What changed
This is a consolidation of existing RBI instructions on credit facilities to minority communities into a single master circular. It reiterates the list of 121 minority concentration districts and the definition of minority communities (Sikhs, Muslims, Christians, Zoroastrians, Buddhists, Jains). It also reaffirms the requirement for banks to set up special cells and designate nodal officers.
What it means for you
Banks must ensure minority communities receive a fair share of priority sector credit, especially in the 121 identified districts. The 11.5% PSL sub-target for weaker sections includes minorities, so banks need to track and report this lending separately. Setting up special cells and appointing exclusive officers in lead banks will require operational focus and resource allocation.
What you must do
- Identify and monitor credit flow to minority communities in the 121 minority concentration districts listed in Annexure I.
- Ensure lending to minorities is counted within the 11.5% PSL sub-target for weaker sections for FY 2022-23.
- Set up a special cell with a nodal officer (DGM/AGM rank) to oversee credit to minority communities.
- Appoint an exclusive officer in each lead bank in minority concentration districts to publicize schemes and prepare credit programs.
- Treat advances to partnership firms with majority minority partners or beneficial ownership as minority community advances.
Who it affects
All Scheduled Commercial Banks (excluding RRBs and foreign banks with <20 branches), Lead banks in minority concentration districts, Priority sector lending teams, Branch managers in 121 identified districts
What is the PSL sub-target for lending to weaker sections including minorities?
For FY 2022-23, the sub-target is 11.5% of ANBC or Credit Equivalent amount of OBE, whichever is higher, as on March 31 of the previous year.