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RBI Revamps General Credit Card Facility for MSMEs

Current · Source: Reserve Bank of India · RBI/2023-24/19 · issued 25 Apr 2023 · ~2 min read

Quick answerRBI has replaced the 2013 GCC Scheme with a new 'General Credit Card (GCC) Facility' effective April 25, 2023. It aligns with the 2022 Master Direction on credit cards, targets non-farm entrepreneurial activities under priority sector, and mandates credit card format with board-approved policies.

The rule, in the simplest words

The old 2013 GCC Scheme is now called the “General Credit Card (GCC) Facility” and starts on April 25, 2023.
GCC must be issued as a credit card, not a debit card, and must follow the 2022 Master Direction rules for credit cards.
It is meant for working‑capital loans to non‑farm businesses that qualify under priority sector guidelines.
Banks need to update their policies, IT systems, and reporting to match the new RBI rules for GCC.
Any debit cards issued under the 2013 scheme stay valid only until they expire or the loan is paid back.

How it plays out — a real example

A gold‑loan officer in Indore sees a small shop owner apply for a GCC. He issues a credit card that follows the new RBI rules, checks that the shop qualifies under priority sector, and updates the bank’s system to record the card’s details.

What changed

The earlier GCC Scheme (2013) has been superseded and renamed as 'General Credit Card (GCC) Facility'. The new facility must be issued as a credit card conforming to the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022. Existing debit cards issued under the old scheme remain valid only until their expiry or repayment of the existing credit facility, whichever is earlier.

What it means for you

Banks must now issue GCCs strictly in credit card form, not debit cards, for working capital to eligible non-farm entrepreneurial activities under priority sector. This aligns GCC with modern card regulations and ensures uniform terms via board-approved policies. Lenders need to update product documentation, IT systems, and reporting processes to comply with the new framework and the Master Direction.

What you must do

Rename your GCC product to 'General Credit Card (GCC) Facility' and update all customer-facing materials.
Ensure GCC issuance complies with the Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions, 2022.
Review and align board-approved policies for GCC terms and conditions with the new RBI framework.
Update internal systems to report GCC data as per RBI's latest reporting instructions.
Communicate with existing debit card holders under the old scheme about the transition and validity period.

Who it affects

Scheduled Commercial Banks (excluding Payments Banks), Scheduled Urban Co-operative Banks, MSME borrowers availing working capital for non-farm entrepreneurial activities, Priority sector lending teams

❓ Common questions

Regulatory timeline

Stated effective date effective April 25, 2023
Decoded by BankPulse 2026-06-18 04:43 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the key difference between the old GCC Scheme and the new GCC Facility?

The old scheme allowed debit cards, but the new facility mandates GCCs be issued only as credit cards conforming to the 2022 Master Direction. The name has also changed from 'Scheme' to 'Facility'.

Are existing debit cards issued under the 2013 GCC Scheme still valid?

Yes, they remain valid until their expiry or until the repayment of the existing credit facility, whichever is earlier. No new debit cards can be issued under the old scheme.

Who is eligible for the new GCC Facility?

Individuals or entities sanctioned working capital facilities for non-farm entrepreneurial activities that qualify under priority sector guidelines. Banks eligible to issue credit cards under the Master Direction can offer this facility.

📜 Read the original circular — full text as issued by RBI

RBI/2023-24/19
 FIDD.MSME & NFS.BC.No.06/06.02.31/2023-24
 April 25, 2023
 The Chairman/Managing Director/ Chief Executive Officer
 Scheduled Commercial Banks (excluding Payments Banks) and
 Scheduled Urban Co-operative Banks
 Dear Sir / Madam
 General Credit Card (GCC) Facility – Review
 Please refer to our Circular RPCD.MSME & NFS.BC.No.61/06.02.31/2013-14 dated December 02, 2013 on the Revised General Credit Card (GCC) Scheme. 
 2. On review of the above, and in the light of the provisions contained in the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, dated April 21, 2022 , revised instructions on GCC are as follows:
 The GCC Scheme shall henceforth be called “General Credit Card (GCC) Facility”.
 The instructions shall apply to all banks which are eligible to issue credit cards under the above Master Direction. 
 Individuals/entities sanctioned working capital facilities for non-farm entrepreneurial activities which are eligible for classification under the priority sector guidelines, may be issued General Credit Cards. 
 GCC shall be issued in the form of a credit card conforming to the stipulations in the above Master Direction as updated from time to time. 
 The terms and conditions of the credit facilities extended in the form of GCC shall be as per the Board approved policies of the banks, within the overall framework laid down by Reserve Bank. Guidelines on collateral free lending for micro and small units issued from time to time shall apply.
 Bank shall adhere to the instructions on reporting GCC data as issued by RBI from time to time. 
 3. These instructions supersede the GCC guidelines issued in December 2013 and come into effect as on the date of this circular. Debit cards, if any, already issued under the circular of 2013 shall remain valid till their expiry/repayment of the existing credit facilities, whichever is earlier. 
 Yours faithfully
 (Nisha Nambiar)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/19 · issued 25 Apr 2023. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

🏦 Branch Manager

Rename your GCC product to 'General Credit Card (GCC) Facility' and update all customer-facing materials.

💻 IT / Systems

Update internal systems to report GCC data as per RBI's latest reporting instructions.

📜 Compliance

Ensure GCC issuance complies with the Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions, 2022.
Review and align board-approved policies for GCC terms and conditions with the new RBI framework.
Communicate with existing debit card holders under the old scheme about the transition and validity period.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are a Branch Manager at a bank this circular applies to (Scheduled Commercial Banks (excluding Payments Banks), Scheduled Urban Co-operative Banks, MSME borrowers availing working capital for non-farm entrepreneurial activities, Priority sector lending teams), your first concrete step on “RBI Revamps General Credit Card Facility for MSMEs” is: “Rename your GCC product to 'General Credit Card (GCC) Facility' and update all customer-facing materials.” (RBI issued this 25 Apr 2023).

Circular: RBI/2023-24/19 -- RBI Revamps General Credit Card Facility for MSMEs
Issued: 25 Apr 2023
Action required: Rename your GCC product to 'General Credit Card (GCC) Facility' and update all customer-facing materials.
Action required: Ensure GCC issuance complies with the Master Direction on Credit Card and Debit Card – Issuance and Conduct Directions, 2022.
Action required: Review and align board-approved policies for GCC terms and conditions with the new RBI framework.
Action required: Update internal systems to report GCC data as per RBI's latest reporting instructions.
Action required: Communicate with existing debit card holders under the old scheme about the transition and validity period.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12492&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.