What changed
RBI observed that SLBC/UTLBC meetings were not held on time, agendas were not circulated in advance, and participation levels were inadequate. To fix this, RBI now requires convenor banks to prepare a yearly calendar by January 15 each year, with fixed cut-off dates for data submission and meeting dates. Meetings must be held within 45 days of the quarter-end, and agendas must be circulated even if some banks default on data submission.
What it means for you
Banks and convenor banks must now adhere to a strict timeline for SLBC/UTLBC meetings, ensuring better coordination with state governments and RBI. Defaulting banks will be called out in meetings and reported to their controlling offices and RBI. This strengthens accountability and ensures that developmental credit issues are discussed promptly.
What you must do
- Prepare and circulate a yearly calendar for SLBC/UTLBC meetings by January 15 each year, including cut-off dates for data submission.
- Send reminders 15 days before the quarter-end and ensure data is received within 15 days after the quarter-end.
- Circulate agenda and background papers within 20 days of quarter-end, even if some banks have not submitted data.
- Hold the meeting within 45 days of quarter-end and forward minutes within 10 days of the meeting.
- Follow up on action points within 30 days of forwarding minutes and report defaulting banks to their controlling offices and RBI.
Who it affects
SLBC Convenor Banks, All scheduled commercial banks participating in SLBC/UTLBC, State Government agencies and development departments, RBI regional offices
What happens if a bank fails to submit data by the cut-off date?
The convenor bank must still circulate the agenda without waiting for the defaulting bank's data. The issue will be raised in the SLBC meeting, and the convenor bank must write to the defaulting bank's controlling office, copying the RBI regional office.
Can the SLBC meeting date be changed after the yearly calendar is set?
Only in very rare cases where the Chief Minister, Finance Minister, or other very senior functionaries cannot attend. If they request, a special SLBC meeting can be held, but the regular meeting should still occur as per the calendar.
What is the deadline for forwarding minutes after the SLBC meeting?
Minutes must be forwarded to all stakeholders within 10 days of holding the meeting. Action points from the meeting must be followed up within 30 days of forwarding the minutes.