What changed
RBI issued an updated Master Circular (RBI/2012-13/88) replacing the July 2011 circular on SGSY. It consolidates all existing guidelines on the scheme, including lending norms, subsidy rules, and reporting formats, into one document. No new policy changes were introduced; this is purely a compilation exercise.
What it means for you
Banks must now refer to this single Master Circular for all SGSY-related instructions, ensuring uniformity in implementation. The circular reinforces existing requirements like SHG-based lending, subsidy lock-in periods, and recovery monitoring. Lenders should update their internal manuals and training materials to align with this consolidated reference.
What you must do
- Replace the July 2011 Master Circular with this updated version in your policy documents.
- Train branch staff on the consolidated SGSY guidelines, especially SHG lending norms and subsidy conditions.
- Ensure all SGSY loan applications and disbursements comply with the circular's security, repayment, and reporting requirements.
- Coordinate with DRDAs and NGOs as per the circular for SHG formation and monitoring.
Who it affects
All commercial banks, Regional Rural Banks, Co-operative banks, District Rural Development Agencies (DRDAs), Self Help Groups (SHGs) and Swarozgaris
Does this Master Circular introduce any new lending norms for SGSY?
No, it consolidates existing guidelines issued up to July 2012 without introducing new requirements.
Which banks are covered under this circular?
All commercial banks, regional rural banks, and co-operative banks implementing SGSY in rural areas.
What is the key objective of SGSY as per this circular?
To bring assisted poor families above the poverty line through self-employment, SHG formation, training, and income-generating assets.