Union Cabinet approved increase in Authorized Share Capital of National Scheduled Castes Finance and Development Corporation (NSFDC)

The Union Cabinet on 27 January 2016 approved increase in the Authorized Share Capital of the National Scheduled Castes Finance and Development Corporation (NSFDC).

The target of NSFDC for the year 2015-16 is to cover 63000 beneficiaries.

Benefits of the increase in Authorized Share Capital: 

• With this, the Authorized Share Capital of NSFDC is increased from 1000 crore rupees to 1200 crore rupees.

• The approval will enlarge the quantum of funds available for economic activities, better coverage and enhanced outreach to double the Below Poverty Line (DPL) Scheduled Caste beneficiaries.

• Enhancement of share capital would expand its ambit of coverage and increase disbursement of funds to larger sections of the economically deprived scheduled caste population.

Reason behind increase in the Authorized Share Capital of NSFDC:

The Union Government had almost exhausted its contribution of authorized share capital of 1000 crore rupees by paying 998.13 crore rupees to NSFDC. Hence, it became essential to enhance the Authorized Share Capital of the Corporation to expand its ambit of work.