What changed
This master circular consolidates all existing priority sector lending instructions for RRBs issued up to June 30, 2013, into one document. It does not introduce new rules but provides a single reference for current targets and sub-targets.
What it means for you
RRBs must maintain 60% of their outstanding advances as priority sector lending, with at least 25% of those advances (i.e., 15% of total advances) directed to weaker sections. This circular ensures all prior guidelines are easily accessible, reducing compliance ambiguity for banks.
What you must do
- Review your RRB's current priority sector lending ratio to ensure it meets the 60% target of outstanding advances.
- Verify that at least 25% of priority sector advances (15% of total advances) are allocated to weaker sections.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
- Update internal policies and training materials to reflect the consolidated guidelines as of June 30, 2013.
Who it affects
Regional Rural Banks (RRBs), RBI regional offices overseeing RRBs, Priority sector lending officers at RRBs
What is the priority sector lending target for RRBs under this master circular?
RRBs must achieve 60% of their outstanding advances as priority sector lending, effective from the financial year 2003-04.
What is the sub-target for lending to weaker sections?
At least 25% of priority sector advances (which equals 15% of total outstanding advances) must be directed to weaker sections of society.
Does this master circular introduce new lending targets?
No, it consolidates existing guidelines issued up to June 30, 2013, without introducing new targets. The 60% target and weaker sections sub-target were already in place since 2003-04.