On December 7, 2020, National Backward Classes Finance & Development Corporation (NBCFDC) & National Scheduled Castes Finance and Development Corporation (NSFDC) signed a Memorandum of Agreement (MoA) with Central Bank of India for implementation of ‘Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayta (VISVAS) Yojana’ – an Interest Subvention Scheme of the Ministry of Social Justice & Empowerment, Government of India. With the signing of the agreement, interest subvention for the beneficiaries under the VISVAS Yojana will be provided through Central Bank of India.
Interest Subvention means Government paying part of the Interest on a Loan.
MoA signed by:
i.The MoA was signed by V K Mahendru, Field General Manager on the behalf of Central Bank of India & Anupama Sood, General Manager (Projects), on behalf of NBCFDC & Devanand, Chief General Manager on behalf of NSFDC.
ii.The MoAs were signed in the presence of K. Narayan, Managing Director NBCFDC, Chairman cum Managing Director of NSFDC.
‘Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayta (VISVAS)’ Yojana:
Launched by the Ministry of Social Justice & Empowerment in September 2020, the scheme has set a target to provide benefits to around 3.28 Lakh People in the 2020-21 financial year.
The objective of the scheme is to reduce the Interest burden on the Underprivileged sections of SCs & OBCs.
Interest Subvention rate:
i.The Scheme aims to provide OBC/SC SHGs of loans/borrowings of up to INR 4 Lakh & OBC/SC Individuals with loans/borrowings of up to INR 2 Lakh with an interest subvention benefit of 5%.
ii.The benefit will be transferred directly into the standard accounts of beneficiaries and is expected to benefit entrepreneurs all over India.
i.The Government of India (GoI) has identified around 3, 28, 500 beneficiaries for the scheme
ii.SC or OBC Households with an Annual Income of up to INR 3 Lakh are eligible for the scheme.
iii.For the purpose of the scheme, GoI has infused INR 65 Crores to enable 5% interest subvention to small loans extended to SCs & OBCs households worth INR 1, 075 crores.
iv.GoI aims to run the scheme till 2024-25, but has given approval for only one financial year – 2020-21.
Recent Related News:
i.September 7, 2020 Thaawarchand Gehlot, Union Minister for Social Justice and Empowerment has launched the 24×7 Toll-Free Mental Health Rehabilitation Helpline “KIRAN”
About National Backward Classes Finance & Development Corporation (NBCFDC):
Managing Director – K. Narayan
Headquarters – New Delhi
About National Scheduled Castes Finance and Development Corporation (NSFDC):
Chairman cum Managing Director – K. Narayan
Headquarters – New Delhi
About Ministry of Social Justice & Empowerment:
Union Minister – Thaawarchand Gehlot
Minister of State – Krishan Pal Gurjar, Ramdas Athawale, Rattan Lal Kataria
About Central Bank of India:
Managing Director & Chief Executive Officer – Pallav Mohapatra
Headquarters – Mumbai, Maharashtra