What changed
RBI issued a Master Circular consolidating all existing priority sector lending instructions for Regional Rural Banks (RRBs) up to June 30, 2012. No new targets were introduced; the circular merely compiles previous directives into one document for easier reference.
What it means for you
RRBs must continue to meet the priority sector lending target of 60% of outstanding advances, with at least 25% of priority sector advances (i.e., 15% of total advances) directed to weaker sections. This consolidation reduces confusion and helps RRBs ensure compliance with all applicable guidelines in one place.
What you must do
- Review the Master Circular to ensure your RRB's lending portfolio meets the 60% priority sector target and 25% weaker sections sub-target.
- Update internal policies and training materials to reflect the consolidated instructions from this circular.
- Acknowledge receipt of the circular to your respective RBI Regional Office as directed.
- Monitor lending data to ensure compliance with all priority sector categories and sub-targets outlined in the circular.
Who it affects
All Regional Rural Banks (RRBs), RRB management and credit officers, RBI regional offices overseeing RRBs
What is the priority sector lending target for RRBs under this Master Circular?
RRBs must lend 60% of their outstanding advances to the priority sector, with at least 25% of those priority sector advances (i.e., 15% of total advances) going to weaker sections.
Does this Master Circular introduce any new lending targets?
No, it consolidates all existing instructions issued up to June 30, 2012, without introducing new targets. The 60% target and weaker sections sub-target were effective from 2003-04.
Why did RBI issue this Master Circular?
To provide a single source of all current priority sector lending instructions for RRBs, making it easier for them to access and comply with the guidelines.