CENT RSETI's focus on Entrepreneurship Development

Focus on Entrepreneurship over Self-employment

Central Bank of India

Rural Self Employment Training Institutes


Focus on Entrepreneurship over Self-employment


ENT RSETIs are becoming more powerful entrepreneurship training centres, beyond just being self-employment training institutes. While several others have been lifted out of their worries of finding their both-ends, thousands of rural poor have already made encouraging headway in setting up their ventures and finding sustainable income. As CENT RSETIs are taking dedicated institutional shape under a committed management within Central Bank of India, their new efforts and initiativeswould deliver path-breaking results. By aiming to make RSETIs greater than mere self-employment training institutes, Central Bank wants each of its institutes to be an incubation centre also.“That is what we aim through our 46 RSETIs,” says Dr R.C Lodha, Executive Director of Central Bank of India.


When there are too many poor people around, rich ones cannot sleep in peace. Poor ones get opportunities to work when rich ones are there around. Millions of impoverished ones are groping in dark, facing future uncertainty when there are huge unexplored opportunities on the other side. Poverty can sustainably be eradicated only by enabling the poor and underprivileged people to engage themselves into some remunerative activities or by nudging them into a commercial venture that can help them meet more than their both ends. Every human tendency to earn money through a work can be construed as a remunerative venture and anyone getting into it can be called an entrepreneur, be it polishing boots, vending newspapers, selling milk, tea, fruits, vegetables; driving, tailoring or anything that is a common requirement- whatsoever be the nature and size of the job, says Dr R.C Lodha, Executive Director, Central Central Bank of India, philosophically, while explaining  the concept on which the Bank has founded its  RSETI programme.

Rural Self Employment Training Institute widely known as RSETIs stand out as an edifice of hope for several million poor youths of India. Not just some claims on papers or mere discharge of formal duties under regulatory bindings, some RSETIs run by commercial banks have many delightful and admirable sagas. These have rendered enormously upbeat results. These rural apparatus of hopes are nursed by banks and driven by their men with deep sense of commitments and sense of missionary zeal.

Central Bank of India sets a remarkable example, thanks to its charismatic team. It is one amongst few banks in the country to have dedicated institutional system within the bank that makes its focus more serious, Dr R.C Lodha, Executive Director of the Bank rightly points out. Indeed, the results are also equally amazing. Top to bottom, all are passionate about this huge task of social banking. Every challenge fires up the team's enthusiasm, as they are deeply committed, says the management of Central Bank of India Samajik Utthan Avam Prashikshan Sansthan (CBI-SUAPs), which manages all RSETIs of Central Bank of India.

Across the country there are 585 RSETIs, which get support from the Central and respective State governments. Each district in the country has one RSETI mostly run by the Lead Bank of the district. While the Central government provides one-time grant of Rs 1 crore for constriction of building and infrastructure, the respective State government provides necessary land free of cost to them.

Central Bank of India has 46 RSETIs across nine States, i.e. 18 in Madhya Pradesh, 9 in Bihar, 6 in Maharashtra, 5 in Uttar Pradesh, 3 in West Bengal, two in Chhatisgarh, 1 each in Assam, Odisha and Rajasthan. Most of the CENT RSETIs have full-fledged set up for training 50 to 60 candidates at a time with class rooms and residential facilities. The Bank has generously provided aid and equipment like projector and screen, camera, laptop, internet and necessary support staff to Directors along with the services of four wheelers for each CENT RSETI for their regular and effective field visits.  Each RSETI is given target of 30 to 40 skill development programmes in a year with a course duration of one to six weeks. CENT RSETIs outsourced faculties as per the needs of the trade and training, time-to-time. The training imparted to the candidates is free of cost.

Knowing well that a training institution cannot be developed as a Centre of Excellence until a proper infrastructure is in place, the Bank, in the beginning itself, attached the highest priority for infrastructure of RSETIs building by developing “Model Guidelines” and contributing generously Rs 0.50 crore per RSETI building apart from the grant receivable from MoRD, GOI. Resultantly, out of 39 centres where the land has been allotted by the respective State government to the Bank, construction has been completed at 18 centres and work is in advanced stage of completion at another 15 centres. The pro-active approach of the Bank has been recognized by the National Institute of Rural Development and Panchayati Raj, a monitoring agency of the Government of India, who affirms that the Central Bank of India is Number ONE amongst all banks in the country in the development of RSETIs infrastructure.

Central Bank of India is amongst the first in the country to set up RSETI programme way back in 2007, roughly two years before commercial banks were mandated to look at it. Since its first RSETI, which came up in Kota, Rajasthan, CENT RSETIs have trained a combined 1.11 lakh youths through 3842 programmes. Though the current settlement ratio is more than 70 per cent, the overall settlement ratio is at par with the national average of 62 per cent. The most heartening part is there is continuously increasing trend in progress on year-on-year (YOY) basis (see the chart).

RSETIs conduct courses on many streams, which include wide areas of agriculture, product development, process programmes which include manufacturing, repairs and maintenance of a wide range of products, catering services and skill development for women and many other general areas as per the local resources situation, regional potentials and opportunities.

 However, Central Bank of India earnestly focuses on wider horizon. It traces countless avenues as thriving opportunities for people. “Knowledge of any work that fetches income can be acquired only through a traning process and proper assistance thereafter. They need someone to train them. There are countless activities like plumbing, electrician driving, motor repairing, cooking, carpenter, bakery, cobbling, priesting, Yoga, etc, which are essentially required in day-to-day living of the rural masses and our RSETIs will endeavour to meet the requirements of the masses,” says Dr R.C Lodha.

Going by the track record, CENT RSETIs stand out as an edifice of hope for several thousand impoverished people of sprawling rural India. What the Bank claims are not just boastful claims, but realities, beyond just discharging its regulatory obligations.

One day, January last year, Sunita Patwa, resident of Station Gunj, Narsingpur (Madhya Pradesh) came across a pamphlet that spoke about Cent RSETI's Entrepreneur Development Progamme (EDP) imparting self-employment training absolutely free of cost to people of her village. She decided to apply for it and got selected for the six-day EDP. She learnt about entrepreneur development through the course conducted by CENT RSETI, Narsingpur, which inspired her to open a self-employment venture - a shop that sells cosmetic items, bangles and other varieties. The Bank funded her business with the credit of Rs 3 lakh under a self-employment scheme. Gradually, she expanded and could employ a couple of women too. The loan is being repaid regularly. Making herself an entrepreneur eventually, that has changed her life for the better. She has become financially independent with a decent earning that someone in village cannot easily achieve.  Sunita's is not any unique case of RSETI supported accomplishment. There are thousands of cases like Sunita and Vijay Shree Jhariya, another candidate trained in the same institute, who could settle their life with financial independence eventually.

The 38-year old Mubina Naushad Shaikh also has equally happy face after attending a 21-day training programme conducted by Cent RSETI Ahmednagar, where she learnt dress designing for women.  She was able to borrow from Central Bank of India itself and began her job of earning to support her family of two children and husband, a bicycle repairer. Educated only up to 10th standard, what changed the course of her and her family's life was the meeting with an RSETI guest faculty Mrs. Vaishali Naral at the village, who explained her about a 21-day free training programme on dress designing for women. The training helped her learn dress designing and achieve self-confidence. She then embarked on tailoring business. Now she is happy with her job and the revenue generated from it. Polio-hit Punam Dattatray Bhosle trained in the same RSETI but hailing from Eainatpur village, perhaps, has more such amazing stories to tell.

There are many such stories that converted tears of agony into stories of amazement, several success stories of Central Bank's RSETIs show. “With the kind of enthusiasm shown by our people, CENT RSETIs can do more admirable programmes in the days ahead,” says Dr Lodha.

Around 62 per cent of the candidates trained by CENT RSETIs have settled in their life with roughly one-thirds of the total number getting linked with the Bank's credit. This is a wonderful achievement, says Dr Lodha, while admiring the efforts of his team and RSETI's contribution. “Through RSETIs, we aim to enable people to be entrepreneurs rather than just enabling them to find jobs,” Dr Lodha asserts. The Bank is keen to deliver entrepreneurship training rather than a simple training for finding a job. Indeed, that will multiply the benefit, as one entrepreneur can employ more people.

The Bank is also planning to create a dedicated human resources department with necessary financial support for improving the delivery efficiency of RSETIs. Comfortable settlement of candidates after training from CENT RSETIs is also one of the major concerns, for which the Bank proposes that various government departments, institutions and NGOs involved in employment generation programmes should build a coordination synergistically to absorb the deserving candidates. The CENT RSETIs' also propose to have an employment booth in each centre for the entire district and to maintain candidates' profile and desired wage level. This can bring lots of benefits for the Bank and also the candidates. Over a period CENT RSETIs can create a web portal with data of candidates profile for suitable employment within and outside the district. On the other side, the bank is also looking at enhancing the number of financial assistance to the candidates, so that the proportion of settlement out of the trained ones would be higher.

CENT RSETIs usually show better overall results and score higher rank than others, in terms of quality, number of courses offered, candidates trained and settled a year, etc.  This also reflects in the results of grading of performance of RSETI centres on the parameters devised by MoRD, GoI and carried out by them annually. out of 45 RSETIs graded as on 31st March 2015, 56 per cent of the RSETI centres are graded 'A,AA' (Outstanding) and none of the RSETI centre is graded below 'B,BB' (good)

Central Bank of India, the first Swadeshi Bank, which came into existence more than a century ago and now a leading public sector bank, always has track record of serving the country men in various ways. The Bank has a massive rural base having roughly two-thirds of its branch network located in rural and semi-urban centres. Its founder asserted: “Central Bank of India lives on people's faith and regards itself as the people's own bank. Even in the days of prudential banking, it hasn't deviated from its core founding philosophy. In fact, it makes best use of its opportunities to serve the people for its long term growth with people's endearment through a host of social banking initiatives. As the 46 RSETIs make within the architecture of social banking commitment, Central Bank of India keeps finding that rural India is where the heart of India lies. That is very much the centre of the country where socio-economic changes have to take place. CENT RSETIs are confident of being a change agent of India's rural economy, as the Bank is pushing its rural set up to fire the spirit of doing the best for rural India and set the impoverished rural Indians free from the worries of unemployment. Let rural India part with the thriving opportunities, as the economy flourishes – moving from empowerment to self-employment and entrepreneurship, Central Bank of India shows the way.