THE MINISTER OF HOUSING & URBAN POVERTY ALLEVIATION [Dr. (Ms.) Girija Vyas]
(a): Yes, Madam. The guidelines for the Scheme have been brought out in October, 2013.
(b): Rajiv Rinn Yojana (RRY) is an instrument to address the housing needs of the EWS/LIG
segments in urban areas, through enhanced credit flow. This scheme is formulated to channelize
institutional credit to the poorer segments of the society and increasing home ownership in the
country along with addressing housing shortage. RRY is a Central Sector Scheme (CSS) applicable
to all the urban areas of the Country. RRY provides for interest subsidy of 5% (500 basis points)
on loans granted to Economically Weaker Section (EWS) andLow Income Group (LIG) categories of
the urban poor to construct their houses or to extend the existing ones. The upper loan limit
is Rs. 5 lakh for EWS and 8 lakh for LIG; however, interest subsidy wouldbe limited to the
first Rs. 5 lakh of the loan amount, in case the loan exceeds this amount. Loan under the
scheme is admissible in order to construct or purchase a house for an EWS individual with
at least of 21 square meters area and for an LIG beneficiary with a minimum carpet area of
28 square meters. However, assistance is also admissible to such EWS / LIG beneficiaries who
own carpet area of 40 square meters and intend to make additions in the existing dwelling units.
State Government, its entities and the Urban Local Bodies (ULBs) have a very significant role
in the implementation of this Scheme. Financial incentives have been built in to attract the
facilitators and banks to extend loans to poors. States can also dovetail their Housing Schemes
with RRY. However, in the selection of beneficiaries, preference to Women, Schedule Castes
(SCs), Schedule Tribes (STs), Minorities and persons with
Disabilities is recommended to State Governments / banks. The States are expected to come up
with a strategy for identification and selection of beneficiaries based on the local needs and
requirements.
(c): Rajiv RinnYojana is a target driven scheme. The overall target for the 12th Plan period
is 1 million (or 10 lakh) dwelling units across country. The targets for the States for the
current Financial Year (2013-14) have been fixed and conveyed to the States as per Annexure.
(d): The Ministry has held / is holding a number of national / regional meetings with various
stakeholders such as State governments, Heads of Banks, Central Nodal Agencies (CNAs) – National
Housing Bank (NHB) and Housing and urban Development Corporations Ltd. (HUDCO) etc. to popularize
the scheme. Further, instructions and communications are being sent to various stakeholders for
effective implementation of the scheme. However, the main responsibility of implementation of
the scheme lies with States. The state level targets are being allocated to various banks by the
State Level Bankers Committees (SLBC). The Ministry is monitoring the progress through regular
interactions with the States, banks and CNAs etc.
(e) : The following mechanism have been devised for supervising the quality and timelines for
construction of houses under the RRY scheme:
(i) Detailed review of the scheme by Ministry and through external institutions every two years for mid-course corrections/adjustments,
(ii) Supervision of quality and timeliness of construction to be undertaken through quality control mechanisms put in place by States/UTs.
(iii) The Primary Lending Institutions (PLIs) in consultation with the State government authorities to conduct random quality control checks.
(iv) At the national level an empanelled Third Party Inspection and Monitoring (TPIM)
agency to be tasked by the CNAs to ensure proper implementation through random sample survey.
(v) The Steering Committee may also chose to inspect the quality and monitor, if need be.
(vi) Special attention to be given to monitor the fund flows for expansions/additions to avoid diversion of subsidized loans for any other purposes.
