What changed
RBI issued a Master Circular (RBI/2007-2008/65) that consolidates all prior circulars on the Swarnajayanti Gram Swarozgar Yojana (SGSY) into one document, updating the earlier Master Circular dated July 12, 2006. No substantive changes to scheme rules were introduced; the circular merely compiles existing guidelines for easier reference.
What it means for you
Banks now have a single reference for SGSY lending norms, consolidating multiple circulars. The scheme targets rural BPL families through SHGs and micro-enterprises, with credit, subsidy, and training components. Lenders must align their internal processes with the consolidated guidelines to ensure compliance and smooth implementation.
What you must do
- Review the consolidated SGSY Master Circular and update internal lending policies accordingly.
- Ensure all branch staff are trained on the unified guidelines for SHG formation, credit, and subsidy disbursal.
- Align reporting and monitoring systems with the circular's requirements, including LBR returns and data submission.
- Coordinate with DRDAs and NGOs as per the scheme's implementation framework.
Who it affects
All commercial banks, Regional Rural Banks, Co-operative banks, District Rural Development Agencies (DRDAs), Self Help Groups (SHGs) and Swarozgaris, Other financial institutions, Panchayat Raj Institutions, Non-Government Organisations (NGOs), Technical institutions in the district
Does this Master Circular introduce new SGSY rules?
No, it consolidates all existing guidelines issued up to July 2, 2007, into one document. Banks should refer to this circular for current instructions.
What is the key objective of SGSY as per the circular?
To bring assisted poor families (Swarozgaris) above the poverty line through self-employment, by organizing them into SHGs, providing training, credit, and income-generating assets.
Which banks are covered under this circular?
All commercial banks, Regional Rural Banks, and Co-operative banks implementing SGSY in rural areas.