What changed
RBI issued a Master Circular consolidating all existing guidelines on SJSRY, a scheme launched in 1997 that replaced three earlier urban poverty programs. The circular incorporates revised scheme guidelines effective from April 1, 2009, aimed at improving implementation and addressing urban poverty.
What it means for you
Banks must align their priority sector lending operations with the consolidated SJSRY guidelines, focusing on urban poor below the poverty line. The scheme emphasizes self-employment ventures, skill training, and community structures like Neighbourhood Groups, requiring banks to support these through appropriate lending and monitoring.
What you must do
- Review the Master Circular and ensure your bank's priority sector lending policies incorporate SJSRY components like USEP, UWSP, and STEP-UP.
- Train branch staff on the revised SJSRY guidelines, especially targeting urban poor and community-based lending structures.
- Update internal monitoring systems to track SJSRY-linked loans and report as per RBI's consolidated instructions.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Priority sector lending departments, Urban branch managers handling self-employment and wage employment loans
What is the key objective of SJSRY under this Master Circular?
The scheme aims to provide gainful employment to urban unemployed or underemployed poor through self-employment ventures or wage employment, with revised guidelines effective from April 1, 2009.
Which banks are covered by this circular?
All Scheduled Commercial Banks, excluding Regional Rural Banks (RRBs), as per the circular addressed to their Chairmen and Managing Directors.
What are the main components of SJSRY that banks need to support?
The five components are Urban Self Employment Programme (USEP), Urban Women Self-help Programme (UWSP), Skill Training for Employment Promotion (STEP-UP), Urban Wage Employment Programme (UWEP), and Urban Community Development Network (UCDN).