Money & Banking

RBI calls for fresh applicants ‘on tap’ to grant depositor awareness funds

Our Bureau Mumbai | Updated on November 14, 2019 Published on November 14, 2019

File photo   -  PAUL NORONHA

Registerd entities may apply for financial assistance from the Depositor Education and Awareness Fund (DEAF) by providing details of their proposed projects

The Reserve Bank of India (RBI) has decided to call for fresh applications ‘on tap’ for grant of financial assistance from the Depositor Education and Awareness Fund (DEAF).

The apex bank has unveiled guidelines on the criteria for registering institutions, organisations and associations in this regard.

Eligibility

The following groups are eligible to register:

1. Entities engaged in activities relating to educating bank depositors and creating awareness by conducting awareness programmes, organising seminars, symposia, etc, including research activities.

2. Entities constituted as a Public Charitable Trust; registered under the Societies Registration Act, 1860; a Trust under India Trusts Act, 1882; registered under the State Co-operative Societies Acts; registered under section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013; a University established by law; and any other educational institution recognised by the Government.

Criteria

1. The entities should have rules, regulations and / or bye-laws for its governance and management which should be in conformity with the conditions of registrationIt should be managed by a Governing Board/Management Committee as envisaged under the laws under which it is established/incorporated.

2. The entitities should have a minimum number of members as required under the applicable laws under which it has been formed. It should have a clean track record.

3. For companies registered under Companies Act, besides the requirement of minimum number of shareholders/ members, it is necessary to have a well-diversified shareholding structure and good corporate governance with at least 3 (three) independent directors, and an audit committee. This requirement can be applied at the level of the applicant company or its promoter company.

4. The entities should, unless specific exemption has been made in this regard by the Committee, be in existence for a minimum period of five years prior to the date of application for registration. Out of this, it should have a track record of last three years in areas relating to educating bank depositors and creating awareness. The entities which may not be having such track record may also apply provided they have a good track record of conducting other types of financial literacy related programmes as decided by the Committee from time to time.

How may one apply for financial assistance?

The registered entities may apply for financial assistance providing the details of their proposed projects including the estimated cost of the project and the financial assistance required. The entities registered / recognised by the Committee will be considered for grant-in-aid as a onetime measure or in stages by way of reimbursement, depending upon the nature of activity proposed.

Published on November 14, 2019
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