SC/ST MSEs: Get 80% Reimbursement on Bank Guarantee Charges

Under the Ministry of Micro, Small & Medium Enterprises, the Bank Guarantee Charges Reimbursement Scheme is a sub-scheme under the National Scheduled Caste and Scheduled Tribe Hub (NSSH) scheme. This scheme provides reimbursement to SC/ST MSEs on the bank charges paid for the issuance of a Performance Bank Guarantee (PBG) in favor of buyer departments that have awarded work to such MSEs.

Benefits

• The assistance under this scheme is limited to 80% or ₹1,00,000 (excluding GST and all other applicable taxes), whichever is less, on PBG charges paid in a financial year.

Eligibility

To be eligible for the scheme, the applicant must:

1. Belong to the Scheduled Caste or Scheduled Tribe category.

2. Represent or own an MSE unit.

3. Be an MSE that avails loans from Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs), or State Finance Corporations.

Application Process

The application process is online:

1. Visit the official website: https://www.scsthub.in.

2. Registration:

   • Click on “Sign-up” and provide your Full Name, Valid Email ID, Mobile Number, Password, and Confirm Password.

3. Login:

   • Click on “Login” and complete the required information.

4. Complete the application by filling in the mandatory details as per the guidelines provided on the portal.

Documents Required

1. Self-certified copy of Udyam Registration (UR) and GST (if applicable).

2. Self-certified copy of PAN Card (for proprietorship, the PAN card of the SC/ST proprietor must be submitted).

3. Copy of Caste Certificate of the proprietor (or all partners/directors).

4. Details of shareholding for partnership, Pvt. Ltd, or LLP firm. For partnerships, the shareholding must confirm that SC/ST entrepreneur holds more than 51%. Include a copy of the Partnership Deed for a Partnership Firm or the Memorandum and Articles of Association for LLP/Private Limited Companies.

5. Bank attested (signature with stamp) debit statement showing Performance Bank Guarantee (PBG) charges, with the Bank Guarantee number and the applicant MSE’s name.

6. Bank attested and stamped copy of the Performance Bank Guarantee (PBG) issued by the bank.

7. Cancelled Cheque of the current account from which bank charges have been debited.

8. Proof of transferred amount as reimbursement by NSSHO/NSIC through PFMS under the scheme, if any such assistance was availed earlier within the same financial year.

9. Supply Order / Purchase Order / Work Order from a CPSE, Central Govt. organization, Department, State PSE, State Govt. organization, or State Department against which the PBG is taken and for which reimbursement is applied, stating the requirement of PBG submission.

Frequently Asked Questions

1. What is the Bank Guarantee Charges Reimbursement Scheme for Scheduled Caste / Scheduled Tribe?
   It is a scheme that reimburses SC/ST MSEs for a portion of the bank charges incurred on the issuance of a Performance Bank Guarantee (PBG).

2. What benefits can be availed under the scheme?
   Eligible MSEs can receive reimbursement up to 80% or ₹1,00,000 (whichever is less) on PBG charges paid in a financial year.

3. Is there a limitation on availing the benefits of this scheme?
   Yes, the reimbursement is limited to 80% or ₹1,00,000 (excluding GST and applicable taxes) per financial year.

4. Against which charges is the benefit provided under the scheme?
   The benefit is provided against bank charges paid for the issuance of a Performance Bank Guarantee (PBG).

5. Who is eligible for the scheme?
   Applicants must belong to the Scheduled Caste/ Scheduled Tribe category and represent or own an MSE that avails loans from Scheduled Commercial Banks, NBFCs, or State Finance Corporations.

6. How can an applicant apply to avail the benefits under the scheme?
   Applications are submitted online via the official website https://www.scsthub.in. Applicants must register, login, and then fill in the required details to complete the application.

7. What documents are required to get the scheme benefits?
   Documents include Udyam Registration (UR), GST (if applicable), PAN Card, Caste Certificate, shareholding details (with relevant partnership or company documents), bank attested statements and copies of the PBG, a cancelled cheque, and relevant supply/purchase/work order.

8. What details are needed to provide during registration?
   Applicants must provide their Full Name, Valid Email ID, Mobile Number, and set up a Password during registration.