CGTMSE.Ref.No. 46/GF - RTGS                                                                

April 04, 2014

All Member Lending Institutions (MLIs)

Attention : MSME/Priority Sector Head of MLIs

Circular No. 74/2014-15

Dear Sir,

Receipt of Guarantee Fee (GF) through RTGS/NEFT -

Modification in existing procedure

           As you are aware, the payment of Guarantee Fee (GF) based on the demands raised by CGTMSE upon approval of Guarantee is made by MLIs by means of demand drafts. In the light of the problems associated with dealing in physical instrument and with a view to further improve the guarantee issue process, it has now been decided that all the payments towards guarantee fee would now be made by respective nodal offices of MLIs by means of RTGS only.

           While remitting the GF through RTGS, MLIs must indicate Receipt/Payment (RP) No. as generated by the CGTMSE system, once the allocation is made by MLIs against the respective demands made by CGTMSE for payment of GF, in the remark column of RTGS transmission message. The RP No., being a unique no., would enable CGTMSE to appropriate the receipts against the respective guarantee fees as per the allocation done by MLIs. With a view to avoid human error, RP No., as generated by the CGTMSE system, may be copy pasted in the remark column of RTGS message. Further UTR No. generated after remitting the proceeds through RTGS to CGTMSE, must be mentioned by respective nodal offices of MLIs at appropriate place in CGTMSE portal in place of instrument number. Please note that the guarantees in respect of those RTGS payments would not be issued by CGTMSE where RP No. and UTR No. is either not mentioned or incorrectly mentioned at the respective places indicated above and the proceeds, so received, would be remitted back to originating nodal office of MLI. You may please ensure that the bank account used for remitting the proceeds through RTGS should necessarily be enabled for inward remittances also to enable CGTMSE to return the proceeds to the same bank account in the light of the circumstances explained above. The path to be followed is as follows :

    • Receipts Payments > Allocate payment through NEFT (to create RP No. to remit Guarantee Fee)
    • Map RP No. with NEFT payment (to update UTR/NEFT reference no. on remittance of Guarantee Fee)

         The revised procedure shall come into effect from April 21, 2014 onwards. Any payments made by respective nodal offices of MLIs in respect of guarantee fee payment allocated on or after April 21, 2014 by means of Demand Drafts would not be accepted by CGTMSE and shall be returned in case received. The details of CGTMSE account for the purpose of RTGS are as given below :

Name of the Bank

IDBI Bank Limited

Name of the Branch

Chembur, Mumbai

Account Name

Credit Guarantee Fund Trust for Micro and Small Enterprises

Account Number

018102000014951

IFSC Code

IBKL0000018

The existing procedure with regard to payment of Annual Fees i.e. Annual Service Fee and Annual Guarantee Fee remain unchanged.

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

  Yours faithfully,

[S.S.Bakshee]General Manager