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.
What you must do
- Ensure liberal financing under SJSRY for urban poor beneficiaries, especially for self-employment components.
- Add SJSRY performance review as a standing agenda item in all SLBC and DLBC meetings.
- Prepare and submit monthly progress reports in the prescribed proforma to the State's Urban Development Secretary and the Joint Secretary (UPA), Ministry of HUPA.
- Acknowledge receipt of this circular to the RBI.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), State Level Bankers' Committees (SLBCs), District Level Bankers' Committees (DLBCs)
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.