The Assam cabinet has granted approval for the inclusion of a third category within the Assam Microfinance Incentive and Relief Scheme (AMFIRS), 2021. This category aims to provide assistance to microfinance borrowers whose accounts have been classified as Non-Performing Assets (NPAs). Specifically, this category targets NPA borrowers with an outstanding principal amount of up to 25,000 as of March 31, 2021, who were not covered under Categories I and II of the scheme.
In addition to the approval of the third category, the state government has announced the extension of the Memorandum of Understanding (MoU) with 37 lenders under the AMEIRS, 2021 until March 31, 2024. This extension ensures continued collaboration between the government and financial institutions to facilitate the implementation of the microfinance scheme.
The implementation of Category-III is anticipated to have a significant effect, as it involves a budget allocation of 21,600 crores to benefit approximately 8.73 lakh beneficiaries in Category-I.
Furthermore, an additional allocation of 2,190 crore rupees will be distributed to provide support to around 98,000 beneficiaries in Category-III.
Inputs from Bikash Singh