What changed
RBI reminded banks to file annual Special Returns I, II, and III for priority sector advances as of June 2007. Loans granted from April 30, 2007 to June 22, 2007 must be classified under the revised priority sector guidelines issued on April 30, 2007, while the return formats remain unchanged.
What it means for you
Banks need to ensure accurate classification of priority sector loans for the June 2007 reporting period, applying the new guidelines for loans made after April 30. This ensures consistency in monitoring and reporting of priority sector lending, which is critical for meeting regulatory targets and avoiding compliance gaps.
What you must do
- Prepare Special Returns I, II, and III as of last reporting Friday of June 2007 using existing formats.
- Classify all priority sector loans granted from April 30, 2007 to June 22, 2007 under the revised priority sector guidelines.
- Submit the returns to RBI within 2 months from the reference date.
- Acknowledge receipt of this circular to the Chief General Manager.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Priority sector lending departments, Compliance and reporting teams
What are Special Returns I, II, and III?
Special Return I covers Direct Finance to Agriculture and Allied activities (Outstanding as well as disbursement), Return II covers Recovery of agricultural advances, and Return III covers Disbursal of advances to priority sectors. All are annual returns as of last reporting Friday of June.
What is the deadline for submitting these returns?
The returns must reach RBI within 2 months from the reference date, which is the last reporting Friday of June 2007.