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Brief note on Rural Self Employment Training Institutes



1) Background: The Ministry of Rural Development was mandated to ensure the growth and development of rural areas with special focus on developing self-employment opportunity for the unemployed rural youth. For this purpose, it was decided to establish one Rural Self-Employment Training Institute (RSETI) in each district of the country for training the rural unemployed youth to take up micro enterprise.  The concept of RSETIs has been inspired by the very successful RUDSETI model promoted by Syndicate Bank, Canara Bank and SDME Trust way back in 1982 at Ujire in Karnataka.



2) Funding by Government of India: Under the RSETI scheme, the Government of India would pay Rupees One crore as infrastructure fund besides reimbursing the cost of training rural poor. The State Governments have been advised to provide land free of cost and the banks are meeting the cost of running these institutions, apart from deputing an officer to work as Director of RSETI.


3) Task of RSETIs: The RSETIs have been entrusted with the task of training minimum of 750 rural poor each year with a minimum settlement rate of 50% and aimed to improve it to 70%. At present 586 RSETIs are functional across the country.



4) Monitoring of RSETIs by Ministry of Rural Development (MORD): MORD has introduced an effective mechanism for monitoring the activities of RSETIs in order to ensure uniform standards of training and settlement rates across the country through three tier monitoring mechanism i.e. i. National Academy of RUDSETI, ii. National Centre for Excellence of RSETIs (NACER) and Assessment and Certification. And a robust Management Information System (MIS). This would also involve a systematic capacity building of Directors/Faculties of RSETIs to ensure that all the RSETIs are brought at par with the best performing RUDSETI in the country in a time bound manner.



i) National Academy of RUDSETI: National Academy of RUDSETI, headed by a Director General is an extended arm of RUDSETI and is registered as a Trust and jointly sponsored by SDME Trust, Syndicate Bank and Canara Bank, with its Head Quarters at Bangalore is operating as an apex level training institute since 2008 for RUDSETI type institutes. The Academy conducts research and development work in the field of Entrepreneurship Development and training programmes. The Academy also undertakes projects in the field of enterprise promotion, Rural Development and HRD. With the object of enhancing and standardizing the quality of training imparted by the RSETIs to enable rural youth to take up self-employment, the Government of India and NAR, Bangalore enter into a Memorandum of Understanding in July 2011 wherein the roles and responsibilities of National Academy of RUDSETI (NAR) and Ministry of Rural Development are defined. The chief responsibility of NAR, Bangalore is to put in place a robust mechanism for training of Director/faculty of RSETIs which shall result in systematic capacity building of the Director/ faculty of RSETI and also to monitor, mentor and establishment of effective and vibrant RSETIs across the country.



ii) National Centre for Excellence of RSETIs (NACER): For undertaking the monitoring/ mentoring responsibility, a National Centre for Excellence of RSETIs (NACER) was established. NACER is headed by a National Director and is undertaking the monitoring / mentoring of RSETIs through their office located at Chandra Layout in Bangalore and the State Directors of RSETIs stationed in each State. The State Directors of RSETIs (SDRs) are generally visiting each RSETI once in three months (quarter) and submit the visit reports online to NACER which in turn will guide the RSETIs and also suggest to nodal offices / controlling offices of Banks for taking suitable steps for improvements.



iii) Assessment and Certification: In order to ensure quality of training, Government of India has established an independent Assessment and Certification wing for ensuring third party assessment and certification of not only the trainees but also the inhouse training faculty and Domain Skill Trainers.



4) Governance Structure of RSETIs: RSETIs are sponsored by the Banks and hence ownership of RSETIs vests with the sponsoring Bank. RSETIs are funded and managed in partnership mode involving the sponsor Banks and the Government.



A) National Level Advisory Committee on RSETIs (NLACR): National Level Advisory Committee on RSETIs headed by the Secretary Ministry of Rural Development will guide and monitor the governance and activities of RSETIs. The committee shall also lay down policies concerning RSETIs and review the performance of each of the sponsoring banks periodically.



B) State level Steering Committee on RSETIs (SLSCR): A sub-committee of the SLBC is set up in every State which function as the State level Steering Committee for all the RSETIs operating in the State. This will be chaired by the Principal Secretary, Rural Development of the State and co-chaired by the General Manager, SLBC Convener Bank. The members shall include top executives of those Banks sponsoring RSETIs in the State and CGM, NABARD. The Committee shall meet at least four times in a year at quarterly intervals.



C) District Level RSETI Advisory Committee (DLRAC): District Level RSETI Advisory Committee (DLRAC). District Level RSETI Advisory Committee at the Institute level should be formed with District Collector/CEO of DRDA/Zilla Panchayath as Chairperson and Regional Head of the RSETI sponsoring Bank as Co-chairperson. Lead District Manager, District Development Manager, NABARD, GM, District Industries Centre, PD, DRDA, District Manager of NRLM, Regional Manager of RRB, the District Employment Exchange Officer, heads of vocational institutes in the district like ETCs, ITIs Polytechnics, KVKs, etc. and two or three eminent personalities connected with rural development training in the district shall be the members. The Director of the RSETI shall be the Convenor. The Committee shall meet at least four times in a year at quarterly intervals.



5) Training Modules: RSETIs are imparting training in 64 NSQF approved courses including various trades such as Cell phone repairs, TV Technician, Electric Motor Rewinding, House Wiring, Computerized Accounting, Computer Hardware & Networking, Desktop Publishing, Photography and Videography, Women’s Tailor, Beauty Parlour Management etc. besides agriculture based programmes like Mushroom cultivation, Dairy farming and vermicomposting, sheep rearing, goat rearing, Poultry, Piggery, Bee keeping, Vegetable Nursery etc.



6) Infrastructure of RSETIs: The RSETIs have well established infrastructure with 2 classrooms, 2 dormitories, 1 work shed, 1 computer lab, Dining hall, kitchen, Audio visual aids, computers, Tailoring machines and other equipment required for the skill training.



7) Free Residential Training: The trainings in RSETIs are mainly residential and imparted fully free of cost to the trainees. In addition to the training, lodging, boarding, uniforms, training material are provided free of cost.



8) Trained and certified trainers: The trainings classes are engaged by the inhouse faculties with TTP certification and skill trainings are conducted through Domain Skill Trainers who are certified by the Assessment and Certification wing of MORD.



9) Sponsor Banks in Karnataka: In Karnataka in 29 districts, seven banks have established 31 RSETIs which include Canara Bank (18 RSETIs including 7 RUDSETIs), State Bank of India (7 RSETIs), Union Bank of India (2 RSETIs), and Bank of Baroda (2 RSETIs), besides Kotak Mahindra bank (1 RSETI), and DCC Bank Bidar (1 RSETI).



10) Trainings conducted by RSETIs in Karnataka: Since April 2011 till March 2022, RSETIs in Karnataka have conducted 11666 trainings programmes and trained 331084 youths, including 188350 women, of which 259039 are from BPL category. More than 238810 trainees are settled with self-employment and 146990 have availed bank finance







Self Employed


Bank Finance

Wage employed












All India












11) Grading of RSETIs: The MORD undertakes grading of RSETIs every year through NACER and all the RSETIs are under “AA” category except Chamarajanagar which is recently allotted land and yet to construct its own building.

Last Updated: 13-06-2022 05:40 PM Updated By: MIS Consultant

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