The RBI today said banks will provide funds to women self help groups, SHGs, 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 3 lakh rupees at 7 per cent per annum. 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.
The notification said subvention will be available to banks on the condition that they make SHG credit available at 7 per cent per annum.
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.