MANU/RMIC/0368/2015
Ministry : Reserve Bank of India
Department/Board : Department of Co operative Banking Regulation
Circular No. : DCBR.RCBD.BPD.No.4/19.51.010/2015-2016
RBI/2015-2016/206
Date : 15.10.2015
The Chief Executive Officers
All Primary (Urban) Co-operative Banks/
State and Central Co-operative Banks
Madam/ Dear Sir,
Financial Inclusion Fund - Revised Guidelines
As you may be aware, the Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) was constituted in the year 2007-08 for a period of five years with a corpus of Rs. 500 crore each to be contributed by Government of India (GOI), RBI and NABARD in the ratio of 40:40:20. The guidelines for these two funds were framed by GOI. In April 2012, RBI decided to fund FIF by transferring the interest differential in excess of 0.5% on RIDF and STCRC deposits on account of shortfall in priority sector lending.
2. Keeping in view the various developments over the years, GOI has merged the FIF and FITF to form a single Financial Inclusion Fund. The Reserve Bank of India has finalised the new scope of activities and guidelines for utilisation of the new FIF in consultation with GOI. The new FIF will be administered by the reconstituted Advisory Board constituted by GOI and will be maintained by NABARD.
3. A copy of the revised guidelines of the new Financial Inclusion Fund is enclosed for your information.
Yours faithfully,
(Suma Varma)
Principal Chief General Manager
FINANCIAL INCLUSION FUND - GUIDELINES
1. Constitution of the Fund
1.1 After the completion of the initial five years, it has now been decided to merge both the Financial Inclusion Fund & Financial Inclusion Technology Fund into a single Fund viz. Financial Inclusion Fund (FIF).