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)
- 1. 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 facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs).
2. The Master Circular has been suitably updated by incorporating the instructions issued up to March 31, 2021 and has also been placed on website https://www.rbi.org.in.
Yours faithfully,
(Kaya Tripathi)
Chief General Manager
Master Circular – Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
Banks should take the following measures to step up their advances to SCs / STs:
- 1. Planning Process
1.1 The District Level Consultative Committees formed under the Lead Bank Scheme should continue to be the principal mechanism of co-ordination between banks and development agencies in this regard.
1.2 The district credit plans formulated by the lead banks should clearly indicate the linkage of credit with employment and development schemes.
1.3 Banks will have to establish closer liaison with the District Industries Centres, which have been set up in different districts for promoting self-employment.
1.4 At the block level, a certain weightage is to be given to scheduled castes / scheduled tribes in the planning process. Accordingly, the credit planning should be weighted in favour of scheduled castes / scheduled tribes and special bankable schemes suited to members of these communities should be drawn up to ensure their participation in such schemes and larger flow of credit to them for self-employment. It will be necessary for the banks to consider loan proposals of these communities with utmost sympathy and understanding.
1.5 Banks should periodically review their lending procedures and policies to see that loans are sanctioned in time, are adequate and production oriented and that they generate incremental income to make them self-liquidating.
1.6 While ‘adopting’ villages for intensive lending, villages with sizeable population of these communities may be specially chosen; the alternative of adopting specific localities (bastis) in the concerned villages which have a concentration of these communities could also be considered.
To Read More…..
Click the link below…..
https://www.dropbox.com/s/swe3169fgztler7/Master%20Circular%20-%20Credit%20facilities.PDF?dl=0