CGTMSE / (44) / July 10, 2009
All Member Lending Institutions of CGTMSE
Circular No. 53 / 2009 - 10
Closure of Guaranteed Accounts under
Credit Guarantee Scheme (CGS)
It is observed that Member Lending Institutions (MLIs) do not immediately inform the date of closure of guaranteed accounts to CGTMSE as a result of which the Annual Service Fee (ASF) for the account is generated for the full year instead of on a pro-rata basis upto date of closure. To avoid such situations, it has been decided that all requests for closure of accounts may be made only through the new "Closure Module" in our system. No request by fax / letter etc. for closure of account will be considered henceforth. Using the following option, MLIs can enter the request for closure (for closure dates on or after April 01, 2009).
[Member Login area à Guarantee Maintenance à Request for Closure]
For requesting the closure, users should enter the CGPAN, Closure Date and Reason for closure of the individual account and save the same in the system. Once the request for closure is entered in the system, the closure DAN will be generated after approval by the Trust. After receipt of DAN amount, the case will be marked as 'CLOSED' in the system.
2. We have also been receiving requests from MLIs for refund of excess ASF 2009 remitted in respect of closed accounts. It has been decided to grant time upto July 31, 2009 to all MLIs for feeding online closure requests for cases closed during April 01, 2008 to March 31, 2009. Once the request is approved by CGTMSE, ASF DAN (Demand Advice Notice) will be modified on pro-rata basis upto the date of closure and the excess amount of ASF 2009 paid, if any, by the MLIs will be refunded thereafter.
3. For case closed by the MLI during FY 2009 and for which pro-rata payment has not been paid, MLIs are requested to indicate the closure in the system as detailed above and make the payment by July 31, 2009, failing which the amount will be adjusted against any amount refundable / payable to the MLI.
Kindly acknowledge receipt.
[P M Radhakrishnan]
Deputy General Manager