National Bankfor Agriculture and Rural Development - NABARD

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No. NB.DFIBT.HO/ 3 5+ - 3A 2- /.Ft-23/2Ot6-17

circular ruo. 73 /DFIBT- I6 /2915

The Chairman/Chief Executive OfficerAll Commercial Banks

Dear Sir,

Support under Financial Inclusion Fund towards (i) capacitybuilding of BCs/BFs and (ii) examination fees for BQs/BFs ofCommercial Bankq

13 April 20L6

It has been decided to extend support under Financial Inclusion Fund (FlF) to CommercialBanks towards capacity building of their BCs/BFs as also towards examination fees of BCs/BFswho pass the examination/test conducted by llBF. The support would be by way ofreimbursement to the banks. The extent of assistance would be as follows :

Reimbursement of fee @ 600/o of the expenditure with upper limit of course feecapped at Rs.4500.00 (Rupees four thousand five hundred only), all inclusive, for a

three day capacity building programme.

Reimbursement of fee @ 60% of the expenditure with upper limit of fee capped atRs.1500.00 (Rupees one thousand five hundred only), all inclusive, for one dayrefresher programme.

The course content will be on llBF pattern (Course Content/Coverage) and will alsoinclude social security schemes announced by Govt. of India since launch of PMJDY, asper details in Annexure-l(A) and l(B).

The training may be imparted in local language.

Banks can train their BCs/BFs through the following institutes :

a. Indian Institute of Banking & Finance (llBF) oraccredited training institutes ofIIBF

Bankers' Institute of Rural Development (BtRD) at Lucknow/Mangalore/Bolpur

NABARD Consultancy Services (NABCONS)

National Institute of Rural Banking (NIRB), Bangalore

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T.

2.

3.

4.

5.

b.

c.

d.

NAB,\RI)

e' lf feasiIle, Degree Engineering Colleges/Agriculture Colleges provided they areequipped to impart training about various banking products and financialservices

6. Banks should keep track of BCs who have already been trained and there should notbe any duplication of training to the same BCs. The banks woulil give an undertakingthat assistance is not being claimed from any other agency / organization and that thecandidates have not been trained by the bank earlier.

7. overlapping of support from more than one source should be avoided.

8' No support would be available in respect of BCs/BFs trained by the banks themselvesor through support from NSDC.

9. Support for reimbursement of examinatibn fees of BCs/BFs who pass theexamination/test conducted by llBF would be 5Q% of the total examination fee ofRs.800.00 (Rupees eight hundred only), all inclusive.

10. other modalities/terms and conditions of the Scheme are given in Annexure-ll.

You are requested to-initiate action for identification of BCs/BFs in your bank and arrange fortheir training in the institutions indicated'above.

Yours faithfully,

. ( Subrata Gupta )

Chief General Manager

Encl. :As above

-2-

A,NNEXU,BF t(Al

Capac.itv Buildine gf Fusiness Cofreqpondentl/B_gsiness tacifitajors(BFs/FFl)

Course Content / Coveraee

A. FunctionalModule

General Bankingo Banks' functioning - Collection of deposits/issue of loanso Type of bankso Banker-CustomerRelationship

Depositso Meaning of deposits r.

o Features of -{ Savings Bank Account{ Fixed Deposit{ Recurring Deposits

o Accountopening/closingo Know Your Customer (KYC) normsr Minor Accountso Joint Accountsr No Frill Accounts/Basic Savings Bank Deposit Accounts (BSBDAs)

Categories of loans and advanceso Loan Applicationso overdrafto Cash Credit. Loans

Features of Small/Micro Loanso Kisan Credit Card - Scale of Finance, Pradhan Mantri Krishi Bima yojana, pAlS

o General Credit Cardo Dairy/Poultry/Fishseries, etc. - Need for Asset Insuranceo Kirana Shopr Other productive loanso Loans for solar lightsr Vehicle Loan. Consumption loano Loan against deposits

ldentification, Processing and Post-sanction follow-upo Liaison with Bank and Government departmentso ldentificationofsuitableborrower/activityo Arrangement for training. Filing of loan applicationo Preliminary Processing, Verification of datao Loan documentationI Post-s.nction Monitoring - Timely guidanceo Follow-up for recovery

L.

3.

5.

6-ffit

6. Lending Norms : ,.

r Eligibility criteria for various loanso Repayment period. Gestation periodo Types of Repayment instalments

{Equal' r'Equated

{Gradedo Security for loanso Rate of interest r'

o Incentive scheme for regular repayment of crop loano Disincentivesforirregular/non-repayment

Government sponsored and other important programmeso National Rural Livelihood Missiono Prime Minister Employment Guarantee Programme (PMEGp)r Schemes of SC/ST Finance Corporationr Self Help Groups (SHGs)

. Joint Liability Groups (JLGs)

r Farmers' Club Programme - 5 Principles of Development through Credit

Role of Government Extension Agencieso District Rural Development Agency (DRDA)

. District Industries Centre, KVIB/KVICo AgricultureDepartment. Dairy Development Departmento Common Service Centre (CSC)

o SC/ST Finance & Development Corporation

Behavioural Science Moduleo Social/AttitudinalBehaviouro Confidence Building measureso Customer Serviceo Public Relationso Counselling Skills - Financials

TechnicalModuleo Technical session on handling of micro-ATM/RuPay Cardso CashMana8enlent/Limito Collectiorr of cash/cheques (deposits/repaypments)o Disbursements (loan/depositwithdrawal)o Loan Recovery. Remittance

. . Micro PensioRo Micro Insurance (health, life, general)

Prime Minister's Jan Dhart Yoiana (PMJDYI

o . Objectiveso 'Facilities under PMJDY

7.

B.

c.

fi"[:fT,]i\iH#i!

ANNEXURE t{B)

Capagity BuildinF qf PV.silesp,Qorfeseondents/Busines.s,tpcilitatpls lggtlF[s):,

Cou rs,e Conlent/Coveraee f qr On e-d.av .Ref reshe r TIa I n inF

A. Fun_ctionalModule

1. General Bankingo

- Bank's Funitioning - Collection of deposits/issue of loanso TYPes of bankso Banker-CustomerRelationship

2. Depositsr Meaning of deposits

a

a

a

a

a

Features of -l. Savings Bank Accountii. Fixed Depositiii. Recurring Deposit

Accoufrfopening/closingKnow Your Customer (KYC) normsMinor Accounts

Joint AccountsNo Frill Accounts/Basic Savings Bank Deposit Accounts (BSBDAs)

3. Categories of loans and advanceso Loan applicationsr Overdrafto Cash Credito Loans

Prime Mlniste/s Jan Dhap Yqia[a (PMJDYI

r Objectivesr Facilities under PMJDY

r Various schemes announced by Govt. of India viz., PMJJBY, PMSBY, ATP, Prime MinisterKrushi Bima Yojana, etc.

B.

L.

2.

3.

4.

5.

6.

ANNEXURE.II

Capacitv Buildins of Business Correspondents/Business Facilitators (BCs/BFsl

Other Modalities / Terms & Conditions

The quantum of support for Commercial Banks in all States for this purpose will be 60% ol course

fee and 4oo/ohas to be shared by the banks. Upper limit of course fee is capped at Rs.4500.00.

The support will not be available for those candidates who have already been trained/certifiedearlier through accredited training institutes of llBf .

A shorter duration, i.e. l day refresher course may be introduced to update those BCs/Bfs whihave received training earlier. For this, the course fee will be Rs.1500.00 (upper limit) per

candidate for one day programme. The course content/coverage will be as per Annexure-l(B).

The training slrould have proper monitoring system like entry and exit tests

The candidates can be awarded gradds like A, B and C in their certificates issued bythe Institute

Banks may submit proposals to our Regional Offices of the State concerned for sanction in the

enclosed Annexure-lll for 3 day programme and Annexure-V for one day Refresher Programme

and Annexure-Vll for the examination fee of BCs/BFs. Claim for teimbursement in respect of

capacity building programme for 3 days and refresher programme for 1 day may be submitted as

per Annexure lV and Vl, respectively, certifying that the number of candidates are trained and also

submit list of trained candidates provided by the Institute. Claim for reimbursement of

examination fee of the successful BCs/BFs may be submitted.as per Annexure-Vlll'

Separate data on BCs/BFs trained may be maintained at Bank level

Expenditure details, including receipts, etc. may be preserved at the bank level for any future

requirement.

7.

8.

. AN,NEXURE.- lll

qapacity guild.ing of Business Corresqondentq/BFsineqs.Faci!italgrs (89,9/8Fsl

On the letterhead ofthe Bank

No.

The Chief General ManagerNational Bank for Agriculture and Rural Development

Regional Office

Dear Sir,

Capacity Building of BCs/BFs through Certificate Courr" - 3 day Programme-Request for Grant Support under Financial Inclusion Fund (FlF)

Ref : Circular No. NB.DFIBT.HOI lFt-23120t6-17 dated 13 April 2016

We propose to train the following number of Business Correspondents / Business Facilitators attached

to our bank brancfr6s as per your guidelings mentioned in the Circular under reference.

* The balance 40% cost will be borne by our Bank

We request you to kindly sanction support of Rs. (Rupees _) under FIF

Yours faithfully

(Authorised Signatory )

Note : lf it is a multi-state proposal, the same may be sent to the chief General Manager, Department

of Financial Inclusion and Banking Technology, NABARD, Bandra-Kurla Complex, Bandra(East),

Mumbai 400 051.

Date :

Name of Bank

Branch

Name ofTraininglnstitute

No. of BCs/BFs

to be trainedCourse fee @

Rs.

oer candidate

Total Cost(Rs.)

60% supportfrom FIF *

1 2 3 4 5(Col. 4 x Col.3)

6(60% of Col.S)

ANNEXURE.IV

Format for Claim for Reimbursement

Capacitv Buildins of BCs/BFs- 3 dav Prosramme

A. Details of Candidates

B. Claim for reimbursement

Certified that the services of BCs/BFs will be fully utilized for providing banking facilities to the people

in areas/ villages allocated to them.

Certified that the amount of Rs. -- claimed has been actually spent for conducting training

programme(s) stated above.

Certified that no claim for assistance in respect of the training expenditure under the present claim

has been made to any other agency/ organization

Seal of the Bank

Name of the Bank

Branch

District/BlockAddress of the Bank

Name & address of the training institutewhere BCs/BFs trained

S.No, Programmeconducted aL.

Dates of TrainingProgramme

Names ofcandidates

Qualification Belongs toDistrict/BlocVVillage

Name ofthe_ Bank

branchwithwhom theBC/BF is

attached

From To

1 Sanctioned for total No. of candidates to be trained

2 Amount sanctioned (600/o of course fee @ Rs.

-

per

candidate)3 Total number of candidates trained (Actual)

4 Claim amount towards trained candidates

mffi-xSignature of authorized Bank Official

ANNqXURE - V

Capacitv Buildins of Business Cofrespondqnts/Buqiness Facilitators (BCF/BFsl

On the letterhead of the Bank

No.

The Chief General ManagerNational Bank for Agriculture and Rural Development

Regional Office

Date :

Dear Sir,

J.

Capacity Building of BCs/BFs through Certificate Course- One day Refresher Course-Request for Grant Support under Financial Inclusion Fund (FlF)

Ref : Circular No. NB.DFIBT.HO.I Itl-2312ot5-u dated 13 April 2016

We propose to train the following number of Business Correspondents / Business Facilitators attached

to our bank branches ib per your guidelines mentioned in the Circular under reference.

* The balance 40% cost will be borne by our Bank

We request you to kindly sanction support of Rs. (Rupees _) under FIF

Yours faithfully

(Authorised Signatory )

Note : lf it is a multi-state proposal, the same may be sent to the Chief General Manager, Departmentof Financial lnclusion and Banking Technology, NABARD, Bankdra-Kurla Complex, Bandra(East),

Mumbai 400 051.

Name of Bank

Branch

Name ofTraininglnstitute

No. of BCs/BFs

to be trainedCourse fee @

Rs.

-

oer candidate

Total Cost 60% supportfrom FIF *

t 2 3 4 5(Col.3xCol.4)

6(50%ofCol.5)

Format for Claim for Reimbursement

Capacitv Building of BCslBFs- One Dav Refresher Course

ANNEXURE.VI

c. Details of Candidates

D. Claim for reimbursement

Certified that the services of BCs/BFs will be fully utilized for providing banking facilities to the peoplein areas/ villages allocated to them.

CertifiedthattheamountofRs.-c|aimedhasbeenactual|yspentforconductingtrainingprogramme(s) stated above.

Certified that no claim for assistance in respect of the training expenditure under the present claimhas been made to any other agency/ organization

Name of the Bank

Branch

District/BlockAddress of the Bank

Name & address of the training institutewhere BCs/BFs trained

S.No. Programme

conducted atDate ofExamination

,Names ofcandidates

Qualification Belongs toDistrict/Block/Village

Name ofthe Bank

branchwithwhom theBC/BF is

attached

1 Sanction for total No. of candidates to be trained2 Amount sanctioned (60% of course fee @ Rs. _ per

candidate)3 Total number of candidates trained (Actual)

4 Claim amount towards trained candidates

tA

Seal of the Bgnk Signature of authorized Bank Official

ANNEXURE-VII

Reimbursement of Examination Fge of BCs/BFs

On the letterhead of the bank

No. Date :

The Chief General ManagerNational Bank for Agriculture and Rural Development

Regional Office

Dear Sir,

Reimbursement of Examination of Fee of BCs/BFs

-Request for grant support under Financial lnclusion Fund

Ref : Circular No. NB.DFIBT.HO/ Itt-2312OL6-17 dated 13 April 2015

We advise that the BCs/BFs as per the deta.ils furnished below would write the examination to be

conducted by the Indian Institute of Banking and Finance (llBF)'

Tentative Dateof Examination

Tentative Number ofBC/BFs who would take uP

Examination

Total Cost (Rs.) @Rs.800.00 as per

candidate Exam fee

60% support fromFIF* (Rs.)

t 2 3(Col. 2 x Rs.800)

4

GO%of Col.3)

*The balance 40% cost will be borne by our bank

We request you to kindly sanction support of Rs.-(Rupees

-)

under FIF'

Yours faithfully

(Authorised Si gnatory)

Note : lf it is a multi-state proposal, the same may be sent to the Chief General Manager, Department

of Financial Inclusion and Banking Technology, NABARD, Bankdra-Kurla Complex, Bandra(East),

Mumbai 400 051.

TL

ANNEXURE.VIII

Format for Claim for Reimbursement of Examination Fee of BCs/BFs

Ref : Circular No. NB.DFIBT.HOI Itt-2312OL6-17 dated 13 April 2016

E. Details of Candidates

F. Claim for reimbursement

Certified that the services of BCs/BFs will be fully utilized for providing banking facilities to the people

in areas/ villages allocated to them.

certified that the amount of Rs. claimed has been actually spent towards examination

fee.

Certified that no claim for assistance in respect of the training expenditure under the present claim

has been made to any other agency/ organization

Seal of the Bank

Name of the Bank

Branch

District/BlockAddress ofthe Bank

Name & address of the institute whereExamination for BCs/BFs conducted

S,No. Examinationconducted at

Date ofExam

Names ofcandidates

Qualification Belongs toDistrict/Block/Village

Name of the Bank

branch with whom theBC/BF is attathed

1 Total No. of candidates who have passed the Exam

2 Amount of fee in respect of passing candidates @

Rs.800/- per candidate

Rs.

3 SuoDort at 60% of amount at (2) above Rs.

Signature of authorized Bank Official