What changed
A Lok Sabha House Committee observed that lead banks were not arranging DLRC meetings in consultation with MPs. RBI has now reiterated existing instructions, emphasizing that banks must fix meeting dates considering public representatives' convenience, invite them to all bank functions in the district, and prioritize responses to their queries.
What it means for you
Banks must now proactively coordinate with MPs/MLAs for scheduling DLRC meetings, avoiding Parliament session dates. Failure to do so could attract scrutiny from parliamentary committees. This reinforces the role of public representatives in monitoring district credit plans and financial inclusion efforts.
What you must do
- Fix DLRC meeting dates in consultation with MPs/MLAs, avoiding Parliament session periods.
- Invite MPs/MLAs and Zilla Panchayat chiefs to all district-level bank functions, including branch openings, KCC distribution, and SHG credit linkage events.
- Respond to queries from public representatives promptly and with highest priority.
- Maintain records of attendance of public representatives at DLRC meetings for monitoring.
Who it affects
Lead banks in all districts, District Level Review Committees (DLRCs), MPs, MLAs, and Zilla Panchayat chiefs
What triggered this circular from RBI?
A Lok Sabha House Committee visit revealed that lead banks were not arranging DLRC meetings in consultation with MPs, prompting RBI to reiterate existing instructions.
What specific actions must lead banks take regarding public representatives?
Banks must fix DLRC meeting dates considering MPs/MLAs' convenience, avoid Parliament session dates, invite them to all district functions, and respond to their queries promptly.
Does this circular introduce new rules or just reiterate old ones?
It reiterates and reinforces existing instructions from earlier circulars dating back to 1989, with added emphasis due to observed non-compliance.