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RAJASTHAN FINANCIAL CORPORATION
HEAD OFFICE, JAIPUR

Note on policy decisions taken and new additions in Innovation during
tenure of present Government (December 2008 to June 2010)

I. POLICY DECISIONS

S. No.	Policy decision	Present status of implementation
1	2	3
1	For providing additional facilities to Good Borrowers of the Corporation : Processing charges have been reduced to 0.75% from 1% in all schemes of Good Borrowers. Rate of Interest under UPGB scheme of Good Borrowers reduced to 12.50% from 13% and subsequently to 12.25% from 12.50%. Repayment period under UPGB scheme of Good Borrowers increased to 7 years from 5 years.	Circular no. 1256 dated 30.03.2009, no 1269 dated 25.06.2009 and no 1294 dated 04.12.2009 has been issued.
2	Based on reduction of interest rates by SIDBI, interest rates have been reduced by the Corporation for industrial units ranging between 0.25% to 2.00%.	Circular no. 1269 dated 25-6-2009 and no 1294 dated 04.12.2009 has been issued.
3	Increasing the repayment period of Saral Scheme from 3 years to 5 years and from 5 years to 7 years.	Circular no. 1271 dated 02-07-2009 and 1301 dated 06.01.2010 has been issued.
4	Launch of Technical and Professional Loan Schemes	Circular no. 1279 dated 24-08-2009 has been issued.
5	Managers of A category Branch Offices have been delegated sanctioning power of Rs.100.00 lac and other categories Branch Manager Rs.50.00 lac respectively.	Circular no. 1283 dated 16-09-2009 has been issued.
6	Repayment period for SME sector projects (willing units) has been increased from 7 years to 10 years.	Circular no. 1286 dated 08-10-2009 has been issued.

1	2	3
7	Floating limit under Gold Card and Platinum Card schemes of Good Borrowers have been increased to Rs.10.00 lac from Rs.5.00 lac.	Circular no. 1270 dated 29-6-2009 has been issued.
8	Price for loan application form for all Good Borrowers schemes has been reduced to Rs.100/- from Rs.200/-.	Circular no. 1270 dated 29-6-2009 has been issued.
9	Rate of interest reduced by 1% under Gold Card & Platinum Card scheme of Good Borrowers.	Circular no. 1280 dated 08-09-2009 has been issued.
10	SME Sector cases of FAAS/SARAL schemes are also covered under Good Borrower Schemes for further finance.	Circular no. 1280 dated 08-09-2009 has been issued.
11	Inclusion of existing running hotels located at district headquarters under Saral Scheme.	Circular no. 1301 dated 06.01.2010 has been issued.
12	Repayment of Principal and Interest by way of EQI/EMI through Post Dated Cheques.	Circular no. 1307 dated 28.01.2010 has been issued.
13	RFC has started a new scheme for providing loans on easy terms & conditions and on lower rate of interest to the units affected in sudden fire-tragedy in Sitapura Industrial Area recently.	Scheme applicable upto February, 2010.
14	Rebate of 50%, in application fees, shall be allowed, if the loanee submits complete loan application at the time of BP Camp.(Only for F.Y. 2010-11)	Circular no. 1314 dated 14.05.2010 has been issued.
15	Rate of interest reduced by 1% under all scheme of Good Borrowers w.e.f 01.06.2010	Circular no. 1320 dated 02.06.2010 has been issued.
16	To discontinue the Recovery of Service charges @ 1% p.a. being levied under all schemes of Good Borrowers w.e.f. 01.06.2010	Circular no. 1320 dated 02.06.2010 has been issued.
17	Reduction of Interest of 2% from 17% to 15% in Scheme for Financing against Assets (FAA) w.e.f. 01.06.2010.	Circular no. 1320 dated 02.06.2010 has been issued.
18	Reduction of Interest rate by 0.5% from 12.50% to 12% to all loans in SME Sector.	Circular no. 1322 dated 03.06.2010 has been issued.

Reduction of Interest rate by 0.75% from 13.25% to 12.50 % under Scheme for Financing Guest House.

Circular no. 1325 dated 14.06.2010 has been issued.

Processing charges has been reduced under different categories.

1	Upto Rs 5.00 Lakh	Nil
2	Rs 5.01 Lakh to 1 Crore	0.50%
3	Rs 1.01 Crore to 10 Crore	0.75%
4	Rs 10.01 Crore to 20 Crore	0.75%
5	In all Good Borowers Schemes except card schemes	0.25% less than the prevailing rate under respective slab

Circular no. 1328 dated 16.06.2010 has been issued.

Sub Office, Baran, upgraded to B.O. Baran

w.e.f. 01-01-2009

Re-opening of Sub Office, Bundi

w.e.f. 01-01-2009

New Property Identification (PI) Cell created at Head Office

w.e.f. 12-03-2009

Opening of Zonal offices at Ajmer, Alwar, Kota, Jodhpur and Udaipur. (Decision dated 14.12.2009).

This order has been withdrawn vide order No. PA 9(2)/598 dated 18.06.2010.

II NEW ADDITIONS IN INNOVATIONS

Sl.No.	Implemented innovation	Present progress	Remarks
1.	For loan sanctions account upto Rs.25,000/-	Entire interest amount relief and 25% relief in principal amount.	Scheme applicable upto 31st March,2010.
2.	For disbursement of loan accounts upto Rs.1.00 lac	Entire interest amount relief
3.	For transport loan accounts (in which disbursement amount is more than Rs. 1.00 lac)	Settlement on principal adding 15% rest relief of remaining interest

Sl.No.	Implemented innovation	Present progress	Remarks
4.	Other NPA account upto 31.03.01 which were NPA as on 31.03.05 and in which value of assets are not more than 150% (the provision of value of assets is applicable in cases of disbursement above Rs. 5.00 lac)	Settlement of all such cases on merits by competent settlement committee giving appropriate rebate.
5.	For deficit/decreetal/writte off loan accounts:- If value of assets is upto 200% of deficit amount or original deficit amount is upto Rs. 1.00 lac If the value of assets is more than 200% of deficit amount and deficit amount is more than Rs. 1.00 lac. For all deficit and decreetal accounts.	Relief of entire interest. Settlement at principal loan amount. Settlement at HO by Special HOLC on giving appropriate rebate on merits. Entire interest relief. Settlement on original deficit amount.
6.	Penal interest relief scheme for loan accounts sanctioned upto 31.03.01 which were NPA on 31.03.06.	Entire penal interest rebate.
7	Amnesty Scheme for settlement of NPA Accounts 2010-11 (except DDW Cases) has been launched.	Circular no. 610, dated 01.06.2010 has been issued.	Scheme is operative from 01.06.2010 to 31.10.2010.
8	Scheme for Settlement of Deficit/Written off cases 2010-11 has been launched.	Circular no. 612, dated 02.06.2010 has been issued.	Scheme is operative from 01.06.2010 to 31.10.2010.
9	Scheme for Settlement of Deecreetal cases 2010-11 has been launched.	Circular no. 613, dated 02.06.2010 has been issued.	Scheme is operative from 01.06.2010 to 31.10.2010.

III FINANCIAL ACHIEVEMENTS

S. No.	Key area	Progress made during the period from December, 2008 to June, 2010 (Rs in Crore)
1.	Loans sanctions	661.48
2.	Loans disbursed	497.27
3.	Loans recovered	654.16

IV STRATEGY FOR THE FINANCIAL YEAR 2010-11

The stress during the year 2010-11 would be on quality sanctions in the SME sector, quality recovery in terms of increased interest recovery, preventing deterioration of Standard Assets, elevation of sub-standard / doubtful accounts and recovery from NPA cases.

The Corporation shall recover maximum amount from NPA accounts preventing slippage from Standard Assets and will ensure that there is no NPA in the cases sanctioned after 31-3-2000. Recovery strategy for the financial year 2010-11 has been planned accordingly and issued to all field offices.

The Corporation had introduced three new schemes viz Amnesty scheme for settlement of NPA Accounts 2010-11(Except DDW cases), Scheme for settlement of Deficit/write off cases 2010-11 and Scheme for settlement of Decreetal cases 2010-11 have been introduced during this financial year.

A Target of Rs 1250 Crore has been fixed up of bringing in business. Branch offices will remain in touch with the prospective entrepreneurs / investors of their area by keeping liaison with respective Industrial Associations, Industries Department/RIICO/ Tourism Department.

Business promotion campaigns are proposed to be organized in all the branches of the Corporation. Along with the regular BP campaign, few camps are also proposed to be held outside the State at Delhi, Ahmedabad and Kolkata etc., if possible, jointly with RIICO.

For the financial year 2010-11, target for Sanction, Disbursement and Recovery have been fixed for Rs. 525.00 crore, Rs. 400.00 crore and Rs.425.00 crore respectively.

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