CGTMSE/(44)/4378                                                                                           July 16, 2014

 

All the Regional Rural Bank Member Lending Institutions of CGTMSE

Circular No.80/2014-15

 

Madam / Dear Sir,                                                                              

 

Review of Interest cap and other registration criteria of Regional Rural Banks (RRBs) as Member Lending Institutions (MLIs) of CGTMSE

 

            Please refer to our letter no. CGTMSE/(44)/3330 dated June 10, 2014 on the above subject (available on www.cgtmse.in) wherein, inter alia, we had indicated that the Average Base Rate (ABR)  applicable to all MLI-RRBs for FY 13-14 and FY 14-15 shall be advised by us separately. In this connection we advise that the ABR for FY 2013-14 shall be 10.04% p.a. and that for FY 2014-15 shall be 10.14% p.a. The ABR for FY 2013-14 and FY 2014-15 would be applicable for all loans/credit facilities sanctioned/renewed by MLI - RRBs during these respective FYs and proposed to be covered under Credit Guarantee Scheme. The annual interest that can be levied on the loans/ credit facilities sanctioned/renewed by MLI - RRBs and proposed to be covered under CGS should not therefore be more than 4% p.a. over applicable ABR for the respective FY in which loan/credit facility has been sanctioned to the eligible MSE borrowers. Please note that the ABR of 10.14% p.a. for the FY 2014-15 would remain valid till the ABR for subsequent FY is advised to MLI-RRBs by us.

 

2.         Further, as indicated in para (2) of our aforesaid letter dated June 10, 2014 you are requested to confirm that the guarantee proposals lodged online by your MLI with us upto January 01, 2014 for coverage under CGS and pending for approval are "Standard Assets" and not stressed or rescheduled accounts and there are no overdues as on date of confirmation. A list of such guarantee applications alongwith the applicable interest rates may be furnished to us immediately to enable us to consider such applications under CGS as per the Format enclosed. Please also forward the soft copy of filled in Format at sanoj@cgtmse.in followed by duly signed hard copy. 

 

3.         It may be mentioned that the applications for guarantee lodged on or after January 02, 2014 will be considered for approval only after RRBs have re-registered themselves with us as per our letter no. CGTMSE/(44)/3330 dated June 10,2014.

 

 

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

 

                                                                                                                     Yours faithfully,

 

 

(S.S. Bakshee)

Encl: As above                                                                                         General Manager

 

 

 

 

           FORMAT

 

Name of RRB and MLI Id - _____________________________________________________

 

S. No.

Name of Unit / Borrower

Date of lodgement of Guarantee applicable

Interest Rate  Charged

(%) p.a.

Whether account Standard / Regular etc. Certification

(Yes / No)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Please also forward the soft copy of filled in Format at sanoj@cgtmse.in