An increasing number of youths can be considered as a demographic advantage by developing nations when they are adequately equipped with necessary skills to thrive. But in Indian context large proportion of educated youths remains unemployed and among those employed most of them possesses skills that are obsolete. According to World Bank study, one third of the working age population in low and middle income countries lack basic skills required to get quality jobs, leaving them unable to achieve their full productive potential and limiting investments and growth. In such a situation government of India had sanctioned various self-employment and skill development programs to curb worsening unemployment situation and absence of adequate skill among youth. Alongside the government efforts, Syndicate Bank and Canara Bank joined their hands together to unleash youth potential by mitigating the skill gap under the leadership of Dr.Veerendra Heggede. Result of this venture is the establishment of an institutional framework called RUDSETI (Rural Development and Self Employment Training Institute) in 1982 at Ujire in Karnataka. This study is to understand the functioning of RUDSETI of Kerala situated in Kannur district .This paper further tries to analyse various self-employment and skill development programmes offered by them. . RUDSETI advocates an inclusive development of the people without any disparity based on caste, religion or gender. Primary and secondary data obtained from RUDSETI and various government reports are the basis of this study. This paper also highlights that RUDSETI model of programs can be taken as a method to eradicate unemployment among educated and less educated youth.