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RBI Directs Banks to Boost SJSRY Urban Poor Lending

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/360 · issued 01 Jan 2013 · ~1 min read
Quick answerRBI has instructed all scheduled commercial banks (excluding RRBs) to liberalize lending under the Swarna Jayanti Shahari Rozgar Yojana (SJSRY) for urban poor, citing non-cooperation reports. Banks must review scheme performance in SLBC/DLBC meetings and submit monthly progress reports to state and central authorities.

What changed

RBI issued a circular on January 1, 2013, directing banks to follow specific instructions for SJSRY implementation. Banks are now required to include SJSRY performance review as a standing agenda item in SLBC and DLBC meetings. A monthly progress report in the prescribed format must be sent to the State's Urban Development Secretary and the Joint Secretary (UPA) at the Ministry of HUPA.

What it means for you

Banks must prioritize lending to urban poor under SJSRY, as it is the only direct assistance scheme for this segment. Non-cooperation in sanctioning loans has been flagged by implementing agencies, so RBI expects proactive compliance. This adds reporting and review obligations for banks at state and district levels, increasing administrative oversight.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), State Level Bankers' Committees (SLBCs), District Level Bankers' Committees (DLBCs)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the SJSRY scheme?

Swarna Jayanti Shahari Rozgar Yojana is a central government scheme that provides self-employment opportunities to urban poor. RBI's circular emphasizes liberal financing under this scheme.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/360 RPCD GSSD. BC. No. 55/09.16.01/ 2012 - 13 January 01, 2013 The Chairman / Managing Director All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Implementation of Swarna Jayanti Shahari Rozgar Yojana (SJSRY)-Regarding We have been advised by the Ministry of Housing and Urban Poverty Alleviation that instances have been reported by the implementing agencies at the States / ULBs level regarding non-cooperation of banks in sanctioning loan to urban poor beneficiaries under the self - employment component of the scheme. You are, therefore, advised to follow instructions as enumerated hereunder: (i) Liberal financing may be done under SJSRY as it is the only Scheme which directly assists the urban poor. (ii) Review of performance under SJSRY scheme may be included as standing agenda item in the State level Bankers’ Committee (SLBC) and District Level Bankers’ Committee (DLBC) meetings. (iii) A monthly progress report in the prescribed proforma ( enclosed ) for the State may be sent to the Secretary, Urban Development of each State and to the Joint Secretary (UPA), Ministry of HUPA, UPA Division, Nirman Bhavan, New Delhi-110001. 2. Please acknowledge receipt. Yours faithfully, (C.D.Srinivasan) Chief General Manager Encl: 1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/360 · issued 01 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7787&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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