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RBI withdraws 5 outdated circulars on credit and accounts

Current · Source: Reserve Bank of India · RBI/2024-25/73 · issued 02 Sep 2024 · ~2 min read
Quick answerRBI has withdrawn five obsolete circulars on minority community credit, student no-frills accounts, and micro credit, effective immediately. Banks must follow updated master circulars and directions for these areas.
The rule, in the simplest words
How it plays out — a real example

A credit & lending officer in Indore updates her team's training manual. She removes the old 1987 circular on minority community loans and replaces it with the April 2023 master circular, ensuring her team reports credit data correctly and avoids compliance errors.

What changed

RBI withdrew five circulars that were outdated or superseded by newer instructions. These include three circulars on credit facilities to minority communities (1987-88), one on no-frills accounts for student scholarships (2010), and one on micro credit (2011). The updated guidelines are now in master circulars or directions issued as recently as April 2024.

What it means for you

Banks can stop referencing the withdrawn circulars and must align their reporting and operations with the latest master circulars on minority communities, BSBDA norms, SHG-bank linkage, and priority sector lending. This reduces compliance clutter but requires updating internal manuals and training staff on current rules.

What you must do

Who it affects

All scheduled commercial banks, Credit departments handling minority community loans, Retail banking teams managing student accounts, Microfinance and SHG-bank linkage teams, Compliance and policy units

❓ Common questions

Why did RBI withdraw these circulars?

RBI conducted an internal review and found these five circulars obsolete or outdated because newer instructions on the same subjects have been issued. Withdrawal avoids confusion and ensures banks follow current rules.

Which master circular should I follow for minority community credit now?

The updated instructions are in the Master Circular on Credit Facilities to Minority Communities dated April 1, 2023. The three withdrawn circulars from 1987-88 are no longer valid.

What about the no-frills account circular for student scholarships?

The term 'no-frills account' has been discontinued. Banks must now use Basic Savings Bank Deposit Account (BSBDA) as per extant provisions for all customers, including students receiving government scholarships.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 416 kb ) Review of Extant Instructions – Withdrawal of Circulars RBI/2024-25/73 CO.FIDD.PCD.BC.No.9/04-04-003/2024-25 September 02, 2024 All Scheduled Commercial Banks Madam /Dear Sir, Review of Extant Instructions – Withdrawal of Circulars An internal review was carried out to identify and withdraw obsolete/ outdated/ superfluous instructions. Based on the same, the circulars listed in the Annex stand withdrawn with immediate effect in view of subsequent updated instructions issued on the subject matters. Yours faithfully, (Nisha Nambiar) Chief General Manager-in-Charge Annex List of circulars withdrawn Sr. No. Circular No. Date Subject Rationale for withdrawal 1. RPCD.No.SP.BC.14/PS.160-87/88 July 31, 1987 Credit facilities to Minority Communities The reporting formats prescribed in these circulars had been modified and the periodicity has been changed. The updated instructions are reflected in the Master Circular on Credit Facilities to Minority Communities dated April 01, 2023 . 2. RPCD.No.SP.BC.45/PS.160-87/88 October 16, 1987 Credit facilities to Minority Communities 3. RPCD.No.SP.BC.46/PS.160/88-89 November 17, 1988 Credit facilities to Minority Communities 4. RPCD.CO.FID.BC.No.2433/12.01.012/2010-11 August 26, 2010 Opening of No-Frills accounts by students for availing various Government Scholarships The nomenclature “No frills account” has been discontinued, and the extant provisions of Basic Savings Bank Deposit Account (BSBDA) as normal banking service for all customers is in vogue. 5. RPCD.FID.BC.No.53/12.01.001/2010-11 February 14, 2011 Master Circular on Micro Credit The guidelines contained in the circular have been subsumed under Master Circular on SHG- Bank linkage dated April 1, 2024 , Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Master Directions – Priority Sector Lending (PSL) – Targets and Classification 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/73 · issued 02 Sep 2024. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
🏦 Branch Manager
  • Communicate the withdrawal to relevant branches and credit teams handling micro credit and priority sector lending.
📜 Compliance
  • Remove the five withdrawn circulars from your compliance reference list immediately.
  • Update internal operating manuals and training materials to reflect current master circulars on minority communities (April 2023), BSBDA, SHG-bank linkage (April 2024), and PSL directions.
  • Ensure reporting formats and periodicity for minority community credit follow the latest master circular, not the withdrawn ones.
  • Verify that student scholarship accounts are opened as BSBDA, not as 'no-frills accounts'.
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 Compliance officer at a bank this circular applies to (All scheduled commercial banks, Credit departments handling minority community loans, Retail banking teams managing student accounts, Microfinance and SHG-bank linkage teams, Compliance and policy units), your first concrete step on “RBI withdraws 5 outdated circulars on credit and accounts” is: “Remove the five withdrawn circulars from your compliance reference list immediately.” (RBI issued this 02 Sep 2024).

  1. Circular: RBI/2024-25/73 -- RBI withdraws 5 outdated circulars on credit and accounts
  2. Issued: 02 Sep 2024
  3. Action required: Remove the five withdrawn circulars from your compliance reference list immediately.
  4. Action required: Update internal operating manuals and training materials to reflect current master circulars on minority communities (April 2023), BSBDA, SHG-bank linkage (April 2024), and PSL directions.
  5. Action required: Ensure reporting formats and periodicity for minority community credit follow the latest master circular, not the withdrawn ones.
  6. Action required: Verify that student scholarship accounts are opened as BSBDA, not as 'no-frills accounts'.
  7. Action required: Communicate the withdrawal to relevant branches and credit teams handling micro credit and priority sector lending.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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=12731&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.
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