Rural Self Employment Training Institute (RSETI)
Unemployment is a major challenge facing the country in the process of its development. The situation calls for urgent steps to provide increased employment opportunities in the local area of the people which will also check their avoidable migration to urban areas. To this end, the Government and no Government agencies have implemented many schemes to promote micro enterprises. An Innovative initiative was taken way back in the year 1982 jointly by Sri Dharmasthala Manjunatheshwara Educational Trust, SyndicateBank and Canara Bank to motivate unemployed youth to take up self-employment as an alternative career. The unique experiment of building confidence of the youth by developing skill and positive attitude among them through dedicated training was found effective. The effort was recognised and appreciated by Government of India, State Governments, SIDBI, NABARD, etc. Replication of the model was recommended to tackle the unemployment problem successfully and to encourage entrepreneurship. Banks, Central & State Government are providing support to the operationalisation of the RSETIs.
Common Service Centres
Common Services Centres (CSCs) Scheme is the nationwide initiative of Government of India provides support for establishing 1 lakh Common Service Centers in 6 lakh villages of India. CSCs scheme has been started with the vision to develop these centres as a front-end delivery points for Government private and social sector services to rural citizens of India in an integrated manner. The CSCs objective is to develop a platform that can enable Government, private and social sector organizations to align their social and commercial goals for the benefit of the rural population in the remotest comers of the country through a combination of IT-based as well as non-IT-based services. They provide various types of vocational, educational and utility services. The CSCs are authorised by RBI to function as Business Correspondents of banks.
National Rural Livelihood Mission
The Ministry of Rural Development has decided to re-design and re-structure the ongoing Swarnjayanti Gram Swarojgar Yojana (SGSY) into National Rural Livelihood Mission (NRLM) involving the Central & State Governments and Panchayat Raj institutions. The idea has been conceived as a cornerstone of national poverty reduction strategy. The objective of the Mission is to reduce poverty among rural BPL by promoting diversified and gainful self-employment and wage employment opportunities which could lead to an appreciable increase in income on sustainable basis. In the long run, it will ensure broad based inclusive growth and reduce disparities by spreading out the benefits from the islands of growth across the regions, sectors and communities. NRLM will have multi pronged approach to strengthen livelihood of the rural poor by promoting SHGs, improving existing occupations, providing skill development & placement and other activities thereof. The training and capacity building, deployment of multi disciplinary experts and other initiatives will enhance the credit worthless of the rural poor. The periodic interaction of Mission with Public Sector Banks and other financial institutions is envisaged for enhancing the reach to the un-banked areas for financial inclusion of the poor.
Highlights of NRLM Scheme
- National Rural Livelihood Mission is the flagship of Government of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services and livelihood services.
- First preference is given to the poorest of the poor households.
- Formation of women SHGs on the basis of affinity and not on the basis of common activity.
- All the poor in a village are covered & a women from each poor family.
- All the SHGs in a village come together to form a federation at village level.
- Cluster federation consists of a group of villages within a Taluk say 25 to 40 villages.
- NRLM is to ensure that SHGs are enabled to access repeated finance from Banks.
- Women NRLM consists of 10 to 15 persons and promote affinity based women SHGs.
- Only persons with disability and special groups like transgender will have both men and women in the SHG.
- Registration under any Societies or State Co-operative Act or Indian Partnership Act, is not mandatory. However, federations at village level, cluster level etc. are to be registered.
- No capital subsidy will be sanctioned to any SHG from the date of implementation of NRLM. The subvention to the extent of difference between the lending rate and 7% for the loan up to `3.00 lacs and in the identified Districts SHG will get additional interest subvention of 3% on the prompt repayment, reducing effective rate of interest to 4%. SHGs should be in active existence since the last 6 months as per the books of accounts of SHGs and not from the date of opening of SB a/c to avail loan.
- Three to six months old SHGs will be provided Revolving fund of Rs.10000/- to Rs.15000/-.
- First dose 4 to 8 times of the corpus (Rs.50000/-), second does 5 to 10 times the existing corpus (Rs.1 lac), third dose minimum Rs.2 lacs, 4th dose Rs.5 -10 lakhs.
Mahatma Gandhi National Rural Employment Guarantee Scheme
The Government of India passed the Mahatma Gandhi National Rural Employment Guarantee Act in September 2005. The Act provides for the enhancement of livelihood security of the households in rural areas of India by providing at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work. It aims at developing rural infrastructure by undertaking generation of wage employment schemes that address the causes like drought, deforestation and soil erosion. It is the right of the applicant to obtain employment within a radius of 5 km of village where the applicant resides at the time of applying. In case the employment is provided outside such radius, it must be provided within the block and the labourers shall be paid 10% of the wage rate as extra wages to meet additional transportation and living expenses. The adult persons willing to do the work shall get registered in the Grama Panchayath where he/she is residing. The entitled 100 days of employment to the household can be shared with the available persons in the family having valid registration for unskilled manual work under the scheme.