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Horticulture Boards of all States/UTs join SLBCs/UTLBCs permanently

Current · Source: Reserve Bank of India · RBI/2006-07/176 · issued FY 2006-07 · ~2 min read
Quick answerRBI mandates permanent inclusion of Horticulture Boards of all States/Union Territories in respective SLBCs/UTLBCs to boost horticulture credit. Banks must invite the relevant Board to SLBC/UTLBC meetings for scheme formulation and single-window clearance of credit needs.
The rule, in the simplest words
How it plays out — a real example

A credit & lending officer in Indore updates the SLBC membership list to include the Madhya Pradesh Horticulture Board. At the next meeting, she works with the Board's representative to design a simple loan scheme for local mango farmers, so they can get credit through a single-window clearance without visiting multiple offices.

What changed

RBI has decided to make the National Horticulture Board a permanent member of SLBC for Uttaranchal, and Horticulture Boards of all States/Union Territories a permanent member of SLBC/UTLBC at all India level. This follows a recommendation from a Working Group on improvement of Banking Services in Uttaranchal, which highlighted NHB's role in horticulture and floriculture credit.

What it means for you

Banks must now include NHB in all SLBC/UTLBC meetings, enabling direct coordination for horticulture credit schemes. This aligns with government priority for investment in the sector and expects proactive bank cooperation. It creates a single-window clearance mechanism for horticulturists and floriculturists, potentially increasing credit flow to this segment.

What you must do

Who it affects

All SLBC and UTLBC convenor banks, National Horticulture Board (for Uttaranchal), Horticulture Boards of all States/Union Territories (for respective SLBCs/UTLBCs), Horticulturists and floriculturists seeking credit, State government departments dealing with horticulture

❓ Common questions

Why was NHB added to SLBCs?

A Working Group on improvement of Banking Services in Uttaranchal recommended NHB's inclusion to improve credit access for horticulture and floriculture, given the sector's importance and government priority.

What is the expected benefit for banks?

Banks can leverage Horticulture Board expertise to design targeted credit schemes and streamline loan processing through a single-window approach, potentially increasing lending to the horticulture sector.

Does this apply to all states?

Yes, RBI has decided to include Horticulture Boards of all States/Union Territories as permanent members of SLBCs/UTLBCs at all India level.

📜 Read the original circular — full text as issued by RBI
RBI/2006-07/176 RPCD.LBS.CO.BC.No. 33 /02.18.02/2006-07 15 th November, 2006 The Chairman/Managing Director, All SLBC/UTLBC Convenor Banks, (As per mailing list) Dear Sir, Lead Bank Scheme – Inclusion of National Horticulture Board as a permanent member of the State Level Bankers’ Committees (SLBC) of the respective State A Working Group on improvement of Banking Services in Uttaranchal was constituted by RBI under the Chairmanship of Shri V. S. Das, Executive Director, RBI. The Group examined the problems/issues relating to banking services in the State of Uttaranchal and recommended various measures for improvement in banking services in the State including inclusion of National Horticulture Board as a permanent member of the State Level Bankers’ Committee for Uttaranchal in view of its importance in the State. It was also suggested that this may act as a single window clearance for credit needs of horticulturists/floriculturists etc. Accordingly, it has been decided that the above Board i.e. National Horticulture Board be made a permanent member of SLBC for Uttaranchal. It has also been decided that the Horticulture Boards of all the States/Union Territories be made a permanent member of SLBC/UTLBC at all India level in view of high priority being given by Government of India for investment in this sector throughout the country with expectation that banks must cooperate in a proactive manner towards this direction. Accordingly, National Horticulture Board may invariably be invited in all the forthcoming SLBC/UTLBC meetings to enable them to address their credit needs and to formulate the schemes in consultation with banks/State Government Departments. Yours faithfully, (R. Sebastian) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-07/176 · issued FY 2006-07. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All SLBC and UTLBC convenor banks, National Horticulture Board (for Uttaranchal), Horticulture Boards of all States/Union Territories (for respective SLBCs/UTLBCs), Horticulturists and floriculturists seeking credit, State government departments dealing with horticulture), your first concrete step on “Horticulture Boards of all States/UTs join SLBCs/UTLBCs permanently” is: “Update SLBC/UTLBC membership lists to include National Horticulture Board as a permanent member.” (RBI issued this FY 2006-07).

  1. Circular: RBI/2006-07/176 -- Horticulture Boards of all States/UTs join SLBCs/UTLBCs permanently
  2. Issued: FY 2006-07
  3. Action required: Update SLBC/UTLBC membership lists to include National Horticulture Board as a permanent member.
  4. Action required: Ensure NHB representatives are invited to all forthcoming SLBC/UTLBC meetings.
  5. Action required: Collaborate with NHB and state government departments to formulate horticulture credit schemes.
  6. Action required: Facilitate single-window clearance for credit needs of horticulturists and floriculturists through NHB involvement.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3211&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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