CGTMSE. Ref. No. 44/GF/5082 April 12, 2017

All Member Lending Institutions (MLIs)

Attention : MSME/Priority Sector Head of MLIs

Circular No. 125/ 2017–18

Dear Sir,

Receipt of Guarantee Fee (GF) through RTGS/NEFT -
Modification in existing procedure

In terms of CGTMSE Circular No. 124/2016-17 dated February 27, 2017, we had modified the existing practice of receipt / remittance of Guarantee Fee by Demand Drafts (DDs) and advised MLIs to remit the same through RTGS / NEFT effective April 01, 2017. It is however, observed that many of the Operating Offices of MLIs are not properly following the NEFT/RTGS process. As a result substantial numbers/amount of such transactions lies unidentified / unreconciled. 

We have identified the following issues –>

  1. Instead of making the payment in Corporation Bank account by using Virtual Account number as Account number generated for the corresponding RP number after payment initiation step, MLIs are making the payment in IDBI Bank account.
    Correct Method –> No payment should be done in our IDBI account. Instead, payment should be made using the correct Virtual a/c no. and amount for the corresponding RP No. /Pay-IDs. The detailed process is given in our above referred circular.
  2. Some of the MLIs are making the payment in same virtual account number for different RP numbers. Correct Method –> Each virtual a/c no. is unique to a RP No. /Pay-IDs. Payment to a particular RP No. /Pay-IDs should be made in corresponding virtual a/c no. and correct amount only. No short or excess payment is allowed.
  3. Instead of making the payment in virtual account number for the corresponding RP number, MLIs are making the payment for individual DAN amount of that corresponding RP number in that Virtual account number. Correct Method –> Instead of amount of individual DAN, consolidated amount of corresponding RP No. /Pay-Ids should be remitted to the corresponding virtual a/c no

    MLIs are once again requested to please go through the instructions given in the Circular No. 124/2016–17 dated February 27, 2017. (Available on website ) for payment through NEFT/RTGS. Based on the queries from the MLIs regarding the Beneficiary Name & Branch Name to be used while making NEFT/RTGS payment, MLIs are requested to use the following information –

    Beneficiary Name- CGTMSE, Mumbai

    Branch Name- Fcs Center Bangalore

    The contents of the circular may please brought to the notice of all your offices.

Yours faithfully,

General Manager