Ref. No. NB.HO. DFIBT /14022-14482/DFIBT-23/2022-23

21 March 2023

Circular No.52/DFIBT-03/2022-23

Chairman/Managing Director/Chief Executive Officer/
Schedule Commercial Bank / Regional Rural Banks / Rural Cooperative Banks

Dear Sir/Madam

CAPEX support to RSETIs/RUDSETIs for Purchase of Training Equipment and Maintenance thereof 2.0

1. Please refer to our Circular No 257/DFIBT-35/2016 dated 02 November 2016 in connection with providing one-time support up to a maximum of ?3.00 lakh (all-inclusive) per Rural Self Employment Training Institute (RSETI)/ Rural Development and Self Employment Training Institute (RUDSETI) from Financial Inclusion Fund (FIF) for purchase of training equipment and maintenance thereof.

2. In the matter, it is advised that The Advisory Board for Financial Inclusion Fund (FIF) in its 30th meeting dated 12 January 2023 has approved the fresh one-time grant support up to a maximum of ?4.50 lakh (all inclusive) per RSETI/RUDSETI from FIF for purchase of training equipment and maintenance thereof.

3. The fresh support is as per para 4.3 of the revised guidelines of FIF issued by RBI vide Circular No. FIDD.CO.FID.No.1574/12.01.016/2018-19 dated 15 January 2019, as per which support can be provided to Banks for running of Business & Skill Development Centres including RSETIs/RUDSETIs (to the extent not provided by State Governments).

4. This is a fresh grant support proposed to be given to banks for purchase of new training equipment and maintenance in RSETIs/ RUDSETIs, banks which have already availed/partially availed the benefit of ?3.00 lakh under earlier scheme, can apply for fresh grant assistance of up to ?4.50 lakh from the date of issue of this circular. Those Banks that have set up RSETIs/RUDSETIs but have not availed benefit of ?3.00 lakh under the earlier scheme are also eligible for fresh grant assistance of up to ?4.50 lakh from the date of issue of this circular.

5. The release of funds would be subject to the following modalities:

5.1 Grant Assistance is available for RSETIs/ RUDSETIs graded between AA and CC in the latest ranking issued by the National Centre for Excellence of RSETIs (NACER) and approved by MoRD. The grade rating of RSETIs is provided on the website of National Centre for Excellence of RSETIs (NACER).
(http://nacer.in/rseti_grading. html)
In case any RSETI/RUDSETI has indicated higher grading during latest accreditation, the same may be accepted after confirmation from NACER.

5.2 Grant assistance is available on a reimbursement basis for purchase of training equipment and maintenance thereof. Expenditure incurred from the date of submission of proposal by the bank to the respective Regional Office of NABARD for sanction of grant assistance shall only be entertained. However, the release of fund is subject to approval of the proposal by the concerned Regional Office of NABARD and acceptance of terms & conditions by respective RSETI/RUDSETI.

5.3 The purchase of training equipment may be recommended by a committee comprising of the following members*:

• a) Director/Head of the concerned RSETIs/ RUDSETIs (Member Secretary)
• b) Representative from the Sponsor Bank/Promoting Bank
• c) DDM/Representative from NABARD
• d) Lead District Manager or his representative
• e) GM-DIC
• f) Representative from District Employment Exchange *Quorum is 4 members including LDM & DDM.

5.4 An indicative list of new training Equipment/Items that may be procured is enclosed in Annexure-IV. The list is indicative only and the final decision on the purchase of Equipment/Items may be taken on the recommendation by the Local Advisory Committee of RSETIs/RUDSETIs.

5.5 All-inclusive support of ₹4.50 lakh is on a one-time basis. Towards this, the bank may seek financial support to the extent of the cost of training equipment only or the cost of training equipment and maintenance (reimbursement towards maintenance will be restricted to 10% of the cost of equipment purchased).

5.6 An undertaking by the bank that the purchase and maintenance of the equipment claimed from FIF have not been supported by any other Funding Agency including the government is to be furnished with each drawal.

5.7 Support of NABARD may be acknowledged with the words “Supported under FIF managed by NABARD” (with NABARD logo) at appropriate places.

5.8 While purchasing the equipment due diligence as per the internal guidelines of the bank may be adhered to.

5.9 A quarterly progress report may be submitted to the respective Regional Office of NABARD in the prescribed format as per Annexure-III latest by the 5th of the succeeding month at the end of the each quarter.

6. The Banks may submit the proposal in the prescribed format as per Annexure-I for sanction of grant assistance to our respective Regional Offices. In those cases where proposal for support go across more than one State, the same may please be bifurcated on a state-wise basis to be submitted to our respective Regional Offices at the state level. Subsequent to the sanction of the grant assistance by NABARD from FIF and after the purchase of the equipment, the claim for the release of funds may be submitted as per Annexure-II.

7. This circular overrides the following circular: Circular No 257/DFIBT-35/2016 dated 02 November 2016

Yours faithfully

(B Sridhar)
Chief General Manager

Enclosed: As above