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Priority Sector Lending to SC/ST: Master Circular 2010

Current · Source: Reserve Bank of India · RBI/2010-2011/53 · issued 01 Jul 2010 · ~1 min read
Quick answerRBI consolidated all prior instructions on credit facilities for Scheduled Castes and Scheduled Tribes into a single Master Circular. Banks must weight credit planning in favor of SC/ST, design bankable schemes, and ensure sympathetic, timely loan processing.
The rule, in the simplest words
How it plays out — a real example

An agri & priority-sector lending officer in Indore reviews her branch's credit plan and notices SC/ST borrowers are underserved. She designs a simple loan scheme for SC/ST families to buy sewing machines, trains her field staff to explain it in local language, and helps an illiterate ST woman fill out the application form, ensuring the loan is approved within a week.

What changed

This Master Circular consolidates all previous RBI instructions on credit facilities for SC/ST into one document, replacing earlier circulars listed in Annexure III. It reiterates existing guidelines without introducing new policy changes.

What it means for you

Banks must continue to prioritize SC/ST lending through weighted credit planning and special schemes. The circular reinforces the need for sympathetic loan processing, closer liaison with development agencies, and village adoption strategies focused on SC/ST populations.

What you must do

Who it affects

All Indian scheduled commercial banks, Lead banks and their district-level committees, Bank branch managers and field staff handling priority sector lending, SC/ST borrowers seeking credit facilities

❓ Common questions

Does this Master Circular introduce new lending targets for SC/ST?

No, it consolidates existing instructions without setting new targets. Banks must continue to weight credit planning in favor of SC/ST and ensure sympathetic loan processing.

What specific actions must banks take for SC/ST borrowers?

Banks should adopt villages with sizeable SC/ST populations, design special bankable schemes, help illiterate borrowers with forms, and create awareness through field staff rather than just brochures.

How should banks coordinate with other agencies for SC/ST lending?

Banks must use District Level Consultative Committees under the Lead Bank Scheme as the main coordination mechanism and establish closer liaison with District Industries Centres.

📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/53 RPCD.SP.BC.No.3/09.09.01/2010-11 July 1, 2010 All Indian Scheduled Commercial Banks Dear Sir, Master Circular Priority Sector Lending-C redit facilities to Scheduled Castes (SCs)  & Scheduled Tribes (STs) Reserve Bank of India has, periodically, issued instructions / directives to banks with regard to providing Credit facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs). To enable banks to have current instructions at one place, a Master Circular incorporating all the existing guidelines/ instructions/ directives has been prepared and is appended. We advise that this Master Circular has been updated and consolidates all the previous instructions issued by Reserve Bank from time to time, which are listed in Annexure -III . Please acknowledge receipt. Yours faithfully, (B. P. Vijayendra) Chief General Manager Master Circular CREDIT FACILITIES TO SCHEDULED CASTES (SCs)  & SCHEDULED TRIBES (STs) INDEX SR.  NO.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/53 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Review and align your branch-level credit plans to give weightage to SC/ST borrowers.
💻 IT / Systems
  • Train staff to assist illiterate borrowers with application forms and complete formalities promptly.
📜 Compliance
  • Design bankable schemes suited to SC/ST communities and ensure field staff promote them.
  • Establish or strengthen liaison with District Industries Centres and Lead Bank committees.
  • Periodically review lending procedures to ensure timely, adequate, and production-oriented loans.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Branch Manager at a bank this circular applies to (All Indian scheduled commercial banks, Lead banks and their district-level committees, Bank branch managers and field staff handling priority sector lending, SC/ST borrowers seeking credit facilities), your first concrete step on “Priority Sector Lending to SC/ST: Master Circular 2010” is: “Review and align your branch-level credit plans to give weightage to SC/ST borrowers.” (RBI issued this 01 Jul 2010).

  1. Circular: RBI/2010-2011/53 -- Priority Sector Lending to SC/ST: Master Circular 2010
  2. Issued: 01 Jul 2010
  3. Action required: Review and align your branch-level credit plans to give weightage to SC/ST borrowers.
  4. Action required: Design bankable schemes suited to SC/ST communities and ensure field staff promote them.
  5. Action required: Establish or strengthen liaison with District Industries Centres and Lead Bank committees.
  6. Action required: Train staff to assist illiterate borrowers with application forms and complete formalities promptly.
  7. Action required: Periodically review lending procedures to ensure timely, adequate, and production-oriented loans.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5838&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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