What changed
This Master Circular consolidates and updates all prior instructions on DAY-NRLM, replacing the earlier Master Circular dated April 16, 2024. It serves as a single reference document for banks.
What it means for you
Banks now have a unified, updated reference for DAY-NRLM operations, reducing confusion from multiple circulars. Compliance with KYC norms for SHGs and federations remains critical. The circular reinforces existing provisions like Revolving Fund and CIF, ensuring consistency in implementation.
What you must do
- Review and replace the previous DAY-NRLM Master Circular with this updated version for all operational references.
- Ensure SHG and federation account opening processes comply with KYC Master Direction, including PAN/Form 60 requirements.
- Verify that Revolving Fund eligibility criteria (3/6 months existence, Panchasutras adherence) are correctly applied.
- Train staff on the consolidated guidelines to avoid reliance on outdated circulars.
Who it affects
Public Sector Banks, Private Sector Banks (including Small Finance Banks), Bank branches handling SHG accounts, Compliance and operations teams
What is the Revolving Fund amount and eligibility?
DAY-NRLM, MoRD, provides Revolving Fund (RF) support as corpus ranging between ₹20,000 - ₹30,000 per SHG. Eligible SHGs must be in existence for a minimum period of 3/6 months, follow Panchasutras, and not have received RF earlier.