Rural Development & Self Employment Training Institute (RUDSETI) -  A movement in self-employment

  Introduction

Rural unemployed youth lack motivation, drive and skills. If technical skills, behavioural inputs and managerial aspects can be infused in them, they could be self employed and the menace of unemployment vis-à-vis poverty can be mitigated.

Keeping these aspects in mind, two nationalized banks namely Syndicate Bank, Canara Bank joined hands and set up a RUDSETI type Institute in 1982 at Ujire, a small village in Karnataka. RUDSETI was started as an experiment to train the rural unemployed youth in vocational courses of short duration and to make them mentally tough to settle in self - employment.

RUDESTI is a successful experiment and now having a national presence.   UCO Bank and Allahabad Bank have already established RUDSETI type of institutes at Howrah and Bolepur (Birbhum) in the State of West Bengal.

United Bank of India set up a RUDSETI type institute at Rajpur, 24 Parganas (South) to create awareness and motivation among the unemployed youth.  In return, RUDSETI through training will present them with a good platform of potential entrepreneurs for a healthy credit expansion. 

 Organisational set up

Experienced officers, who have been deputed from the parent bank, manage the RUDSETI.  However, in Rajpur RUDSETI, UBI posted Centre-in-Charge as Director (Scale IV) and other two officers to assist him on full time basis to look after the day-to-day functioning. The Institution will also have a Local Advisory Committee (LAC)

Name of the RUDSETI:

United Bank of India Rural Development and Self-Employment Training Institute at Rajpur, 24 Parganas (South), a Lead District of the Bank

 Object

To conduct training course for skill and entrepreneurship development programmes both on farm and non-farm sector activities. 

There are two channels namely, Channel-I: Farm Sector (for Farmers) and Channel-II: Non-farm Sector (For entrepreneurs covering village / cottage / tiny industry, micro & small scale industries / enterprises). 

After training such entrepreneurs will be engaged to set up self employed units under different Govt. sponsored programmes like PMRY, BSKP, SGSY, etc.

 Funding Arrangement

NABARD does not provide any financial assistance for capital expenditure like purchase of land, construction of civil structures, buildings, furniture etc. for the training institute. NABARD provides grant assistance for purchase of essential training related equipments such as Computers, Accessories, Laptop, Overhead Projector, LCD / Multimedia Projector, Screen and other Audio-visual Aids etc. used for the training programmes. One time grant assistance shall be provided upto a maximum of Rs.10.00 lac or 50% of such expenses whichever is less to the new institute proposed to be set up.

NABARD would also provide grant support to meet the recurring expenditures on the following items directly related to training:

1. Inauguration and Valediction.
2. Expenses on Boarding & Lodging of the trainees.
3. Raw material for practical job training.
4. Stationery / Course material.
5. Salary for trainers / Faculty Members.
6. Honorarium to the Guest Faculty.
7. Expenses for field visit.
8. Monitoring and follow up.

Rural Employment Development Programme (REDP) / Skill Development Programmes relating to the Non-farm and Farm Sector not being supported by other agencies only shall be considered for grant assistance from NABARD.

 Selection of Trainees

A potential entrepreneur between the age group of 18 to 35 years with knowledge of reading is eligible for joining the training programme. Branches of UBI and other Banks including RRBs in 24-Pgs.(S) District will receive applications for the training courses from the desirous candidates and forward the same to the Institute. The applications will be scrutinized at the Institute and selection made on the basis of interview. 

 Other facilities

The Institute will provide free lodging and boarding to the participants. In order to take care of the catering services, it is suggested that the contract may be awarded a well functioning SHG of Women / jointly selected by the DRD, 24-Pgs.(S) and the Bank. It is also suggested that maintenance and superintendence of different works of the Hostel may be entrusted to a competent SHG group on contract basis.

 Teaching Method

Duration of the programmes will vary from 6 days to 30 days depending on the nature of activity. Practical training on the activity to be pursued by a participant is also to be provided at the Centre. The Institute has to organize field visits for the participants to have a first hand knowledge about the economic activities.

Faculty assistance may be taken from the selected Institutes, Govt. Departments, Banks etc. on payment of a minimal honorarium. The line departments of the State Govt. will also assist in sponsoring candidates for the training courses.  

Ramakrishna Mission Lokasiksha Parishad, Narendrapur is being approached to provide faculty support as and when necessary for this centre. 

In addition to the above RUDSETI, the United Bank of India has decided to partner with Ramakrishna Mission Samaj Sevak Sikshan Mandir (RMSSSM), Belur, Howrah and NABARD at equally shared proportion (1:1:1) for setting up of RUDSETI type of institution by sharing the expertise and infrastructure of Mission for conducting skilled and entrepreneurship development programmes both for farm and non-farm activities.  Such entrepreneurs after training should be financed by UBI under different State Govt. / Govt. of India sponsored programmes like BSKSP (Bangla Swanirvar Karma Sansthan Prokalpa), PMRY (Prime Minister’s Rojgar Yojana), SGSY (Swarnajayanti Gram Swarojgar Yojana), etc.

 Inauguration

RUDSETI was inaugurated at Rajpur by the Hon’ble Finance Minister, Govt. of West Bengal, on 14th August, 2007, in presence of UBI's Chairman & Managing Director Shri P K Gupta and Executive Director. The number of participants in the inauguration ceremony were 100.

About setting up of new RUDSETIs in the districts of West Bengal:

Ramkishna Mission Samaj Sevak Sikshan Mandir, Belur Math in collaboration with United Bank of India and National Bank for Agriculture and Rural Development (NABARD) opened another REDSETI at Belur on 17.03.2008. Further, United Bank of India in collaboration with Samayita Math, Bankura and NABARD has decided to open another RUDSETI at the village Ranbahal, Po Amarkanan Dt- Bankura shortly where too regular training on Self Employment schemes will be imparted.

List of RSETIs already in place and functioning in the State are as under:

These RSETIs are functioning either in own buildings or in rented premises. However, the State Govt. has allotted land to RUDSETI, Murshidabad and some progress has been made in allotting land for RSETIs in two other districts where actual possession is yet to be handed over to the concerned banks. There has been no development in this respect for other RSETIs functioning in rented premises. Some of these RSETIs are not having residential accommodation for the trainees in their existing premises. The State Govt. may consider expediting the process.

A Subcommittee of RSETI has been formed as per action plan of the last SLBC meeting and 1st meeting of the Subcommittee was held on 05.9.2011. The second meeting will be convened in the current month..

Financial Literacy cum Credit Counseling Centers (FLCCs)

The contents of the relevant RBI Circular no RPCD.CO.MFFI.BC.No.86/12.01.181/2008-09 dated 4.2.2009 along with a model scheme of Financial Literacy cum Credit Counseling Center was communicated to the member banks through SLBC circular no. LBD/SLBC(WB)/ FLCCs/ 221 /2008-09 dated April 20, 2009.

It has been mentioned in the model scheme that such “FLCCs may need to be set up at all levels viz. block, district, town and city levels. SLBCs may discuss and coordinate with the banks, both in public and private sectors, and arrive at a plan for setting up of  FLCCs at different levels in a phased manner. To begin with, lead banks may take the initiative for setting up of FLCCs in the district headquarters.”

In the light of the above directives of RBI given in the model scheme, the following suggestions were placed before the House for consideration and giving their views on opening of FLCCs in the State. Copies of the above RBI circular and the model scheme were provided to all banks.

• FLCC centers may be opened by the concerned banks in the premises of RSETIs already set up by them so that FLCCs’ initiatives are dovetailed with the activities of RSETIs.

• Banks in Public and Private sector, which have not opened, or not going to open RSETIs, should come forward to open FLCCs at district headquarters where RSETIs have not been opened.

List of FLCCs at present functioning in the State is given below:

All the RSETIs operating in the State have been advised to start such counseling in addition to their normal training programme in a separate portion of the premises of the RSETI.