The Chairman / Managing Director
All Indian Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

We advise that Government of India have allocated a target of 3,84,340 to States/UTs as per `Annexure A', under PMRY for the year 2006 – 2007.

2. The targets have been worked out on the basis of the final performance report for the year 2004-05 of states/UTs.

3. The list of States/UTs where the recovery of loans is less than 30 percent as per RBI report for the half year ending March, 2005 is given at `Annexure B'. The targets for these states, have, therefore been kept at their actual performance in 2004-05 only. In case there is substantial improvement in the recovery based on the RBI reports for the half year ending September, 2006, suitable enhancement of the targets for these states can be considered. Hence appropriate action plans for improving recovery of loans may be formulated by each of these states and the Ministry informed of the action taken in this regard.

4. The other terms and conditions of the Yojana are as under:

vii. For 2005-06, the cut off date of lapsing of sanction and completion of disbursement has been extended upto 31.05.2006. This period shall not be extended further. It may therefore be ensured that the quarterly schedules referred to in para (vi) above is adhered to strictly and sanction of loans for the programme year 2006-07 is completed by 31st December, 2006 (except for replacement of rejected applications from banks) and loan disbursed in all cases positively by 31st March 2007.

5. You may issue necessary instructions to your Regional /Controlling Offices/ Branches for active participation and achievement of allocated targets by 31.03.2007.

6. Please acknowledge receipt.

Yours faithfully,

(G.P.Borah)

Deputy General Manager

Targets under the prime minister's Rozgar Yojana (PMRY) for the year 2006-2007

Recovery of Loan Overdues under PMRY for the half year ended March, 2005.