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The Reserve Bank of India recently modified the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission by issuing a master circular on 18th September, 2020. In this article we shall take a look at some of the essential inclusions in the master circular but before that let’s have a brief understanding of this Yojana.
The Ministry of Rural Development, Government of India had launched the National Rural Livelihoods Mission by restructuring the Swarnajayanti Gram Swarojgar Yojana with effect from 1st April 2013 through the RBI circular. This mission was renamed to DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission) with effect from 29th March 2016.
It is a flagship initiative program of the government of India for promoting poverty reduction by building strong institutions of the poor and especially women and enabling these institutions to access a host of financial services and livelihoods.
It adopts a demand driven approach allowing states to formulate their state-specific poverty reduction action plans.
The guiding principles of Deendayal Antyodaya Yojana – National Rural Livelihoods Mission are as follows:
The core values that guide all the activities under National Rural Livelihoods Mission are:
The key features of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission, as mentioned in RBI master circular, are as follows:
DAY-NRLM will ensure that minimum one member from each identified rural poor household, (preferably a women), would be brought under the network of Self Help Group in a time bound manner. Both men and women will be organized to address the livelihood issues that are farmers organizations, milk producers’ cooperatives etc. These institutions are inclusive and no poor will be left out.
DAY-NRLM will also undertake community based process that is participation of poor in the process of identifying the target group. In recent years, the participatory identification of poor method has been developed and it has been applied successfully in states such as Andhra Pradesh, Kerala, Odisha and Tamil Nadu.
Strong institutions of the poor like Self Help Groups and their village level and higher level federations are essential to provide space, voice and resources for poor and to reduce their dependency on external agencies. Moreover, Deendayal Antyodaya Yojana – National Rural Livelihoods Mission will promote specialized institutions such as livelihoods collectives, producers’ cooperative/companies for livelihoods promotion through deriving economies of scale, backward and forward linkage and access to information etc.
This Yojana would strengthen all existing institutions of the poor in a partnership mode. The self help promoting institutions would promote social accountability practices with a view to introduce great transparency.
The yojana would ensure that poor people are provided requisite skills for managing their institutions, linking up with markets, enhancing their credit absorption capacity and creditworthiness etc.
A revolving fund would be provided to eligible Self Help Groups as an incentive to inculcate the habit of thrift and accumulate their funds for meeting their credit needs.
The community investment support fund will be a corpus and will be used for meeting credit needs of members and as catalytic capital for leveraging repeat bank finance.
The Yojana would work to achieve universal financial inclusion beyond basic banking services to all poor households, Self Help Groups and their federations.
In order to ensure affordable credit, this DAY-NRLM has a provision for subvention on interest rate over 7% per annum for all eligible Self Help Groups.
It is a centrally sponsored scheme and the financing will be shared among Centre and state in 60:40 ratios.
A phased implementation approach is adopted in this and it would reach all districts by the end of 12th Five year plan.
The blocks that are taken for the implementation of this yojana, intensive blocks, will have access to a full complement of trained professional staff.
RSETI is built on the model pioneered by Rural Development Self Employments Institute. The model intends to transform unemployed youth to confident self employed entrepreneurs by a short duration experiential learning programme.
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission will provide revolving fund support to the Self Help Groups in existence for a minimum of 3/6 months and follow the norms of good Self Help Groups. The Self Help Groups that haven’t received any revolving fund earlier shall be provided with it as corpus with minimum 10000 rupees and maximum of 15000 rupees per Self Help Group.
No capital subsidy will be sanctioned to any Self Help Group from the date of implementation of DAY-NRLM.
Community Investment Support Fund will be provided by Ministry of Rural Development to the Self Help Groups promoted under Day-NRLM in all blocks and will be routed through Village level/Cluster level federations, to be maintained by the federations. It would be used to advance loans to the Self Help Groups by the federations and or to undertake the common/collective socio-economic activities.
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission includes the provision for interest subvention to cover the difference between the lending rate of banks and 7%, on all credit from banks or financial institutions availed by women Self Help Groups for maximum 300000 rupees per Self Help Group.
It will be available across the country in two ways: