What changed
The master circular was updated to incorporate instructions issued up to June 30, 2013, consolidating all prior guidelines. The list of minority concentration districts was expanded from 103 to 121, based on Government of India's notification of districts with at least 25% minority population, excluding states where minorities are in majority.
What it means for you
Banks must ensure that minority communities receive a fair share of priority sector credit, with a specific sub-target of 10% of ANBC or credit equivalent of off-balance sheet exposures for weaker sections. This requires dedicated monitoring and reporting at the district level, especially in the 121 identified districts, to track credit flow to minorities.
What you must do
- Set up a Special Cell headed by a Deputy/Assistant General Manager as Nodal Officer to oversee credit flow to minority communities.
- Designate an exclusive officer in each of the 121 minority concentration districts to monitor and promote credit to minorities, attached to the Lead Bank setup.
- Submit half-yearly and quarterly statements (as per Annexures I and III) showing priority sector advances to minority communities vis-à-vis overall priority sector advances.
- Ensure that the 10% priority sector sub-target for weaker sections, including minorities, is met and reported accurately.
Who it affects
All scheduled commercial banks (domestic and foreign banks with 20+ branches), Lead banks in minority concentration districts, Nodal officers and designated officers for minority credit, Priority sector lending teams and compliance departments
What is the priority sector sub-target for minority communities?
There is no separate sub-target for minorities alone; they are included under the weaker sections sub-target of 10% of ANBC or credit equivalent of off-balance sheet exposures. Banks must ensure minorities get a fair and adequate share within this.
How many minority concentration districts are now monitored?
The list expanded from 103 to 121 districts, as per Government of India's notification. These districts have at least 25% minority population, excluding states/UTs where minorities are in majority (J&K, Punjab, Meghalaya, Mizoram, Nagaland, Lakshadweep).
What reporting is required for minority credit?
Banks must submit a half-yearly statement (Annexure I) on priority sector advances to minorities vs overall, and a quarterly statement (Annexure III) specifically for the identified districts. Formats are provided in the master circular.