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Master Circular: Scheme for Liberation and Rehabilitation of Scavengers (SLRS) (RBI/2007-2008/27)

Current · Source: Reserve Bank of India · RBI/2007-2008/27 · issued 02 Jul 2007 · ~2 min read

Quick answerRBI consolidated all prior instructions on the SLRS into a single Master Circular dated July 2, 2007. Public sector banks must follow updated guidelines for rehabilitating manual scavengers into dignified trades through loans and subsidies, with priority for women.

The rule, in the simplest words

Public sector banks must follow a unified set of rules for rehabilitating manual scavengers into dignified trades.
Loans for alternative trades must be subsidized and given to candidates aged 18 years or above.
Women scavengers must be prioritized for rehabilitation as per the scheme's directive.

How it plays out — a real example

Rukmini, a treasury officer in Indore, helped a woman named Sunita, who was a manual scavenger, to get a subsidized loan for a small business. Sunita was eager to leave her job and start a new life, and Rukmini ensured that she got the necessary support and guidance to make it happen. With the loan, Sunita was able to start a small food stall and earn a decent income, leaving her old job behind.

What changed

RBI issued a Master Circular that consolidates all previous circulars on the SLRS, effective from July 2, 2007. This replaces earlier piecemeal instructions with a single reference document for banks. The circular does not introduce new policy but compiles existing guidelines for easier compliance.

What it means for you

Banks now have a unified set of rules for implementing the SLRS, reducing confusion from multiple circulars. The scheme targets manual scavengers and their dependents, offering subsidized loans for alternative trades. Banks must prioritize women, who form the majority of manual scavengers, and ensure loans are not given to minors.

What you must do

Review and implement the consolidated SLRS guidelines from this Master Circular.
Ensure loan applications are only accepted from candidates aged 18 years or above.
Prioritize rehabilitation of women scavengers as per the scheme's directive.
Coordinate with implementing agencies for survey, training, and subsidy disbursement.
Submit monthly progress reports as per Annexure-III format.

Who it affects

All public sector banks in India, Manual scavengers and their dependents, Implementing agencies (e.g., state governments, training institutions), Ministry of Welfare and Ministry of Urban Development

❓ Common questions

Regulatory timeline

Stated effective date effective from July 2, 2007
Decoded by BankPulse 2026-06-19 15:52 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Who is eligible for assistance under the SLRS?

Eligible are scavengers (partially or wholly engaged in manual removal of night soil) and their dependents, primarily from Scheduled Castes or other communities servicing dry latrines. Persons cleaning other types of filth are not covered.

What is the role of banks in this scheme?

Banks must provide loans and subsidies to eligible scavengers and dependents for alternative trades, as per the scheme's guidelines. They must follow the consolidated instructions in this Master Circular and report progress monthly.

Does this circular change any existing rules?

No, it consolidates all previous instructions into one document for ease of reference. Banks should continue following the same operational guidelines as before.

📜 Read the original circular — full text as issued by RBI

RBI/2007-2008/27
 RPCD.NO.SP.BC. 02 /09.03.01/2007-08
 July 
2, 2007
 The Chairman / Managing Director,
 All Public Sector Banks
 Dear 
Sir,
 Master Circular - Priority Sector Lending- Special 
Programmes Scheme for Liberation and Rehabilitation of Scavengers (SLRS)
 Reserve 
Bank of India has, periodically, issued instructions/directives to banks with 
regard to operationalisation of the Scheme for Liberation and Rehabilitation of 
Scavengers (SLRS). To enable banks to have current instructions at one place, 
a Master Circular incorporating all the existing guidelines /instructions / directives 
has been prepared and is appended. We advise that this Master 
Circular has been updated and consolidates all the previous instructions on 
the subject issued by Reserve Bank up till date as indicated in the Annexure 
- IV . 

 Please acknowledge receipt.
 Yours faithfully,

(G. Srinivasan)
 Chief General Manager 

 INDEX 

 1.The 
Scheme

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/27 · issued 02 Jul 2007. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Ensure loan applications are only accepted from candidates aged 18 years or above.

📜 Compliance

Review and implement the consolidated SLRS guidelines from this Master Circular.
Prioritize rehabilitation of women scavengers as per the scheme's directive.
Coordinate with implementing agencies for survey, training, and subsidy disbursement.
Submit monthly progress reports as per Annexure-III format.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All public sector banks in India, Manual scavengers and their dependents, Implementing agencies (e.g., state governments, training institutions), Ministry of Welfare and Ministry of Urban Development), your first concrete step on “Master Circular: Scheme for Liberation and Rehabilitation of Scavengers (SLRS) (RBI/2007-2008/27)” is: “Review and implement the consolidated SLRS guidelines from this Master Circular.” (RBI issued this 02 Jul 2007).

Circular: RBI/2007-2008/27 -- Master Circular: Scheme for Liberation and Rehabilitation of Scavengers (SLRS) (RBI/2007-2008/27)
Issued: 02 Jul 2007
Action required: Review and implement the consolidated SLRS guidelines from this Master Circular.
Action required: Ensure loan applications are only accepted from candidates aged 18 years or above.
Action required: Prioritize rehabilitation of women scavengers as per the scheme's directive.
Action required: Coordinate with implementing agencies for survey, training, and subsidy disbursement.
Action required: Submit monthly progress reports as per Annexure-III format.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3692&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.