What changed
The Ministry of Finance clarified that the revised eligibility income criteria of Rs. 24,000 for urban areas under the DRI scheme is applicable to semi-urban areas as well. This extends the earlier revision communicated in April 2008 to cover semi-urban borrowers.
What it means for you
Banks must now apply the same higher income threshold to semi-urban DRI borrowers, potentially expanding the eligible pool. Lenders need to update their internal guidelines and branch-level processes to reflect this clarification and continue working toward the 1% lending target.
What you must do
- Update internal DRI scheme guidelines to include semi-urban areas under the Rs. 24,000 income limit.
- Communicate the clarification to all controlling offices and branch offices immediately.
- Monitor implementation to ensure the 1% of previous year's advances target is met.
- Acknowledge receipt of this circular to the issuing office.
Who it affects
All scheduled commercial banks (excluding RRBs), Branch managers in semi-urban areas, DRI scheme borrowers in semi-urban locations
What is the revised income limit for DRI scheme in semi-urban areas?
The revised eligibility income criteria is Rs. 24,000 per annum, the same as for urban areas, as clarified by the Ministry of Finance.
Does this circular change the DRI lending target?
No, the target remains 1% of the previous year's advances. The circular only clarifies the income limit applicability for semi-urban areas.