What changed
RBI issued a Master Circular that consolidates all existing guidelines on SJSRY, replacing earlier circulars listed in Annexure III. The scheme itself was launched in December 1997, merging three previous urban poverty programs. This circular does not introduce new policy but compiles current instructions for easier reference.
What it means for you
Banks must now refer to this single Master Circular for all SJSRY-related lending and subsidy administration, ensuring uniformity. The scheme targets urban poor with project cost up to Rs 50,000 for individuals (or per partner in a partnership), requiring banks to coordinate with community structures and urban local bodies. Compliance with consolidated guidelines is mandatory for priority sector lending under this program.
What you must do
- Replace all earlier SJSRY circulars with this Master Circular for operational guidelines.
- Ensure loan processing for urban poor beneficiaries follows the scheme's eligibility criteria (family income below poverty line, education up to 9th standard).
- Coordinate with Community Development Societies and Urban Local Bodies for beneficiary identification and subsidy administration.
- Submit monthly progress reports as per Annexure II format to monitor scheme implementation.
Who it affects
All Indian Scheduled Commercial Banks (excluding RRBs), Urban Local Bodies and Town Urban Poverty Eradication Cells, Community Development Societies involved in beneficiary identification, Urban poor beneficiaries seeking self-employment or wage employment loans
What is the maximum project cost for an individual under SJSRY?
The scheme provides project cost up to Rs 50,000 for individual urban poor beneficiaries for self-employment ventures. For partnerships, each partner's share must be Rs 50,000 or less.