA in Loans under Weaker Section of Priority Sector Lending 1182.35 2.57%

6 NPA in over all Priority Sector Lending

8157.49 5.05%

It is observed that the percentage of NPA has increased under all categories over March 2011.

It is also observed that NPA position under all categories is on the increase every quarter. NPA under Priority Sector as of December 2011 has gone upto 5.05% from 4.71% during September 2011 quarter. DCCs are also requested to review NPA position every quarter and coordinate recovery drive with the help of District Administration.

The State Government is requested to consider invocation of Revenue Recovery Act to improve recovery, as done in the neighbouring State of Kerala.

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Bank-wise data on NPA in Housing Loans, Education Loans, Agriculture loans, MSE, Weaker Sections & Total Priority Sector Lending as of 31st

December, 2011 is furnished in the annexure. The following Banks who have not furnished the data on NPA as of December 2011 are requested to submit the same immediately.

Sl. No.


Name of the Bank

1 State Bank Of Travancore

5Indus Ind Bank Ltd.

2 Vijaya Bank 6 Kotak Mahindra Bank Ltd.3 Catholic Syrian Bank 7 Lakshmi Vilas Bank Ltd.4 City Union Bank Ltd 8 South Indian Bank Ltd.

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112


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Success Story

One of the recommendations of the High Level Committee on Lead Bank Scheme is “Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated.

The Success Story received from Indian Overseas Bank, Tuticorin Region, Chidambara Nagar branch, Segment: Agriculture/SHG Name:Mangalam Thamira Sangam.

Success story of IOB, Chidambara Nagar branch:

Grow and Let Others Grow

Self Help Group Mangalam Thamira Sangam is having Savings account at Tuticorin Chidambara Nagar Branch of IOB which the group is operating successfully for the past three years. They are procuring milk from members of the same group and also from the farmers of the adjoining villages for supplying to Aavin. The SHG group is earning about Rs.10 lacs per month and the proceeds are routed through the SHG groups SB account.

Seeing the past dealing, IOB, Tuticorin Chidambara Nagar Branch has granted loan for purchase of the milch animals to 165 farmers who are supplying milk to the SHG. All these farmers are Below Poverty Line. Today the SHG is proud to say that Indian Overseas Bank has raised the economy and standard of living of members of the SHG as well as the Below Poverty line farmers.

IOB not only provided loan facilities but also covered the loan under Dairy Entrepreneurship Development Scheme, as a result of which, the beneficiaries were able to get subsidy from NABARD for purchase of milch animals.

The group is proud to say that they have grown with their relationship with Indian Overseas Bank. They believe that this is a typical story of success where the SHG members got benefited, in the process the Below Poverty Line population of Dairy farmers of the locality also got the benefit. All with timely credit from a helpful bank IOB.

Table Agenda 130thSLBC

1. Opening of Branches/ATMs

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Some Hon’ble Members of Parliament have requested opening of branches/ATMs at the following centers in the state. Their requests addressed to PM, FM etc; were duly forwarded to SLBC by the Ministry of Finance for necessary action.

Banks may please consider branch opening /installation of ATM at the following centers in terms of the strategies & guidelines on financial inclusion issued by Ministry of Finance, Government of India. The LDMs are advised to allot the villages to the banks in their districts.

Representation for Branch Opening Sl No District Lead Bank Villages for Branch

Opening 1 Cuddalore Indian Bank Thittakudi2 Kancheepuram Indian Bank Pozhicalur3 Krishnagiri Indian Bank Velampatti4 Tiruvanamalai Indian Bank Kalambur5 Villupuram Indian Bank 1.Nagalur, 2.Ayandur

3.Athiyur, 4. Nagalur6 Ramanathapura

m Indian Overseas Bank 1. Yerwadi Dargh,2. Puthuvalasai

7 Sivagangai Indian Overseas Bank 1. Mithalipatti,2. Okkupatti

8 Thanjavur Indian Overseas Bank Athivetti9 Tiruvarur Indian Overseas Bank 1. Ullikkotti

2. Idumbuvanam10 Tirunelveli Indian Overseas Bank Sundarpandiyapuram11 Tiruppur Canara Bank Vellakovil12 Coimbatore Canara Bank KarumbukkadaiRepresentation for Installation of ATMSl No District Lead Bank Place for ATM

Installation 1 Cuddalore Indian Bank Bhuvanagiri,2 Vellore Indian Bank SBI ATM at Panapakkam3 Ramanathapura

m Indian Overseas Bank Yerwadi DarghTable Agenda 130thSLBC 2. Tamil Nadu Government’s Old Age Pension Scheme:

The Tamil Nadu Government’s Old Age Pension Scheme is being extended to all villages with population above 2000, which were covered by Banks under Financial Inclusion. A detailed agenda was placed in the 129th

Meeting of SLBC. The process of opening of accounts of the beneficiaries,

115

capturing of biometrics and issuance of Smart Cards must be completed by 30th of June, 2012.

Principal Secretary / Commissioner Revenue Administration, Government of Tamil Nadu reviewed the position in two meetings conducted on 15.05.2012 and 21.06.2012 respectively. Banks were found to have covered only 60% of the villages so far and were advised to complete the issuance of smart cards to all the beneficiaries in the villages covered by them so that pension for the month of June can be paid through Business Correspondents during the first week of July. The Principal Secretary advised the bankers to expand the coverage village by village so that payment of pension can start in such of the villages where all pensioners are covered.

Member banks who are implementing the scheme are advised to launch special campaigns to complete coverage of their allotted villages, well within the stipulated time. The Government of Tamil Nadu had given sufficiently early information to Banks and the timeline of June 2012 was fixed in consultation of the bankers. Moreover this is part of the e-payment scheme directed by the Ministry of Finance, Government of India. It is a very important assignment which cannot be deferred.

Table Agenda 130thSLBC 3. Mahatma Gandhi National Rural Employment Generation Scheme (MGNREGS)

On 14.10.2011 it was decided in a meeting held at the office of the Commissioner of Rural Development that the MGNREGS wages would be directly credited electronically to the accounts of the beneficiaries by the nodal branches of the banks located in Chennai.

Now SLBC is informed that in some districts, the Village Panchayat Presidents deposit cheques in the branches, asking them to credit the amount to numerous accounts. It is also reported that in some cases the

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Panchayat Presidents deposit huge amounts of cash for credit of accounts of many beneficiaries after which cash withdrawals are demanded on the account. This is not in line with the principles and procedures of Electronic Benefit Transfer.

The e-payment norms of the Ministry of Finance envisage discontinuance of cheques so that credits would be only through ECS. Depositing of cash to enable withdrawal of cash on the spot is also not in keeping with the e-payment norms. Hence it is requested that the State Government channelize the MGNREGS payment only through ECS as in the case of the Old Age Pension Scheme.The members are requested to deliberate on this issue.

Table Agenda 130thSLBC 4. Detection of Counterfeit Bank Notes –Revised Procedure Advised by RBI:

SLBC placed a detailed agenda in its 127th Meeting held on 16.09.2011 along with the detailed circular issued by Reserve Bank of India dated 25.07.2011 and requested all the member banks to submit monthly progress report in the following format:

Particulars of the tenderer

Date of detection Denomination or pieces

Security features breached

SLBC requested the member banks vide their letter 09.05.2012 and also vide their reminder letter dated 18.05.2012 to submit the above progress report. The member banks were also reminded over phone for submission of the report. SLBC received the data only from the following banks:

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1) Bank of India 2) Bank of Maharashtra 3) Canara Bank 4) IOB 5) State Bank of Hyderabad 6) State Bank of Travancore 7) City Union Bank Limited 8) HDFC Bank Ltd 9) Karnataka Bank Ltd 10) Karur Vysya Bank Ltd 11) South Indian Bank Ltd 12) Tamilnad Mercantile Bank Ltd 13) Pandyan Grama Bank

SLBC submitted the first report to RBI for the month of April,2012 on 08.06.2012. The member banks are requested to submit the progress report before 5th of every succeeding month. A –NIL- statement to be submitted if there is nothing to report.

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