Ref. No. CGTMSE / (44) /1739 February 22, 2016

All Member Lending Institutions of CGTMSE

Circular No.111 / 2015 - 16

Dear Sir/Madam,

Credit Guarantee Scheme (CGS) – Introduction of new module for upgradation of NPA cases

As you are aware, CGTMSE has been upgrading the accounts already marked as NPAs in CGTMSE portal upon receiving the requests from Member Lending Institutions (MLIs) via emails and letters along with the copy of the request letter duly signed by the officer not below the rank of AGM. However, consequent upon migration to CBS system by most of the MLIs, the Trust has been receiving requests from the MLIs for permitting them to upgrade the accounts at their end itself instead of approaching CGTMSE frequently with a request for upgradation. Considering the difficulties faced by the MLIs, it has now been decided to permit MLIs to upgrade the accounts in CGTMSE portal which have been marked earlier by them as NPAs. With a view to operationalize the process, we have created online module in CGTMSE portal whereby MLIs themselves will be allowed to up-grade already marked NPA accounts.

The upgradation module will have a maker and checker concept where the maker will be the officer at operating level and checker will be the MLI's approving authority not below the rank of AGM or of equivalent rank. Once the transaction is approved by the checker, the CGTMSE portal will automatically upgrade the account in its record and, thus, CGTMSE will have no role to play in the upgradation process and no correspondence need be forwarded to CGTMSE in this regard. Taking into consideration the criticality of transaction viz. approval of upgradation of account at MLI level, new user ID and password would be generated for the checker (approver) for all the MLI IDs which will be strictly used only by the MLI ID's approving authority not below the rank of AGM or of equivalent rank.

Process for upgradation of NPA accounts is given below:

  1. The operating level officer of the concerned MLI ID shall use his existing ID and password (no separate id and password shall be provided by CGTMSE) and shall submit the request to the checker (approver) for upgradation of the NPA cases per CGPAN on the CGTMSE online portal by using the following path:

  2. Guarantee Maintenance->Periodic Info->NPA account upgradation
  3. Once the form is saved, the request will be available for approval by the MLI ID's approving authority not below the rank of AGM or of equivalent rank who will be having his own user ID and password separately given to him by CGTMSE which will be termed as "Checker User Id and Password".
  4. Checker (Approving authority) will then have to login into CGTMSE portal using the checker user id and password by using following path :
    Guarantee Maintenance -> Submission for NPA Upgradation.
  5. After approval by the checker, applications will be upgraded in CGTMSE portal.
  6. Approval process will end at the MLI level and no approval will be done by CGTMSE.
      The process for creation of checker user id and password is given below :
    1. Operating level officer having existing user id and password shall submit the request for generation of Checker User ID and Password for its respective MLI ID by using the following path:

    2. Sys. Admin Audit -> Creation of MLI Checker User ID
    3. Once the form is submitted by the operating level officer, a report will be generated with all the information as given in the form for the designated official in the Head Office of the respective MLIs to view. Official from the Head Office will login using the user ID and password as provided to them at the time of MLI registration. Transaction confirmation will be sent to the Head Offices on the email id as provided by them. No separate ID and password will be provided to the MLI's Head Office for verification of the above report.
    4. Head offices in return will approve / reject the information given in the report. Please note that the concerned official of the Head Office of respective MLI, while approving the information given in the report, shall exercise due caution to check that the entire information submitted in the report is true and that the official named in the form is not below the rank of AGM or equivalent. The following path may be used for approving or rejecting the transaction :

    5. Sys. Admin Audit -> Approve MLI Checker User ID
    6. After approval of the form by Head Office of respective MLI and after its subsequent verification by CGTMSE, the Checker User ID and Password will be created and communicated to the respective approving authority on the email id specified by the operating level officer of the MLI ID in the form while submitting the same. It is, therefore, essential that the email id of checker (approving authority) is correctly mentioned in the form. It is also required to be ensured that the local server/MLIs server does not block the incoming mails for any reason since communication of id and password details are only through emails. In case the transaction is rejected by the Head Office, the form shall be reverted to the operating level officer who shall resubmit the same with necessary corrections.
    7. The checker (approving authority), can commence approval of transactions flowing from the operating level officer only upon receipt of transaction id and password on his mail. Needless to mention that the checker (approving authority) will strictly maintain the confidentiality of his id and password and shall not share with anybody under any circumstances.
    8. During the time of first login, checker will have to change the system generated password as communicated to him via email. Then checker can login into the CGTMSE portal using the changed password
    9. The checker user ids and passwords are officer specific since officer specific details are fed in request form for generation of checker user id and password by the operating level officer and approved by the Head office of respective MLI. Therefore, in case of change of checker (approving authority), new checker user id and password shall be generated for the new incumbent by following the entire process once again. Previous transaction id and password will be discontinued in such cases.
    10. Each MLI ID will have only one checker user id and password i.e. each MLI ID will have only one checker (approving authority) although there may be more than one user id and passwords for the use of operating level officers. The transactions fed by these multiple users shall flow to the single checker for decision.

The above module for NPA upgradation has been made live and can now be operated by the MLIs. CGTMSE shall consider upgradation of NPA accounts as per the existing practice maximum upto March 31, 2016. Thereafter, all the requests for NPA upgradations shall be mandatorily processed/approved under the above NPA upgradation module. Any difficulties encountered shall be mailed to us at with a cc to for solution.

We request you to kindly bring the contents of this Circular to the notice of all your offices

Yours faithfully,

General Manager