What changed
RBI issued an updated Master Circular (RBI/2010-11/56) replacing the July 2009 version, consolidating all existing SGSY guidelines. The circular integrates instructions on SHGs, revolving funds, subsidy lock-in, and recovery norms into one document.
What it means for you
Banks must now reference this single circular for SGSY compliance, ensuring uniformity in lending and monitoring. The consolidation simplifies audit and reporting, but banks need to update internal manuals and train staff on the latest norms.
What you must do
- Replace the 2009 SGSY circular with this 2010 Master Circular in your policy documents.
- Train branch staff on updated SHG formation, revolving fund, and subsidy lock-in procedures.
- Align internal audit checklists with the consolidated guidelines to ensure compliance.
- Update priority sector lending reporting formats as per the circular's annexures.
Who it affects
All commercial banks, Regional Rural Banks, Co-operative banks, Priority sector lending departments, Rural branch managers
What is the effective date of this Master Circular?
The circular is dated July 1, 2010, and supersedes the previous Master Circular of July 1, 2009.
Does this circular change the SGSY subsidy lock-in period?
The circular includes a section on subsidy lock-in period, but the source text does not specify the exact duration. Banks should refer to the full circular for details.
Which banks are covered under this circular?
All commercial banks, including Regional Rural Banks and Co-operative banks, are required to follow these guidelines.