What changed
RBI withdrew 46 circulars related to government-sponsored schemes, including SJSRY, SGSY, IRDP, and DRI, effective from close of business on May 13, 2022. These circulars, dating back to 1986-2000, covered implementation, reporting, collateral, and recovery aspects. The withdrawal is part of the Regulations Review Authority (RRA 2.0) recommendations to remove redundant instructions.
What it means for you
Banks can now discard old compliance requirements for these schemes, reducing operational burden and freeing up resources. This cleanup aligns with RRA 2.0's goal to streamline regulations, but banks must ensure current lending practices are governed by updated master directions. No new obligations are introduced; it's purely a removal of outdated circulars.
What you must do
- Update internal compliance checklists to remove references to the 30 withdrawn circulars.
- Brief priority lending and rural banking teams on the withdrawal to avoid unnecessary adherence to old rules.
- Verify that current lending under government schemes follows the latest RBI master directions, not these circulars.
- Archive the withdrawn circulars from active reference materials and training modules.
Who it affects
Scheduled Commercial Banks, Small Finance Banks, Local Area Banks, Priority sector lending teams, Rural and urban poverty alleviation scheme handlers
Which specific schemes are affected by this circular withdrawal?
The withdrawn circulars cover Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Swarnjayanti Gram Swarozgar Yojana (SGSY), Integrated Rural Development Programme (IRDP), Differential Rate of Interest (DRI) Scheme, and others like PMI UPEP and SUME.
Do I need to stop lending under these schemes now?
No, the withdrawal only removes old procedural circulars. Lending under these schemes should continue as per current government guidelines and RBI's latest master directions on priority sector lending.
Is there any new compliance requirement from this notification?
No new requirements are introduced. This notification solely withdraws 30 outdated circulars to simplify regulations, as part of RRA 2.0.