(a) whether the nationalised banks are not taking interest in the implementation of
Prime Minister Rojgar Yojana;
(b) if so,the reaction of the Government thereto; and
(c) the efforts made in order to deal firmly with the nationalised banks for ensuring
the success of the said scheme?
THE MINISTER OF FINANCE (SHRI YASHWANT SINHA):
(a) to (c) A Statement is laid on the Table of the House.
Statement
(a) and (b) As per the information provided by the Reserve Bank of India (RBI), the
Nationalised Banks are taking active interest in the implementation of the Prime Minister`s
Rozgar Yojana (PMRY). The banks, on an average, have achieved 80% of target per year end
disbursed loans for 76% of sanctioned cases. However, there is considerable scope for
improvement in the implementation of the PMRY Scheme and necessary action is being taken
in this regard.
(c) Government and Reserve Bank of India (RBI) have initiated following steps to improve
the performance of banks under the scheme:
(i) Quarterly targets have been fixed for achievement for both DICs/banks so that the
pressure in the last quarter of the programme year is avoided and quality of scrutiny
may not suffer.
(ii) Agencies and banks have been advised to work in coordination and conduct joint
recovery camps to ensure better recovery.
(iii) States have been advised to include PMRY dues also under Revenue Recovery Act
so that recovery under the scheme is improved. So far 9 States have made the necessary
amendments in the Revenue Recovery Act. They are A.P., Assam, Gujarat, Karnataka, Kerala,
MP, Orissa, UP and Dadra & Nagar Haveli.
(iv) States have also been advised to identify new activities at district level,
prepare project profiles and make them available to prospective borrowers.
(v) Modifications have been made in the parameters of the scheme effective from
1.4.99 for coverage ?
(vi) Time frame has been prescribed to avoid delays in sanctions and disbursements.-I
(vii) Banks have been advised to receive applications directly from eligible borrowers
for viable activities, so that rejection level will be reduced and recovery rate also will
improve.
(viii) Review meeting are held periodically at the level of Banks. RBI and Government.
(ix) Constitution of a Task Force comprising of representatives of banks as well as State
Government authorities for selection of beneficiaries and identification of viable activity
at block level.
(x) RBI has advised banks not to wait for mere than a month for `no dues certificate`
about the borrower from the other banks.
(xi) Banks have also been advised not to insist on affidavit at the time of submission
of application and call for the same only at the time of sanction. Moreover, Ministry of
Small Scale Industries has constituted a Task Force Committee under the Chairmanship of
Joint Secretary, Ministry of Finance (Banking Division) alongwith the representatives
of Ministry of Small Scale Industries and Reserve Bank of India to review the implementation
of PMRY Scheme and modifications for its improvement.