Ref.No.CGTMSE/(44)/1431 January 11, 2016

All Member Lending Institutions (MLIs)
Attention: MSME/Priority Sector Head of MLIs

Circular No. 104/2015-16

Madam / Dear Sir,

Not- acceptance of NON-CTS DD's

Please refer to our Circular no.84/2014-15 dated September 23, 2014 (available on through which we had communicated modification in the practice of receipt / remittance of Guarantee Fee (GF) by way of Demand Drafts (DDs) for extending guarantee coverage for advances to Micro and Small Enterprises and advised MLIs to remit the GF by way of only Demand Draft. It has been observed that, some MLI's are sending Non CTS DD's which are not acceptable. The non CTS DD's also take long time for clearing. In this connection, we request you to forward ONLY CTS DD's. The non CTS DD's received by CGTMSE on or after February 15, 2016 will not be accepted and such DD's shall be returned to MLIs and the guarantees will not be issued by the Trust.

Please bring the contents of the letter to the notice of all your offices.

Yours faithfully,
General Manager