CO:MSME:2012-13:600 / Dt: 28.01.2013
ALL ZONAL/REGIONAL OFFICES
Reg: Integration of Cent Skill Development a loan scheme for vocational skill development program for youth led by National Skill Development Corporation (NSDC) under our Cent Vidyarthi- Vocational Education and Training scheme.
Ref: Circular letter no- CBI:CO:FI:2010-11:310 dated 03.02.2011
Instruction circular No- 971 & 917 dated 10.12.2012 & 30.06.2012
Our Board vide agenda no-2.16 dated 22.01.11 had approved a framework for a Trainee Loan programme for Vocational Skill Development of youth through the Training partner institutes identified by National Skill Development Corporation (NSDC) leading to employment of the Trainees. Subsequently we have entered into a MOU on 23.05.2011 and a Loan default guarantee agreement on 31.01.2012. NSDC has around 68 Training Partner Institutes registered with them.
As per board approval, loan for similar projects from Training Partner Institutes of NSDC, may be sanctioned under delegated powers, subject to clearance by New Business Group. Our NBG committee has approved following 4 Partner Training Institutes till date.
Indian Bank Association (IBA) has come out with Model loan scheme for vocational courses including skill development in discussion with Department of Financial Services (DFS) for consideration of banks . Our bank has adopted the said scheme after approval from our Board. Accordingly a new variant under educational loan scheme i.e. Cent Vidyarthi-Vocational Education and Training was introduced w.e.f. 01.07.2012.
Under the head ‘Courses Eligible’ in the new variant of Cent Vidyarthi scheme the courses run by Training Institutes supported by National Skill Development Corporation are also eligible for loan apart from courses run/supported by Ministry/Dept/Organization of the Govt etc. in line with IBAs model loan scheme for vocational education & skill training.
In view of above, inorder to avoid duplication, our higher authorities have approved as under:
Our CBS department has created a scheme code under Cent Vidyarthi – Vocational Education & Training scheme which appears as drop down as detailed below, inorder to enable the branches to open accounts of the trainees enrolled with Training Partner Institutes identified by NSDC under separate section in order to enable us to identify the accounts covered under the First Loss Default Guarantee provided by National Skill Development Corporation. (NSDC)
Scheme Code - 00052 Drop down description - “Vocational Edu. Loan tie-up with NSDC”
In view of above, we will request you to instruct the branches under your jurisdiction to select above scheme code while opening an account under tie up with NSDC in our Cent Vidyarthi – Vocational education and Training (6280-1087)
Further our higher authorities have empowered the Regional Managers to approve the Training Partner Institute registered/supported by National Skill Development Corporation after due diligence, inorder to steamline the system and in line with extant guidelines for tie up with training partner institutes.
You are requested to advise the branches suitably and popularize the scheme “Cent Vidyarthi- Vocational Education & Training”
DY. GENERAL MANAGER-MSME