CGTMSE/(44)/4120 November 16, 2016



All Member Lending Institutions of CGTMSE

Circular No.118/ 2016 – 17

Dear Sir/Madam,

Credit Guarantee Scheme (CGS) –
Introduction of new module for Electronic  submission of Declaration and undertaking form as a part of claim application


As per the present guidelines, while the claims are lodged by the Member Lending Institutions (MLIs) electronically by using CGTMSE portal, the duly signed and sealed Declarations and Undertaking (D&U) is separately forwarded in physical form. The Trust, on its part, treats the claim application as received only after the receipt of corresponding D&U. Since the D&U's are separately sent by the MLIs after electronic submission of claim application form, many a time it so happen that the D&Us are either not received on time or are received in incomplete form and thus, are required to be returned to MLIs for correction and resubmission. In the meanwhile, the corresponding claims lodged remain pending for settlement.

With a view to address the issue and further reduce the time for claim settlement, it has been decided to create an online module in CGTMSE portal whereby MLI will lodge the claim along with D&U online using the maker/checker concept. The operational guidelines of new module are given in the Annexure. It could be observed from the Annexure that besides submission of D&U on line along with the claim application form, the module contains a checklist which is required to be filled by the MLIs in respect of claims where claim eligible amount is `20 lakh and above. The checker at MLI level is expected to verify the contents of each claim along with D&U and check list, wherever applicable, for its correctness before accepting the claim forwarded by the maker.

Please note that the same checker ID and password obtained for NPA upgradation in terms of CGTMSE circular No. 111 dated February 22, 2016 shall be used for Approving/Returning the claim by the checker. However, those MLI ID's who have not yet obtained the checker id and password of the checker, may refer to CGTMSE circular No. 111 dated February 22, 2016 for understanding detailed process of obtaining checker ID and password.

The above module shall be made live from December 01, 2016 onwards. With the introduction of the new module, the requirement of physical submission of D&U has been done away with. Further, no paper in physical form need be forwarded to CGTMSE in respect of the claim application excepting attachment of scan copy of document initiating legal action confirming the date of initiation of legal action and scan copy of possession notice in case the legal action has been initiated under SARFAESI Act. The CGTMSE, however, reserves the right of carrying out inspections of settled claims and demand the refunds in case serious deficiencies (attributable to the internal staff of the MLI) /deviations from the Scheme parameters are observed during the course of inspections. The physical copy of D&U shall continue to be forwarded to CGTMSE, as per the extant practice, for the claims to be lodged till November 30, 2016.

Any difficulties encountered shall be mailed to us at claimssection@cgtmse.in with a cc to shweta@cgtmse.in for solution.

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

                                                                                                                                 
Yours faithfully,

(S.S.Bakshee)
General Manager








Annexure

Operational guidelines for module for electronic submission of Declaration and Undertaking along with the claim application form

  • By using their existing user ID and password, MLI (Maker) will login into the CGTMSE portal and fill the claim form using the path :
    Claim processing → Claim for First → Installment
    By feeding the required CGPAN and member ID, claim application form will be displayed where in claim details are required to be fed as per the normal practice. After clicking next button in the claim form, Declaration and Undertaking form will open. With regard to Declaration and Undertaking form page, the following may be carefully noted:
    • For cases where over all claim eligibility amount is below `20 lakh, the D&U page will be displayed where maker will have to update his name, designation and place. Upon clicking save button, claim application would be saved and the claim reference number would be generated. The claim would be forwarded to Checker upon clicking Ok button.
    • For cases where over all claim eligibility amount is `20 lakh and above, the D&U page will be displayed. The maker is required to update his name, designation and the place. The check list will open after clicking on “please press here for filling the checklist”. The maker would select appropriate option while filling the check list. The checklist contains 11 options. Marking of all checkboxes is mandatory. (Comment/Observation column in the checklist is not mandatory to be filled).
    • The system will check for inconsistencies, if any in marking of checklist boxes by the maker. In case the option in the check list marked by the maker is inconsistent with the Credit Guarantee Scheme parameters/ extant guidelines of the Scheme especially with regard to options for check list at serial numbers 1, 2, 3, 4, 5, 9 & 10, the concerned claim shall not get transmitted to CGTMSE even after acceptance of the same by the checker and shall be returned to the maker for corrections, if any. The checker will be able to see the options where inconsistencies prevail.
    • As regards option at serial number 10 of the check list with reference to internal rating, although the check list shall insist the maker to tick appropriate box, the system will verify the acceptability of the option chosen only in respect of guarantee covers where aggregate amount for which guarantee has been issued by CGTMSE is `50 lakh and above and shall ignore other cases since the internal rating is mandatory only for the credit facilities of `50 lakh and above.
    • After saving the checklist, the system will take the maker back to D/U form where the maker will need to choose save option for submission of claim form to checker for his decision.
  • Upon saving the form, the claim reference number will be generated and the maker can view the claim reference number and date of claim initiation. At this stage, the work is complete at makers end and claim stand forwarded to the MLI checker.
  • Please note that the claim form will not get transmitted to CGTMSE upon submission by the maker but will get transmitted to the checker at MLI level for his recommendations.
  • Process for the Checker

  • Once the claim application is saved by the maker, the request will be available for approval by checker. Checker will have to login with the separate ID and password as allotted by CGTMSE. In case the checker does not have his ID and password, please follow the guidelines for creating ID and password as given in CGTMSE circular no 111 dated February 22, 2016.
  • After login, the checker will have the option of verifying the contents of claim form as well as D&U and checklist for its correctness before submission of claim by using the following path:
    Claim processing → Submission of claim.
  • Under submission of claim menu, the detailed list of claim lodged accounts will be displayed the snap shot of which is given below:

    Sr. No

    Date Of Claim

    Claim Reference
    No.

    Branch name

    Unit Name

    Guarantee Approved
    Amount

    View D/U##

    I Certify the Contents of D/U & CheckList

    Checker Remarks

  • Checker can verify the claim details upon clicking on Claim reference no. Further, on clicking view D&U →declaration & undertaking and checklist details will display.
  • The checker, after verifying the correctness of the details fed in the claim form by the maker as also the contents of D&U and check list, will have option to either accept or return the claim.
  • If all claim details are acceptable, checker will click on Accept under column head “Certify contents of D/U & checklist” and click on Submit.
  • Once the claim is accepted and submitted by the checker, the claim form, along with the D&U and checklist, will get transmitted to CGTMSE for decision on the claims.
  • In case the checker is not satisfied with the contents of claim application form, D&U and the check list, as applicable, the checker will have to click on Return option under column head “Certify contents of D/U & checklist” by mentioning the reason for returning the claim in the remarks column(mandatory to be mentioned). Mail with returned reason will be sent to maker for resubmission. Returned mail will be sent to maker as per mail ID registered at CGTMSE portal. MLI’s may ensure that correct mail ids of makers are made available to CGTMSE which would help in smooth functioning of whole process.
  • In case the option in the check list marked by the maker is inconsistent with the Credit Guarantee Scheme parameters/ extant guidelines of the Scheme especially options for check list serial numbers 1, 2, 3, 4, 5, 9 & 10, and the MLI checker accepts such claims, the claim will not get transmitted to CGTMSE but will get returned to the maker. The checker will be able to see the options where inconsistencies prevailed.
  • Once the checker selects “Accept” or “Return” options, the checker will click submit button for transmitting the claims to CGTMSE/maker as the case may be. A list of accepted and returned cases with claim reference numbers will be displayed for checker’s information.
  • MLI (maker) can relodge the returned claim by using the path : Claim processing → Claim for → Resubmission of claim.(Claim reference no. has to be mentioned).However maker has to re-lodge the claim based on the return remarks sent to the registered email ID. These remarks would also be available at claim status reports (all the claim and Checklist details would be available for editing).
  • Date of lodgment of claim by the maker would be considered as date of claim initiation and once it is accepted by checker, the acceptance date would be considered as date of claim submission.
    • Please delete cookies at internet options before lodgment of claim for omission of error if it occurs at the time of lodgment of claim.