dbt shg

 

1. Question: What are the eligibility criteria for Self Help Groups (SHGs) to open savings bank accounts? Answer:

   • Engaged in promoting savings habits.
   • KYC verification of office bearers only required.
   • No PAN requirement; declaration in Form No 60 accepted.

2. Question: What accounts should banks maintain for SHGs? Answer:

   • Separate savings and loan accounts.
   • Savings account for individual members not required for credit linkage.
   • Current account for Producer Groups (PGs) under DAY-NRLM.

3. Question: What are the KYC norms for opening savings accounts of Federations of SHGs? Answer:

   • Applicable KYC norms for signatories specified by RBI.
   • Accounts categorized as savings account for Association of persons.

4. Question: What transactions are SHGs and their federations encouraged to undertake? Answer:

   • Transact through savings and Cash Credit Loan accounts.
   • Enable interoperable transactions at retail outlets managed by Business Correspondents.

5. Question: How are credit targets for SHGs determined? Answer:

   • Based on Potential Linked Plan/State Focus Paper by NABARD.
   • SLBC sub-committee on SHG Bank Linkage decides district-wise, block-wise, and branch-wise credit plans.
   • Targets communicated to bank branches through Controllers.

6. Question: What are the eligibility criteria for SHGs to avail loans? Answer:

   • Active existence for at least 6 months.
   • Practice 'Panchasutras': regular meetings, savings, inter-loaning, timely repayment, up-to-date bookkeeping.
   • Qualified as per grading norms fixed by NABARD.

7. Question: How can defunct SHGs avail credit? Answer:

   • Eligible if revived and active for a minimum of 3 months.

8. Question: What loan application forms should banks use for extending credit to SHGs? Answer:

• Common Loan Application Forms recommended by the Indian Bank's Association (IBA).

9. Question: What verification process is required for opening savings accounts for SHGs? Answer:

   • KYC verification of office bearers is sufficient.
   • No requirement for Customer Due Diligence (CDD) of all SHG members initially.
   • KYC verification of all members may be done at the time of credit linkage.

10. Question: What role do Business Correspondents (BCs) play in opening accounts for SHGs? Answer:

    • BCs may be authorized to open savings accounts for SHGs.
    • Verification and approval of base branch required.
    • Compliance with KYC and AML norms is the responsibility of the banks.

11. Question: What types of accounts should be opened for Federations of SHGs? Answer:

    • Savings accounts at village, Gram Panchayat, Cluster, or higher level.
    • Categorized as savings account for Association of persons.
    • KYC norms for signatories specified by RBI applicable.

12. Question: What financial services should banks extend to SHGs through BCs? Answer:

    • Enable transactions in jointly operated savings/Cash Credit accounts.
    • Provide interoperable facility at retail outlets managed by BCs.

13. Question: How are credit planning and lending norms established for SHGs? Answer:

    • Based on Potential Linked Plan/State Focus Paper by NABARD.
    • SLBC sub-committee on SHG Bank Linkage determines credit targets.
    • Targets communicated to bank branches for implementation.

14. Question: What are the grading norms fixed by NABARD for SHGs? Answer:

    • Criteria for evaluating SHG performance and eligibility for credit.
    • Consider factors like regularity of meetings, savings, loan repayment, and bookkeeping.

15. Question: What is the role of the SLBC Convenor Banks and Lead Banks in monitoring DBT implementation? Answer:

    • Institute monitoring and review mechanisms.
    • Assess and evaluate progress in DBT implementation.
    • Submit monthly returns to RBI regional offices on DBT implementation progress.

16. Question: How does the revival of defunct SHGs contribute to credit availability? Answer:

    • Allows access to credit facilities after a minimum period of activity.
    • Encourages the continuity and sustainability of SHG initiatives.

17. Question: What is the significance of using Common Loan Application Forms for SHGs? Answer:

    • Ensures uniformity and standardization in loan application process.
    • Simplifies the loan application procedure for SHGs.
    • Facilitates efficient processing of credit requests.