ARTISAN CREDIT CARD SCHEME (ACC)

1. Coverage:
All artisans involving production/manufacturing process, artisans registered with
Development Commissioner (Handicrafts) etc.
2. Area of operation:
The scheme will be operated through all branches ecept !etropolitan branches.
3. Prpo!e of "oan:
"ith a view to provide ade#uate and timel$ assistance from the ban%ing
institutions to the artisans to meet their credit re#uirements both investment needs
as well as wor%ing capital in a fleible and cost effective manner, Artisan Credit
Card &cheme has been designed for implementation.
#. E"igi$i"it%:
a) All artisans involving production/manufacturing process (and otherwise
eligible for credit facilities for carr$ing out the proposed activities under
an$ of the eisting ban% schemes).
b) Artisans registered with Development Commissioner (Handicrafts) would
be given preference.
c) Clusters of artisans and artisans who have 'oined to form &elf Help (roups
(&H(s).
d) All eisting artisans borrowers of the ban% en'o$ing credit facilities up to
)s. *.++ la%hs having satisfactor$ dealing with the ban%.
e) However, beneficiaries of other (overnment &ponsored ,oan &chemes will
not be eligible for coverage under ACC &cheme.
&. 'i(ation of Cre)it *i+it:
Assessment of wor%ing capital re#uirements re#uired for carr$ing out
manufacturing process is to be made as per -a$a% Committee recommendations
(*+. of anticipated turnover) sub'ect to the maimum limit of )s. *.++ la%hs.
However, the loan re#uirement for tools and e#uipments ma$ be allowed b$ wa$ of
term loan (repa$able in / $ears) within an overall limit of )s. * lacs comprising of
Cash Credit and Term ,oan.
,. -ant+ of Cre)it:
!aimum limit upto )s. *.++ lac ma$ be allowed under the scheme.
.. Margin/S$!i)% : !argin 01., -o subsid$.
0. Se1rit%:
Pri+ar% 2 H$pothecation/mortgage/charge of assets created out of the loan.
A))itiona" 2 -o additional securit$ other than h$pothecation. However, loans
to be covered b$ C(T&3 &cheme of &3D43.
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2. Rate of Intere!t: 3nterest rate is sub'ect to change in accordance with )43/H5
guidelines issued from time to time.
13. Di!$r!e+ent:
Disbursement for newl$ set up units ma$ be made in phases based on progress in
implementation of the scheme.
11. Repa%+ent:
i) "or%ing Capital limit. The limit is epected to be utili6ed as a revolving
cash credit and will provide for an$ number of drawals and repa$ments
within the limit, sub'ect to review to the satisfaction of the 4an% after 0
$ear.
ii) 7or term loan availed for the purchase of tools and e#uipment2 / $ears.
12. In!ran1e:
i) 3nsurance coverage for accidental death.
ii) 7or beneficiaries )egistered with Development Commissioner (Handicrafts)
2 Coverage under group insurance scheme and the premium will be paid b$
the (overnment and beneficiaries in the ratio of 8+29+ respectivel$.
3nsurance scheme covering Artisans registered with DC(Handicrafts) is
enclosed vide A--:;<):=A
iii) 3nsurance for securities created out of 4an% ,oan are to be covered be$ond
)s.*1,+++/= limit.
13. Do1+entation:
i) Demand >romissor$ -ote
ii) H$pothecation of assets created out of loan.
iii) ,etter of continuit$.
iv) H$pothecation of debts ? movable assets.
1#. Monitoring:
The !onitoring shall be done through inspection of the units and review of
operations in the account.
1&. Revie4:
i) ACC limit shall remain valid for three $ears sub'ect to satisfactor$
operation in the account found in the annual review. )e#uest for
enhancement in limit ma$ also be considered during review of the account
within the ceiling limit upto )s. *.++ lac onl$.
ii) The review ma$ result in continuation of the facilit$, enhancement of the
limit or cancellation of the facilit$ depending upon the performance of the
borrower.
iii) 7or the purpose of annual review, the borrower would not be re#uired to
submit an$ financial statement
iv) -o fees will be charged for review/renewal of card.
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1,. 5t6er Pro1e)ra" a!pe1t!:
i) All customers who meet the above mentioned eligibilit$ criteria ma$ be
granted loan under ACC &cheme b$ opening a separate ledger and a
separate account head in the (eneral ,edger. The account shall run as a
cash credit account in the name of ACC account holder.
ii) Che#ue boo%s to be issued and mar%ed as ACC account. However, in
case of illiterate borrower/artisan, withdrawal ma$ be allowed in cash
through withdrawal slips accompanied b$ the pass boo%.
iii) A pass boo% or a credit cum passboo% incorporating name, address,
borrowing limit, validit$ period etc. be issued for facilitating recording
of transactions on an ongoing basis.
iv) -o stoc% statement, balance sheet, or an$ other financial statements are
re#uired to be submitted b$ the borrower.
v) The cost of photograph for issue of card to be borne b$ the ban%.
vi) The borrowers will be issued with a photo card indicating sanctioned
limit and validit$ period of credit facilities through ACC issue register
which is to be opened separatel$.
vii) Disbursement for newl$ set up units ma$ be made in phases based on
progress in implementation of the scheme.
viii) The scheme would be eligible for credit guarantee cover under Credit
(uarantee Trust 7und for &mall 3ndustries (C(T&3).
i) All prudential norms as applicable to normal CC/5D account would
appl$ for the ACC a/c.
1.. Re!ervation!7 if an%: -il.
10. Reporting
i) ACC limits sanctioned to the eligible borrowers b$ the 4ranch !anagers
within his discretionar$ power should be reported to the )egional
manager within @
th
of the following month through monthl$ discretionar$
power statement.
ii) The advance under the scheme is to be treated as priorit$ sector advance.
iii) The position and progress of the scheme is to be reported b$ the 4ranch to
)egional 5ffice ever$ month within @
th
of the following month and
)egional 5ffice will send consolidated position to Head 5ffice, !&!:
Deptt. b$ 01
th
of the following month.
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8IMA95:ANA '5R HANDICRA'TS ARTISAN
A. 5$;e1tive :
The ob'ective of A43!A B5CA-A 75) HA-D3C)A7T& A)T3&A-D is to
provide life insurance protection to the Handicrafts Artisans, whether male or
female, between the age group of 0E=8+ $ears.
8. E"igi$i"it%:
All crafts persons, whether male or female, between the age group of 0E=8+ $ears,
covered under thrift and credit societies and self help groups will be eligible to be
covered under the 43!A B5CA-A 75) HA-D3C)A7T& A)T3&A-&.
C. S16e+e Content!:
There will be two components under the 4ima Bo'ana for Handicrafts Artisans 2
i) Coverage under eisting ACanshree 4ima Bo'anaF of ,3C and
ii) Add=on (roup 3nsurance coverage for death.
1. :ANSHREE 8IMA 95:ANA :
i) ,ife 3nsurance cover towards natural death shall be a sum of )s.
*+,+++/= per member.
ii) 7or accidental death or permanent total disabilit$, the coverage shall be
maimum of )s. 1+,+++/= per member and for permanent partial
disabilit$, the coverage shall be maimum of )s. *1,+++/= per member.
iii) Added benefits in the form of an associated scheme of ,3C A&i%sha
&ah$og Bo'anaD under which not more than * dependent children of the
beneficiar$ stud$ing in the classes G
th
to 0*
th
are given )s. /++/= per
#uarter/child as educational allowance for a maimum period of 9 $ears
or till the$ complete ;33 standard whichever event occurs earlier.
Pattern of 'inan1ia" a!!i!tan1e:
i) The annual premium rate per person under the polic$ will be )s. *++/=
ii) The annual premium charged would be )s. *++/= per annum, of which
i.e. )s. 0++ is to be borne b$ ,ife 3nsurance Corporation from its &ocial
&ecurit$ 7und, )s. 8+/= is to be borne b$ the (overnment of 3ndia in the
5ffice of the DC (Handicrafts) and remaining )s. 9+/= is to be borne b$
the beneficiar$.
2) ADD<5N<=R5>P INS>RANCE SCHEME (=IS) '5R DEATH
C5?ERA=E
The 3nsurance coverage shall be )s. /+,+++/= per artisans of the (roup for natural
as well as accidental death >attern of 7inancial assistance.
i) The $earl$ premium amount for the first $ear shall be )s. 0E+/= per
member of the (roup, on the assumption that the average age of the
group is 91 $ears. This premium amount ma$ undergo revision at the
end of first $ear depending upon the actual age profile of the group, and
such revised premium, amount shall be effective from second $ear
onwards.
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ii) 1+. of premium amount i.e. )s. G+/= shall be contributed b$ the 5ffice
of the DC (Handicrafts), (overnment of 3ndia and remaining 1+. i.e.
)s. G+/= b$ the craftsperson who is a member of the group.
iii) -otwithstanding the provision at (i) above the premium amount is
sub'ect to revision on biennial basis, b$ the ,3C based on the actual
claim eperience.
A craftsperson who fulfills the eligibilit$ conditions, shall have the option of
choosing either the ACanashree 4ima Bo'anaD as mentioned in 0 above or the Add=
on=(roup 3nsurance cover as at * above or both. 3n case a craftsperson is willing to
choose both the options, the premium shall be )s. 0E+/= per $ear (ecluding ,3C
share of )s. 0++/= under Canashree 4ima Bo'ana) of which )s. 01+/= per $ear shall
be contributed b$ the 5ffice of the >C handicrafts). (53 and remaining )s. 0/+/=
per $ear b$ craftsperson. The coverage for natural death )s. 1+,+++/= ()s.*+,+++/=
H )s. /+,+++/=), for accidental death )s. E+,+++/= ()s.1+,+++/= H /+,+++/=),
maimum of )s. 1+,+++/= for permanent disabilit$ and )s. *1,+++/= for permanent
partial disabilit$ (as per Canshree scheme) estimated to cover * la%h artisans under
the insurance coverage during the 0+
th
five $ear plan.
D. Mo)e of San1tion:
The implementing agencies will appl$ to the 5ffice of the Development
Commissioner (Handicrafts) for sanction of the scheme along with the list of
artisans identified b$ them under AHIB (Ambed%ar Hastashilpa Ii%as Bo'ana).
E. Mo)e of Pa%+ent:
7or obtaining release of the Central contribution and ,3C contribution the
implementing agenc$ should give an underta%ing that the$ have alread$ reali6ed
the contribution of beneficiaries.
'. =i)e"ine! for preparing propo!a" n)er t6e !16e+e:
0. 3dentification of crafts and beneficiar$ craftsperson under AHIB has to be
done b$ the implementing agenc$.
*. The implementing agenc$ is re#uired to submit a cop$ of the agreement with
the 3nsurance Compan$ and also a note on the performance of the scheme
regarding claim made and settled to the office of the Development Commissioner
(Handicrafts).
/. All craftsperson whether male or female within the age group of 0E=8+ $ears
will be covered under the scheme. The implementing agenc$ shall be satisfied with
the %ind of evidence provided a proof of age b$ each member at the entr$ into the
scheme.
9. The implementing agenc$ should ensure that there should not be an$
duplication/overlap of artisans under the scheme. 5nl$ those who are not covered
b$ an$ other agenc$ scheme of similar nature of the other &tate (overnment and
other agencies should be chosen, so that the benefits reach the intended categories.
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&. 5PERATI5A* M5DA*ITIES:
(i) The scheme shall be operative on $ear=to=$ear basis.
(ii) The premium, amount shall be paid one time for the whole $ear to the
,ife 3nsurance Corporation of 3ndia.
(iii) The premium, once paid, shall not be refunded.
(iv) The insurance coverage is ordinaril$ effective onl$ after receipt of entire
amount of premium i.e. both the (overnmentFs as well as beneficiar$Fs
share. 3n an unli%el$ situation where (overnmentFs share of premium is
not read$, the ,3C shall accept the share of the beneficiar$ and effect the
coverage accordingl$. The share of the (overnment, along with late fee
e#uivalent to the interest at >,) shall be accepted b$ the ,3C, even at a
later stage.
(v) The 5ffice of the Development Commissioner for Handicrafts (DC
HC), (overnment of 3ndia ((53) in the !inistr$ of Tetiles (!5T)
shall release its share of the premium to the ,3C.
(vi) A prospective beneficiar$ shall be re#uired to fill up an application=
cum=nomination form and submit the same to the implementing agenc$
along with his/her share of the premium. The format of the application
form shall be made available to the implementing agencies b$ the ,3C.
The implementing agencies shall be satisfied with %ind of proof of
evidence provided as proof of age etc. b$ each member for availing this
scheme. 5n receipt of the above, the implementing agenc$ shall
scrutini6e the application and if found eligible, shall accept the premium
amount and forward the lists on such beneficiaries along with premium
amount to the ,3C. 5n receipt of the premium amount with the list of
beneficiaries from the implementing agencies, the ,3C shall issue to the
implementing agencies a group polic$ certificate along with the list of
names of individuals insured. 3mplementing agencies will arrange to
inform individual beneficiaries about the coverage. 3n case of death or
disabilit$, the nominee/beneficiar$ concerned shall submit his/her claim
to the ,3C through the implementing agenc$ with re#uired documentar$
evidence such as death certificate/post mortem eamination
report/medical certificate/discharge certificate and other related
documents, as applicable. The implementing agenc$ shall forward the
claim to the ,3C within 01 da$s of receipt of the claim. ,3C shall settle
the claim, within one wee% from the date of receipt of the claim and pa$
the amount to the beneficiar$/nominee directl$ b$ A/c. >a$ee Che#ue
( under intimation to the 3mplementing Agenc$) or through the
3mplementing Agenc$.
(vii) 3n the event of non=pa$ment of the insurance premium for the net $ear
b$ the beneficiar$, the insurance cover shall automaticall$ cease. The
beneficiar$ will however be free to re'oin the scheme in an$ subse#uent
$ear on pa$ment of re#uired premium.
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(viii) 3n case of Handicrafts Artisan changes his membership during the
period of insurance from one &ociet$/&H( to another, he/she as the
beneficiar$ of the scheme, shall furnish intimation to the implementing
agenc$. The &tate (overnment and the implementing agencies shall be
activel$ associated in implementation of the scheme b$ wa$ of
sensiti6ing the artisans to 'oin the scheme under the ambit of AHIB.
(i) The performance of the scheme would be monitored as usual b$ three=
tier committees constituted for monitoring the pro'ects of AHIB.
() A certain amount of funds shall be earmar%ed b$ (53 for the purpose of
publicit$ and administration of the scheme. &uch amount ma$ not
normall$ eceed )s. 0+ per beneficiar$ and shall be released to the
implementing agencies based on the re#uisitions indicating the details.
(i) The implementing agencies shall submit periodical reports indicating
the details of coverage and settlement of claims to the Development
Commissioner for handicrafts, !inistr$ of Tetiles.
=. ADDITI5NA* 8ENE'ITS:
(i) The Canshree 4ima Bo'ana also provides scholarship for the children of
parents who are covered under it. A scholarship of )s. /++/= per #uarter
per child is to be paid to students stud$ing in standard 3; to ;33 for a
maimum period of four $ears or till the$ complete ;33 standard
whichever event occurs earlier. The scholarship will be for academic
$ear Cune to !a$.
(ii) The benefit is restricted to two children of the member covered. 4oth
the children will be covered for scholarship.
(iii) 3f a student fails and is detained in the same standard, he will not be
eligible for scholarship for the net $ear in the same standard.
(iv) 5nce a person is admitted as a member under Canshree 4ima Bo'ana,
further proof of income is not necessar$ at the time of selection of
beneficiar$ under the scheme.
(v) -o premium is charged either to the parent of the scholarship holder or
to the implementing agenc$. 3t is an additional benefit given to the
children of the parents covered under Canshree 4ima Bo'ana. 3f the
premium under Canshree 4ima Bo'ana is not paid on annual renewal
date, the child shall not be eligible for scholarship.
(vi) The beneficiaries have to be selected out of the members covered under
Canshree 4ima Bo'ana. The targeted beneficiar$ students of the &tate
ma$ be divided among the members covered under Canshree 4ima
Bo'ana in proportion to the number of lives covered within the &tate.
The final selection shall be based on the criteria of the poorest of the
poor, as the numbers of scholarship is limited.
(vii) The members of Canshree 4ima Bo'ana whose child is eligible for
scholarship shall fill up an application form (available with the
implementing agenc$) and submit to the implementing agenc$. The
application dul$ filled up and certified will be sent along with the list of
beneficiar$ students b$ the implementing agenc$ to the concerned ,3C,
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>?(& <nit for disbursement of scholarship. The scholarship will be
disbursed to the beneficiar$ students through the concerned
implementing agenc$.
(viii) ,3C will send the Account >a$ee Che#ue in the name of the
implementing agenc$ along with list of beneficiar$ students who will
pass on the scholarship to eligible students. 3mplementing agenc$ has
to maintain records and submit certificate of utili6ation periodicall$ to
,3C, >?(& <nit.
(i) 5n introduction of Canshree 4ima Bo'ana, the earlier (roup 3nsurance
&cheme stands discontinued and no proposals for further renewal under
this scheme will be considered. The amount standing to the credit of the
artisans in the savings element of the earlier (roup &aving ,in%ed
3nsurance &cheme will be paid to him b$ the ,3C along with interest
thereon on receipt of re#uest for withdrawal.
H. C*AIM PR5CED>RE:
The beneficiar$ of the deceased member will be re#uired to furnish the original
death certificate to the implementing agenc$ who will arrange to forward the same
along with the claim papers to ,3C i.e. the 4ranch which has originall$ finali6ed
the insurance cover will settle the Claim b$ sending A/c. >a$ee Che#ue directl$ to
the beneficiar$. However, intimation to this effect has to be furnished to the
concerned implementing agenc$. 3n the case of accidental claim, police in#uir$
report will also be re#uired to be submitted. The detailed procedures will be
mainl$ on the lines of the procedure of &ocial (roup &cheme of the ,3C
I. RE*EASE 5' '>NDS:
The -odal Agenc$/3mplementing Agenc$ will collect the beneficiar$ contribution,
prepare a consolidated list of beneficiaries and deposit the same with ,3CFs
concerned >?(& <nits. 7or obtaining the release of (ovt. share, the implementing
Agenc$ will appl$ to the office of the D.C (H), -ew Delhi along with the deposit
receipt issued b$ ,3CFs >?(& <nits and the list of beneficiaries. 5n receipt of the
said documents, the (ovt. share in proportionate to the beneficiar$ share alread$
deposited with ,3CFs >?(& <nits would be released and sent directl$ to ,3CFs
Head office b$ the office of the Development Commissioner (Handicrafts) to
enable ,3C of 3ndia to cover the ris% under the C&4B for the respective groups.
4ranches are to report monthl$ to )egional 5ffices as per format and )egional
5ffice is to submit consolidated report to &3 ? &4 Department within 01
th
of the
net month.
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