In order to widen and deepen the depositor awareness efforts, the Reserve Bank of India has decided to call for fresh applications ‘on tap’ for grant of financial assistance from the Depositor Education and Awareness Fund (DEAP).

In this regard, the central bank has unveiled guidelines on the criteria for registering institutions, organisations, and associations ‘on tap’. The entities engaged in activities related to educating bank depositors and creating awareness by conducting awareness programmes, organising seminars, symposia, including research activities, are eligible for registration.

Further, 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 are eligible for registration.

The entity should have rules, regulations and / or bye-laws for its governance and management, which should be in conformity with the conditions of registration. It should be managed by a governing board/management committee as envisaged under the laws under which it is established/incorporated.

The entity 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. 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 three independent directors, and an audit committee.

This requirement can be applied at the level of the applicant company or its promoter company. The entity 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.

It should have a track record of last three years in areas related to educating bank depositors and creating awareness. The entities that may not have 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.

The registered entities may apply for financial assistance giving 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 one-time measure, or in stages by way of reimbursement, depending on the nature of activity proposed.

Related Topics
comment COMMENT NOW