MSME-DI Directors to Join District Consultative Committees
Current · Source: Reserve Bank of India · RBI/2011-12/461 · issued 20 Mar 2012 · ~1 min read
Quick answerRBI directs Lead Banks to invite MSME Development Institute Directors as invitees to DCC meetings in districts with MSME clusters, aiming to boost credit flow to the sector.
The rule, in the simplest words
Lead Banks must add the Director of the local MSME Development Institute (MSME‑DI) to the guest list for District Consultative Committee (DCC) meetings in any district that has an MSME cluster.
The MSME‑DI Director will join the DCC as an invitee to talk about problems faced by small businesses and help find ways to give them more loans.
Lead District Managers should change their meeting plans and coordinate with the MSME‑DI office to set meeting dates and send invitations.
This step follows a request from the Ministry of MSME and aims to close credit gaps and increase formal loan flow to MSME borrowers.
How it plays out — a real example
Anita, a lead bank officer in Indore, checks the districts under her responsibility, sees that Indore district has an MSME cluster, looks up the enclosed list of MSME‑DI offices, calls Mr. Singh, the Director of the Indore MSME‑DI, and invites him to the next DCC meeting. During the meeting they discuss why local garment makers need working‑capital loans, and the DCC decides to allocate extra credit lines to support those businesses.
What changed
RBI has instructed Lead Banks to include the Director of the concerned MSME Development Institute (MSME-DI) as an invitee in District Consultative Committee (DCC) meetings. This applies specifically to districts where MSME clusters are located. The move follows a request from the Ministry of MSME to leverage MSME-DI expertise in scheme implementation.
What it means for you
Banks must now coordinate with MSME-DI directors to discuss MSME-related issues during DCC meetings, which should help identify credit gaps and improve lending to the sector. This inclusion is expected to enhance the effectiveness of MSME-focused schemes and increase formal credit flow. Lead District Managers need to update their meeting protocols and invite lists accordingly.
What you must do
Identify districts under your lead bank responsibility that have MSME clusters.
Update the invitee list for DCC meetings to include the Director of the relevant MSME-DI.
Instruct Lead District Managers to coordinate with MSME-DI offices for meeting schedules.
Use the enclosed list of MSME-DI offices and their jurisdictional districts for guidance.
Who it affects
Lead Banks, Lead District Managers, District Consultative Committees (DCCs), MSME Development Institutes (MSME-DIs), MSME borrowers
❓ Common questions
Which districts require MSME-DI Director participation in DCC meetings?
Only districts where MSME clusters are located, as per the list provided by the Ministry of MSME and enclosed with the RBI circular.
What is the role of the MSME-DI Director in DCC meetings?
The Director will attend as an invitee to discuss MSME-related issues, helping to improve credit flow and scheme implementation for the sector.
Is this a mandatory requirement for all Lead Banks?
Yes, RBI advises all Lead Banks to invite the concerned MSME-DI Director to DCC meetings in districts with MSME clusters.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/461
RPCD.CO.LBS.BC.No.67 /02.01.01/2011-12
March 20, 2012
The Chairmen/ CMDs of all Lead Banks
MD& CEO of Jammu & Kashmir Bank Ltd.
Dear Sir/Madam,
Lead Bank Scheme – District Consultative Committees (DCC) – Inclusion of
Director of MSME-DI
The Ministry of Micro Small and Medium Enterprises (MSME), Government of India has advised that MSME Development Institutes (MSME-DI) play an important role in the implementation of schemes / programmes for promotion and development of the MSME sector.
2. As the participation of MSME-DI would be useful in discussing issues concerning the MSMEs which would eventually help in increasing credit flow to the MSME sector, you are advised to invite the concerned Director of MSME-DI to attend the District Consultative Committee (DCC) meetings as invitee in those districts where MSME clusters are located. You may advise the respective Lead District Managers accordingly. The list of offices of MSME-DI received from the Ministry of MSME with their jurisdiction of State & districts is enclosed for your guidance.
Yours faithfully,
(A.K. Misra)
General Manager
Encl: As above
Addresses of MSME-DIs
SR
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/461 · issued 20 Mar 2012. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Lead Banks, Lead District Managers, District Consultative Committees (DCCs), MSME Development Institutes (MSME-DIs), MSME borrowers), your first concrete step on “MSME-DI Directors to Join District Consultative Committees” is: “Identify districts under your lead bank responsibility that have MSME clusters.” (RBI issued this 20 Mar 2012).
Circular: RBI/2011-12/461 -- MSME-DI Directors to Join District Consultative Committees
Issued: 20 Mar 2012
Action required: Identify districts under your lead bank responsibility that have MSME clusters.
Action required: Update the invitee list for DCC meetings to include the Director of the relevant MSME-DI.
Action required: Instruct Lead District Managers to coordinate with MSME-DI offices for meeting schedules.
Action required: Use the enclosed list of MSME-DI offices and their jurisdictional districts for guidance.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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.
💬 Banker Discussion
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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=7080&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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