What changed
RBI formalized a step-by-step procedure for preparing Annual Credit Plans using NABARD's PLPs. Key changes include pre-PLP meetings in August/September, special DCC meetings to finalize District Credit Plans by November, and branch-level planning by December. The process ensures active involvement of branch managers, controlling offices, and government departments.
What it means for you
Banks must align their credit plans with NABARD's sector-wise potential estimates, reducing ad-hoc lending. The timeline forces earlier coordination with state agencies and NABARD, improving credit flow to priority sectors. Non-compliance with deadlines could delay district credit plan approvals.
What you must do
- Attend pre-PLP meetings convened by LDM in August/September to provide input on credit potential.
- Ensure controlling offices circulate accepted block-wise/activity-wise potential to branches by 10 December.
- Prepare Branch Credit Plans by 31 December in consultation with controlling offices.
- Participate in special BLBC meetings by 31 January to aggregate block-level plans.
- Submit revised branch plans to LDM by 15 February only if significant variations from PLP exist.
Who it affects
All Scheduled Commercial Banks including RRBs, Lead District Managers (LDMs), NABARD District Development Managers (DDMs), Controlling Offices of Commercial Banks, District Consultative Committees (DCCs), Block Level Bankers Committees (BLBCs)
What is the deadline for finalizing the District Credit Plan?
The District Credit Plan must be finalized by 28 February, after aggregating block-level plans from special BLBC meetings.
What happens if a branch's credit plan varies significantly from NABARD's PLP?
Only significant variations require second approval from controlling offices; otherwise, the branch plan is deemed finalized after step (d).
Who convenes the pre-PLP meeting?
The Lead District Manager (LDM) convenes the pre-PLP meeting during August/September, with NABARD's DDM making a presentation.