REPORT NO. 310

PARLIAMENT OF RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT

THREE HUNDRED AND TENTH REPORT ON The Functioning of Rashtriya Mahila Kosh (Presented to the Rajya Sabha on11 th February, 2019 ) (Laid on the Table of on11 th February, 2019 )

Rajya Sabha Secretariat, New Delhi February, 2019/Magha, 1940 (Saka) Website : http://rajyasabha.nic.in E-mail : [email protected] 20

Hindi version of this publication is also available

PARLIAMENT OF INDIA RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT

THREE HUNDRED AND TENTH REPORT ON The Functioning of Rashtriya Mahila Kosh

(Presented to the Rajya Sabha on 11th February, 2019) (Laid on the Table of Lok Sabha on 11th February, 2019)

Rajya Sabha Secretariat, New Delhi February, 2019/Magha, 1940 (Saka) CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)

2. INTRODUCTION ...... (iii)

3. ACRONYMS ...... (iv)

3. REPORT ...... 1-9

4. OBSERVATIONS/RECOMMENDATIONS — AT A GLANCE ...... 10-12

5. MINUTES ...... 13-18 COMPOSITION OF THE COMMITTEE (Constituted w.e.f. 1st September, 2018)

1. Dr. Satyanarayan Jatiya — Chairman

RAJYA SABHA 2. Shri Partap Singh Bajwa 3. Shrimati Vandana Chavan 4. Prof. Jogen Chowdhury 5. Prof. M.V. Rajeev Gowda 6. Shri Anubhav Mohanty 7. Shri Vishambhar Prasad Nishad 8. Dr. Sasikala Pushpa Ramaswamy 9. Dr. Vinay P. Sahasrabuddhe 10. Shri Gopal Narayan Singh

LOK SABHA 11. Shrimati 12. Shri Bijoy Chandra Barman 13. Shri Nihal Chand Chauhan 14. Ms. Bhawana Gawali (Patil) 15. Shri Faggan Singh Kulaste 16. Shrimati Geetha Kothapalli 18. Shri Bhairon Prasad Mishra 19. Shri Ramachandran Mullappally 21. Shri Hari Om Pandey 22. Dr. 23. Shri N.K. Premachandran 22. Shri Krishnan Narayanaswamy Ramachandran 23. Shri *24. Shri V.S. Ugrappa 25. Dr. Nepal Singh 26. Dr. Prabhas Kumar Singh 27. Shri Satya Pal Singh 28. Shrimati Neelam Sonker 29. Shri P.R. Sundaram 30. Shrimati P.K. Sreemathi Teacher 31. Shrimati Tabassum Begum

* Nominated to the Committee w.e.f. 17th January, 2019.

(i) (ii)

SECRETARIAT Shri K. P. Singh, Joint Secretary Shri Rajiva Srivastava, Director Shri Vinay Shankar Singh, Additional Director Shrimati Himanshi Arya, Under Secretary Shri K. Sudhir Kumar, Research Officer Shri Mohit Mishra, Committee Officer Shrimati Suman Khurana, Committee Officer INTRODUCTION

I, the Chairman of the Department-related Parliamentary Standing Committee on Human Resource Development, having been authorised by the Committee, present this Three Hundred and Tenth Report of the Committee on the subject The Functioning of Rashtriya Mahila Kosh.

2. The Committee held a meeting on 25th January, 2019 with the Executive Director and other officials of Rashtriya Mahila Kosh on the functioning of Rashtriya Mahila Kosh and steps needed to be taken to strengthen it.

3. While drafting the Report, the Committee relied on the following documents:

(i) status note on functioning of Rashtriya Mahila Kosh received from the Ministry of Women and Child Development;

(ii) comments/clarifications given by the Ministry on the questionnaire on the functioning of Rashtriya Mahila Kosh; and

(iii) Comparison of important aspects of Mudra Scheme with Rashtriya Mahila Kosh.

4. The Committee considered the Draft Report and adopted the same in its meeting held on 8th February, 2019.

5. For facility of the reference, observations and recommendations of the Committee have been printed in bold letters at the end of Report.

DR. SATYANARAYAN JATIYA NEW DELHI; Chairman, 8th February, 2019 Department-related Parliamentary Standing Magha 19, 1940 (Saka) Committee on Human Resource Development, Rajya Sabha.

(iii) ACRONYMS

1. RMK : Rashtriya Mahila Kosh

2. SHGs : Self Help Groups

3. JLGs : Joint Liability Groups

4. IMOs : Intermediary Micro-Organisations

5. DBT : Direct Benefit Transfer

6. NIPCCD : National Institute of Public Cooperation and Child Development

7. PMMY : Pradhan Mantri Mudra Yojana

8. MCLR : Marginal Cost Lending Rate

9. ISAP : Indian Society for Agribusiness Professionals

10. DoPT : Department of Personal and Training

(iv) REPORT

OVERVIEW The set up “Rashtriya Mahila Kosh” (RMK) a National Credit Fund for Women on 30th March, 1993 as an apex funding organisation under the Department of Women and Child Development (now Ministry) exclusively for the women based on the recommendations made by National Commission for Self-employed Women in the Informal Sector. The Commission in its report titled “SHRAM SHAKTI” recommended innovations in the credit mechanism to assist poor women who were unfamiliar with the complexities of institutional finance and suggested setting up of an exclusive credit body for poor and self-employed women in recognition of their socio- economic realities.

2. The budgetary support received from the Government is for Corpus Fund which is utilised for its lending purposes by RMK. At present the total corpus fund of RMK is ` 284 crores as on 31.03.2018, which includes principal corpus of ` 100 crores received from GOI and an equivalent amount being reserves and surpluses generated from internal resources.

3. RMK provides micro-credit to women Self-help Groups (SHGs) / Joint Liability Groups (JLGs) including women micro-entrepreneurs in both rural and urban areas through Intermediary Micro-financing Organisations (IMOs) like NGOs. Apart from micro credit, it also builds the capacities of SHGs women-members and the partner organisations by imparting trainings in financial management, project management, enterprise development, skill up-gradation, exposure visits, etc. Marketing assistance to the women beneficiaries is also arranged. RMK aims at holistic development of women through micro-finance. The IMOs are advised to dovetail their micro-finance programmes with activities like imparting financial literacy, education, awareness on health, hygiene, nutrition, HIV/ AIDS, legal rights etc.

4. The Ministry of Women and Child Development in its submission in the meeting held with the Committee on 22nd October, 2018 outlined the key objectives of RMK as follows:

(a) to promote / undertake activities for the promotion of or to provide credit as an instrument of socio-economic change and development through the provision of a package of financial and social development services for the development of women;

(b) to promote research, study, documentation and analysis of credit and its management; and

(c) to promote replication and dissemination of successful credit extension and management methodologies.

5. The Ministry also informed the Committee that credit is provided to the poor women beneficiaries under Self Help Group (SHG) model through Intermediary Micro Financing Organizations (IMOs) working at grass root level such as NGOs, Voluntary Organizations, Cooperative Societies, State Government Agencies like Dairy Federations, etc., by following friendly and simple procedure for various livelihood and income generation activities.

6. The Ministry further informed that apart from giving micro-credit, RMK also strengthen the capabilities of SHGs / women members and partner organizations through trainings in financial

1 2 management including risk and project management, enterprise development and assistance in marketing to bring about holistic development.

7. Keeping in view the social importance of the Rashtriya Mahila Kosh, the Committee decided to take up the working of the Kosh for detailed examination. Thereafter, the Committee held a meeting with the Executive Director, Rashtriya Mahila Kosh on 25th January, 2019. The major issues discussed and the submissions made in the meeting have been dealt with in succeeding paragraphs.

8. The Ministry vide its status note furnished on 25th January, 2019 informed the Committee about the State/UT-wise details of Cumulative Sanctions and Disbursements and Number of Beneficiaries since inception till 18.01.2019 as following:

(Amount in ` lakh) Sl.No. State/UT Name Sanction Disbursement Beneficiaries

1. Andaman Nicobar 40.00 40.00 667

2. Andhra Pradesh 8,168.41 7,168.48 1,97,839

3. Arunanchal Pradesh 10.00 5.00 100

4. Assam 535.90 503.90 7,005

5. Bihar 667.25 508.83 17,369

6. Chhattisgarh 14.50 8.50 370

7. Delhi 954.72 839.62 7,742

8. Gujarat 223.50 193.50 7,173

9. 350.01 324.16 4,502

10. Himachal Pradesh 676.48 655.63 12,925

11. Jammu & Kashmir 182.00 107.00 1,986

12. Jharkhand 250.43 190.20 2,428

13. Karnataka 1,169.25 619.00 19,415

14. Kerala 866.22 682.52 34,257

15. 2,347.30 2,042.40 22,416

16. Maharashtra 1,746.90 1,477.55 36,135

17. Manipur 284.05 216.04 8,421

18. Mizoram 4.00 2.00 70

19. Nagaland 74.00 45.50 859

20. Odisha 2,334.45 2,203.55 39,272 3

Sl.No. State/UT Name Sanction Disbursement Beneficiaries

21. Pondicherry 51.00 16.00 300

22. Punjab 141.00 37.50 500

23. 2,016.90 1,872.74 30470

24. Tamil Nadu 8,228.84 6,655.77 170209

25. Telangana 1,712.40 1,442.70 32553

26. Uttar Pradesh 1,002.25 675.12 26939

27. Uttarakhand 419.24 389.89 3148

28. West Bengal 2,681.29 2,189.29 55283

TOTAL 37,152.29 31,112.38 7,40353

9. The Committee was further informed that since Rashtriya Mahila Kosh was undertaking the revision of loan guidelines, physical and financial targets were not fixed for the financial year 2016-17 and 2017-18. However, targets are fixed for FY 2018-19. The details are given hereunder:

Year Target Achievement

Financial Physical (Number Financial Physical (Number (` in Lakhs) of Beneficiaries) (` in Lakhs) of Beneficiaries)

2016-17 - - 55.00 310

2017-18 - - 117.50 2915

2018-19 (Till 3000.00 12000 701.50 2199 18.01.2019)

10. The Ministry in its comments/clarifications submitted in response to the questionnaire stated that the loan lending guidelines of RMK have been revised and implemented to ensure that the loan is sanctioned and disbursed by RMK to only efficiently functioning IMOs. The salient features of the revised guidelines are as follows:

(a) Registration at the NITI Aayog portal

(b) Details of End Beneficiaries

(c) Introduction of Internal Risk Rating assessment

(d) Disbursement through Direct Benefit Transfer (DBT)

(e) Loan amount: The maximum lending amount per individual beneficiary shall not exceed.

 New Borrower : `60,000/-

 Repeat Borrower : `1,00,000/- (existing plus new loan) 4

(f) Margin: The organisation is required to contribute a margin of 10% of the loan to be availed from RMK (g) Repayment: Monthly in place of Quarterly (h) Fixing Promoters’ Responsibility (i) The rate of interest on loans availed by IMOs and also on-lending rate to SHGs/ beneficiaries as :

 RMK to IMO - 6% p.a. on reducing balance

 IMO to SHG/Beneficiary - any rate on or above 6% p.a. subject to a maximum ceiling of 10% p.a. to end-beneficiaries on reducing balance.

11. The Joint Secretary, RMK further informed that it had been noted before the guidelines were revised that the IMOs/NGOs would take the money from the organisation but delayed the disbursement of loans to the intended beneficiaries. Accordingly, it was informed that as per the revised loan guidelines, to get rid of delay in disbursement of loans to intended beneficiaries and to cut down on the delayed once the loan is sanctioned, RMK intimates to IMOs by issuing sanction letters. On receipt of the same, IMOs are advised to complete the documentation for release of loans. Also IMOs are advised to transfer the amount to the end beneficiaries within 30 days from the date of release of loan by RMK. It is closely monitored by RMK to ensure that the loan amount is released by IMOs in time. If disbursements to end beneficiaries are not made by the IMOs within the above stipulated period, penal interest is levied by RMK @ 2% per annum from 31 days to 60 days and @ 6% per annum thereafter. RMK also reserves its right to recall the undisbursed amount by IMOs to end beneficiaries with penal interest in the event of delay in disbursements stipulated as above.

12. The Committee was also informed that as of now, RMK has financed 7.40 Lakh women beneficiaries covering 28 States in the country through nearly 1500 IMOs. To a pointed query, the Committee was informed that maintaining individual accounts of each beneficiaries will not be cost effective and feasible. Appraisal and supervision of individual beneficiaries / account will increase the cost of lending, resulting in higher interest rate to the beneficiaries thereby defeating the purpose of RMK. Also RMK does not have Branches except the present office in Delhi. Without branch office it is virtually not possible to monitor and recover loan from individual beneficiaries.

13. The representatives of RMK informed that the problem faced in the effective implementation of the Scheme are lack of adequate manpower. The Ministry of Women and Child Development has taken up the issue with the Ministry of Finance. However, the Ministry of Finance advised to wait till the status of autonomous bodies is reviewed by NITI Aayog. NITI Aayog during the 19th meeting of the Committee for the Review of Autonomous Bodies, held under the chairpersonship of Principal Advisor, NITI Aayog on 11th December, 2018, reiterated that RMK is a fit case for change in its constitution. Accordingly, the Ministry examined the issue and decided to maintain status quo with regard to RMK. The Ministry has permitted to induct Consultants at RMK to look after the critical functions like Loans, Administration, Accounts, Legal and Official Language for its effective functioning.

14. It was further informed that there are 37 sanctioned posts in the Rashtriya Mahila Kosh of which at present 21 posts are lying vacant. This includes the posts of the Executive Director and 5

General Manager. Officers from the Ministry at present are holding additional charges of Executive Director and General Manager posts. A tabulated statement of the present position is given below:

Sl.No. Name of post No. of sanctioned Filled up/ *Engaged Vacant strength on contract basis

1. Executive Director 1 1 -

2. General Manager 1 1 -

3. Dy. Director (on deputation) 5 2 3

4. Asstt. Director 3 - 3

5. Prog. Executive 4 2 2

6. Sr. Stenographer 1 - 1

7. Office Executive 6 - 6

8. Office Executive (Hindi) 1 - 1

9. Stenographer 5 - 5

10. Jr. Executive 4 4 -

11. Staff Car Driver 2 2 -

12. Office Messenger (Peon) 4 4 -

TOTAL 37 16 21

15. As regards the post of Executive Director in RMK the Committee was informed that the Ministry had advertised a number of times for filling up the post of Executive Director in Rashtriya Mahila Kosh. It was tried through DoPT also by encadering the post under Central Staffing Scheme. Still, no selection could be made due to poor response. As an interim arrangement till a regular incumbent joins to the post, additional charges were given to its Officers.

16. The Committee was further informed that to give SHGs training on credit management and skill training to individual women, RMK requested the National Institute of Public Cooperation and Child Development (NIPCCD), the training agency under the Ministry of WCD to provide slots for trainings during the FY 2018-19. NIPCCD has provided three slots for undertaking Orientation / capacity building training to IMOs/ beneficiaries of RMK during December, 2018. Further, awareness workshops are organised regularly for SHG members at the time of pre-sanction and post- sanction studies undertaken by RMK.

17. During the course of the meeting held on the 25th January, 2019, on a pointed query the Committee was informed that nearly 57% women beneficiaries of the RMK loan recipients were from Southern States and remaining from the rest part of the Country. To reach out women in the Northern and North Eastern States of the Country, RMK has been undertaking awareness drive to invite proposals from IMOs belonging to these States. Also RMK has written letters to many Organisations involved in the empowerment of women in 6 these States to submit their proposals for getting loan. The Committee was also apprised that besides this, RMK provides the following Special Package for IMOs of North Eastern States:

 Organisation can apply after one year of registration.

 Margin only at 5% of the loan.

 Grace period on repayment is of 12months

 Repayment period of loan enhanced to 5 years i.e. 60 months.

 NGO will be supported with 10% of loan as capacity building assistance.

 Second Class to and fro rail fare and where there is no rail link, cheaper class to and fro air fare, up to 2 members of NGO for execution of documents in Delhi.

18. The Ministry also submitted that the following default procedures are undertaken for effective recovery of disbursed loan amounts:-

(a) Whenever the first instalment becomes due, reminder notices are sent to the party by email, registered post and even contacted over phone to immediately make remittances and regularise the account.

(b) In case there is no response to the notices and periodical reminders and when more than three instalments become due, steps for blacklisting the borrower IMO are initiated.

(c) Show cause notices are issued directing the IMO to make payment within a stipulated time.

(d) Show cause notices are issued thrice and if there is no response from the borrower the IMO account is blacklisted after obtaining permission from the competent authority.

(e) Blacklisting of IMO is duly informed to all the controlling offices of Financial Institutions/ Banks/Government Organizations/Ministries etc

(f) Simultaneously Post dated Cheques obtained from borrower if any is also presented in the bank for payment after sending due information letter to borrower about such presentation of cheque. If the cheque is returned/ dishonoured, Criminal cases U/s 138 of Negotiable Instruments Act are filed.

(g) Regular reminders and the statement of Accounts are sent to borrower IMOs periodically instructing them for regularising their loan account.

(h) In spite of above efforts when such default loan accounts are not regularised then legal steps are initiated to file Civil Suit or Arbitration proceedings in terms of the loan agreement as the case maybe.

(i) In chronic cases even Police complaints are registered.

(j) Whenever officials go on Pre or Post sanction visits, default IMOs in the area are also contacted for recovery/regularising the account. 7

PRADHAN MANTRI MUDRA YOJANA VIS-À-VIS RMK

19. The Committee sought a comparative analysis of the PMMY and RMK from the Ministry. In response the Ministry submitted that under the PMMY the beneficiary who wishes to avail the loan should visit any Bank branch and complete all documentation formalities before getting the loan. Further, the interest rate are to be charged as per the policy decision of the bank i.e. mostly above 10% to end beneficiaries and also it is Compound rate of interest. Also interest rates are different from one bank to another due to its Marginal Cost Lending Rate (MCLR) which varies from Bank to Bank. Finally, the objective of Mudra Scheme is to provide loans of up to ` 10 lakh to the non- corporate, non-farm, small and micro enterprises.

20. The Ministry further stated that in comparison to Banks, RMK provides loans to the women beneficiaries at their door steps and also assist them by arranging capacity building training in collaboration with IMO’s in their location itself. Also, interest charged to end beneficiaries may vary from the minimum of 6% to the maximum ceiling of 10% simple rate of interest and on reducing balance.

21. The Committee was further informed that in 2013, Indian Society for Agribusiness Professionals (ISAP) New Delhi, an independent organisation evaluated the socio-economic impact of RMK loan on improvement in the living condition of poor women beneficiaries. The scope of this study included in-depth interaction with intermediary Organisations (IMOs) and to assess socio-economic impact on women SHGs. After analysis of the said impact, the outcome was found to be positive on economic front i.e. increase in net income, savings of the beneficiaries and on social front i.e. earning self-respect & participation in decision making in families.

OBSERVATIONS/RECOMMENDATIONS

22. The Committee notes that there has been an uneven distribution of RMK beneficiaries throughout the country, for example some States like Tamil Nadu and Andhra Pradesh had large number of beneficiaries but States like Assam, Chhattisgarh, Haryana, Uttarakhand and so on were lagging behind. The Committee urges the Ministry to ensure that strategies are formulated to extend RMK loans to the under-represented States, so that the State-wise distribution of beneficiaries becomes more even and balanced.

23. The Committee notes that the pace of expenditure has been slow as is evident from the fact that out of the Financial Target of ` 3000.00 lakh, only ` 701.50 lakh has been achieved till 18.01.2019. This necessitates serious introspection about spending of allocated funds as per the stipulated action plan for RMK. The Committee urges the Ministry to ensure that RMK adopts a more pro-active approach to ensure that the funds are well utilized and become a source of empowerment and development for poor women beneficiaries.

24. The Committee notes that the RMK extends loans to IMOs at 6% p.a. on reducing balance and in turn the IMOs extend loans to SHGs/ individual beneficiaries at any rate or above 6% subject to maximum ceiling of 10% p.a. on reducing balance. The Committee is of the opinion that RMK should hold discussions with Banks to explore the feasibility of extending loans under RMK using the banking networks so that RMK loans can be given to the intended beneficiaries at the lowest possible interest rates. The Committee is also of the opinion that proper steps should be taken to increase the operational efficiency of 8 the IMOs to ensure that the benefits envisaged under the RMK reach the maximum number of women.

25. The Committee expresses its concern at the state of affairs with RMK wherein out of 37 sanctioned posts, 21 are lying vacant and 16 have been filled up on contractual basis. The Committee urges the Ministry to fill up the vacant posts, at the earliest, as shortage of adequate manpower tends to affect the overall efficiency and effectiveness of the organisation.

26. The Committee takes note of the fact that the Ministry advertised for the post of Executive Director of the Rashtriya Mahila Kosh a number of times. It was tried through DoPT also by encadering the post under Central Staffing Scheme. Still, no selection could be made due to poor response. In this respect, to improve the response, the Committee would urge the Ministry to revise the rules and regulations prescribing the qualifications for the post of Executive Director, RMK. Further, the Ministry should hold consultations with the different stakeholders while revising the qualifications needed for the post of Executive Director to ensure that the qualifications prescribed are as per the needs of the organisation.

27. The Committee observes that the responsibility of RMK, does not end with the disbursing of loan to women beneficiaries. In fact, RMK should also involve itself in imparting training to the beneficiaries. This is of critical importance because the beneficiaries generally tend to have limited knowledge of finance. The Committee would like to add that RMK shall tie- up with the Skill India Project of the Government to help the beneficiaries.

28. The Committee further notes that Rashtriya Mahila Kosh has not taken any step in mobilising resources from government, public and private donors and other developmental agencies. At present, RMK has corpus of `100 Crores and reserves and surpluses to the tune of 184 Crores and the same is being utilised for its developmental activities. The Committee is of the view that RMK should adopt a more vigorous strategy to raise resources. This would also help raise awareness about the aims and objectives of the RMK.

29. The Committee notes that there are a large number of bad loans pending with RMK. The Committee in this respect would like to urge the Ministry to undertake a study of the reasons for the failure of the business ventures of the beneficiaries and if these women beneficiaries could be helped to revive their business with financial and management support from RMK. On the other hand, the Ministry should frame a suitable one time settlement scheme for amicable settlement of eligible cases who wish to close their accounts with RMK. This would help decrease the pending bad loans with the organisation.

30. The Committee would like to emphasise that the processing of loan applications should be quick and hassle free so that the beneficiaries get the loan at the earliest for them to start their business venture. Further, the Ministry should take adequate steps to popularise the scheme especially in rural and remote areas of the country so that the women living in such areas can avail loans for their socio-economic empowerment. The Ministry should advertise about the working of RMK to increase its popularity. The Ministry could venture out with the concept of periodically arranging ‘loan Melas’ in identified areas of different States in coordination with respective State government authorities and concerned M.P.s/ 9

MLAs/Local Bodies etc. so as to facilitate awareness among the needy poor women to come forward to avail the loan facilities available with RMK.

31. The Committee takes this opportunity to impress upon the Ministry to revamp the organisation. The Ministry should explore the possibility of setting up regional offices so that it can better monitor the disbursement of loans and selection of beneficiaries.

32. The Committee is of the opinion that the Rashtriya Mahila Kosh should continue to extend micro-finance to the poorest and asset-less women for their socio-economic empowerment. The Ministry should ensure that the loans are made available to the women at the lowest interest rate possible and in a hassle free manner as it would help in bringing socio- economic empowerment of the women and also these women would become a role model for other women and girls in their vicinity.

33. The Committee observes that Rashtriya Mahila Kosh (RMK) was set up way back in 1993 and it has been functioning since then. Now more than 25 years have gone by, the Committee is not aware whether the Ministry has ever carried out any impact study or assessment concerning RMK. The Committee wishes that the Ministry should conduct an impact study/assessment of the RMK with regard to its efficiency; the extent to wihch it has been successful in meeting the desired goals; whether it could reach out to the intended beneficiaries across the country; what has been its role vis-as-vis the similar schemes being implemented by the Public Sector Banks as well as other Non Banking Financial Institutions: whether there are any gaps or overlapping vis-a-vis in the functioning of those banks and Non Banking Financial Institutions; whether RMK should be converted into a Non Banking Financial Institution and any other structural change which may be required to meet the needs of present time. OBSERVATIONS/RECOMMENDATIONS — AT A GLANCE

The Committee notes that there has been an uneven distribution of RMK beneficiaries throughout the country, for example some States like Tamil Nadu and Andhra Pradesh had large number of beneficiaries but States like Assam, Chhattisgarh, Haryana, Uttarakhand and so on were lagging behind. The Committee urges the Ministry to ensure that strategies are formulated to extend RMK loans to the under-represented States, so that the State-wise distribution of beneficiaries becomes more even and balanced. (Para 22)

The Committee notes that the pace of expenditure has been slow as is evident from the fact that out of the Financial Target of ` 3000.00 lakh, only ` 701.50 lakh has been achieved till 18.01.2019. This necessitates serious introspection about spending of allocated funds as per the stipulated action plan for RMK. The Committee urges the Ministry to ensure that RMK adopts a more pro-active approach to ensure that the funds are well utilized and become a source of empowerment and development for poor women beneficiaries. (Para 23)

The Committee notes that the RMK extends loans to IMOs at 6% p.a. on reducing balance and in turn the IMOs extend loans to SHGs/ individual beneficiaries at any rate or above 6% subject to maximum ceiling of 10% p.a. on reducing balance. The Committee is of the opinion that RMK should hold discussions with Banks to explore the feasibility of extending loans under RMK using the banking networks so that RMK loans can be given to the intended beneficiaries at the lowest possible interest rates. The Committee is also of the opinion that proper steps should be taken to increase the operational efficiency of the IMOs to ensure that the benefits envisaged under the RMK reach the maximum number of women. (Para 24)

The Committee expresses its concern at the state of affairs with RMK wherein out of 37 sanctioned posts, 21 are lying vacant and 16 have been filled up on contractual basis. The Committee urges the Ministry to fill up the vacant posts, at the earliest, as shortage of adequate manpower tends to affect the overall efficiency and effectiveness of the organisation. (Para 25)

The Committee takes note of the fact that the Ministry advertised for the post of Executive Director of the Rashtriya Mahila Kosh a number of times. It was tried through DoPT also by encadering the post under Central Staffing Scheme. Still, no selection could be made due to poor response. In this respect, to improve the response, the Committee would urge the Ministry to revise the rules and regulations prescribing the qualifications for the post of Executive Director, RMK. Further, the Ministry should hold consultations with the different stakeholders while revising the qualifications needed for the post of Executive Director to ensure that the qualifications prescribed are as per the needs of the organisation. (Para 26)

The Committee observes that the responsibility of RMK, does not end with the disbursing of loan to women beneficiaries. In fact, RMK should also involve itself in imparting training to the beneficiaries. This is of critical importance because the beneficiaries generally tend

10 11 to have limited knowledge of finance. The Committee would like to add that RMK shall tie- up with the Skill India Project of the Government to help the beneficiaries. (Para 27)

The Committee further notes that Rashtriya Mahila Kosh has not taken any step in mobilising resources from government, public and private donors and other developmental agencies. At present, RMK has corpus of `100 Crores and reserves and surpluses to the tune of 184 Crores and the same is being utilised for its developmental activities. The Committee is of the view that RMK should adopt a more vigorous strategy to raise resources. This would also help raise awareness about the aims and objectives of the RMK. (Para 28)

The Committee notes that there are a large number of bad loans pending with RMK. The Committee in this respect would like to urge the Ministry to undertake a study of the reasons for the failure of the business ventures of the beneficiaries and if these women beneficiaries could be helped to revive their business with financial and management support from RMK. On the other hand, the Ministry should frame a suitable one time settlement scheme for amicable settlement of eligible cases who wish to close their accounts with RMK. This would help decrease the pending bad loans with the organisation. (Para 29)

The Committee would like to emphasise that the processing of loan applications should be quick and hassle free so that the beneficiaries get the loan at the earliest for them to start their business venture. Further, the Ministry should take adequate steps to popularise the scheme especially in rural and remote areas of the country so that the women living in such areas can avail loans for their socio-economic empowerment. The Ministry should advertise about the working of RMK to increase its popularity. The Ministry could venture out with the concept of periodically arranging ‘loan Melas’ in identified areas of different States in coordination with respective State government authorities and concerned M.P.s/ MLAs/Local Bodies etc. so as to facilitate awareness among the needy poor women to come forward to avail the loan facilities available with RMK. (Para 30)

The Committee takes this opportunity to impress upon the Ministry to revamp the organisation. The Ministry should explore the possibility of setting up regional offices so that it can better monitor the disbursement of loans and selection of beneficiaries. (Para 31)

The Committee is of the opinion that the Rashtriya Mahila Kosh should continue to extend micro-finance to the poorest and asset-less women for their socio-economic empowerment. The Ministry should ensure that the loans are made available to the women at the lowest interest rate possible and in a hassle free manner as it would help in bringing socio- economic empowerment of the women and also these women would become a role model for other women and girls in their vicinity. (Para 32)

The Committee observes that Rashtriya Mahila Kosh (RMK) was set up way back in 1993 and it has been functioning since then. Now more than 25 years have gone by, the Committee is not aware whether the Ministry has ever carried out any impact study or assessment concerning RMK. The Committee wishes that the Ministry should conduct an impact study/assessment of the RMK with regard to its efficiency; the extent to wihch it has been successful in meeting the desired goals; whether it could reach out to the intended beneficiaries across the country; what has been its role vis-as-vis the similar schemes being 12 implemented by the Public Sector Banks as well as other Non Banking Financial Institutions: whether there are any gaps or overlapping vis-a-vis in the functioning of those banks and Non Banking Financial Institutions; whether RMK should be converted into a Non Banking Financial Institution and any other structural change which may be required to meet the needs of present time. (Para 33) MINUTES

V FIFTH MEETING

RECORD NOTE OF THE DISCUSSION OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT

The Committee on Human Resource Development met at 11.00 A.M. on Friday, the 25th January, 2019 in Committee Room No. ‘04’, A Block, Parliament House Annexe Extension, New Delhi.

MEMBERS PRESENT 1. Dr. Satyanarayan Jatiya — Chairman

RAJYA SABHA 2. Shri Partap Singh Bajwa 3. Dr. Vinay P. Sahasrabuddhe

LOK SABHA 4. Dr. Bhagirath Prasad 5. Dr. Nepal Singh

SECRETARIAT Shri K. P. Singh, Joint Secretary Shri Rajiva Srivastava, Director Shri Vinay Shankar Singh, Additional Director Shrimati Himanshi Arya, Under Secretary Shri K. Sudhir Kumar, Research Officer Shri Mohit Misra, Committee Officer Shrimati Suman Khurana, Committee Officer

WITNESSES:

Sh. L.K. Meena, Joint Secretary, Ministry of Women and Child Development, and Executive Director, RMK. Ms. Anuradha S. Chagti, Joint Secretary (RMK), Ministry of Women and Child Development. Shri K.C. Behera, Deputy Secretary, Ministry of Women and Child Development, and General Manager, RMK. Shri Manoj Kumar Acharjee, Senior Consultant (Administration), RMK Ms. Sushma Anand, Senior Consultant (Loans), RMK. Shri. Naresh Kumar Gupta, Senior Consultant (Loans) RMK.

At the outset, the Chairman welcomed the Members and the officials of Rashtriya Mahila Kosh, Ministry of Women & Child Development to the meeting. Thereafter, he sought clarifications on the following issues related to the working of Rashtriya Mahila Kosh :

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(i) the status of the implementation of various loan schemes by the IMOs/NGOs in different States;

(ii) steps taken to ensure better monitoring of the NGOs / IMOs; and

(iii) steps taken to fill up the vacancy of the Executive Director in Rashtriya Mahila Kosh by a full time officer.

2. The Executive Director, Rashtriya Mahila Kosh and Joint Secretary, Ministry of Women and Child Development informed the Committee that the Rashtriya Mahila Kosh was set up in the year 1993, however, during the last few years its performance had not been very good, thereafter, it was decided to revise the loan guidelines to ensure that the end beneficiaries get the maximum advantage. Further, it was decided to black list a number of IMOs / NGOs which were found to be involved in suspicious activities. Subsequent, to the revised loan guidelines, the Rashtriya Mahila has now been focussing on extending the financial benefits to the needy women in the best possible manner. The Committee was also informed about the steps taken to monitor the IMOs/NGOs, reducing the maximum interest rates that could be charged from the beneficiaries, devising special strategy for North East States and so on.

3. As regards the steps taken to fill up the post of Executive Director with a full time officer, the Committee was informed that DoPT had been requested a number of times to select an officer for the post. However, the efforts are still underway and a number of changes has been made to attract more applicants for the post under the Central Staffing Scheme encadring it in the Joint Secretary scale. The Ministry expressed the hope that DoPT would soon fill up the post.

4. The Members observed that there was a skewed distribution of beneficiaries among the States and a number of States were very poorly represented in the beneficiaries’ list. It was also pointed out that the performance of RMK during the last three Financial Years was not very robust and more efforts were needed to ensure that the benefits envisaged reach the needy women. The need for generating awareness about the Rashtriya Mahila Kosh among the people was also felt so that the needy women and associated IMOs/NGOs can approach the organisation for loans for their business ventures leading to their empowerment. It was also emphasised that credit delivery should be fast and hassle free so that the women who are usually semi-literate do not face too many obstacles in getting the loans.

5. The Chairman, in his observation pointed out that sincere efforts were required to re-energise the organisation. More funds are required to be arranged for the intended beneficiaries. He emphasised on the need to provide training and marketing facilities to the women beneficiaries so that they can set-up profitable ventures on the basis of loans provided by Rashtriya Mahila Kosh. He further, directed the officials present to submit their comments/ clarifications on the issues raised in the meeting within a period of one week.

6. The Committee then adjourned at 12.40 P.M. MINUTES OF THE MEETING OF THE DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON HUMAN RESOURCE DEVELOPMENT V FIFTH MEETING

The Committee on Human Resource Development met at 10.30 A.M. on Thursday, the 8th February, 2019 in Committee Room No. ‘62’, First Floor, Parliament House, New Delhi.

MEMBERS PRESENT 1. Dr. Satyanarayan Jatiya — Chairman

RAJYA SABHA 2. Shri Partap Singh Bajwa 3. Shrimati Vandana Chavan 4. Shri Vishambhar Prasad Nishad

LOK SABHA 5. Shrimati Santosh Ahlawat 6. Shri Nihal Chand Chouhan 7. Shri Bhairon Prasad Mishra 8. Dr. Bhagirath Prasad 9. Shri V. S. Ugrappa 10. Dr. Prabhas Kumar Singh 11. Shri Satyapal Singh 12. Shri Sumedhanand Saraswati

SECRETARIAT Shri K. P. Singh, Joint Secretary Shri Rajiva Srivastava, Director Shri Vinay Shankar Singh, Additional Director Shrimati Himanshi Arya, Under Secretary Shri K. Sudhir Kumar, Research Officer Shrimati Suman Khurana, Committee Officer

2. At the outset, the Chairman welcomed Shri V. S. Ugrappa, the recently nominated Member to this Committee and then also welcomed the other Members to the meeting of the Committee convened to consider and adopt the draft (i) 309th Report on the Action Taken by the Government on the Observations/Recommendations contained in the Three Hundred and Fifth Report on the Demands for Grants (2018-2019) of the Department of School Education and Literacy, and (ii) 310th Report on the ‘Functioning of Rashtriya Mahila Kosh’.

3. The Committee considered the draft 309th and 310th Reports and adopted them after some discussion.

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4. The Committee, then, decided to present the 309th and 310th Reports to the Rajya Sabha and lay on the table of Lok Sabha on 11th February, 2019. The Committee authorized the Chairman and in his absence, Shrimati Vandana Chavan, Member, Rajya Sabha to present the Reports in the Rajya Sabha and Shri Bharion Prasad Mishra, Member, Lok Sabha and in his absence Shri Satya Pal Singh, Member, Lok Sabha to lay the Reports in the Lok Sabha.

5. The Committee then adjourned at 11.00 A.M.