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Structure of BRISC Scheme
Structure of BRISC Scheme


The State Level Bankers Committee in its 76th meeting held on 13th May 1994 with BRISC (Bank Recovery Incentive Scheme). The State Government of Madhya Pradesh approved an incentive scheme for the participating banks on “Sharing of recovery cost basis” with a view to achieving the objectives laid down under Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam 1987 for recovery of bank dues. The main features of the Scheme :-

i) The Scheme was to be implemented under the aegis of State BRISC Cell (Bank Recovery Incentive Scheme Cell) to be set up in the Directorate of Institutional Finance by the State Government with effect from 1st April 1995.

ii) The Scheme in brief aimed at to involve the Revenue recovery authorities at Tehsil level more deeply in the recovery efforts by offering them recovery linked incentives on percentage basis, as well as also improve / strengthen the infrastructure contributing to the recovery effort to make it more effective.

iii) Under the arrangement, proposed by SLBC and approved by the Government, the Banks were required to pay to BRISC account 2.5 percent of the amount recovered under RRC filed cases with the help of the Government (Revenue) authorities.

iv) Once the RRC was filed, all credits received in the account after that date was to be reckoned for charging 2.5 percent for BRISC. The concerned participating banks were to ensure that 2.5 percent charge on recovery was remitted to BRISC accounts within a period of one month of recovery. An advice to the effect was to be sent to the Directorate of Institutional Finance simultaneously. In the event of non-remittance of the charge within the stipulated period, the Director Institutional Finance was free to stop / suspend the proceedings under RRC pertaining to that particular bank in the districts.

v) For the purpose of arriving at the claim amount to be charged by the BRISC from each participating bank, the recovery details of the borrowal accounts will be submitted to the Directorate of Institutional Finance by the Revenue authorities through the District Collector. The details including recovery particulars were to be furnished in form IX prescribed under the Rules of the Adhiniyam. The branches were required to ensure that the information given therein was based on the books maintained, to obviate any need for later reconciliation. The details of recovery submitted by the recovery officer under Form IX will be certified by the Branch concerned.

vi) For all the cases filed under RRC, the present charge of 3% of the principal amount being recovered towards the cost of proceedings as per Rule ‘4’ of the Adhiniyam will remain unaffected.

vii) The bank branches, based on the amount of credits received in accounts where RRCs have been filed, will deposit 2.5% of the credits so received in BRISC account to be opened in the lead Bank and conducted by the Collector of the district. The 2.5% to be deposited will be through cheque or a draft every month. An advice along with the consolidated statement of the total credits received in the RRC accounts at the branch level will be sent to the Collectorate. Under the BRISC Scheme, the special cell / courts were done away with and an incentive scheme was developed to involve the regular revenue staff in recovering of the bank overdues.