RBI/2016-17/04
FIDD.GSSD.BC.No.01/09.10.01/2016-17
July
1, 2016
The Chairman/ Managing Director
All Scheduled Commercial Banks
Dear Sir,
Master Circular- Credit
Facilities to Minority Communities
Please refer to our Master Circular FIDD.GSSD.BC.No.05/09.10.01/2015-16
dated July 01, 2015, consolidating the instructions / guidelines /
directives issued to banks till that date relating to Credit Facilities to
Minority Communities. The Master Circular has
been suitably updated by incorporating the instructions issued up to June
30, 2016 and has been placed on the RBI website (rbi.org.in).
Yours faithfully,
(Uma Shankar)
Chief General Manager
Master
Circular
1. Credit Facilities to Minority
Communities
In terms of Reserve Bank's
extant guidelines on lending to priority sector, a target of 40 per cent of
Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance
Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous
year, has been mandated for lending to the priority sector by domestic
scheduled commercial banks and foreign banks with 20 and above branches.
Within this, a sub-target of 10 per cent of ANBC or Credit Equivalent
amount of OBE, whichever is higher, as on March 31 of the previous year,
has been mandated for lending to weaker sections which includes, among
others, persons from minority communities.
The Government of India has
indicated that care should be taken to see that minority communities
secure, in a fair and adequate measure the benefits flowing from various
Government sponsored schemes. All commercial banks, have been advised to
ensure smooth flow of bank credit to minority communities.
2. Definition of Minority
Communities
2.1 The following communities
have been notified as minority communities by the Government of India,
Ministry of Welfare:
a.
Sikhs
b.
Muslims
c.
Christians
d.
Zoroastrians
e.
Buddhists
f.
Jains
3. Creation of Special Cell and
Designating an exclusive Officer
3.1 A Special Cell should be set
up in each bank to ensure smooth flow of credit to minority communities and
it should be headed by an officer holding the rank of Deputy General
Manager/Assistant General Manager or any other similar rank who should
function as a 'Nodal Officer'.
3.2 The Lead Bank in each of the
minority concentration districts should have an officer who shall exclusively look
after the problems regarding the credit flow to minority communities. It
shall be his responsibility to publicise among the minority communities
various programmes of bank credit and also to prepare suitable schemes for
their benefit in collaboration with branch managers.
3.3 Government of India has
forwarded a list of 121 minority concentration districts having at least
25% minority population, excluding those States /UTs where minorities are
in majority (J & K, Punjab, Meghalaya, Mizoram, Nagaland and
Lakshadweep). Accordingly, all scheduled commercial banks are required to
specially monitor the credit flow to minorities in these 121 districts,
thereby, ensuring that the minority
communities receive a fair and equitable portion of the credit within the
overall target of the priority sector (list
of Minority Concentration districts at Annexure
II).
3.4 The designated officer
should exclusively look after aspects relating to credit assistance to
minority communities in the concerned districts. The designated officer may
be attached to the Lead Bank set up at the district level. He would thus,
be able to receive necessary guidance from Lead Bank Officer, who will be senior
enough and have adequate experience for liaising effectively with the other
credit institutions and Government agencies, and will also be working in
close collaboration with the branch managers of other banks in the
district. The designated officer will also arrange group meetings for their
guidance for formulation of schemes suitable for the members of the
minority communities. It will be necessary for the banks concerned to
ensure that the role assigned to the designated officer/s is effectively fulfilled.
3.5 The Convenor banks of the
District Consultative Committees (DCCs) and the State Level Bankers
Committees (SLBCs) should ensure that steps taken to facilitate the flow of
credit to the minority communities and the progress made in this regard are
reviewed regularly at their meetings.
3.6 The Convenor banks of
DLRC/SLRM/SLBCs may invite Chairman/ Managing Directors of State Minority
Commissions/Boards or the State Minorities Financial Corporations or their
representatives to attend the meetings of District Level Review Committee
(DLRC), State Level Review Meeting (SLRM) and State Level Bankers Committee
(SLBC).
3.7 Names, designation and
office addresses of (i) the officer-in-charge of the Special Cell at Head
Office and (ii) officer appointed by Lead Banks in the identified districts
to look after exclusively the problems of minority communities, should be
furnished by banks to the National Commission for Minorities at the
following address and updated periodically:
The Secretary
National Commission for Minorities
Government of India
5th Floor,Lok Nayak Bhawan
Khan Market
New Delhi 110 003
A copy of the relevant
communication may also be furnished to Financial Inclusion and Development
Department, Reserve Bank of India, Central Office, Mumbai.
3.8 The Lead Banks in the
identified districts having concentration of minority communities may
involve the State Minority Commission / Finance Corporation in the
extension work including creating awareness, identification of
beneficiaries, preparation of viable projects, provision of backward and
forward linkages such as supply of inputs/marketing, recovery etc.
3.9 The Lead Banks in the
identified districts may collaborate with DDMs of NABARD/ NGOs/ Voluntary
Organizations in reaching the poor through Self Help Groups (SHGs). Lead
Banks of the Minority Concentration Districts will have to exercise the
pro-active role expected of them to ensure that the minority communities,
particularly those who are poor and illiterate have access to bank credit
for taking up productive activities.
4. Advances under DRI Scheme
Banks may route loans under the
DRI scheme through State Minority Finance/Development Corporation on the
same terms and conditions as are applicable to loans routed through SC/ST
Development Corporations, subject to the beneficiaries of the Corporations
meeting the eligibility criteria and other terms and conditions prescribed
under the scheme. Banks may ensure proper maintenance of the register to
evolve timely sanction and disbursement of loan applications.
5. Monitoring
5.1 Banks may route loans under
the DRI scheme through State Minority Finance/Development Corporation on
the same terms and conditions as are applicable to loans routed through
SC/ST Development Corporations, subject to the beneficiaries of the
Corporations meeting the eligibility criteria and other terms and
conditions prescribed under the scheme. Banks may ensure proper maintenance
of the register to evolve timely sanction and disbursement of loan
applications. The statements (given in Annexure
I) should reach RBl within one month from the close of each
half-year.
5.2 In the case of a partnership
firm, if the majority of the partners belong to one or the other of the
specified minority communities, advances granted to such partnership firms
may be treated as advances granted to minority communities and accordingly
included in the prescribed statement. A company has a separate legal entity
and hence advances granted to it cannot be classified as advances to the
specified minority communities.
5.3 The Convenor banks of the
District Consultative Committees in the identified districts should furnish
the data on priority sector advances granted by banks to specified minority
communities compiled by them in the prescribed format (vide Annexure III) for the district under their lead
responsibility to the concerned Regional Offices of RBl within one month
from the close of the relative quarter.
5.4 The progress made in regard
to the flow of credit to the minority communities should be reviewed
regularly at the meetings of the District Consultative Committees (DCCs)
and the State Level Bankers Committees (SLBCs).
5.5 The Lead Banks in the
identified districts should furnish the relevant extracts of the agenda
notes and the minutes of the meetings of the DCCs and of the respective
SLBCs to the Union Ministry of Finance and to the Ministry of Welfare on a
quarterly basis for their use.
6. Training
6.1 With a view to ensuring that
the bank staff and officers have proper perspective and appreciation of the
various programmes for welfare of minorities, necessary orientation may be
provided to officials and other staff. For this purpose, banks should include
suitable lecture sessions as part of all relevant training programmes like
induction courses, programmes on rural lending, financing of priority
sectors, poverty alleviation programmes, etc.
6.2 The Lead Banks functioning
in the identified districts should organize Entrepreneur Development
Programmes so that the members of the minority communities in these areas
are enabled to derive the benefit of various programmes being financed by
the banks. Depending upon the major vocation and type of activity undertaken
by large sections of the people in the districts, suitable programmes may
be organized in co-operation with State Governments, Industries Department,
District Industries Centre, SIDBI, State Technical Consultancy
Organization, Khadi and Village Industries Commission and other voluntary
organizations which are fully equipped to impart such training and
orientation. The duration of the programme, the course content, the faculty
support to be selected etc. should be decided by each Lead Bank taking into
account the prevailing conditions, need and existing skills as well as
aptitude of the people in the district.
6.3 The Lead Banks in the
identified districts may sensitise and motivate the staff posted to
identified districts through proper training to assist the minority
communities under various credit schemes.
6.4 The Lead Banks may organize
sensitization workshops for bank officials regarding micro credit/ lending
to SHGs with the help of DDMs of NABARD.
7. Publicity
7.1 There should be good publicity
about various anti-poverty programmes of the Government where there is
large concentration of minority communities and particularly in the
districts listed in the Annexure II which
have a concentration of minority communities.
7.2 The Lead Banks in the
identified districts may create awareness among minority communities
regarding credit facilities available from banks through appropriate
measures which may include publicity through (i) print media i.e.
distribution of pamphlets in local languages, advertisements/articles in
newspapers etc. (ii) TV channels - DD/ local channels, (iii) participation
/ setting up of stalls in the Melas / fairs organized during the religious
/festive occasions by these communities.
8. National Minorities
Development and Finance Corporation (NMDFC)
8.1 National Minorities
Development and Finance Corporation (NMDFC) was established in September
1994 to promote economic and developmental activities for the backward
sections amongst the minorities. NMDFC works as an apex body and
channelises its funds to the beneficiaries through the State Minority
Finance Corporation of the respective State/Union Territory Governments.
8.2 The NMDFC is operating,
inter-alia, the Margin Money Scheme. Bank finance under the scheme will be
upto 60 percent of the project cost. The remaining amount of the project
cost is shared by NMDFC, the State channelising agency and the beneficiary
in the proportion of 25%, 10%, and 5%, respectively. Banks may implement
the Margin Money scheme evolved by NMDFC. While extending bank finance,
banks should bear in mind the guidelines/instructions issued by RBI from
time to time on priority sector advances. It may be ensured that the assets
created out of the loan amount are mortgaged / hypothecated to the banks.
Where recoveries have been made by the banks, it would be in order if the
amounts are appropriated first towards bank dues.
9. Prime Minister’s 15 Point
Programme for the Welfare of Minorities
Government of India has revised
the “Prime Minister’s New 15-Point Programme for the Welfare of
Minorities”. An important objective of the Programme is to ensure that an
appropriate percentage of the priority sector lending is targeted for the
minority communities and that the benefits of various government sponsored
schemes reach the under-privileged, which includes the disadvantaged
sections of the minority communities. The New Programme is to be
implemented by the Central Ministries/Departments concerned through State
Governments/Union Territories and envisages location of certain proportion
of development projects in minority concentration districts. Accordingly,
all scheduled commercial banks are required to ensure that within the overall
target for priority sector lending and the sub-target of 10 percent for the
weaker sections, sufficient care is taken to ensure that minority
communities also receive an equitable portion of the credit. Lead Banks
have been advised to keep this requirement in view while preparing district
credit plans.
Annexure
IV
Credit
Flow to Minority Communities
List
of Circulars consolidated in the Master Circular
Sr.
No.
|
Circular
No.
|
Date
|
Subject
|
1
|
RPCD No.SP.BC.4/PS.160-86-87
|
24.07.86
|
Credit facilities to Minority
Communities
|
2
|
RPCD No.SP.BC.97/PS.160-86-87
|
29-07-86
|
Credit facilities to Minority
Communities
|
3
|
RPCD No.SP.1378/PS.160-86-87
|
09.01.87
|
Credit facilities to Minority
Communities
|
4
|
RPCD No.SP.1563/PS.160-86-87
|
11.02.87
|
Credit facilities to Minority
Communities
|
5
|
RPCD No.SP.BC.75/PS.160-86-87
|
08.04.87
|
Credit facilities to Minority
Communities
|
6
|
RPCD No.SP.BC.14/PS.160-87-88
|
31.07.87
|
Credit facilities to Minority
Communities
|
7
|
RPCD No.SP.374/PS.160-87-88
|
31.07.87
|
Credit facilities to Minority
Communities
|
8
|
RPCD No.SP.BC.45/PS.160/87-88
|
16.10.87
|
Credit facilities to Minority
Communities
|
9
|
RPCD No.SP.BC.55/PS.160-87-88
|
02.11.87
|
Credit facilities to Minority
Communities
|
10
|
RPCD No.SP.BC.56/PS.160-87-88
|
02.11.87
|
Credit facilities to Minority
Communities
|
11
|
RPCD No.SP.649/PS.160-88-89
|
27.09.88
|
Prime Minister’s 15-Point
Directive about Welfare of Minorities
|
12
|
RPCD No.SP.BC.46/PS.160-88-89
|
17.11.88
|
Credit facilities to Minority
Communities
|
13
|
RPCD
No.Stat.BC.66/Stat-20(CB)/88-89
|
21.01.89
|
Credit facilities to Minority
communities
|
14
|
RPCD
No.LBS.BC.121/LBC.34-88/89
|
07.06.89
|
Inclusion of representatives
of State Minority Commissions/Boards or State Minorities Financial
Corporations and of SC/ST Corporations in the DLRC and SLRM
|
15
|
RPCD No.SP.BC.37/C.453(U)89-90
|
03.10.89
|
DRI Scheme – Routing of
Advances through State Minority Finance/ Development Corporation
|
16
|
RPCD No.SP.BC.124/PS.160-89-90
|
26.06.90
|
Credit facilities to Minority
Communities
|
17
|
RPCD No.SP.BC.80/PS.160-92-93
|
10.03.93
|
Credit facilities to Minority
Communities – Quarterly Statement
|
18
|
RPCD No.SP.1934/PS.160-92-93
|
22.06.93
|
Credit facilities to Minority
Communities
|
19
|
RPCD No.SP.BC.17/PS.160-93-94
|
10.08.93
|
Credit facilities to Minority
Communities – Training to Staff
|
20
|
RPCD No.SP.BC.32/PS.160-93-94
|
06.09.93
|
Credit facilities to Minority
Communities – Revised Format
|
21
|
RPCD No.SP.BC.50/PS160-93-94
|
13.10.93
|
Credit facilities to Minority
Communities – Revised Format
|
22
|
RPCD No.SP.BC.83/PS.160/93-94
|
07.01.94
|
Credit flow to Minority
Communities – Quarterly statement.
|
23
|
RPCD No.SP.BC.166/PS.160-93-94
|
15.06.94
|
Credit facilities to Minority
Communities – 41 Identified Districts
|
24
|
LBS.BC.29/02.03.01-94-95.
|
31.08.94
|
Inclusion of representatives
of State Minority Commission/Boards or State Minorities Finance
Corporations in SLBC.
|
25
|
RPCD
No.SP.BC.79/09.10.01-94-95
|
09.12.94
|
List of Specified Minority
Communities – Inclusion of Buddhists in place of Neo-Buddhists
|
26
|
RPCD
No.SP.BC.33/09.10.01-96-97
|
07.09.96
|
Credit facilities to Minority
Communities – Quarterly Statement
|
27
|
RPCD
No.SP.BC.43/09.10.01-96-97
|
10.10.96
|
Credit Flow to Minority
Communities – Compendium of Instructions
|
28
|
RPCD
No.SP.BC.108/09.12.01-96-97
|
28.02.97
|
National Minorities
Development and Finance Corporation (NMDFC)
|
29
|
RPCD
No.SPBC.13/09.10.01/01-02
|
13.08.01
|
Credit facilities to Minority
Communities- Evaluation Study
|
30
|
RPCD
No.SP.1074/09.10.01-2001-02
|
21.01.02
|
Enhancing Credit Flow to
Minority Communities
|
31
|
RPCD
No.SP.BC.62/09.10.01/2001-02
|
04.02.02
|
Enhancing Credit flow to
minority communities
|
32
|
RPCD.SP.BC.No.22/09.10.01/2006-07
|
1.9.2006
|
Prime Minister's 15 Point
Programme for the Welfare of Minorities
|
33
|
RPCD.SP.BC.No.83/09.10.01/2006-07
|
27.4.2007
|
List of 103 Minority
Concentrated Districts having at least 25% minority population, excluding
those States/ UTs where minorities are in majority (J &K, Punjab,
Meghalaya, Mizoram, Nagaland & Lakshadweep)
|
34
|
RPCD.SP.BC.No.13/09.10.01/2007-08
|
16.07.07
|
List of additional 18 Minority
Concentrated districts which are not included in the list of 103
districts with substantial minority population circulated earlier.
|
35
|
RPCD.GSSD.BC.No.44/9.10.001/2014-15
|
01.12.14
|
Inclusion of Jain community
under minorities
|
|