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B.C. Corporation Scheme
 
Details of Schemes Implementing
 
Implementation of bank-linked economic support schemes with Government subsidy is being done through the Principal Bank system since 1990 some problems faced over the years in prompt release of subsidy and timely grounding of schemes under the above system.

Government has decided to streamline the process of release of the subsidy. The matter was taken up with State Level Bankers Committee (SLBC) which constituted a sub-committee consisting of the Convenor- State Level Bankers Committee (SLBC), 5 Lead Banks, 2 Lead District Managers (LDMs) and nominee of the Finance Department to examine the issue.

After detailed discussions, the sub-committee recommended the following modalities towards implementation of e-payment system for subsidy administration :
 
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On preliminary selection of beneficiaries under Government Sponsored Schemes through Grama Sabha or other approved mode, the sponsoring agency will send the list of beneficiaries to the concerned service area bank branch.
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On scrutiny and verification, the concerned bank branch will convey final consent, for which proceedings will be issued by the Sponsoring Agency.
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In respect of sanctioned cases, only upon completion of documentation and all the other formalities the Bank requires for grounding, the branch will send request of the beneficiary for release of subsidy to the Government Agency, through email and letter.
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Along with request for release of subsidy, bank branch will give loan account number (which is to be opened with ‘Zero balance’) and also xclusive nonoperative SB a/c number opened in the name of beneficiary which is linked to above loan account. This link has been suggested since loan account cannot be opened with credit balance
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Subsidy will be released for the credit of loan account specified above within a maximum period of 15 days on receiving request from the bank branch.
» Upon receiving subsidy into the loan linked non-operative savings account of the beneficiary, the bank branch will take steps for grounding the unit within a maximum period of 15 days utilizing the Subsidy released by Government. This time line is relaxable only in cases where Purchase Committee needs to be constituted (eg.Dairy & other A.H. units).
 
The new system will come into operation from the current Financial Year onwards
 
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