National Institutes

National Backward Classes Finance & Development Corporation (NBCFDC)

About NBCFDC

National Backward Classes Finance & Development Corporation (NBCFDC) is a Govt. of India Undertaking under the aegis of Ministry of Social Justice and Empowerment. NBCFDC was incorporated under Section 25 of the Companies Act 1956 on 13th January 1992 as a Company not for profit with an objective to promote economic and developmental activities for the benefit of Backward Classes and to assist the poorer section of these classes in skill development and self-employment ventures. NBCFDC provides financial assistance through State Channelising Agencies (SCAs) nominated by the State Governments/UTs. NBCFDC also provides Micro Financing through SCAs/ Self Help Groups (SHGs) . The Corporation can assist a wide range of income generating activities to assist the poorer section of these classes in skill development and self-employment ventures under following broad sectors:

1. Agriculture and Allied Activities
2. Small Business
3. Artisan and Traditional Occupation
4. Technical and Professional Trades/Courses
5. Transport and Service Sector etc.

Objectives

• To promote economic and developmental activities for the benefit of Backward Classes.
• To assist, subject to such income and/or economic criteria as may be prescribed by government from time to time, individuals or groups of individuals belonging to Backward Classes by way of loans and advances for economically and financially viable schemes and projects.
• To promote self-employment and other ventures for the benefit of Backward Classes.
• To grant concessional finance in selected cases for persons belonging to Backward Classes living below double the poverty line.
• To extend loans to the Backward Classes for pursuing general/professional/technical education or training at graduate and higher level.
• To assist in the upgradation of technical and entrepreneurial skills of Backward Classes for proper and efficient management of production units.

Schemes

Education Loan Scheme

Objectives

• NBCFDC introduced Education Loan Scheme 'New Aakanksha' Scheme to provide financial assistance to the students of Backward Classes living below double poverty line for pursuing General/ Professional/ Technical course or training at graduate and higher level.

Eligibility

1. Members of backward classes, as notified by Central Government and State Governments from time to time.
2. The annual income of the applicant's family should be below double the poverty line i.e. Rs.55000/- p.a. in  urban areas and Rs. 40,000/- p.a.  in rural areas.
3. The applicant should have obtained admission for professional Course.
4. Priority will be given to women, physically impaired and dependent of war widows.

Courses Covered

1. MBA or equivalent (approved by AICTE)
2. MCA (Master of computer Application) or equivalent programme  (approved by AICTE)
3. Graduate programme in Engineering conducted by IIT/other institutions. (approved by AICTE)
4. MBBS/Graduation/ PG in Medicine (including Ayurvedic, Homeopathic, Unani) programme conducted by colleges recognized by Medical Council of India or any other concerned authority.
5. Graduation/PG in Hotel Management etc.

The loan shall be provided by the State Channelising Agency through Institute/College only.

Maximum  Loan  Limit

1. Study in India : Rs. 10 Lakh
2. Study Abroad : Rs. 20 Lakh

90% of the expenditure of the course subject to maximum loan limit of Rs.10.00 Lakh per student or Rs.2.50 Lakh p.a. (for studying within India) & Rs.20.00 Lakh per student (for studying abroad), the balance 10% will be borne by student/SCAs.

Rate of Interest

• From beneficiary - 4%p.a (3.5% for Girl Students)

Mode of Repayment

• The recovery will commence after six months of completion of course or getting employment/ Self-employment whichever is earlier.

Micro Finance Schemes

Objective:

In order to implement the NBCFDC scheme at grass root level and to promote & Support micro financing scheme for improvement of credit facilities for the poorer section of the beneficiary claim especially for women beneficiaries, the Corporation has adopted Micro Financing through SCA's. SCA's further can give loan through accredited NGO's/SHG. Salient features of the Scheme are as under:

Implementation

• The scheme is to be implemented through SCAs in rural and urban areas by way of financing the beneficiaries either directly or through Self Help Group (SHGs) preferably in the areas remained uncovered so far under any of such schemes

Eligibility of the Beneficiary

• Members of Backward Classes as notified by Central/ State Govt. and are living below double the poverty line i.e. annual family income of the beneficiary should be less than Rs. 40,000/- in rural area and Rs Rs. 55,000/- in urban areas. In a SHG 75% members can be from backward classes and remaining 25% members may be from other weaker including SC/ST, Minorities and disable persons

Quantum of Loan

• Max. loan per Beneficiary Rs.50,000/-

Pattern of Finance

Utilisation Period : 3 months from date of disbursement.

Repayment Period : 36 months.

Rate of Interest

Mahila Samridhi Yojna

Objective:

• To Provide Micro Finance to women entrepreneurs belonging to the target group.

Salient feature of the scheme

• Maximum loan limit per beneficiary: Rs. 50,000/-

Implementation:

• The scheme is to be implemented through SCAs in rural and urban areas by way financing the women beneficiaries directly or through Self-Help Groups (SHGs).

Eligibility

• Women belonging to the Backward Classes as notified by Central/State Govt. from time to time and living below double the poverty line (i.e. annual family income of the beneficiary should be less than Rs. 40,000/- in rural and Rs. 55,000/- in urban areas).

Pattern of Finance

Utilization Period

• 3 months from date of disbursement

Rate of Interest

Mode of Repayment

• Under the scheme, loan is to be repaid in quarterly installments within three years (including the moratorium period of 90 days for fund utilization).
• On repayment of loan under the scheme, the eligible beneficiaries can avail any loan of NBCFDC schemes

How to Apply

• Prospective eligible beneficiaries should apply on prescribed form (available with the SCA) to Distt. Office of SCA where he/she normally resides.
• The applicant should clearly mention his/her felt needs and choice of vocation and training requirements, if any, in the application form.
• The applicant should fulfill eligibility criteria (should belong to Backward Class and living below double poverty line).
• Submit documents as a proof of the same such as Caste and Income Certificate issued by Competent Authority like Tehsildar/Sub Divisional Magistrate/District Collector etc.
• The loan is sanctioned by SCA to the applicant keeping in view the availability of funds and fulfillment of eligibility criteria by the beneficiaries & completion of required documentation.

Source: National Backward Classes Finance & Development Corporation

National Commission for Backward Classes (NCBC)

About NCBC

• The Supreme Court of India in its Judgment dated 16.11.1992 in Writ Petition (Civil) No. 930 of 1990 – Indira Sawhney & Ors. Vs. Union of India and Ors., reported in (1992) Supp. 3 SCC 217  directed the Govt. of India, State Governments and Union Territory Administrations to constitute a permanent body in the nature of a Commission or Tribunal for entertaining, examining and recommending upon requests for inclusion and complaints of over-inclusion and under-inclusion in the list of OBCs.
• Pursuant to the direction of the Supreme Court, the Government of India enacted the National Commission for Backward Classes Act, 1993 (Act No. 27 of 1993) for setting up a Commission at National Level viz. “National Commission for Backward Classes” as a permanent body.
• The Act came into effect on the 2nd April, 1993. Section 3 of the Act provides that the Commission shall consist of five Members, comprising of a Chairperson who is or has been a judge of the Supreme Court or of a High Court; a social scientist; two persons, who have special knowledge in matters relating to backward classes; and a Member-Secretary, who is or has been an officer of the Central Government in the rank of a Secretary to the Government of India.

Organisational Setup

NCBC Act, 1993

• This Act maybe called the National Commission for Backward Classes Act, 1993.
• It extends to the whole of India except the State of Jammu and Kashmir. tc "(2) It extends to the whole of India except the State of Jammu and Kashmir."
• It shall be deemed to have come into force on the 1st day of February, 1993. tc "(3) It shall be deemed to have come into force on the 1st day of February, 1993."

For More Information: NCBC Act,1993 (1.2MB)

Constitutional Provisions

Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth

• The State shall not discriminate against any citizen on grounds only of religion, race, caste, sex, and place of birth or any of them.
• No citizen shall, on grounds only of religion, race, caste, sex, place of birth or any of them, be subject to any disability, liability, restriction or condition with regard to –
• access to shops, public restaurants, hotels and places of public entertainment; or
• The use of wells, tanks, bathing Ghats, roads and places of public resort maintained wholly of partly out of State funds or dedicated to the use of the general public.
• Nothing in this article shall prevent the State from making any special provision for women and children.
• [(4) Nothing in this article or in clause (2) of article 29 shall prevent the State from making any special provision for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes and the Scheduled Tribes.]
• [(5)  Nothing in this article or in sub-clause (g) of clause (1) of article 19 shall prevent the State from making any special provision by law, for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes or the Scheduled Tribes in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the  State, other than the minority educational institutions referred to in clause (1) of article 30].

Equality of opportunity in matters of public employment.

• There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State.
• No citizen shall, on grounds only of religion, race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or discriminated against in respect of, any employment or office under the State.
• Nothing in this article shall prevent Parliament from making any law prescribing, in regard to a class or classes of employment or appointment to an office 1[under the Government of, or any local or other authority within, a State or Union territory, any requirement as to residence within that State or Union territory] prior to such employment or appointment.
• Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State.
• 2[(4A) Nothing in this article shall prevent the State from making any provision for reservation 3[in matters of promotion, with consequential seniority, to any class] or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the State.]
• 4(4B) Nothing in this article shall prevent the State from considering any unfilled vacancies of a year which are reserved for being filled up in that year in accordance with any provision for reservation made under clause (4) or clause (4A) as a separate class of vacancies to be filled up in any succeeding year or years and such class of vacancies shall not be considered together with the vacancies of the year in which they are being filled up for determining the ceiling of fifty per cent. Reservation on total number of vacancies of that year.]
• Nothing in this article shall affect the operation of any law which provides that the incumbent of an office in connection with the affairs of any religious or denominational institution or any member of the governing body thereof shall be a person professing a particular religion or belonging to a particular denomination.

Article 340 of the Constitution provides for the appointment of a Commission to investigate the conditions of and the difficulties faced by the socially and educationally backward classes and to make appropriate recommendations .The article reads as under :-

• Appointment of a Commission to investigate the conditions of backward classes –
• The President may by order appoint a Commission consisting of such persons as he thinks fit to investigate the conditions of the socially and educationally backward classes within the territory of India and the difficulties under which they labour and to make recommendations as to the steps that should be taken by the Union or any State to remove such difficulties and to improve their condition and as to the grants that should be made for the purpose by the Union or any state and the conditions subject to which such grants should be made, and the order appointing such commission shall define the procedure to be followed by the Commission.
• A Commission so appointed shall investigate the matters referred to them and present to the President a report setting out the facts as found by them and make such recommendations as they think proper.
• The President shall cause a copy of the report so presented together with a memorandum explaining the action taken thereon to be laid before each house of Parliament. ”

Under Article 338(5) of the Constitution, the following are the powers of the National Commission for Scheduled Castes: It shall be duty of the Commission –

• To investigate and monitor all matters relating to the safeguards provided for the Scheduled Castes and Scheduled Tribes under this Commission or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards;
• To investigate and monitor all matters relating to the safeguards provided for the Scheduled Castes and Scheduled Tribes under this Commission or under any other law for the time being in force or under any order of the Government and to evaluate the working of such safeguards;
• To inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Castes and Scheduled Tribes;
• To participate and advise on the planning process of socio-economic development of the Scheduled Castes and Scheduled Tribes and to evaluate the progress of their development under the Union and any State;
• To present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards;
• To make in such report recommendations as to the measures that should be taken by the Union or any State for the effective implementation of those safeguards and other measures for the protection, welfare and socio-economic development of the Scheduled Castes and Scheduled Tribes; and
• To discharge such other functions in relation to the protection, welfare and development and advancement of the Scheduled Castes and Scheduled Tribes as the President may, subject to the provisions of any law made by Parliament, by rule specify.”

By clause (10) of the same Article, “Backward Classes” are included within the expression “Scheduled Castes”.  Clause (10) of Article 338 reads as follows:

• “(10) In this article references to the Scheduled Castes and Scheduled Tribes shall be construed as including references to such other backward classes as the President may, on receipt of the report of a Commission appointed under clause (1) of Article 340, by order specify and also to the Anglo-Indian community”.

Central List of Other Backward Classes (OBCs)

The Commission examines requests for inclusion of any class of citizens as a backward class in the lists and hears complaints of over-inclusion or under-inclusion of any backward class in such lists and tenders such advice to the Central Government as it deems appropriate; and the advice of the Commission shall ordinarily be binding upon the Central Government.

A total of 35 notifications have been issued so far and till date, a total of 2404 "entries" (as "entry" means a caste, including its synonyms, sub-castes etc.) have been notified in the Central list of OBCs for 24 States and 6 Union Territories.

To access the Central List of Other Backward Classes (OBCs), click here.

Source: National Commission for Backward Classes