CGTMSE / (44)/ 2432                                                                      October 20, 2009



All Member Lending Institutions of CGTMSE



Circular No.  55 / 2009 - 10


Dear Sir,


Closure of Guaranteed Accounts under

Credit Guarantee Scheme (CGS)


            Please refer to our circular No.53/2009-10 dated July 10, 2009 regarding closure of guaranteed accounts through our online closure module for closure dates on or after April 1, 2009. Online closure requests of the MLIs are now being approved on a daily basis and demand for ASF 2010 is being generated simultaneously on pro-rata basis from April 1, 2009 till the date of closure of the accounts. After receipt of the Annual Service Fee (ASF), the accounts are being marked as closed in the system.

2.                  As ASF is being levied after the financial year is over, several MLIs have expressed difficulty in collecting the fee for the accounts which have been closed during the year. It has, therefore, been decided that ASF for closed accounts will be generated immediately on receipt of online closure request and the dues may be remitted to us within a month of generation of demand advice.

3.                  Incidentally, it is observed that ASF 2010 in respect of several accounts closed during the current FY for which DAN has been generated in the system has not been received by us. MLIs are requested to remit the same at the earliest.

            Kindly acknowledge receipt.


Yours faithfully,




(P M Radhakrishnan)

Deputy General Manager