Who: Union Cabinet
What: Approved increase in Authorized Share Capital of NSFDC
When: 27 January 2016
The Union Cabinet on 27 January 2016 approved increase in the Authorized Share Capital of the National Scheduled Castes Finance and Development Corporation (NSFDC).
The target of NSFDC for the year 2015-16 is to cover 63000 beneficiaries.
Benefits of the increase in Authorized Share Capital
• With this, the Authorized Share Capital of NSFDC is increased from 1000 crore rupees to 1200 crore rupees.
• The approval will enlarge the quantum of funds available for economic activities, better coverage and enhanced outreach to double the Below Poverty Line (DPL) Scheduled Caste beneficiaries.
• Enhancement of share capital would expand its ambit of coverage and increase disbursement of funds to larger sections of the economically deprived scheduled caste population.
Reason behind increase in the Authorized Share Capital of NSFDC
The Union Government had almost exhausted its contribution of authorized share capital of 1000 crore rupees by paying 998.13 crore rupees to NSFDC. Hence, it became essential to enhance the Authorized Share Capital of the Corporation to expand its ambit of work.
About National Scheduled Castes Finance and Development Corporation (NSFDC)
National Scheduled Castes Finance and Development Corporation (NSFDC) is a Central Public Sector Enterprise (CPSE) working under Union Ministry of Social Justice & Empowerment.
It provides loans through its Channelizing Agencies at concessional interest rates for self-employment & economic development activities to its target group. It also sponsors skill training programmes to assist the unemployed members of scheduled castes in wage-employment.