भारतीय �रज़वर् ब�क

______________________RESERVE BANK OF INDIA_____________________

www.rbi.org.in

RBI/2019-20/05
FIDD.GSSD.CO.BC.No.01/09.16.03/2019-20 July 01, 2019

The Chairman & Managing Director/CEO

All Scheduled Commercial Banks &
Small Finance Banks

Madam/Dear Sir,

Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-

NULM)

Please refer to the Master Circular on NULM

FIDD.GSSD.CO.BC.No.11/09.16.03/2018-19 dated December 06, 2018 containing
the instructions / guidelines / directives issued to banks.

2. The Master Circular has been suitably updated by incorporating the instructions on
DAY-NULM issued up to June 30, 2019 which are listed in the appendix. The Master
Circular has also been placed on RBI website (https://www.rbi.org.in).

Yours faithfully,

(Sonali Sen Gupta)

Chief General Manager

�वत्तीय समावेशन और �वकास �वभाग, केद्र�य कायार्लय, 10वी मंिजल, केद्र�य कायार्लय भवन, मुंबई 400 001,
टे ल�फोन /Tel No: 91-22-22661000 फैक्स/Fax No: 91-22-22621011/22610948/22610943 ई-मेल/
EmailID:[email protected]

Financial Inclusion & Development Department, Central Office, 10th Floor, C.O. Building, Post Box No.10014 Mumbai -400
001

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Master Circular: Deendayal Antyodaya Yojana- National Urban
Livelihoods Mission (DAY-NULM)

Background

The Government of India, Ministry of Housing and Urban Poverty Alleviation

(MoHUPA), restructured the existing Swarna Jayanti Shahari Rozgar Yojana
(SJSRY) and launched the National Urban Livelihoods Mission (NULM) in
2013. NULM has been under implementation w.e.f. September 24, 2013 in all
district headquarters (irrespective of population) and all the cities with
population of 1 lakh or more.

The Self Employment Program (SEP) of NULM focuses on providing financial

assistance through provision of interest subsidy on loans to support
establishment of Individual & Group Enterprises and Self-Help Groups
(SHGs) of urban poor. The erstwhile provision of capital subsidy for USEP
(Urban Self Employment Program) and UWSP (Urban Women Self-Help
Program) under SJSRY has been replaced by interest subsidy for loans to
Individual enterprise (SEP-I), Group enterprise (SEP-G) and Self Help
Groups (SEP-SHGs). With a view to improving the livelihood opportunities for
the poor in urban areas, Ministry of Housing and Urban Poverty Alleviation
(UPA Division), Government of India vide their Office Memorandum No.K-
14011/2/2012-UPA/FTS-5196 dated February 19, 2016 has enhanced the
scope of National Urban Livelihoods Mission. The Mission with enhanced
scope was renamed as “Deendayal Antyodaya Yojana -National Urban
Livelihoods Mission (DAY-NULM)”.

The operational guidelines of the Self Employment Program (SEP)

component of DAY-NULM are as under:

1. Introduction:
1.1 The SEP provides financial assistance to individuals/groups
including street venders/hawkers of urban poor for setting up gainful
self-employment ventures/ micro-enterprises, suited to their skills,
training, aptitude and local conditions. The programme also supports
Self Help Groups (SHGs) of urban poor to access easy credit from
bank and avail interest subsidy on SHG loans. The SEP will also
focus on technology, marketing and other support services to the
above beneficiaries engaged in micro enterprises for their livelihoods
and will also facilitate issuance of credit cards for working capital
requirement of the entrepreneurs.

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 1.2 The underemployed and unemployed urban poor will be encouraged
to set up small enterprises relating to manufacturing, service and
small business for which there is considerable local demand. Local
skills and local crafts should be particularly encouraged. Each Urban
Local Body (ULB) should develop a compendium of such
activities/projects keeping in view skills available, marketability of
products, costs, economic viability etc.

1.3 The percentage of women beneficiaries under SEP shall not be less
than 30 percent. SCs and STs must be benefited at least to the
extent of the proportion of their strength in the city/town population of
poor. A special provision of 3 percent reservation should be made
for the differently-abled under this program. In view of the Prime
Minister’s 15-Point Program for the Welfare of Minorities, at least 15
percent of the physical and financial targets under this component
shall be earmarked for the minority communities.

2. Selection of Beneficiary & Procedure for Sponsoring Applications:

The Community Organizers (COs) and professionals from Urban Local
Body (ULB) will identify the prospective beneficiaries from among the urban
poor. The community structures formed under Social Mobilization &
Institutional Development (SM&ID) component of DAY- NULM viz. Self
Help Groups (SHGs) and Area Level Federations (ALFs) may also refer
prospective individual and group entrepreneurs for purpose of financial
assistance under SEP to ULB. The beneficiaries may directly approach
ULB or its representatives for assistance. Banks may also identify
prospective beneficiaries at their end and forward such cases directly to
ULB. The Banks may also use their empaneled Business Correspondents
(BCs) and Business Facilitators (BFs) to increase the outreach. Due
diligence will be undertaken as per the Banks’ policy, in this regard.

2.1 The application for individual and group enterprise loans will be
sponsored by the Urban Local Body (ULB) which will be the sponsoring
agency for the individual and group enterprise.

2.2 The ULB will create awareness regarding SEP to the prospective
beneficiaries through mass media campaigns, Information Education
and Communication (IEC) activities, advertisements in local
newspapers, City Livelihoods Centres (CLCs) etc. The ULB may also
disseminate information regarding this component through active
involvement of Resource Organizations and its field staff.

2.3 The beneficiaries desirous of seeking financial assistance for setting up

an enterprise can submit an application of intent to the concerned ULB
officials on a plain paper with basic details viz: Name, Age, Contact

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 details, Address, Aadhaar details (if any), amount of loan required,
bank account number (if available), type of enterprise/ activity, category
etc. The intent could also be sent by mail /post to the ULB office. The
ULB shall accept such intents throughout the year.

2.4 The community structures formed under Social Mobilization &

Institutional Development (SM&ID) component of DAY-NULM viz: Self
Help Groups (SHGs)/ Area Level Federations (ALFs) may also refer
prospective individual and group entrepreneurs for purpose of financial
assistance under SEP to ULB.

2.5 On submission/receipt of the intent from the beneficiary the respective

ULB will enter the details in a register/or MIS if available and hence will
generate a waiting list of beneficiaries. The ULB will issue an
acknowledgement to the beneficiary with a unique registration number,
which may be used as a reference number for tracking the status of
application.

2.6 ULB will call the beneficiaries in order of the waiting list to complete
requisite documentation including filling of Loan Application Form
(LAF), activity details, identity proof, address proof, bank account
details etc. To verify the identity of the beneficiary, her/his Aadhar
number will also be brought on record. If beneficiary does not have
Aadhaar card, his/ her any other unique identification document like
voters’ card, driving license etc. will be taken and s/he will be helped to
obtain Aadhar card as soon as possible. The State Urban Livelihoods
Mission (SULM) may develop a Loan Application Form (LAF) in
suitable format in consultation with State Level Bankers Committee
(SLBC) convenor bank. The same LAF may be utilised across the
State/UTs. The Loan Application Form (LAF) will contain basic data in
respect of economic status of the beneficiary and her/his family. This
data will be such that it can be used to analyse impact of the benefits
on her/his economic status at a later stage.

2.7 A Task Force constituted at ULB level will scrutinize the applications
based on experience, skills, viability of activity, scope of the activity etc.
Thereafter, the Task Force will shortlist the applications and call for
interview of the applicants before recommending or rejecting the
application or call for additional information from the applicant if
required.

2.8 The Chief Executive Officer (CEO)/ Municipal Commissioner of ULB will
be responsible to constitute the Task Force and will be the Chairman of
the Task force. There could be more than 1 task force at ULB level
depending upon the size/population of the ULB.

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2.9 The indicative composition of the Task Force is as follows:

Sr. TASK Force at ULB level Role

No.
1. Chief Executive Officer (CEO) ULB/ Municipal Chairman
Commissioner of ULB/ or any representative
authorized by CEO ULB
2. Lead District Manager (LDM) Member
3. City Project Officer (CPO), ULB/ or any authorized Member
representative of ULB Convenor
4. Representative from District Industries Centre (DIC) Member
5. Senior Branch Managers (Max-2) of banks Member
6. Representatives(2) of Area Level Federation / City Member
Level Federation

2.10 The task force will then recommend the applications if found suitable,
reject if found unsuitable or ask the beneficiary to submit further
requisite information for re-examination on case to case basis.

2.11 The case duly recommended by the task force will be forwarded by
the ULB to the concerned banks for further processing. Such cases
recommended by task force have to be processed by concerned
banks within a time frame of 15 days. As these cases are already
recommended by the task force, such cases should be rejected by
banks only in exceptional circumstances.

2.12 The banks will send a periodic report to the ULB on the status of the
applications received. In case of MIS being used, the banks may be
allowed to update the status of application online in addition to
manual report.

2.13 Banks may also directly accept the loan applications of urban poor
beneficiaries on the basis of relevant documents as per the guidelines
of Prime Minister MUDRA Yojana (PMMY) or any other such scheme
without the need of having prior sponsoring from ULB. The banks can
send details of such loans sanctioned by them to ULBs for
confirmation of their eligibility for interest subsidy under DAY-NULM.
Task Force constituted for scrutinizing applications should quickly
clear these applications if they otherwise meet the criteria. On
confirmation of their eligibility, interest subsidy may be claimed from
ULBs on the pattern of interest subsidy claim for beneficiaries
sponsored by ULBs. The subsidy will be transferred directly to the

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 loan account of DAY-NULM beneficiaries. This procedure will also be
direct benefit transfer compliant.

3. Educational Qualifications and Training Requirement:

No minimum educational qualification is required for prospective
beneficiaries under this component. However where the identified activity
for micro-enterprise development requires some special skills appropriate
training must be provided to the beneficiaries before extending financial
support.

3.1 Employment through Skills Training and Placement (EST&P):

Financial assistance should be extended only after the prospective
beneficiary has acquired required skills for running the proposed
micro-enterprise. Such training may not be necessary if the
beneficiary has already undergone training from a known institution,
registered NGO/Voluntary Organization or trained under any
government scheme provided requisite certificate is produced. In
case the beneficiary has acquired requisite skills from family
occupation such cases should be certified by the ULB before
extending financial assistance.

3.2 Entrepreneurship Development Program (EDP): In addition to

skill training of the beneficiaries, the ULB will also arrange to conduct
Entrepreneurship Development Program for 3-7 days for individual
and group entrepreneurs. The EDP will cover basics of
entrepreneurship development such as management of an
enterprise, basic accounting, financial management, marketing,
backward and forward linkages, legal procedures, costing and
revenue etc. In addition to above topics the module should also
include group dynamics, allocation of work, profit sharing
mechanism etc. for group enterprises.

3.3 The EDP module may be developed and finalized by State Urban
Livelihoods Mission (SULM) supported by State Mission
Management Unit (SMMU) with assistance of an empaneled
institution/agency or consulting firm and same may be utilized for
conducting training program by the ULB. This EDP training may be
arranged through institutions such as Rural Self Employment
Training Institutes (RSETI), reputed institutions engaged in
entrepreneurship development/ training, management/ educational
institutes, reputed NGOs engaged in entrepreneurship
development/ training etc.

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 3.4 Follow-up entrepreneurial support to Individual and Group
entrepreneurs: After financing to Individual and Group
beneficiaries, the ULB will also arrange to conduct follow-up
Entrepreneurship Development Programme (EDP) as and when
required. Such programme should preferably be conducted once in
six months for each beneficiary who has been given a loan. During
the follow-up EDP, problems and issues faced by beneficiaries
should also be discussed and solutions should be given.

4. Pattern of Financial Assistance:

The financial assistance available to urban poor in setting up individual and
group enterprises will be in the form of Interest subsidy on the bank loans.
Interest subsidy, over and above 7% rate of interest will be available on a
bank loan for setting up of individual or group enterprises. The difference
between 7% p.a. and the rate of interest charged by the bank will be
provided to banks under DAY-NULM. Interest subsidy will be given only in
case of timely repayment of loan. Suitable certification from banks will be
obtained in this regard. An additional 3 percent interest subvention will be
provided to all Women Self Help Groups (WSHGs) who repay their loan in
time. The Interest subsidy will be subject to timely repayment of the loan
(as per the loan repayment schedule) and suitable certification obtained
from banks by the ULB. The additional 3% interest subvention amount will
be reimbursed to the eligible WSHGs. The banks should credit the amount
of 3% interest subvention to the eligible WHSGs accounts and thereafter
seek the reimbursement.

5. Procedure for interest subsidy to Banks:

5.1 All scheduled commercial banks (SCBs) and Small Finance Banks
which are on the Core Banking Solution (CBS) platform would be
eligible for getting interest subvention under the scheme.

5.2 After disbursement of loan to the beneficiaries, the concerned

branch of the bank will send details of disbursed loan cases to ULB
along with details of interest subsidy amount.

Procedure I

5.3 The settlement of claims made by banks would be done on quarterly

basis by the ULBs, however the submission of claims should be
monthly. The ULB will check the data at their end and will release
the interest subsidy amount (difference between 7% p.a. and
prevailing rate of interest) to the banks.

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 5.4 A prescribed format for interest subsidy claims for loans under this
component is enclosed at (Annex-I)

5.5 The claims should not be pending more than a quarter. In case the
claims of the banks are not settled for a period of 6 months, SLBC is
empowered to stop the scheme temporarily in selected cities subject
to clearance of claims by such ULBs. In such eventualities, the
claims settlement should prospectively be given to the Lead District
Bank.

Procedure - II

5.6 Settlement of Claims: Nodal Agency for releasing interest

subsidy: A public sector bank may be engaged by each State as
nodal bank in consultation with the convener of the respective
State Level Bankers’ Committee (SLBC). All the Banks will
consolidate data regarding interest subsidy from their branches
and upload on the portal of Nodal Bank. The nodal bank, after
verification, will transfer the interest subsidy to the bank branches.
The State/UT will deposit some funds in advance with the nodal
bank, which will release funds to the bank branches as per
guidelines of the DAY-NULM. Nodal bank will regularly render
account of reimbursement to the SULM. This procedure will be
followed in all three types of loans i.e. SEP (I), SEP (G) and SHG-
Bank Linkage.

6. Individual Enterprises (SEP-I)-Loan & Subsidy

An urban poor individual beneficiary desirous of setting up an
individual micro-enterprise for self-employment can avail benefit of
subsidized loan under this component from any bank. The norms/
specifications for individual micro-enterprise loans are as follows:

6.1 Age: The prospective beneficiary should have attained the age of 18
Years at the time of applying for loan.

6.2 Project Cost (PC): The Maximum unit Project Cost for an individual
micro-enterprise is ₹ 2,00,000 (₹ Two Lakhs).

6.3 Collateral Guarantee on Bank Loan: No collateral required. As per

RBI Circular RPCD.SME & NFS.BC.No.79/06.02.31/2009-10 dated
May 6, 2010 banks are mandated not to accept collateral security in
the case of loans up to ₹ 10 lakhs extended to units in the MSE
sector. Therefore, only the assets created would be hypothecated/
mortgaged/ pledged to banks for advancing loans. The banks may
approach Credit Guarantee Fund Trust for Micro and Small

8
 Enterprises (CGTMSE) setup by Small Industries Development Bank
(SIDBI) or any other appropriate guarantee fund for the purpose of
availing guarantee cover for SEP loans as per the eligibility of the
activity for guarantee cover.

6.4 Repayment: Repayment schedule would range between 5 to 7

Years after initial moratorium of 6-18 months as per norms of the
banks.

6.5 Margin Money: No margin money should be taken for a loan up to ₹

50,000 and for higher amount loans, preferably 5% should be taken
as margin money and it should in no case be more than 10% of the
project cost.

6.6 Type of Loan Facility: Banks may extend finance to individuals for
capital expenditure in the form of Term Loan and Working Capital
loans through Cash Credit. Banks may also extend Composite
Loans consisting of Capital Expenditure and Working Capital
components, depending upon individual borrower’s requirement.

7. Group Enterprises (SEP-G) -Loan & Subsidy

A Self Help Group (SHG) or members of an SHG constituted under DAY-
NULM or a group of urban poor for self-employment can avail benefit of
subsidized loans under this component from any bank. The norms/
specifications for group based micro-enterprise loans are as follows:

7.1 Eligibility Criteria: The group enterprises should have minimum of

Three (3) members with a minimum of 70% of the members from
urban poor families. More than one person from the same family
should not be included in the same group.

7.2 Age: All members of the group enterprise should have attained an
age of 18 years at the time of applying for bank loan.

7.3 Project Cost (PC): The group will be eligible for a maximum loan of
Rs. 2 Lakh per member or Rs. 10 Lakh, whichever is lower.

7.4 Type of Loan: Loan can be extended either as a single loan to the
group functioning as one borrowing unit or each member of the
group can be provided individual loans up to 2 lakhs and an overall
cap of 10 lakhs based on the principal of joint liability of the group.
The principles laid down in the RBI circular on “Budget (2014-15)
Announcement Financing of Joint Farming Groups of ‘Bhoomi Heen
Kisan’ dated 13th November, 2014” and subsequent revisions
should be followed in case of loans to a group.

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 7.5 Type of Loan Facility: Banks may extend finance to groups for
capital expenditure in the form of Term Loan and for Working
Capital, through Cash Credit Facility. Banks may also extend
Composite Loans for Capital Expenditure and Working Capital,
depending upon Group’s requirement.

7.6 Loan and Margin Money: The Project Cost minus the beneficiary
contribution (Margin Money) would be made available as loan
amount to the group enterprise by the bank. No margin money
should be taken for loan up to ₹ 50,000 and for higher amount loans,
preferably 5% should be taken as margin money and it should in no
case be more than 10% of the project cost.

7.7 Collateral Guarantee on Bank Loan: No collateral guarantee is

required. Only the assets created would be hypothecated/
mortgaged/ pledged to banks for advancing loans. The banks may
approach Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) or any other appropriate guarantee fund as
detailed in Para-6.3.

7.8 Repayment: Repayment schedule would range between 5 to 7 Years

after initial moratorium of 6-18 months as per the norms of the
banks.

8. SHG-Bank Linkage – General Guidelines

Linking of SHGs with banks have been emphasized in the Monetary policy
of Reserve Bank of India and Union Budget announcements from time to
time and various guidelines in this regard have been issued by the Reserve
Bank of India (RBI) to banks. To scale up the SHGs linkage program and
make it sustainable, banks have been advised to consider lending to SHGs
as part of their mainstream credit operations both at policy and
implementation level.

8.1 Master Circular of RBI on SHG-Bank Linkage Programme,

FIDD.FID.BC. No.04/12.01.033/2018-19 dated July 02, 2018 contains
instructions on opening of Savings Bank Account of Self Help Groups
(whether registered or unregistered), which are engaged in promoting
habit of savings among their members as a starting point. Thereafter,
the SHGs may be sanctioned Savings Linked Loans (varying from a
saving to loan ratio of 1:1 to 1:4) after due assessment or grading by
banks. However, in case of matured SHGs, loans may be given
beyond the limit of four times the savings as per the discretion of the
bank. The Banks have also been instructed that the advances to
SHGs irrespective of the purposes for which the members of SHGs

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 should be included by the banks as part of their lending to the weaker
sections.

8.2 Under Social Mobilization & Institution Development (SM&ID)

component of DAY-NULM, the ULB will do necessary groundwork to
open bank accounts for SHGs and facilitating access to Revolving
Fund (RF). The ULB may also engage Resource Organization (RO)
for the purpose or may directly facilitate SHGs through its staff.
(Concept & Formation of SHGs, ROs and Revolving Fund has been
detailed out in Social Mobilization & Institutional Development
(SM&ID) component of DAY- NULM).

8.3 The banks will send the details of disbursed loan cases to the ULB
along with the calculation details of the interest subsidy amount. The
ULB will check the data at their end and will release the interest
subsidy amount on quarterly basis to the banks following a similar
procedure as mentioned in Para 5.The prescribed format for claiming
the additional interest subvention is enclosed at (Annex –II).

8.4 The ULB through its field staff or Resource Organization (ROs) will
facilitate filling of loan applications for eligible SHGs to access credit
from the banks. The ULB will be responsible to forward the Loan
application of the SHGs to the concerned banks with requisite
documentation. The ULB will maintain area wise, bank-wise, ROs/
Staff wise data of SHGs loan applications forwarded to the banks.
The same will be sent to SULM on a monthly basis.

8.5 In order to ensure effective SHG-Bank Linkage under DAY-NULM, the

SULM will monitor and review the progress with banks on regular
basis and co-ordinate with SLBC for interest subsidy/ subvention on
SHG Loans in the state. Active involvement of State level Bankers’
Committee (SLBC) and lead banks may be ensured for sensitization
of bank and branch staff for financial inclusion of urban poor.

8.6 It may be noted that the identification, selection, formation and

monitoring of SHGs who are to get interest subvention would be the
responsibility of State/ ULBs and banks would not be liable for wrong
identification of SHGs who get interest subvention.

8.7 Type of Loan Facility: SHGs can avail either Term loan or a Cash
Credit Limit (CCL) loan or both based on their needs. In case of need,
additional loan can be sanctioned even though the previous loan is
outstanding.

8.8 Guidelines for prompt repayment are as follows:

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 a. For Cash Credit Limit to SHGs:
i) Outstanding balance shall not have remained in excess of the
sanctioned limit/drawing power continuously for more than 30
days.
ii) There shall be regular credits and debits in the account. In any
case there shall be at least one customer induced credit during
the month.
iii) Customer induced Credits during a month shall be sufficient to
cover the interest debited during the month.

b. For Term Loan to SHGs: A term loan account where all of the
interest payments and/or instalments of principal were paid within 30
days of the due date during the entire tenure of the loans would be
considered as an account having prompt payment.

9. Progress Reporting for SEP-I, SEP-G & SEP-SHG

9.1 The ULB will prepare a data sheet of the applications recommended by
the TASK force along with their status details of the sanction,
disbursement and rejection (along with reasons) after validating the
same with the respective banks. This data sheet will be sent to SULM
on a monthly basis.

9.2 The SULM will compile all the reports received from respective ULBs
and will communicate to M/o HUPA on a monthly basis.

9.3 SULM must ensure that progress under SEP is reviewed in every SLBC
and District Consultative Committee (DCC) meetings. Any other
important issue with regard to SEP may be taken up by SULM with
SLBC convener bank for effective coordination and implementation.

10. Credit Card for enterprise development

10.1 The financial assistance to the individual entrepreneurs though

subsidized loan for setting up of enterprises under DAY-NULM could
be viewed as initial impetus to facilitate livelihood support to the
urban poor. However the individual entrepreneurs require further
financial support in terms of working capital to make the enterprise
economically sustainable. This may include immediate and short
term monthly requirement of cash for meeting expenses for
purchase of goods, raw materials and other miscellaneous
expenditures etc. The micro-entrepreneur does not have a regular
fixed monthly cash inflow/income to meet expenses arising out of
entrepreneurial activities. To approach a financial institution for such

12
 immediate credit requirement, it requires procedural documentation
and consumes a lot of time. This need for working capital credit is
generally met from informal sources of credit (including money
lenders) which is typically available at high rate of interest.

10.2 In order to support the micro-entrepreneurs to meet their working

capital and miscellaneous credit needs, DAY-NULM will facilitate
access to Credit Cards or MUDRA Card through banks.

10.3 The SULM in consultation with the State Level Bankers Committee
(SLBC) will finalize the norms, limits and specifications for issuance
of Credit Card (or) MUDRA Card to the individual entrepreneurs. The
General Credit Card Scheme (GCC), which is being implemented by
all scheduled commercial banks or any other variant of credit cards
for enterprise development of banks in urban areas, may be
explored by SULM and SLBC for the same. The Circular on revised
GCC scheme has been issued by RBI notification vide
RPCD.MSME& NFS.BC.No.61/06.02.31/2013-14 dated December
02, 2013 available on RBI web-site ‘www.rbi.org.in’.

10.4 The ULB will identify the prospective beneficiaries and will facilitate
linkages with banks for issuance of credit cards. The focus is to
initially facilitate issuance of credit card to cover all the beneficiaries
who have availed financial assistance under SEP. Additionally, other
beneficiaries who are running their own business but have not
availed assistance under SEP may also be covered if they satisfy
the norms of issuance of credit cards.

10.5 The targets for the same may be decided at ULB level and the
progress under this component is aggregated at SULM level and
communicated to M/o HUPA periodically.

11. Technology, Marketing and Other Support

11.1 Micro entrepreneurs often need support in order to grow and sustain
their businesses. Support needed may be for establishment,
technology, marketing, and other services. Micro entrepreneurs who
run very small businesses may need to gain a better understanding
of what the market needs, demand of the products produced by
them, prices, where to sell, etc. Support services under this
component are envisaged with a view to provide an encouraging
environment for development of micro enterprises.

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 11.2 The City Livelihoods Centers (CLCs) established under DAY-NULM
will offer services to the micro-enterprises such as in establishment
(licenses, certificates registration, legal services etc.), production,
procurement, technology, processing, marketing, sales, packaging,
accounting etc. for long term sustainability. CLCs will also provide
support in taking up feasibility/ assessment studies on market
demand and market strategy for products and services of micro-
enterprises.

11.3 All SEP individual and groups enterprises can avail the services from
CLCs as per the norms of CLCs. The CLCs with support of ULB may
also tie up with various other government schemes which offer
services and benefits for micro-enterprise development for the
benefit of prospective beneficiaries.

11.4 The SULM may arrange for additional funds/professional assistance

for the purpose of providing above services to CLCs.

12. Funding Pattern of SEP of DAY-NULM

12.1 Funding under this component will be shared between the Centre
and the States as per the general norms under DAY-NULM.

12.2 The Ministry will allocate funds to the states on annual basis based
on the targets assigned to the states. The states in consultation with
the respective SLBCs and ULBs will decide the targets and
corresponding funds will be allocated to ULBs so that full
reimbursement to the banks on account of Interest subvention is
settled during the financial year and no subvention amount remain
overdue or pending with the States.

13. Monitoring and Evaluation

13.1 The State Mission management Unit (SMMU) at the State level and
City Mission Management Unit (CMMU) at the ULB level will closely
monitor progress of activities / targets under this component,
undertake reporting and evaluation. The SULM and the
ULB/executing agencies shall report timely progress in formats
prescribed by the Mission Directorate from time-to-time, indicating
the cumulative achievement monthly and up to the end of the quarter
and key issues in implementation.
13.2 In addition, under DAY-NULM, a comprehensive and robust IT-
enabled DAY-NULM MIS will be established for tracking targets and
achievements. States and ULBs will be required to submit their
progress reports online and may also use this tool to monitor

14
 progress on the ground. In the spirit of proactive disclosure of
information and ensuring transparency under DAY-NULM, key
progress reports under SEP will also be made available in the public
domain in a timely manner.
13.3 All the SEP beneficiaries should be visited periodically to assess the
impact of the benefit and also to know any problem being faced by
them. The Community Organisers (COs) should visit all the
beneficiaries in their jurisdiction at least once in three months. The
project officer/ technical experts at CMMU level should visit at least
50% beneficiaries once in three months. The observations during the
field visit should be kept in record and be uploaded on MIS also.
13.4 During the field visit mentioned above data on economic status of
the beneficiaries should be collected and be compared with similar
data given in loan application form, to know the impact of the benefit
on the economic conditions of the beneficiaries.
13.5 Impact analysis studies may also be conducted at suitable interval to
assess the impact of benefit under SEP on the economic status of
the beneficiaries.
13.6 To monitor progress of the targets vis-a-vis achievement under DAY-
NULM, Banks are advised to furnish cumulative progress reports on
quarterly basis as per enclosed proforma (Annex III & IV) to the
Director, UPA at [email protected] as well as to RBI on email
latest by the end of next month of the quarter to which they relate.
13.7 Unique Code for loans under NULM: Banks are advised to
categorise these loans under Non-Farm sector and use unique sub-
code in their database for loans granted under NULM. Further,
separate sub-sub-codes may also be assigned for SEP-I, SEP-G,
SHG and WSHGs. Proper care must be taken while classifying loans
under NULM particularly relating to SHG and WSHGs to enable
distinct identification of these loans vis-à-vis NRLM loans as WSHGs
are eligible for additional 3 percent interest subvention.

15
 ANNEX-I

INTEREST SUBSIDY CLAIMS UNDER DEENDAYAL ANTYODAYA

YOJANA - NATIONAL URBAN LIVELIHOODS MISSION (DAY-NULM)

1. Name of the Bank:

Submission of Interest subsidy claims to lend @ 7% p.a. to SEP-I, SEP-G

and SHGs under DAY-NULM for quarter ending (Figs in Rupees):
We hereby apply for sanction and release of interest subsidy aggregating to

₹……………………..

(Rupees……………………………………………………………………………………………………)
covering …………………………………….. Accounts in respect of financial assistance
sanctioned to following constituent accounts numbers as per the details given
below

A) SEP- I (Individual Enterprise)

No Branch Name of Loan Loan Amount Interest

the Account
borrower (₹) (₹)
No

Sanctioned Disbursed Charged Subsidy

Claimed

1 2 3 4 5 6 7 8

Total

16
B) SEP- G (Group Enterprise)

No Branch Name of Loan Loan Amount Interest

the Account
(₹) (₹)
No
Group

Sanctioned Disbursed Charged Subsidy

Claimed

1 2 3 4 5 6 7 8

Total

C) SEP-SHG (Self Help Group - Bank Linkage)

No Branch Name of Loan Loan Amount Interest

the SHG Account
(₹) (₹)
No

Sanctioned Disbursed Charged Subsidy

Claimed

1 2 3 4 5 6 7 8

Total

Place: (Signature of the Authorized Officer of the Bank)

Date and Seal of the Bank

17
 ANNEX-II

Submission of claims for additional Interest Subvention to lend

SEP-Women Self Help Groups (SEP-WSHGs) at 3% pa under DAY-
NULM for the quarter ending:

Name of the Bank:

Statement for the quarterly claims: Loans disbursed/outstanding (Figs in Rupees)

No Branch Name of the Loan Account Loan Amount Amount of

No Disbursed Interest
WSHG (₹) subvention
(₹)

1 2 3 4 5 6

Total

We hereby certify that above loans were repaid on time and the benefit of
additional interest subvention has been passed on to the WSHG’s account, reducing
effective rate of interest to 4% for the prompt payee WSHGs

Place: (Signature of the Authorised Officer of the Bank)

Date and Seal of the Bank

18
 ANNEX III
Statement showing Target under Deendayal Antyodaya Yojana –
National Urban Livelihoods Mission (DAY-NULM)

Name of the Bank

(To be furnished at the time of target allocation)
Reporting year

No in Actual & Amount in Rs lakh

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 ANNEX IV

Quarterly Statement showing Cumulative Progress under Deendayal Antyodaya Yojana –

National Urban Livelihoods Mission (DAY-NULM)

NAME OF THE BANK

REPORTING YEAR
REPORTING QUARTER No of Ac/s in Actual and Amt in Rs.Lakhs

20
 Appendix

No. Circular No. Date Subject

1. RPCD. GSSD.CO.BC. NO.26/09.16.03/2014-15 14.08.2014 2014 Restructuring of SJSRY as

National Urban Livelihoods Mission
(NULM)

2. FIDD.GSSD.CO.BC.No.57/09.16.003/2014-15 28.05.2015 National Urban Livelihoods Mission

(NULM)-Reporting Format

3. FIDD.GSSD.CO.BC.No.22/09.16.03/2015-16 07.04.2016 Deendayal Antyodaya Yojana (DAY)-

National Urban Livelihoods Mission
(NULM)-renaming of NULM

4. FIDD.GSSD.CO.BC.No.04/09.16.03/2016-17 01.07.2016 Deendayal Antyodaya Yojana (DAY)-

National Urban Livelihoods Mission
(NULM)

5. FIDD.GSSD.CO.BC.No.03/09.16.03/2017-18 01.07.2017 Deendayal Antyodaya Yojana (DAY)-

National Urban Livelihoods Mission
(NULM)

6. FIDD.GSSD.CO.BC.No.11/09.16.03/2018-19 06.12.2018 Deendayal Antyodaya Yojana (DAY)-

National Urban Livelihoods Mission
(NULM)

21