Banks to provide funds at 7% to women SHGs, says RBI

  • Banks to provide funds at 7% to women SHGs, says RBI
19-10-2017 | Pratidin Bureau. |

The Reserve Bank of India (RBI) on Wednesday 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.

All women SHGs will be eligible for interest subvention on credit up to Rs. 3 lakh at 7 per cent per annum. Banks will be sub-vented 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.

RBI 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.

The Ministry of Rural Development in consultation with the 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.

Tags : Bank women SHG RBI

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