What changed
RBI issued a Master Circular (RBI/2011-12/86) consolidating all existing guidelines on priority sector credit facilities for SCs and STs. It updates and replaces previous circulars listed in Annexure III, providing a single reference document for banks.
What it means for you
Banks must now follow a unified set of instructions to boost credit flow to SC/ST communities. This includes giving weightage to SC/STs in block-level credit planning, adopting villages with high SC/ST populations, and simplifying loan procedures. Lenders need to ensure field staff actively create awareness and assist borrowers with applications.
What you must do
- Review and align your bank's credit planning process to give weightage to SC/ST communities at block level.
- Design special bankable schemes suited to SC/ST members and ensure loan proposals are processed sympathetically and expeditiously.
- Adopt villages or localities with significant SC/ST populations for intensive lending and closer liaison with District Industries Centres.
- Train field staff to assist SC/ST borrowers with application formalities and to create awareness about credit schemes.
- Submit the prescribed Annexure I and II statements on advances to SC/STs as on the last reporting Friday of March/September.
Who it affects
All Indian scheduled commercial banks, Lead banks and District Level Consultative Committees, Bank field staff and branch managers, SC/ST borrowers seeking priority sector credit
What is the main purpose of this Master Circular?
It consolidates all previous RBI instructions on priority sector credit to Scheduled Castes and Scheduled Tribes into one document, making it easier for banks to access and implement current guidelines.
How should banks prioritize SC/ST communities in credit planning?
Banks must give weightage to SC/STs in block-level credit planning, adopt villages with high SC/ST populations, and design bankable schemes that ensure their participation and larger credit flow for self-employment.
What reporting is required under this circular?
Banks must submit Annexure I (advances to SCs/STs) as on the last reporting Friday of March and September, and Annexure II (advances under Differential Rate of Interest Scheme) as on the last reporting Friday of March.