Ref.No.RFC/FR/23FR/HO/P-8/ 1213                                  Dated : 19.07.06

RAJASTHAN FINANCIAL CORPORATIONA note on policy decisions taken during the tenure of present Government (December,2003 to March,2006) –

Achievements in main key activities of the Corporation comparing the tenure of preceding Government.

• Policy decisions taken during the tenure of  present Government (December,2003 to March,2006)  :
  

2.       The Corporation has reduced the rate of interest up to 2% from 1st January,2004

3.       The Corporation has reduced the liquidated damages (penal interest) being charged from the assisted units in case of default in repayment (excluding all good borrowers schemes). Liquidated damages reduced by 1 % in case of loan of Rs.2 to 10 lakhs and 2 % in case of loan above Rs.10 lakhs. Beside, a rebate of 3% is also provided under Good Borrowers Scheme.

4.       Rebate for timely payment of the Corporation's dues has been enhanced up to 2% from 1%  in different schemes to cultivate the habit between the borrowers for becoming good borrowers.  

5.       To expedite the disposal of loan applications, the powers of sanctions have been enhanced at different levels viz. at Branch level (Dy.Manager Incharge) Rs.15 lakhs, at Branch level (Branch Manager Incharge) Rs.25 lakhs, Dy.Gen.Manager(R) Rs.40 lakhs. Further at Head Office level, powers have been delegated to sanction loans upto Rs. 75 lakhs to GM(Loans), upto Rs.150 lakhs to Executive Director and upto Rs.500 lakhs to Chairman & Managing Director of the Corporation.

6.       To Roll-Over the term loan of higher rate of interest to present rate of interest a scheme of  Roll-Over cum Principal Replenishment 2003-04 and 2004-05 has been implemented.

7.       The Corporation has been providing loan facilities on flat rate of interest.

8.       A Switch-over Loan Scheme has been implemented under Good-Borrower Scheme.-

9.       A Loan Scheme has been implemented for providing term loan for purchasing  of land  in  Special Economic Zone developed by RIICO in Jodhpur.

10      The Corporation has launched  loan schemes for providing working capital loan for Show Room, Shops and Departmental Store.

11.    The Corporation has also launched loan schemes for financing namely Financing against Assets, Show Room, Commercial Complexes / Residential Complexes.

12.     The Corporation has implemented schemes for purchase of Assets of  existing units and also to provide loans to meet out financial requirements in lien of assets of existing units.

13.     To reduce Non performing assets, the Corporation has implemented  Interest Relief Scheme -2003-04 and 2004-05.

14.     The Corporation has started providing motivational incentive to the revenue officials of the State Government contributing to recovery of the Corporation's dues as arrear of land revenue under section 32-G of SFCs Act. 

15.     A Scheme for settlement of Deficit/Written off and Decreetal cases-2003-04 and 2004-05 has been implemented.

16.     A scheme to revive the units under possession in the original hands / promoter has been implemented.

17.    A scheme for settlement of small loans upto Rs.2.00 lakhs has been implemented.

18.     A Memorandum of Understanding (MoU) has been executed amongst Bunkar Sangh, Bunkar Sahakari Samiti and RFC to provide working capital loan to Bunkars.

19.     The Corporation has established a cell at Head Office to provide services to the entrepreneurs for preparation of project report and other consultancy services.

20.     The Corporation has made equal rate of interest in SSI and non-SSI sector with effect from June,2005.

21.     Considering excellent key activities of RFC, the SIDBI has increased the sanction of term loan limit from Rs.5 crore to 20 crore.- 3 -

• New Activities :
• A Voluntary Retirement Scheme (VRS) has been implemented in RFC under Restructuring Plan 2004-05 and 2005-06.
• Under Restructuring Plan, the Corporation has closed one Sub Office, two Branch Offices and two Regional Offices and also shifted five Branch Offices into Sub Offices.
• RFC imparted In-house training to its employees relating to loans, finance, law, accounts and cash management.
• Under Computer Awareness Programme, the officers and employees of the Corporation attended a training programme and effectively launched on-line computerization in RFC.
• Important Financial & Physical achievements :

Financial achievements :Only a token amount of Rs.1,000/- has been allocated to RFC under State Annual Plan 2003-04, 2004-05 and 2005-06.Physical Achievements:

During the tenure of present Government, the Corporation attained physical achievements as under :
(Rs.in crore)

• Yearwise comparative   achievements made during the tenure of present and preceding Governments :

      (Rs.in crore)

      (Rs.in crore)

      (Rs.in crore)

• Appointment in different cadre

During December,2003 to March,2006, the Corporation has  appointed  three messengers and one typist of dependent of deceased persons.

•  Strategy for FY 2006-07 

For the year 2006-07 the Corporation has fixed target for its main key activities viz. Rs.340.00 crore for sanctions, Rs.225.00 crore for disbursement and Rs.270.00 crore for recovery.The Corporation provides term loan to SC / ST entrepreneur upto Rs.5.00 lakhs on 2% reduced rate of general rate of interest for setting up of industry, transport, hotel etc. Besides, 50% concession in processing fee of loan applications for loans upto Rs.5.00 lakhs is also provided. These concessions are also extended in case of handicapped entrepreneurs.

The Corporation also provides 50% concession in processing fee of loan applications in case of women entrepreneurs.