Answer Writing Assam Government Schemes for Competitive Exams | Discuss about the “Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021” of Govt. of Assam .

Answer :- Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021:-
The Assam budget 21-22 presented by govt. of Assam came as a big relief to borrowers of microfinance loans, for whom the state government has proposed a budgetary allocation of Rs 7,500 crore. Along with providing relief to the defaulters, the government in its budget has also taken care of the one’s who have made the payments regularly by incentivising them. This move shall boost the morale of the borrowers and encourage them to continue making regular payments.

The Microfinance Incentive Scheme provided the following reliefs :-

Category I:- Rs 25,000/- to be provided for regular repayment of loans and maintaining good credit discipline.
Category II:- The government shall clear overdue amount if payment is overdue by 1-89 days. An incentive of Rs 25,000/- shall be paid after restarting regular repayment.
Category III:- Meanwhile, loans categorized as non-performing asset are to be disposed of with Rs 7,500/- crore state funds and Rs 4,000/- crore benefits shall be transferred by lenders.

Conclusion :- Under the “Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021” , the lenders of such micro-finance are now completely bound by the guidelines of the “Fair Practices Code” . According to State govt. , the total requirement toward this waiver/relief is around Rs. 12,000/- Crore. Once the lending institutions extend benefit to the borrowers under the “Fair Practice Code”, the requirement of funds would come down from Rs. 12,000/- Crore to about Rs. 7,500/- Crore. The State budget 21-22 has therefore earmarked a sum of Rs 7500/- Crore for the waiver scheme.