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107743754

Swarnjayanti Gram Swarozgar Yojana (SGSY)-Family and Wilful defaulter- Clarification

RPCD.SP.BC. 99 /09.01.01/2001-02

4 June 2002

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

Dear Sir,

Swarnjayanti Gram Swarozgar Yojana (SGSY)-Family and Wilful defaulter- Clarification

Please refer to Para I of our Circular No. RPCD.SP.BC.23 dated 1 September 1999 wherein we have stated that Grama Sabhas form the basis for identification of families for assistance under SGSY. This is in accordance with Para 3.1 of the extant SGSY guidelines.

It has been brought to our notice by the Ministry of Rural Development that instances of debarring relatives of defaulters from benefit under the scheme have been reported from some States. The terms ‘Family’ and ‘Defaulter’ for the purpose of SGSY guidelines have been defined by the Government of India as under:

2. ‘BPL Family’ under the guidelines would be treated as a unit for the purpose of giving income generating assets. The ‘Family’ would consist of members of a household and united by ties of marriage, blood and adoption. The family would consist of husband, wife, dependent parents /sons /daughters / brothers and sisters. The moment a parent/son/daughter/brother/sister is no longer dependent and has a separate household; he will no longer be a member of the same BPL family.

As far as the term ‘Wilful defaulter’ is concerned, it is defined as "one who is capable of repaying the loan, but has been defaulting intentionally and not repaying the loan deliberately and willfully".

3. We shall be glad if you will issue suitable instructions to your controlling offices/ branches in this regard under advice to us.

Yours faithfully

Sd/-

(Deepali Pant Joshi)
General Manager

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