States with significant OBC population like Uttar Pradesh and Bihar have put on hold disbursement of loans under NBCFDC to beneficiaries from backward classes due to non-payment of overdues by the state agencies, a Parliamentary Panel has said in its report.
"Due to either non-payment of overdues by SCAs or non- availability of government guarantee from the state governments...States with significant OBC population such as Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan and Maharashtra are receiving limited funds and financing of beneficiaries of the target group has been put on hold," the Standing Committee on Social Justice and Empowerment said in its report.
In the wake of it, the committee has asked the department to identify and tie up, at the earliest, with alternative channels in all the states where government guarantee is awaited.
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Noting that the income and cast certificates are essential for availing loans disbursed under NBCFDC, the committee said it is "dismayed" to note that there are inordinate delays on the part of the state government in issuing such certificates to beneficiaries.
The National Backward Classes Finance and Development Corporation (NBCFDC), under the aegis of Social Justice and Empowerment Ministry, provides concessional financial aid to eligible members of the backward classes living below double the poverty line for self employment and skill development.
These loans are disbursed through state channelising agencies (SCAs) for viable projects as per needs and choices of the beneficiaries.
In 2015-16, NBCFDC disbursed Rs 315.12 crore as loans to more than 1.88 lakh beneficiaries.
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