ALL INDIA KISAN MELA PROJECT REPORT

09.10.2009-12.10.2009
UNDER
UCO BANK

IN
AWARENESS IN PEOPLE REGARDING
GOVERNMENT SPONSORED SCHEMES

SUBMITTED TO: SUBMITTED BY:

Mr. A. S. SAHNI MANISH PANDEY

CHIEF MANAGER RICHA BISHT
UCO Bank GEETA MEHRA
SASIKANTH.P
GOPAL KRISHAN CHATURVEDI

COLLEGE OF AGRI BUSINESS MANAGEMENT

G. B. PANT UNIVERSITY OF AGRICULTURE &
TECHNOLOGY
 CONTENTS
1. Acknowledgement

2. Introduction

3. Objectives

4. Bank Profile

5. Government Sponsored Schemes

i) Self Employment Scheme For Rehabilitation Of Manual Scavengers

ii) Prime Minister’s Rozgar Yojana

Iii) UCO MAHAJAN-Rin Mukti Yojana

iv) Differential Rate of Interest

v) Swarna Jayanti Gram Swarozgar Yojana

vi) Swarna Jayanti Sahari Rozgar Yojana

6. Research Methodology 27 - 28

7. Results and Discussion

8. Key observations

9. Recommendations

10. Questionnaire

2
 1. ACKNOWLEDGEMENTS

The project “AWARENESS IN PEOPLE REGARDING

GOVERNMENT SPONSORED SCHEMES “has been undertaken, during
the Kisan Mela organized by Govind Ballabh pant university of Agriculture
and technology. The project has been done at UCO Bank stall in Kisan
Mela.

We take this opportunity to thank Mr. A. S. Sahni, Chief Manager

UCO Bank Pantnagar for providing us an opportunity to take this project
work and for their altruistic help and support throughout the project. Mr.
Sahni has been really helping all through and his behavior was cordial
towards us.

We express our sincere gratitude towards Dr. B. K. Sikka, Dean

CABM who was closely associated with the project right from the beginning
and under whose supervision and guidance whole of the project has been
completed.

Our sincere thanks also goes to those Farmers who participated in

the survey work, and selflessly revealed several information, without which
we would not have been able to prepare this report.

MANISH PANDEY RICHA BISHT

SASIKANTH.P GEETA MEHRA

3
GOPAL KRISHAN CHATURVEDI

2. INTRODUCTION:

When GDP figures were released, many were happily surprised. In

the fourth quarter of the fiscal year (January-March 2009), the economy
grew 5.8% against expectations of less than 5% which was very
respectable during a global downturn. One of the main reasons for this was
that during the last quarter of 2008-2009 while manufacturing shrank to
1.4%, agriculture grew by 2.7%, supplemented by guaranteed wage
employment under NREGS and other cash transfers under various
government schemes. Rural economy showed a buoyant mood not
matched by the urban areas.

The confidence of urban India is slowly returning now, with a new and
stable government in place. Our rural areas are anyway insulated from the
global meltdown, being untouched by credit cards and mortgages which
are hitting the west hard.

The negative impact on urban India has been more than offset by
encouraging performance in rural areas. The rural economy has provided a
cushion. Several factors have led to this relative robustness of the rural
economy in India. The increase in procurement prices MSP (Market
Support Prices) for many farm products has contributed to a rise in rural
demand. A series of good harvests on the back of several good monsoons
boosted rural employment in agricultural and allied activities. Government
schemes like, SRMS DRI PMRY SGSY reduced rural underemployment
and raised wages. Also, farmers benefited from loan waivers introduced in
the last Union Budget. The increase in rural purchasing power is reflected
in rural growth across a number of categories. For example, in the financial
year 2009 [April-March], FMCG [Fast Moving Consumer Goods] rural
volume growth is estimated to be 5% to 12% higher than urban growth
across a number of categories.

The primary objective of all the endeavors of this Ministry has been
the welfare of our people, especially the rural poor. The policies and
programmes have been designed with the aim of alleviation or rural
4
poverty, which has been one of the primary objectives of planned
development in India.

A sustainable strategy of poverty alleviation is usually based on

increasing the productive employment opportunities as the in built process
of growth itself. Elimination of poverty, ignorance, diseases and inequality
of opportunities and providing a better and higher quality of life are the
basic premises of rural development.

Rural Development implies both the economic betterment of people

as well as greater social transformation. In order to provide rural people
with better prospects for economic development; increased participation of
people in rural development programmes, decentralization of planning,
better enforcement of land reforms and greater access to credit are
envisaged. The growth of the Indian economy will have to be inclusive in
nature, which means renewed importance for the development of the rural
areas and weaker sections of our society. Like previous years, Pantnagar
Kisan Mela & Agro-industrial Exhibition, which has assumed its national
importance as 'Krishi Kumbh' was organized from October 9-12, 2009.

The farmers' fair attracts large number of agro-industrial firms and

farmers. This is the 86th Farmers' Fair organized by the University since the
first in year 1966.

This fair will be a common forum for scientists, farmers and industry
people for interaction and will be of mutual benefit for both visitors
(farmers ) as well as exhibitors.

About 15000 farmers and another 15000 general visitors are

expected to visit this farmers' fair. About 350 big and small agro-industrial
and agribusiness firms have come for this fair including farm machinery,
fertilizer, chemicals, seed, herbal and medicinal products.

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3. Objectives:

 To know awareness in people regarding Government sponsored

schemes.
 To know awareness in people regarding UCO bank and its policies,
programmes and schemes.
 To know about people availing government sponsored schemes.

6
 4. BANK PROFILE
UCO Bank is a commercial bank established in 1943. The idea to
establish the bank was first conceived by G.D. Birla, the famous
industrialist, after the historic 'Quit India Movement' in 1942. The idea was
culminated on the 6th of January 1943, when The United Commercial Bank
Ltd. was born with its Registered and Head Office at Kolkata. A commercial
bank and a Government of India Undertaking, it comprises of government
representatives as well as renowned professionals like accountants,
management experts, economists, businessmen, and so on, in its Board of
Directors. United Commercial Bank has stretched out to of all segments of
the economy - be it agriculture, industry, trade and commerce.

Along with 13 other major commercial banks of India, United

Commercial Bank was nationalized on 19th July, 1969, by the Government
of India. Thereafter the Bank expanded rapidly. To keep pace with the
developing scenario and expansion of business, the Bank undertook an
exercise in organizational restructuring in the year 1972. Under the act of
Indian Parliament, in 1985, its name changed from United Commercial
Bank to the present name, UCO Bank. As of 2005, the bank has 2000
Service Units spread all over India. A distinctive feature of UCO bank is its
introduction of 'NO HOLIDAY' branches. These bank branches work on all
the 365 days of a year. With the age of global banking, UCO bank has also
changed to be adept with the newest technology, boasting of specialized
computerized branches in both India and overseas.

4.1 Heritage

The idea of a truly Indian bank was first conceived of by Mr. G.D
Birla, the doyen of Indian Industrial renaissance, after the historic "Quit
India" movement in 1942. Soon this nascent idea came into reality and, on
the 6th of January 1943, The United Commercial Bank Ltd. was born with
its Registered and Head Office at Kolkata. The very first Board of Directors
was represented by eminent personalities of the country drawn from all
walks of life, and this all-India character of the Bank has been assiduously
maintained till this day not only in the composition of its Board but also in
7
the geographical spread of its 1700 odd branches in the country as well as
in its overseas centers in Singapore and Hong Kong.

Having traversed periods of expansion and consolidation, the Bank

was nationalized by the Government of India on the 19th July 1969
whereupon 100 per cent ownership was taken over by the government in
UNITED COMMERCIAL BANK. This historic event brought about a sea-
change in the entire fabric of the bank's thinking and activities,
commensurate with the government's socio-political approach of mass
banking as against class banking hitherto practiced. Branch expansion
started at a fast pace, particularly in rural areas, and the bank achieved
several unique distinctions in Priority Sector lending and other social
upliftment activities. To keep pace with the developing scenario and
expansion of business, the Bank undertook an exercise in organizational
restructuring in the year 1972. This resulted into more functional
specialization, decentralization of administration and emphasis on
development of personnel skill and attitude. Side by side, whole hearted
commitment into the government's poverty alleviation programmes
continued and the convenorship of State Level Bankers' Committee (SLBC)
was entrusted on the Bank for Orissa and Himachal Pradesh in 1983.

The year 1985 opened a new chapter for the Bank as the name of
the Bank changed to UCO BANK by an Act of Parliament. The customer
friendly and socially committed character, however, remained even with
this change in name which has, over the years, been regarded as one of
the well known and vibrant banks in the country. Today, with all its inner
strengths, UCO Bank has come a long way to symbolize friendliness for
customers and efficiency in its banking business. Truly, UCO Bank
HONOURS YOUR TRUST.

4.2 Vision Statement

To emerge as the most trusted, admired and sought-after world class

financial institution and to be the most preferred destination for every
customer and investor and a place of pride for its employees.

4.4 Mission Statement

8
 To be a Top-class Bank to achieve sustained growth of business and
profitability, fulfilling socio-economic obligations, excellence in customer
service; through up gradation of skills of staff and their effective
participation making use of state-of-the-art technology.

Global banking has changed rapidly and UCO Bank has worked hard
to adapt to these changes. The bank looks forward to the future with
excitement and a commitment to bring greater benefits to you.

UCO Bank, with years of dedicated service to the Nation through

active financial participation in all segments of the economy - Agriculture,
Industry, Trade & Commerce, Service Sector, Infrastructure Sector etc., is
keeping pace with the changing environment. With a countrywide network
of more than 2000 service units which includes specialised and
computerised branches in India and overseas, UCO Bank has marched
into the 21st Century matched with dynamism and growth!

4.5Strengths

• Country-wide presence
• Overseas Presence with Profitable Overseas Operations
• Strong Capital Base
• High Proportion of Long Term Liabilities
• A Well Diversified Asset Portfolio
• A Large and Diversified Client Base
• Fully Computerised Branches at Major Centres
• Branch representation in Top 100 Centres (as per deposits) in the
country

4.6Organisation Structure

Headquartered in Kolkata, the Bank has 35 Regional Offices spread

all over India. Branches located in a geographical area report to the
Regional Office having jurisdiction over that area. These Regional Offices
are headed by Senior Executives ranging upto the rank of General
Manager, depending on size of business and importance of location. The

9
Regional Offices report to General Managers functioning at Head Office in
Kolkata.

5. GOVERNMENT SPONSORED SCHEMES

There are several major centrally sponsored schemes under which

credit is provided by banks and subsidy is received through Government
Agencies. Credit flow under these schemes is monitored by RBI. Under
each of these, there is a significant reservation / relaxation for the members
of the SC/ST communities.

1. SELF EMPLOYMENT SCHEME FOR REHABILITATION OF MANUAL

SCAVENGERS (SRMS)

Reserve Bank of India has issued instructions in April 2008 to banks

regarding operationalisation of the new Self Employment Scheme for
Rehabilitation of Manual Scavengers (SRMS).
.
Objective of the Scheme
Objective of the scheme is to assist the remaining scavengers for
rehabilitation, which are yet to be assisted, in a time bound manner by
March 2009.

Eligibility:
Scavengers and their dependents, irrespective of their income, who
are yet to be provided assistance for rehabilitation, under any scheme of
Government of India/State Governments will be eligible for assistance.

Salient features

1. The Self Employment Scheme for rehabilitation of Manual Scavengers is

applicable to Public Sector Banks.

10
2. The identified scavengers will be provided training, loan, and subsidy.
Banks will provide loans to candidates sponsored by State Channelizing
agencies only. After sanction of the loan, Bank will claim amount of capital
subsidy from the State Channelizing Agencies who in turn will provide
admissible capital subsidy, which will be disbursed to the beneficiary along
with the loan amount. After disbursement of loan to the beneficiaries, the
concerned branch of the bank will claim interest subsidy from the State
Channelizing Agency on a quarterly basis.

3. Credit will be provided by the banks, which will charge interest from the
beneficiaries at the rates prescribed under the scheme. National Safai
Karmacharis Finance and Development Corporation (NSKFDC) or any
other identified agency at the apex level, will provide interest subsidy to the
banks through its State Chanelising Agencies (SCAs) or any other
identified agency at the State level, for the difference between the interest
chargeable by bank and the interest to be charged from the beneficiaries
under the scheme. However, the procedures indicated for claiming interest
and capital subsidy are suggestive in nature. The concerned State
Governments and SLBC have the option of evolving any alternative
procedure in the interest of smoother implementation of the scheme with
mutual consent.

Funding
.
1. The scheme provides for projects costing upto Rs. 5.00 lakh. The loan
amount will be the remaining portion of the project cost, after deducting the
admissible capital subsidy. No margin money/ promoter’s contribution is
required to be provided under the scheme.

.2. Both, term loan (up to a maximum cost of Rs. 5 lakhs) and micro
financing (up to a maximum of Rs. 25,000) will be admissible under the
scheme. Micro financing will also be done through self help groups (SHGs).

3. The rate of interest chargeable from the beneficiaries will be as follows:-

(a) For projects up to Rs. 25,000/- 4% per annum (for women beneficiaries
5% per annum
11
(b) For projects above Rs.25,000/ 6% per annum

.4 Where the rate of interest chargeable by the banks on loans will be

higher than the rates prescribed in the scheme, interest subsidy to the
extent of the difference will be given to the banks and this will be
administered by NSKFDC/ other agencies identified by the Ministry

.5 In every state annual targets of each bank will be fixed by State Level
Bankers Committees (SLBC’s) as per statewise scheme targets.

4. Repayment

The period of repayment loan will be three years for projects upto Rs.
25,000 and 5 years for projects above Rs. 25,000. The moratorium period
to start the repayment of loan will be six months. The State Channelising
Agencies (SCAs) would distribute the funds within a period of three months
to the beneficiaries.

5. Subsidy

5.1 Credit linked capital subsidy will be provided upfront to the beneficiaries
in a scaled manner:

(a) For projects costing up to Rs.25,000 @ 50% of the project cost.

(b) For projects costing more than Rs. 25,000/-, @ 25% of the project cost,
with a minimum of Rs. 12,500 and maximum of Rs. 20,000/-

5.2 Beneficiaries will be allowed to avail second and subsequent loan from
banks if required, without capital subsidy and interest subsidy and other
grants under the scheme.
.
7. Role of banks

7.1 The approach towards the scheme should be employment / income

oriented instead of target oriented. The successful implementation of the
12
scheme depends on effective participation and monitoring by banks at all
levels. Banks should therefore pay particular attention to this aspect and
ensure that sufficient number of branches effectively participate in the
implementation of the scheme in close association with the State Local
Scheduled Caste Development & Finance Corporations. Banks should
allocate targets for financing of beneficiaries by proportionately distributing
the total target under the scheme for the districts under annual Credit Plan
(ACP), among all bank branches covered for District Credit Plan (DCP) as
per the availability of eligible beneficiaries within the area of operation of
the branches. Bank may issue suitable instructions to their branches /
controlling offices for implementation of the scheme.

7.2 The banks should ensure that their branches extend all co-operation to
the applicant beneficiaries and not ask for documents, guarantees etc. not
envisaged in the scheme.

7.3 The banks should not insist for deposit amount in the fixed deposit from
the beneficiary.

7.4 The banks should adopt simple and transparent procedure to eliminate
middlemen operating between the beneficiaries and the banks and
expedite disposal of applications timely.

7.5 All loan applications up to a credit limit of Rs. 25,000/- should be

disposed of within a fortnight and those for over Rs. 25,000/- within 8 to 9
weeks.

7.6 Proper record of receipt and disposal of applications as required should

be maintained.

7.7 Branch Managers may reject applications (except in respect of SC /

ST) provided the cases of rejections are verified subsequently by the
Divisional / Regional Manager. Applications should not be rejected on
flimsy grounds. In case of rejection of application reasons for rejection of
application should invariably be recorded.

7.8 All loan applications pending beyond prescribed time limit should be
disposed of on priority basis.
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7.9 The performance of banks under the scheme may be periodically
reviewed at different for a under the Lead Bank Scheme, at SLBC
meetings etc.

Prime Minister's Rozgar Yojana (PMRY)

PMRY launched in 200-01 give financial assistance for selected basic
services such as primary health, primary education, rural shelter, rural
drinking water, nutrition and rural electrification. In 2003-04, 5803 new
houses were taken up for a total outlay of Rs.1877.76lakhs. In 2004-05,
5478 houses were completed with an allocation of Rs.18.78 corers.

The total outlay on the above rural poverty alleviation schemes stood
at Rs.88717.36 lakhs in 2003-04 and Rs.55330.00 lakhs in 2004-05. The
Government of India's contribution towards the programmes constituted 43
per cent and 57.0 per cent in 2003-04 and 2004-05 respectively. Of the
total expenditure of Rs.55330.00 lakhs in 2004-05, SGRY bagged a major
share i.e. 56.00 per cent.

1. Objective
The Prime Minister's Rozgar Yojana (PMRY) has been designed to
provide employment to educated unemployed youth of economically
weaker sections. The scheme aims at assisting the eligible youth in setting
up self-employment ventures in industry, service and business sectors.

2. Coverage
The scheme covers urban and rural areas in whole of the country

3. Target Group
The scheme covers all educated youth with the minimum qualification
of VIII Standard (passed). Preference will be given to those who have been
trained for any trade in Govt. recognised/approved institutions for a
duration of at least six months.

4. Reservation
Preference should be given to weaker sections including women.
Assistance to SC/ST beneficiaries should be targeted in such a manner
14
that they are benefited in proportion to their population in the respective
district/State. However, the number of SC/ST beneficiaries should not be
less than 22.5% and 27% for Other Backward Class (OBCs) as is currently
envisaged in the PMRY. In case SC/ST/OBC candidates are not available,
States/UTs Govt. will be competent to consider other categories of
candidates under PMRY.

5. Eligibility Norms

Age

(a) 18 to 35 years for all educated unemployed.

(b) 18 to 40 for all educated unemployed in North-East States,

Himachal Pradesh, Uttarakhand and J&K.

(c) 18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex-

servicemen, Physically Disabled and Women.

Education
Educated/unemployed youth with a minimum qualification of VIII
Standard (passed). Preference is to be given to persons who have
received training in any trade in Government recognised/approved
institutions (ITI, etc.) for a minimum duration of six months. Applicants with
higher qualifications or who are still pursuing further course of studies after
their matriculation are also eligible for assistance.

(i) Annual family income

(a) Income up to Rs. 1, 00,000/- per annum of family and up to

Rs.1, 00,000/- per annum of parents of beneficiary on the
date of application should be taken into account. Family for
this purpose would mean the beneficiary and spouse. Family
income would include income from all sources whether
wages, salary, pension, agriculture, business, rent, etc.
.

15
 UCO MAHAJAN –Rin Mukti Yozna
OBJECTIVE: The objective of the scheme elp indebted farmer to reduce
their outstanding dues to money lender.

ELIGIBILITY:
1. All farmers including tenant’s cultivators and oral lessees.

2. They should not be defaulter to any bank.

3. SHGs can also lend to members for debt swapping.

QUANTUM:

Maximum Rs. 25,000/-per farmer family.

REPAYMENT:

Entire amount to be repaid with a period of 5-7 years

Swarnajayanti Gram Swarojgar Yojana (SGSY)

Under Swarna Jayanti Gram Swarojgar Yojana (SGSY) Scheme,

which is a major poverty alleviation scheme in rural / semi urban areas, not
less than 50 percent of the families assisted should belong to SCs/STs.

Swarna Jayanti Shahari Rozgar Yojana

Under Swarna Jayanti Shahari Rozgar Yojana (SJSRY), which is a

poverty alleviation scheme in urban areas, advances should be extended
to SCs/STs to the extent of their strength in the local population.

Differential Rate of Interest Scheme

16
 Under the DRI scheme, banks provide finance up to Rs.15,000/- at a
concessional rate of interest of 4 percent per annum to the weaker
sections of the community for engaging in productive and gainful activities.
In order to ensure that persons belonging to SCs/STs also derive
adequate benefit under the Differential Rate of Interest (DRI) scheme,
banks have been advised to grant to eligible borrowers belonging to
SCs/STs such advances to the extent of not less than 2/5th (40 percent) of
total DRI advances.

Scheme for Liberation and Rehabilitation of Scavengers

The National Scheme for Liberation and Rehabilitation of

Scavengers is for liberating the scavengers and their dependents from the
existing hereditary and obnoxious occupation of manually removing night
soil and filth and to provide them with alternate dignified occupation. The
scheme covers primarily all scavengers belonging to the scheduled caste
community. Scavengers belonging to other communities are also eligible
for assistance. The Scheme has now been renamed as Scheme for
Rehabilitation of Manual Scavengers (SRMS).

DIFFERENTIAL RATE OF INTEREST

Credit Facilities to Minority Communities

The Government of India has indicated that care should be taken to

see that minority communities secure, in a fair and adequate measure the
benefits flowing from various Government sponsored special programmes.
All commercial banks, both in public and private sector have been advised
to ensure smooth flow of bank credit to minority communities.

Definition of Minority Communities

The following communities have been notified as minority
communities by the Government of India, Ministry of Welfare:

(a) Sikhs
(b) Muslims
(c) Christians
17
 (d) Zoroastrians
(e) Buddhists

Advances under DRI Scheme

Banks may route loans under the DRI scheme through State Minority
Finance/Development Corporation on the same terms and conditions as
are applicable to loans routed through SC/ST Development Corporations,
subject to the beneficiaries of the Corporations meeting the eligibility
criteria and other terms and conditions prescribed under the scheme.
Banks may ensure proper maintenance of the register to evolve timely
sanction and disbursement of loan applications

Training

1. With a view to ensuring that the bank staff and officers have proper
perspective and appreciation of the various programmes for welfare
of minorities, necessary orientation may be provided to officials and
other staff. For this purpose, banks should include suitable lecture
sessions as part of all relevant training programmes like induction
courses, programmes on rural lending, financing of priority sectors,
poverty alleviation programmes, etc.

2. The Lead Banks functioning in the identified districts should organize

Entrepreneur Development Programmes so that the members of the
minority communities in these areas are enabled to derive the benefit
of various programmes being financed by the banks.

3. The Lead Banks in the identified districts may sensitise and motivate
the staff posted to identified districts through proper training to assist
the minority communities under various credit schemes.

4. The Lead Banks may organize sensitization workshops for bank

officials regarding micro credit/ lending to SHGs with the help of
DDMs of NABARD.
18
Publicity

1. There should be good publicity about various anti-poverty

programmes of the Government where there is large concentration of
minority communities and particularly in the districts which have a
concentration of minority communities.

2. The Lead Banks in the identified districts may create awareness

among minority communities regarding credit facilities available from
banks through appropriate measures which may include publicity
through (i) print media i.e. distribution of pamphlets in local
languages, advertisements/articles in newspapers etc. (ii) TV
channels - DD/ local channels, (iii) participation / setting up of stalls in
the Mela / fairs organized during the religious /festive occasions by
these communities.

19
 Swarnajayanti Gram Swarozgar Yojana (SGSY)
The Ministry of Rural Development, Government of India has
launched a new programme known as ‘Swarnajayanti Gram Swarozgar
Yojana’ (SGSY) by restructuring the following existing schemes:

1. Integrated Rural Development Programme (IRDP)

2. Training of Rural Youth for Self Employment (TRYSEM)
3. Development of Women and Children in Rural Areas (DWCRA)
4. Supply of Improved Toolkits to Rural Artisans (SITRA)
5. Ganga Kalyan Yojana (GKY)
6. Million Wells Scheme (MWS)

Detailed ‘Guidelines’ have been circulated to all DRDAs/Banks by the

Ministry of Rural Development.

The SGSY Scheme is operative from April 1, 1999 in rural areas of

the country. SGSY is a holistic Scheme covering all aspects of self
employment such as organization of the poor into Self Help Groups,
training, credit, technology, infrastructure and marketing. The scheme will
be funded by the Centre and the States in the ratio of 75:25 and will be
implemented by Commercial Banks, Regional Rural Banks and
Cooperative Banks. Other financial institutions, Panchayat Raj Institutions,
District Rural Development Agencies (DRDAs), Non-Government
Organizations (NGOs), Technical Institutions in the district, will be involved
in the process of planning, implementation and monitoring of the scheme.
NGO’s help may be sought in the formation and nurturing of the Self Help
Groups (SHGs) as well as in the monitoring of the progress of the
Swarozgaris. Where feasible their services may be utilised in the provision
of technology support, quality control of the products and as recovery
monitors cum facilitators.

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 The Scheme aims at establishing a large number of micro enterprises
in the rural areas. The list of Below Poverty Line (BPL) households
identified through BPL census duly approved by Gram Sabha will form the
basis for identification of families for assistance under SGSY. The objective
of SGSY is to bring the assisted poor families (Swarozgaris) above the
poverty line by ensuring appreciable sustained income over period of time.
This objective is to be achieved by interalia organizing the rural poor into
Self Help Groups (SHGs) through the process of social mobilization, their
training and capacity building and provision of income generating assets.
The rural poor such as those with land, landless labor, educated
unemployed, rural artisans and disabled are covered
under the scheme.

The assisted poor families known as Swarozgaris can be either

individuals or groups and would be selected from BPL families by a three
member team consisting of Block Development Officer (BDO), Banker and
Sarpanch. SGSY will focus on vulnerable sections of the rural poor.
Accordingly the SC/ST will account for at least 50 percent, Women 40
percent, and the disabled 3 percent of those assisted.

Skill up gradation / Training

Once the person or group of persons has been identified for

assistance, their training need also is to be ascertained with reference to
Minimum Skill Requirement (MSR). The assessment regarding technical
skills would be made by line departments and that of managerial skills by
the banker, while scrutinizing the loan applications.

For those beneficiaries who need additional skill development/up

gradation of skills, appropriate training would be organized through
Government institutions, ITIs, Polytechnics, Universities, NGOs etc.
Swarozgaris will be eligible for loans under SGSY when they possess
Minimum Skill Requirement, and it will be disbursed only when they have
satisfactorily completed the skill training.

Self-Help Groups (SHGs)

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 The Self Help Groups shall be organized by Swarozgaris drawn from
the BPL list approved by Gram Sabha. The Scheme provides for formation
of Self Help Groups(SHGs), nurturing and their linkages with banks. SHGs
may be an informal group or registered under Societies Act, State Co-
operative Act or as a partnership firm. The assistance (loan cum subsidy)
may be extended to individuals in a group or to all members in the group
for taking up income generation activities. Group activities will be given
preference and progressively majority of the funding will be for Self Help
Groups. Half the groups formed at block level should be exclusively women
groups.

Insurance Cover

Insurance cover is available for assets/live stock bought out of the

loan. Swarozgaris are covered under the Group Insurance Scheme. For
availing the group insurance coverage by the SGSY.

* Insurance Cover at present is available for livestock assets given under

IRDP (now SGSY). The General Insurance Corporation has agreed to
provide this cover on the terms and conditions as reflected in the specimen
Master Policy and Long Term Master Policy Agreement signed between
the GIC and the State Government.

(i) Livestock Insurance

The coverage and premium rates are to be fixed in accordance with
the Master Policy Agreement.

(ii) Scope of Cover

The live stock policy provides indemnity in the event of death of
animal/bird due to accident inclusive of fire, lightening, riot and strike, flood,
cyclone, earthquake, famine or due to any fortuitous cause of disease
contracted or occurring during the period of
insurance subject to certain exclusions.

(iii)Sum Insured
The cost of the asset shall be treated as the sum insured for the
settlement of claims. For permanent total disablement (PTD) claims 75% of
the sum insured shall be payable.
22
(iv) Claim Procedure
The claim procedure is simplified to secure expeditious disposal of
claims. The Bank/DRDA shall forward a death certificate given jointly by
any two of the following within 30 days from the date of occurrence:

1. Sarpanch/Upsarpanch of Village;
2. President or any other officer of the cooperative credit society;
3. Official of Milk Collection Centre or Government Veterinary
Surgeon/Veterinary Assistant
4. Supervisor/Inspector of Cooperative Central Bank;
5. Authorized nominee of DRDA;
6. Secretary of Panchayat;
7. Village Revenue Officer;
8. Village Accountant
9. Head Master of Primary School

Security norms
For individual loans upto Rs. 50,000/- and group loans upto Rs. 5
lakhs, the assets created out of bank loan would be hypothecated to the
bank as primary security. In case where movable assets are not created,
as in land-based activities such as dug well,minor irrigation etc., mortgage
of land may be obtained. Where mortgage of land is not possible, third
party guarantee may be obtained at the discretion of the bank.

Other facilities
The General Insurance Corporation of India have informed that if any
IRDP (now SGSY) beneficiary has other milch animals where no loan or
subsidy is involved, such milch animals could also be insured at the
concessional rate of premium i.e. 2.25% per annum or 1.69% for three
years. It has also intimated that IRDP (now SGSY) beneficiaries who have
closed their loan account can insure the animals acquired by them through
loan and subsidy at the concessional rate of premium for a further period of
three years after closing the loan account if animals do not exceed the
insurable age limit.
23
Expenditure on Premium
The expenditure on the premium is to be shared between the
Government, bank and the beneficiary in the following proportions:
When the banks do not participate When the bank agrees to participate

Swarozgaris 1.25% 1.00%

Government 1.00% 0.75%
Bank Nil 0.50%

The expenditure to be borne by the Government will be shared

between the State and the Centre in the ratio of 75 : 25. It should be met
out of SGSY funds but should not be included in the individual subsidy
ceiling applicable to the beneficiary.

Group Life Insurance Scheme

A group life insurance scheme for Swarozgaris aged not less
than 18 years and not more than 60 years was introduced w.e.f.
1.4.1988. This scheme is operative from the date on which the asset
is disbursed to the Swarozgari till the Swarozgari completes the age
of 60 years or a period of 5 years from the date of commencement of
the cover, whichever is earlier. A sum of Rs.5000 shall become
payable by LIC to the nominee of the deceased in case of natural
death. In the event of death due to accident a sum of Rs.10, 000 shall
become payable by LIC. For all individual loans exceeding Rs
50,000/- and group loans exceeding Rs. 5 lakhs, in addition to
primary security such as hypothecation/mortgage of land or third
party guarantee as the case may be, suitable margin money/ other
collateral security in the form of insurance policy; marketable security/
deeds of other property etc. may be obtained at the discretion of the
bank. The upper ceiling of Rs. 5 lakh is irrespective of the size of the
group or prorata per capita loan to the group. While deciding the limit
for collateral security, the total project cost (bank loan plus
Government subsidy) should be taken into consideration by banks.

Subsidy
Subsidy under SGSY will be uniform at 30 percent of the project cost,
subject to a maximum of Rs. 7,500/-. In respect of SC/STs it will be 50
24
percent of the project cost subject to a maximum of Rs. 10,000/-. The
group is entitled to subsidy of 50 percent of the project cost subject to per
capita subsidy of Rs. 10,000/- or Rs. 1.25 lakhs, whichever is less. There
will be no monetary limit on subsidy for irrigation projects. Subsidy under
SGSY will be back ended. Banks should not charge interest on the subsidy
amount. The availability of the benefit of subsidy to Swarozgaris would be
contingent on the proper utilisation of loan as also its prompt repayment
and maintaining the asset in good condition. The procedure for operation of
Subsidy Reserve Fund accounts as detailed in paragraph 4.17 and 4.242
of the SGSY guidelines may please be followed.

Post Credit Follow-up

Loan Pass books in regional languages may be issued to the

Swarozgaris which may contain all the details of the loans disbursed to
them. Bank branches may observe one day in a week as non public
business working day to enable the staff to go to the field and attend to the
problems of Swarozgaris. Banks should ensure through proper monitoring
and verification that quality assets have been procured by the Swarozgaris.
Necessary documents relating to acquisition of assets should be obtained
by the bank and also followed through visits by field staff. In case of non-
procurement of assets by the Swarojgar in spite of reasonable time and
Opportunity, the bank shall be free to cancel the loan and recover the
money as mentioned in the Para 4.103 of SGSY Guidelines. Legal
proceedings (Civil/Criminal) wherever necessary may be initiated against
the Swarozgari and against all members in Case of SHG for recovery of
loan.

Risk Fund for Consumption Credit

The scheme provides for the creation of Risk Fund with 1 percent of
SGSY funds at District level. Consumption loans not exceeding Rs. 2,000/-
per Swarojgar would be provided by the banks. Assistance to the extent of
10 percent of the total consumption loans disbursed by banks to the SGSY
Swarozgaris during the year would be provided

25
Recovery
Prompt recovery of loans is necessary to ensure the success of the
programme. Banks shall take all possible measures, i.e., personal contact,
organization of joint recovery camps with District Administration, legal
action, etc to ensure recovery. In case of default

Refinance of SGSY Loans

Banks are eligible for refinance from NABARD for the loans
disbursed under SGSY as per their guidelines. The eligibility for refinance
is related to the recovery position of the banks.
Role of Banks and State Agencies

Banks will be closely involved with Government agencies in

implementing, planning and preparation of projects, identification of key
activities, clusters, self-help groups, identification of individual Swarozgaris
etc.

26
 6. RESEARCH METHODOLOGY

6.1Research Design: Descriptive research is undertaken for the study.

Data collection was done with the help of a self developed questionnaire,
designed for farmers.

6.2 Data Collection:

6.2.1 Secondary data: Secondary data regarding
the Government sponsored financial schemes, company profile of
UCO bank were obtained from Internet, circulars issued by RBI and
Magazines.
6.2.2 Primary data: Primary data regarding the awareness of
Government sponsored financial schemes and feedback of the
farmers were obtained from Farmers.

6.3 Sampling Plan:

6.3.1 Sample unit:

We have taken all kinds of people as our sample. Major samples
were young and middle aged farmers. Diverse group of individuals were
interviewed belonging to different locations, socio-cultural and socio-
economical status. Sample unit have following characteristics

6.3.2 Sample size:

27
 To represent the population, we have chosen 40 people as a sample
of our study.

6.3.3 Sampling Technique: Random sampling technique because it

represents our population best.

6.3.4 Research tools:

o Self designed structured questionnaire for farmers

o Interview of farmers.

6.4 Research duration:

Project duration was from October 9th to 12th 2009. Time duration was from
9 am-7 pm.

6.5 Location:
All India Kisan Mela, 2009
Gandhi park
G.B.P.U.A&T, Pantnagar. (U.S.Nagar)

28
 7. RESULTS AND DISCUSSIONS

7.1 AGE PROFILE OF FARMRS:

Exhibit 7.1a depicts Out of 40 farmers covered 4 farmers were in the
age group of 20-30 years, 6 were in age group of 30-40 years, 17 were in
age group of 40- 50 years and 13 were above the age of 50 years.

Exhibit 7.1a: Age profile of farmers

7.2 LITERACY LEVEL OF FARMERS:

Exhibit 7.2a depicts that out of 40 farmers covered 15 farmers were
studied till 9th class,10 farmers were high school pass,8 farmers were

29
intermediate pass,6 farmers were graduate and 4 farmers were post
graduate.

Exhibit 7.2a: Literacy level of farmers

7.3 SOCIAL CLASS:
Exhibit 7.3a depicts Out of 40 farmers covered 15 farmers were of
General Category, 8 were of ST & SC category and 17 were of OBC
category.

30
 Exhibit7.3a: Social class of farmers
7.4 REGION:
Exhibit 7.4a depicts that Out of 40 farmers covered 11 farmers were
of UP, 19 of Uttarakhand and 10 of them belong to different states mainly
Bharatpur District of Rajasthan state.

31
 Exhibit 7.4a: Region of farmers

7.5 AWARENESS REGARDING GOVERNMENT SPONSORED

SCHEMES:
Exhibit 7.5a depicts that when farmers were asked about awareness
of various Government Sponsored schemes 16 farmers were aware about
the PMRY, 2 were about SRMS, 9 were about DRI, 2 were about UCO
32
MAHAJAN, 10 were about SGSY and 3 farmers were not aware about any
scheme.

Level of Awareness

16

14

12
M
N
U
R
B
S
E

10

0
PMRY SRMS DRI UCO SGSY No
MAHAJAN awarenes
s
Level of Awareness 16 2 9 2 10 3

Exhibit 7.5a: level of awareness of farmers

7.6 SOURCES OF AWARENESS REGARDING GOVERNMENT

SPONSORED SCHEMES:

Exhibit 7.6a depicts that when farmers were asked about the source
by which they came to know about various Government Sponsored
schemes 11 farmers replied Newspaper, 8 farmers replied Bank, 12

33
farmers replied Advertisements, 3 farmers replied TV and 8 farmers replied
other sources which mainly include Gram Panchayats.

Sourcesof Awareness

12

10

8
M
N
U
R
B
S
E

0
News Bank ADVERTIS TV OTHERS
paper EMENT
Sourcesof Awareness 11 8 12 3 8

Exhibit 7.6a: Sources of awareness of farmers

34
7.7 REASONS OF LOW RATE OF AVAILING GOVERNMENT
SPONSORED SCHEMES:
Exhibit 7.7a depicts that when farmers were asked about the reasons
of low rate of availing the Government Sponsored schemes, all farmers
replied that Corruption is the main reason. Other reasons include lack of
proper information (30 farmers), lack of proper follow up (24 farmers) and
bank staff behavior (28 farmers).

Reasonsof Low rate of Avaling

40
35
30
25
M
N
U
R
B
S
E

20
15
10
5
0
Corruption Lackof Lack of Bank staff
informatio proper behaviour
n follow up
Reasons of Low rate of Avaling 37 30 24 28

Exhibit 7.7a: Reasons of low rate of availing

35
 KEY OBSERVATIONS

1). During the survey it was found that the awareness regarding the
UCO bank in rural areas is very low and mostly people are not aware
regarding the schemes and policies of bank. Due to which the schemes run
by the bank do not find optimum number of customers in many areas.

2).Due to too many banks in the market who are offering the same or
better schemes and programmes with better coverage and more branches,
the farmers are switching to these banks as they do not know much about
UCO bank so they have less confidence on it.

3). In rural areas many people are unaware about the Government
sponsored financial schemes because proper follow up by the government
and banks is not done, and most of the farmers are deriving banking
facilities from rural co-operative societies.

4) In spite of having knowledge regarding the Government sponsored

financial schemes in some areas, mostly farmers are not interested in
availing it due to the prevailing Corruption at different levels.

36
 RECOMMENDATIONS

On the basis of study it was found that out very few people were able
to avail of various government schemes and their application by banks.
So we came to have following recommendations:

1. Corruption should be removed in the implementation of these

schemes.

2. Proper information should be provided by the bank and

government to the target group of respective schemes.

3. Close monitoring should be done by the government to eliminate

the corruption and biasness.

4. Feed back system should be implemented by the bank about the

bank staff behaviour.

5. More branches should be opened by the bank in rural areas.

6. Camp regarding these schemes should be organised at weekly

basis.

7. Middle men and comission agent should be removed.

8. Information regarding schemes should be displayed in hindi

language on a board outside the bank and should be revised at
daily basis.

37
 QUESTIONNAIRE
GENERAL INFORMATION:

NAME:

AGE:

CASTE CATEGORY: PH- WOMAN- SCs- STs- ANY

OTHER-

SEX:

ADDRESS:

LANDHOLDING:

OCCUPATION:

EDUCATION:

SPECIFIC INFORMATION:

Q.1 Do you have any account in bank ?

Ans.

Q.2 Do you know about UCO Bank ?

Ans.

Q.3 From where do you come to know about this bank?

Ans .

Q.4 Do you know about various schemes run by Government for your benefit?
38
 a. PMRY b. SRMS c. DRI
d. UCO Mahajan e. SGSY

Q.5 From where you come to know about these schemes?

a. NEWSPAPER- b. NEIGHBOUR- c. BANK

d.ADVERTISEMENT e. TV f. ANY OTHER

Q.6 Would you like to know about these schemes ?

Ans.

Q.7 Have you avail of these schemes?

Ans.

Q.8 If yes. Tell about your experience?

Ans.

Q.9 Do you feel these schemes are beneficial?

Ans.

Q.10 Would you ever like to avail of these schemes or to take benefit from these schemes?
Ans.

Q.11 Are you interested in taking loan provided by these schemes ?

Ans.

Q.12 Do you feel these schemes are effective in alleviating poverty ?

Ans.

Q.13 Do you know about benefits and provision of these scheme ?

Ans.

Q.14 Do you get prompt sanction disbursement by these schemes ?

Ans.

Q.15 Would you like to take loan at cheapest rates from these schemes ?
a. SRMS
b. DRI

Q.16 Do you want to get self employed but facing problem of finance?
Ans.

Q.17What are the reasons that you do not know about these schemes?
39
ans. -

SOME SUGGESTIONS:

MANISH PANDEY (39154)

RICHA BISHT (32147)
GEETA MEHRA (32134)
SASIKANTH.P (39151)
GOPAL KRISHAN CHATURVEDI (31124)

40