NIRD&PR

Introduction

Every year, millions of youth from rural and semi urban areas who could not pursue higher and professional education. In such a situation, the need was felt for promoting self employment particularly for those below poverty line. In this context, a unique initiative in mitigating the problem of unemployment was taken up by the MoRD in January 2009 under the banner of RSETI scheme. The scheme envisage framework for imparting good quality residential free training and post training follow up with credit linkage for sustained motivation among the trainees for promoting entrepreneurship among the rural youth. As RSETIs are Bank lead institutions they are prefixed with the name of the respective sponsor banks to give distinct identity.

Historical perspectives

It is interesting to note that banks (both public sector and private sector banks) had opened 112 RSETIs including 21 RUDSETIs, prior to launching of the Scheme by the MoRD in January 2009. After launch of the scheme by MoRD and regular monitoring by NIRD&PR, there is spectacular growth of RSETIs across the country despite initial hurdles, the number of RSETI’s as on date 585.

Genesis

• In the year 1982 under a unique initiative, jointly taken by SDMET, Syndicate Bank & Canara Bank, started RUDSETIs under the visionary leadership of Dr. D Veerendra Heggade to mitigate the problem of unemployment amongst rural youths by imparting skill development training. Encouraged by the success of this initiative, MoRD decided to set up a RSETI in each district.

Vision

• Transformation of youth into productive assets by short duration intervention/training.

Mission

• Channelizing youth power in wealth through entrepreneurship and empower youth to share economic progress equitably

Objectives

• Identification of rural unemployed youth for self employment.
• Orientation of rural youth for self employment.
• Motivation of the rural youth to go for self employment.
• Skill development training to identified youth.
• To hand hold the youth to establish their own micro enterprise.

Unique Features

• Commitments of the promoters i.e. MoRD & concerned Bank.
• Management by experienced & dedicated staff.
• Talks & discussion by qualified guest faculties.
• Interface/experience sharing with successful entrepreneurs.
• Well furnished classrooms.
• Residential training programmes.
• More than 60 types of short term EDPs.
• Free of cost training to all candidates.
• Post training follow up for two years.
• Well structured course modules.
• Regular escort services to the trainees.
• Extensive use of audio visual aids.
• Marketing support to the trainees.
• Common curriculum for all RSETIs.

Scheme at a Glance

• The institutes set up in the country should be registered as societies/trusts.
• The institutes to be opened in all districts of the country. The acronym ‘RSETI’ name should be suffixed with the abbreviation of the concerned Bank, e.g., PNBRSETI, BOBRSETI etc..
• Land for setting up RSETIs will be allotted to the concerned Banks, free of cost by the State Governments.
• The construction of RSETI buildings will be undertaken by the concerned Bank/Trust/Society. Cost of construction will be funded by MoRD.
• A four level committee is to be set up to ensure the grounding of the institutes in all the rural districts of the country.
  • National Level Steering Committee – This committee is headed by the Secretary, RD, MoRD. The committee is to meet at least twice in a year at half-yearly intervals.
  • State Level Steering Committee – This is a sub-committee of the SLBC to be set in every state for all the RSETIs functioning in the State. The committee will be co-chaired by the Principal Secretary, RD and SLBC, Convenor of the Bank.
  • Governing Council – This is formed at the bank’s apex level to lay down goals, general policies ad set directions to the RSETIs.
  • Local Advisory Committee – This is the committee which is formed at the institute level and it will ensure that the guidelines of RSETIs are followed in manner and spirit.
• The RSETIs should be headed by a Director on deputation from sponsor Bank with rural banking exposure and having aptitude and flair for training. He should be an officer Scale II/III of the Bank. He may be supported by faculties/staff either from the Bank or on contract basis.
• Each RSETI should offer 30-40 Skill Development Programmes in a financial year in various avenues. All programmes should be of short duration ranging preferably from 1 to 6 weeks.
• Government of India will provide, one time grant assistance to the RSETI, up to a maximum of Rs.1.00 crore for meeting the expenditure on construction of the building.
• MoRD, through the DRDAs will provide support towards the cost of training for rural BPL candidates to the sponsor banks @ Rs 200/- per candidate per day with a cap of Rs. 4000/- for training up to 4 weeks duration and Rs 5000/-for training of longer duration. Other recurring cost for the RSETIs will be borne by sponsoring banks or through other sponsoring agencies like SIDBI or NABARD.
• Types of training to be decided by the institute should be based on the local resource situation and potential demand.
• Sponsoring of applications, it is the primary responsibility of all DRDAs and branches of the sponsoring banks to sponsor rural BPL trainees.
• Selection of trainees should be done in such a way that 70% of the trainees should be from the rural BPL category; weight age should be given to SC/ST, minorities, women and physically handicapped.
• Proper system for regular follow-up and handholding for a minimum period of 2 years should be put in place.
• Banks should ensure that officers posted as Directors of RSETIs undergo TTPs (Trainers Training Programme) before taking charge of the RSETIs.
• The Director, RSETI should ensure that the trainees are credit linked by sending the list of candidates to all bank branches of the area.
• Certificates issued by a RSETI will be recognised by all banks for purposes of extending credit to the trainees.
• RSETIs should also conduct various skill up gradation programmes for undertaking micro enterprises or wage employment to enable existing entrepreneurs to compete in the emerging global market.
• RSETIs should give equal opportunities to women entrepreneurs and organise exclusive programmes for women in various trades.

Training/ Workshops

• Management of RSETIs for Nodal Officers of various sponsoring Banks of the RSETs
• Roles & responsibilities of RM/ZMs/COs/LHOs in monitoring & supervision of RSETIs.
• Management & Coordination of RSETIs with liaison officers nominated by various states.

Current Status

As on date there are 585 functional RSETIs across the country. Practically one in each district including North Eastern state and islands. These RSETIs put together have training 15 lakhs candidates in various skills. Out of these approximately 10 lakhs candidates are settled i.e. established their own micro enterprises are earning their livelihood.

Faculty

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