What changed
This Master Circular updates the previous one from July 2, 2012, by incorporating all instructions issued up to June 30, 2013. It consolidates existing guidelines without introducing new policy changes, serving as a single reference document.
What it means for you
Banks must continue to weight credit planning in favor of SC/ST communities, adopt villages with significant SC/ST populations, and evolve bankable schemes for them. Field staff should personally explain schemes to illiterate borrowers, and loan proposals must be processed sympathetically and quickly.
What you must do
- Ensure district credit plans clearly link credit with employment and development schemes for SC/ST communities.
- Train branch staff to assist SC/ST borrowers with application forms and complete formalities within stipulated timelines.
- Organize exclusive meetings for SC/ST beneficiaries to explain scheme features and benefits through field staff.
- Periodically review lending procedures to ensure timely, adequate, and production-oriented loans for SC/ST borrowers.
Who it affects
All Scheduled Commercial Banks, Lead banks and District Level Consultative Committees, Bank branch staff handling priority sector lending, SC/ST borrowers seeking credit facilities
What is the main objective of this Master Circular?
To consolidate all existing instructions on credit facilities for Scheduled Castes and Scheduled Tribes into a single document, ensuring banks follow uniform guidelines to enhance credit flow to these communities.
How should banks create awareness among illiterate SC/ST borrowers?
Banks should use field staff to personally contact borrowers and explain scheme features, rather than relying on brochures or literature, as most eligible borrowers may be illiterate.
What role do District Level Consultative Committees play?
They serve as the principal coordination mechanism between banks and development agencies to ensure effective implementation of credit plans for SC/ST communities.