Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)

Last updated: 06 April 2021

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The Reserve Bank of India has issued an updated Master Circular detailing guidelines for providing credit facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs). It outlines measures for banks to increase advances to these communities, including improved planning processes, enhanced bank roles in assisting borrowers, and specific provisions under various government schemes like DAY-NRLM, DAY-NULM, and the DRI Scheme. The circular also covers the Credit Enhancement Guarantee Scheme for SCs and emphasizes monitoring and review mechanisms to ensure effective credit flow.

Reserve Bank of India RBI/2021-22/11 FIDD.CO.GSSD.BC.No.05/09.09.001/2021-22 April 05, 2021 The Chairman Managing Director \ CEO All Scheduled Commercial Banks Small Finance Banks Dear Sir/Madam, Master Circular Credit facilities to Scheduled Castes (SCs) Scheduled Tribes (STs) Please refer to the Master Circular FIDD.CO.GSSD.BC.No.03/09.09.001/2019-20 dated July 01, 2019 consolidating guidelines / Instructions / directions issued to banks with regard to providing credit

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FAQ :

The Master Circular consolidates and updates guidelines for banks on providing credit facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs), aiming to step up advances to these communities.

District Level Consultative Committees, under the Lead Bank Scheme, are the primary mechanism for coordination between banks and development agencies concerning credit facilities for SCs and STs.

Banks should create greater awareness by having their field staff contact borrowers to explain scheme features and benefits, and organise meetings exclusively for SC/ST beneficiaries to understand their credit needs.

Yes, the circular mentions Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM), and the Differential Rate of Interest (DRI) Scheme, with specific provisions for SC/ST beneficiaries.

The CEGSSC promotes entrepreneurship amongst Scheduled Castes by providing a Credit Enhancement Guarantee to banks who finance SC entrepreneurs, with IFCI Ltd. designated as the Nodal Agency.

Banks are required to set up a special cell at their Head Office to monitor credit flow, collect data, and submit returns to the RBI. Representatives from relevant commissions and corporations are also invited to SLBC meetings.

Notification No : RBI/2021-22/11 FIDD.CO.GSSD.BC.No.05/09.09.001/2021-22
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12065&Mode=0

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