RAJASTHAN FINANCIAL CORPORATION

CORPORATION DETAIL’S

The Rajasthan Financial Corporation (RFC) was constituted under a notification of the State Government dtd. 17 January, 1955 under the SFCs Act, 1951.

The Corporation has expanded into 34 territorial Branches and 7 Regional Offices in 32 Districts of the State.

The Corporation has established a Business Promotion Cell and entrepreneurs Guidance Cell at HO, which provides assistance, guidance to the entrepreneurs

CONTINUE’S

The Corporation grants term loan up to Rs. 2000 lacs to limited companies and Co-operative societies and up to Rs. 800 lacs to proprietary and partnership concerns.

Existing industries having Net Worth upto Rs. 30.00 Crores (paid up capital + Free reserve) are eligible for financial assistance under the provisions of the SFC's Act.

PURPOSE OF SET- UPRfc provides provide lone assistance for setting

up industrial units in the small and medium sectors.

It provide term loan both, for fixed assets & working capital. To provide seed capital assistance under the scheme of industrial development bank of India.

It acts as an agent of the central Government or the state Government or the industrial development bank of India or the industrial finance corporation of India.

DEPARTMENT OF RFC  LOANS   LEGAL   FOLLOW UP AND RECOVERY   ASSESTS RECONSTRUCTION & REHABILITATION.   PERSONNEL & ADMINISTRATION   GENRAL ADMINISTRATION DEPARMENT.   FINANCE & ACCOUNTS.   AUDIT & INSPECTIONS.

 

IMPORTANCE OF RFCIt is an important source of long-term

finance to industry. Over a period of time.financial institution have played an important

role in the development of (a) Small-scale industry, and (b) Projects in backward areas.

It helps new and small entrepreneurs in setting up industry.

6. It has been a source of technical and managerial advice to the industry

LOAN’S SCHEMESSeed capitalTransport loanLoan against subsidyWorking capital bridge loanDG set loan Equipment, refinanceBridge loan

SETTLEMENT SCHEME’SAmnesty scheme for settlement of NPA

Accounts: 2010-11  (EXCEPT DDW CASES).  Scheme for settlement of Decreetal cases

2010-11 Scheme for settlement of Deficit/written off

cases 2010-11 Recovery Strategy 2010 - 2011

Levels of Organization At the Top Level:  The chairman and Managing Director hold top most position in the corporation.

They are accountable and answerable to the Board of Directors for their action. Next position is hold by the Executive Director who is assisted by the seven General Managers of various sections of the corporation. They are responsible for proper functioning of their respective sections.

  At the Middle Level: There are Dy. General Managers and Managers of different departments like

finance, loans, law, technical, follow-up and recovery etc. who control the administration of their own Wings occupy the middle level position. As this level there are the officers of statistics section, market and intelligence, economic analysis, statistical and publications. The different branches of the corporation are controlled and administrated by the Dy. General Manager.

  At Next Level: The class-A category branches that are headed by the Managers and the rest of the

branches headed by Dy. Managers comes under this level.

SUGGESTION’SAs RFC is working for social welfare and

state government is the major share holder in RFC, state government should provide interest free funds for financial restructuring.

Corporation must strive to get international sources of financing with the help of national level of institutions like IDBI and SIDBI.

The corporation should insist on higher promoter’s attitude is not serious for greater promoter’s commitment in the project and ensuring adequate security cover.