CGTSI/ (44)/ 

January 2, 2003

All Member Lending Institutions of CGTSI

Circular No. 9/2002-03

Dear Sir / Madam,

Credit Guarantee Scheme - Lodgment of Applications by floppy

The above Scheme is being operated by the MLIs of Trust since January 2001. As you are aware, the entire operations under the guarantee scheme are in electronic mode (Online). For the purpose, each Operating Office of our Member Lending Institutions (MLIs) is allotted a Member-id, User-id and Password. The operating office concerned can log on to the website of CGTSI by using this information and submit the applications online. In order to facilitate the operating office to send applications in batch mode, ThinClient software has been provided to these offices by CGTSI. Using the ThinClient software, the operating office can first fill in the required information, as per the format provided, for each of the loan proposal and then upload all the applications, irrespective of number of such applications, at a time to CGTSI website. CGTSI picks the data uploaded by the MLIs, periodically from its website and process the applications. The decision on the application is normally taken within a day's time and Operating Office of MLI is informed through mail about the status of the applications lodged with CGTSI online or uploaded using thinclient software. The Operating Office concerned is required to login to CGTSI website and open the mail to see the status of the applications lodged by it. As soon as the guarantee cover is approved, a Demand Advice (CGDAN) is sent by CGTSI by mail to the Operating Office concerned. On receipt of the Demand Advice, the requisite guarantee fee as indicated in the Demand Advice, is required to be remitted by the Operating Office to the Collecting Bank of CGTSI. Guarantee fee is payable within 30 days from the date of first disbursement effected by the Operating Office of MLI to its borrower. However, where loan has already been disbursed, the guarantee fee is payable within 30 days from the date of Demand Advice. While making the payment of guarantee fee, the Operating Office of MLI should also indicate the relevant application identification number (CGPAN) allotted by CGTSI and mentioned in Demand Advice.

In the above backdrop, since the entire operations under the guarantee scheme were to be in electronic mode (Online), we had requested the Head Offices / Central Offices of the MLIs to identify the ZOs/ROs, etc wherefrom they proposed to lodge the applications for seeking guarantee cover. After receiving the names and addresses of such offices, Member Id, User Id and Passwords were allotted to them. Since the operating offices (ZOs / ROs) of MLIs are normally located in big cities /towns, it was expected that they will be having Internet connectivity for submitting the applications to CGTSI in electronic mode. CGTSI, however, at the request of some of the MLIs, allowed lodging the applications through ' floppy' using "ThinClient" software and send by post. It was then expected that such operating offices would soon be having the Internet connectivity in their offices and would be submitting the applications 'Online' by uploading the data through Internet. It is, however, observed that even after passage of almost 2 years, some of the operating offices of a few MLIs continue to submit the applications to CGTSI by post through floppies and ask us to post the decision on the applications lodged, by fax / courier. Incidentally, it may be mentioned that many a time, the floppy sent by MLIs gets corrupted and the applications data could not be uploaded at CGTSI end. Many a time, the officials of operating offices do not follow the instructions while exporting the data on floppy, resulting in unverified / unchecked applications being forwarded through floppy. Under these circumstances, we had to request the operating office concerned to re-lodge the applications.

The issue was discussed at the IBA Review Forum at its meeting held on December 14, 2002. The consensus was that all banks have computerized their operations and that all MLIs operating offices should effectively make use of the technology in place for cost effective communication and for availing of expeditious services.

In order to effectively utilize the benefits of the systems / technology in place and also to give real time service to the MLIs, it has been decided that the Trust will accept the applications lodged by operating offices through electronic mode (Online) effective April 01, 2003. In other words, applications received by post through floppies will not be entertained after April 01, 2003 .

You are requested to please give necessary instructions to your operating offices in this regard.

Thanking you and soliciting your cooperation,

Yours faithfully,


(Chief Executive Officer)