What changed
RBI issued a new master circular (RBI/2013-14/84) dated July 1, 2013, replacing the previous one from July 2, 2012. It incorporates all instructions and guidelines issued up to June 30, 2013, ensuring banks have the latest consolidated reference for SJSRY implementation.
What it means for you
Banks must align their urban poverty alleviation lending with the updated SJSRY framework, which emphasizes self-employment ventures, skill training, and community empowerment. The circular standardizes procedures for loan disbursement, recovery reporting, and monitoring, reducing ambiguity for lenders. It reinforces the role of banks in supporting urban poor through structured self-help groups and micro-enterprises.
What you must do
- Review and implement the updated SJSRY master circular for all urban poverty lending operations.
- Ensure loan officers are trained on the revised guidelines, including USEP, UWSP, and STEP-UP components.
- Submit monthly progress reports and half-yearly recovery statements in the prescribed formats to state and central authorities.
- Collaborate with urban local bodies to identify eligible beneficiaries through community structures like NHGs and CDS.
Who it affects
All scheduled commercial banks (excluding RRBs), Urban branches handling SJSRY loans, Bank credit and recovery departments, State-level poverty alleviation cells
What is the key objective of SJSRY as per this circular?
The scheme aims to provide gainful employment to urban unemployed or underemployed poor through self-employment ventures or wage employment, supported by skill training and community structures.
Which banks are covered under this master circular?
All scheduled commercial banks are covered, excluding Regional Rural Banks (RRBs).
What reporting formats are prescribed for banks?
Banks must use formats for cumulative progress under USEP, half-yearly recovery position, and monthly progress reports to state and Ministry of HUPA, as detailed in the circular's annexures.