What changed
RBI has instructed RRBs to replace the term 'Small Scale Industries' with 'Micro and Small Enterprises' in all internal guidelines and documents. This follows government notifications from the Ministry of Small Scale Industries (2006) and Ministry of Commerce and Industry (2009).
What it means for you
RRBs must update their internal policies, loan documentation, and reporting formats to reflect the new terminology. This ensures consistency with government definitions and may affect eligibility criteria for priority sector lending and credit schemes targeting micro and small enterprises.
What you must do
- Replace 'SSI' with 'Micro and Small Enterprises' in all internal guidelines, circulars, and documents.
- Issue instructions to all branches and controlling offices to adopt the updated terminology.
- Acknowledge receipt of this circular to the respective RBI Regional Office.
- Review and update loan application forms, sanction letters, and reporting templates accordingly.
Who it affects
Regional Rural Banks (RRBs), RRB branches and controlling offices, Borrowers classified under micro and small enterprises
Why is RBI asking RRBs to change 'SSI' to 'Micro and Small Enterprises'?
The change aligns with government notifications from 2006 and 2009 that officially replaced the term 'Small Scale Industries' with 'Micro and Small Enterprises' to reflect updated classification under the Micro, Small and Medium Enterprises Development Act.
What documents need to be updated?
All internal guidelines, instructions, loan documents, and reporting formats that reference 'SSI' must be revised to use 'Micro and Small Enterprises'.
Is there a deadline for compliance?
The circular does not specify a deadline, but RRBs are expected to implement the change promptly and acknowledge receipt to the RBI Regional Office.