What changed
This Master Circular consolidates and updates all prior DAY-NRLM instructions into a single document, replacing the April 2023 circular. The source does not specify whether new policy changes are introduced.
What it means for you
Banks must ensure their branch staff are aware of the consolidated guidelines for SHG account opening, KYC compliance, and Revolving Fund disbursement. The circular reinforces the role of banks in supporting DAY-NRLM's poverty reduction goals through women SHGs and their federations.
What you must do
- Update internal manuals and training materials to reference the new Master Circular (RBI/2024-25/20).
- Ensure SHG savings account opening follows KYC norms per Master Direction on KYC, including PAN/Form 60 rules.
- Verify SHG eligibility for Revolving Fund (₹20,000-₹30,000) based on Panchasutras compliance and minimum existence of 3 or 6 months (as per source: 'minimum period of 3/6 months').
- Facilitate CIF disbursement through village/cluster federations for on-lending to SHGs.
- Train branch staff on interest subvention provisions for women SHGs as per Annex II.
Who it affects
Public Sector Banks, Private Sector Banks (including Small Finance Banks), Rural bank branches handling SHG accounts, Bank compliance and training departments
What is the Revolving Fund amount per SHG under DAY-NRLM?
The Revolving Fund support ranges from ₹20,000 to ₹30,000 per SHG, provided to groups that have been in existence for a minimum period of 3 or 6 months (as per source) and follow Panchasutras norms.