Current Issue 13thFebruary 2016 - 19 February 2016, i.e. No. 45


- Dr. B.C. Das

Rural Self-Employment Training Institutes (RESTI) are promoted for the purpose of providing opportunities to the rural youth for their skill up gradation leading to self-employment. Rural Development and Self Employment Training Institute (RUDSETI) have also been successful. The Ministry of Rural Development has established RSETIs in all the rural districts of the country. These institutes are bank led i.e managed and run by the public/private sector banks with active support of the State and Central Governments. The RESTI’s core offering includes its free, unique and intensive short-term residential training designed for rural youth. What makes it different from other vocational trainings is its demand driven approach, a priority for rural BPL youth, a wide choice of vocations and continued hand holding to ensure sustainability of micro enterprise and credit linkage after training. So far, more than 190 RSETIs have been established in different States of the country with active participation of 35 public/private banks, and these institutes have trained more than 1.5 lakh rural youth on various trades.

Objectives of the RSETI:

i) Training of rural BPL and other youths for self-employment.
ii) Need based training programmes.
iii) Intensive short-term residential self-employment training programmes with free food and accommodation.
iii) Areas of the training programme are decided after the aptitude test of the candidate.
iv) Hand holding support for assured credit linkage with banks
v) Escort services for at least two years after the end of the training programme to ensure sustainability of the micro enterprise trainees.

Programme Structure:

The training programmes under RSETIs are entirely free of cost. On an average each RSETI offers around 30-40 skill development programmes on different areas in a year. All the programmes are of short duration ranging preferably from 1 to 6 weeks. The skill development trainings offered by RSETI are broadly in the following areas :

Agricultural Programmes: Agriculture and allied activities like Dairy, Poultry, Apiculture, Horticulture, Sericulture, Mushroom cultivation, floriculture, fisheries etc.

Product Programmes: Dress designing for men and women, Rexine utility Articles, Agarbatti manufacturing, Football making, Bags, Bakery Products, Leaf Cup making, Recycled paper manufacturing etc.

Process Programmes: Two Wheeler repairs, Radio / TV repairs, Motor rewinding, electrical transformer repairs, irrigation pump-set repairs, tractor and power tiller repairs, cell phone repairs, Beautician Course, Photography & Videography, Screen Printing, Photo Lamination, Domestic Electrical appliances repair, Computer Hardware and DTP.

Other Programmes - related to Sectors like leather, construction, hospitality and any other sector depending on local requirements.

One important feature is that the RSETI conducts only demand driven and need based training programme with an intention to provide self-employment to rural youth. Training programmes are decided by the local RESETI as per the local resource situation and potential demand for the products and services. Soft skill training shall be an integral part in all the training programmes.
Batch Size:

i) Batch size is around 25-30 candidates.
ii) Shramadan/Yoga, presentation of Most Important Lesson Learned Yesterday (MILLY) are the important parts of the training Programme.

Selection of Trainees:

Youth from BPL households are given priority in the programme. They constitute at least 70 per cent of the total candidates and their participation is certified by the local DRDA. Rural youth those who are not from BPL households also apply for the training programme. SC/ST, minorities, physically challenged and women are also given weightage as per the SGSY guidelines.

Follow Up:

After training, the trainees are provided two years hand holding support by the institute to ensure the sustainability of the activity. RSETI follows the approach of short duration training but long hand holding practice.

Credit Linkage:

Credit linkage of the trainees is one of the important aspects of RSETI training programme. After completion of the training programme, institute sends the list of the candidates to the bank branches and co-ordinate with them for extending financial assistance to the trainees for taking up entrepreneurial activities. The institute also involves successful ex-trainees with bank branches to make credit available to the trainees.

Innovative Programmes:

RSETIs across the country design various innovative training programmes every year which are area specific, thus enabling the emerging entrepreneurs inacquiring the appropriate entrepreneurial skills in running their enterprises successfully. The basket of training programmes could vary every year and it is very dynamic in nature.

Skill Upgradation Programmes:

Technology is making huge strides in the recent years. Thus, it becomes a necessity for the entrepreneurs to hone their skills to match up with the latest cutting edge technologies. Realizing this importance, RSETIs conduct various skill upgradation programmes for undertaking micro-enterprise and to enable the existing entrepreneurs to compete in this ever-developing global market due to technological change. These programmes are budgeted for and conducted as refresher programmes for not more than week duration.

Women Empowerment:

RSETIs give equal opportunities to women entrepreneurs. It organizes exclusive programmes for women in various trades depending upon their attitudes and local demand.

Recognition of RSETI trainees:

Certificate issued by the RSETI is recognized by all banks for purposes of extending credit to the trainees. It means that RSETI trained rural youths will be free to access any scheduled bank for loan/credit.


RSETIs Operational in the Country:

Sl.  State/UTs              No of

No.                          RSETIs
1.   Andhra Pradesh          17
2.   Arunachal Pradesh        0
3.   Assam                         3
4.   Bihar                            4
5.   Chhattisgarh                 0
6.   Goa                             0
7.   Gujarat                       20
8.   Haryana                       2
9.   Himachal Pradesh         7
10.  Jammu & Kashmir        0
11.  Jharkhand                    6
12.  Karnataka                   24
13.  Kerala                        10
14.  Madhya Pradesh         32
15.  Maharashtra                 9
16.  Manipur                        0
17.  Meghalaya                   0
18.  Mizoram                       0
19.  Nagaland                     1
20.  Orissa                        14
21.  Punjab                         7
22.  Rajasthan                   18
23.  Sikkim                          0
24.  Tamil Nadu                   7
25.  Tripura                         0
26.  Uttar Pradesh             10
27.  Uttaranchal                   5
28.  West Bengal                 5
29.  A & N Islands               0
30.  Daman & Diu                0
31.  D & N Haveli                0
32.  Lakshadweep               0
33.  Pondicherry                  1
      Total                        192

(Source: National Institute of Rural Development)

How to join RSETI for a Training Programme?

Any rural youth desirous for self employment programme can enroll free of cost for skill development programme offered by the RSETIs in their district. To know the required information about the programmes, duration, application procedures and others, she/he may contact the local block office and DRDA office. Even she/he may contact any local bank branch office regarding the programmes of RESTI. Some of the RSETIs also give advertisement in local news paper regarding the programmes. The rural youth may also directly contact the Principal of the institute for necessary assistance.

The author is Asst. Professor, Centre for Rural Credit and Development Banking, National Institute of Rural Development (NIRD), Rajendranagar, Hyderabad-500030.,

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