The RBI on Wednesday said banks will provide funds to women SHGs (self help groups) in rural areas at 7 per cent under the Deendayal Antyodaya Yojana - National Rural livelihoods Mission (DAY-NRlM) in the current fiscal. The central bank issued the revised guidelines on interest subvention scheme under DAY-NRlM, as received from the Ministry of Rural Development for implementation by 21 public sector banks and 19 private banks.
“All women SHGs will be eligible for interest subvention on credit upto Rs 3 lakh at 7 per cent per annum. Banks will lend to all the women SHGs in rural areas at the rate of 7 per cent,” it said. Banks will be subvented to the extent of difference between the Weighted Average Interest Charged and 7 per cent subject to the maximum limit of 5.5 per cent for the year 2017-18.
“This subvention will be available to banks on the condition that they make SHG credit available at 7 per cent per annum,” the notification said. The Ministry of Rural Development in consultation with state governments will harmonise State specific interest subvention schemes, if any, in line with the central scheme. The interest subvention scheme on credit to women SHG during 2017-18 is applicable in 250 districts across the country. Aajeevika - NRlM was launched by the Ministry of Rural Development in June 2011.