The scheme was introduced to grant interest to the homeless poor people of the rural areas for making a mark with a feeble answer to loans and poor use of money, saying the government to pursue its restoration by fastening in two monetary organizations with a powerful rural network.
Released in mid-2019 out of around Rs 50 crore the Rural Housing Interest Subsidy Scheme managed to devote barely around Rs 10 crore till this week, with unevenly 9,000 recipients. The rural development ministry had reserved Rs 100 crore for 2020-21 and it is one of the major setbacks for government expectations. The current year distribution is out of a job now given the terrible expenditure said by the sources.
In the last week, the figures were shown in a review. The financial support provided by the flagship rural housing program called Pradhan Mantri Awas Yojana for supporting the construction of the houses for the poor of rural areas and based on poverty survey Socio-Economic Caste Census it has identified 2.95 crore recipients. To construct a house, the Centre launched the RHISS to help the rural poor who are not on the list of identified recipients of PMAY in 2017. The deadline for the construction is 2022.
With a frank subsidy of Rs 38,859, they are helped to benefit from a loan of Rs 2 lakh. The finalization of the scheme guidelines was done in mid-2017. The RD ministry this week has decided to add two big institutions Nabard and Hudco as nodal activities as well as the prevailing NHB but with the scheme virtually being a non-starter. As evident in the response to the scheme the NHB has a limited reach, a senior official added. Working in the field of credit the additional influence of big institutions in the rural sector is predictable to overwhelm a major obstacle in the achievement of RHISS — the unwillingness of banks and loaning agencies to provide loans to the poor.