RBI/2016-17/05
FIDD.CO.GSSD.BC.No.03/09.09.01/2016-17
July
01, 2016
The Chairman / Managing Director
All Scheduled Commercial Banks
Dear Sir,
Master
Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled
Tribes (STs)
Please refer to the Master Circular FIDD.CO.GSSD.BC.No 06/09.09.01/2015-16
dated July 01, 2015 consolidating guidelines / Instructions /
directions issued to banks with regard to providing credit facilities to
Scheduled Castes (SCs) and Scheduled Tribes (STs). The Master Circular has
been suitably updated by incorporating the instructions issued up to June
30, 2016 and has also been placed on website
rbi.org.in.
A copy of Master
Circular is enclosed.
Yours faithfully,
(Uma Shankar)
Chief General Manager
Encls: As above
Master
Circular--Credit Facilities to Scheduled Castes (SCs) & Scheduled
Tribes (STs)
Index
|
1.
|
Flow of Credit to
SCs / STs
|
2.
|
Annexure I
|
Statement showing
Advances granted to Scheduled Castes / Scheduled Tribes as on the last
reporting Friday of March / September
|
3.
|
Annexure II
|
Statement showing
Advances granted to Scheduled Castes / Scheduled Tribes under
Differential Rate of Interest Scheme as on the last reporting Friday of
March
|
4.
|
Annexure III
|
List of Circulars
consolidated in the Master Circular
|
1. Flow of Credit to SCs / STs
1.1 Special emphasis has been
given to the welfare of the scheduled castes and scheduled tribes. Banks
should take the following measures to step up their advances to SCs / STs:
Planning Process
(a) 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.
(b) 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.
(c) The district credit plans
formulated by the lead banks should be elaborated to indicate clearly the
linkage of credit with employment and development schemes.
(d) Banks will have to establish
closer liaison with the District Industries Centres, which have been set up
in different districts for promoting self-employment.
(e) 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.
(f) Credit planning should be
weighted in favour of Scheduled Castes / Scheduled Tribes. Loan proposals
of these communities should be considered sympathetically and
expeditiously.
(g) 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.
(h) Special efforts should be
made to evolve suitable bankable schemes for weaker sections including
members of these communities.
Role of Banks
(i) Bank staff may help the poor
borrowers in filling up the forms and completing other formalities so that
they are able to get credit facility within a stipulated period from the
date of receipt of applications.
(j) In order to encourage SC /
ST borrowers to take advantage of credit facilities, greater awareness
among them about various schemes formulated by banks will have to be
created. As a majority of the eligible borrowers would be illiterate
persons, publicity through brochures, other literature, etc. will be of
limited utility. The more desirable method would be for the field staff of
banks to contact such borrowers and explain to them the salient features of
the schemes as also the advantages that will accrue. Banks should advise
their branches to organize meetings more frequently exclusively for SC / ST
beneficiaries to understand their credit needs and to incorporate the same
in the credit plan.
(k) Bank should keep Application
Register / Deposit Register, Complaint Register in desired order and
maintain relevant documents and pass book in local language too, besides in
Hindi and English.
(l) Circulars issued by RBI /
NABARD should be circulated among the staff for compliance.
(m) Banks should not insist on
deposits while considering loan applications under Government sponsored
poverty alleviation schemes / self-employment programmes from borrowers
belonging to SCs / STs. It should also be ensured that applicable subsidy
is not held back while releasing the loan component till the full repayment
of bank dues. Non release of subsidy upfront amounts to under-financing and
hampers asset creation / income generation.
(n) The National Scheduled
Tribes Finance & Development Corporation and National Scheduled Castes
Finance & Development Corporation have been set up under the
administrative control of Ministry of Tribal Affairs and Ministry of Social
Justice & Empowerment, respectively. The banks should advise their
branches / controlling offices to render all the necessary institutional
support to enable the institution to achieve the desired objectives.
(o) Advances sanctioned to State
sponsored organizations of SC / ST, for the specific purpose of purchase
and supply of inputs to and / or the marketing of outputs of the
beneficiaries viz. artisans, village and cottage industries of these
organizations, should be treated as Priority Sector Advances, subject to
the condition that the relative advances are exclusively for the purpose of
purchase and supply of inputs to and / or marketing of the outputs of
beneficiaries of these organizations.
Role of SC / ST Development
Corporations
(p) The Government of India has
advised all State Governments that the Scheduled Caste/ Tribes Development
Corporations can consider bankable schemes / proposals for bank finance. As
regards Collateral Security and / or third party guarantee for loans,
guidelines issued to banks on priority sector lending will apply.
Rejection of Applications
(q) If applications in respect
of SCs / STs are to be rejected, it should be done at the next higher level
instead of at the branch level. Further, reasons for rejection of
applications should be clearly indicated.
Centrally Sponsored Schemes
There are several major
centrally sponsored schemes under which credit is provided by banks and
subsidy is received through Government Agencies. Credit flow under these
schemes is monitored by RBI. Under each of these, there is a significant
reservation / relaxation for the members of the SC / ST communities.
Reservations for SC / ST
Beneficiaries under Major Centrally Sponsored Schemes
Deendayal Antyodaya Yojana -
National Rural Livelihoods Mission
(r) The Ministry of Rural
Development, Government of India has launched Deendayal Antyodaya
Yojana-National Rural Livelihood Mission (DAY-NRLM) by restructuring
Swarnajayanti Gram Swarozgar Yojana replacing the existing SGSY Scheme,
effective from April 01, 2013.
To begin with, DAY-NRLM would
ensure that at least one member from each identified rural poor household,
preferably a woman is brought under the self-help group (SHG) network in a
time bound manner. Subsequently, both women and men would be organized for
addressing livelihoods issues i.e. farmers organizations, milk producers’
cooperatives, weavers associations, etc. All these instructions are
inclusive and no poor would be left out of them. DAY-NRLM would ensure
adequate coverage of vulnerable sections of the society such that 50% of
these beneficiaries are SC/STs.
Deendayal Antyodaya Yojana -
National Urban Livelihoods Mission
(s) The Ministry of Housing and
Urban Poverty Alleviation (MoHUPA), Government of India, has launched the
Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM)
by restructured the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY),
effective from September 24, 2013, Under DAY-NULM, advances should be
extended to SCs / STs to the extent of their strength in the local
population.
Under DAY-NULM, the
underemployed and unemployed urban poor will be encouraged to set up small enterprises
relating to manufacturing, servicing and petty business for which there is
considerable local demand. Local skills and local crafts should be
particularly encouraged. Each Urban Local Body (ULB) should develop a
compendium of such activities/projects keeping in view skills available,
marketability of products, costs, economic viability etc. Under DAY- NULM,
advances should be extended to SCs / STs to the extent of their strength in
the local population.
Differential Rate of Interest
Scheme
(t) Under the DRI Scheme, banks
provide finance up to ?.15,000/- at a concessional rate of interest of 4
percent per annum to the weaker sections of the community for engaging in
productive and gainful activities. In order to ensure that persons
belonging to SCs / STs also derive adequate benefit under the Differential
Rate of Interest (DRI) Scheme, banks have been advised to grant to eligible
borrowers belonging to SCs / STs such advances to the extent of not less
than 2/5th (40 percent) of total DRI advances.
Scheme for Rehabilitation of
Manual Scavenger
(u) The National Scheme for
Liberation and Rehabilitation of Scavengers (NSLRS) was being implemented
by all Public Sector banks since 1993 with an objective to liberate all
scavengers and their dependents from their existing hereditary and
obnoxious occupation of manually removing night soil and filth and to
provide for and engage them in alternative and dignified occupations within
a period of five years. Government of India stopped funding the NSLRS since
2005-06 and approved the Self Employment Scheme for Rehabilitation of
Manual Scavengers (SRMS).
Relaxations/ Reservations for
SC/ST beneficiaries under major centrally sponsored schemes
(v) Under the DRI scheme, the
eligibility criteria that size of land holding should not exceed 1 acre of
irrigated land and 2.5 acres of unirrigated land is not applicable to SCs /
STs. Moreover, members of SCs / STs satisfying the income criteria of the
scheme can also avail of housing loan up to ?.20,000/- per beneficiary over
and above the individual loan of ?.15,000/- available under the scheme (as
announced in the Union Budget 2007-2008).
2. Monitoring and Review
2.1 A special cell should be set
up at the Head Office for monitoring the flow of credit to SC / ST
beneficiaries. Apart from ensuring the implementation of the RBI
guidelines, the cell would also be responsible for collection of relevant
information / data from the branches, consolidation thereof and submission
of the requisite returns to RBI and Government.
2.2 Convenor bank (of SLBC)
should invite the representative of National Commission for SCs / STs to
attend SLBC meetings. Besides, the Convener bank may also invite
representatives from National Scheduled Castes and Scheduled Tribes Finance
and Development Corporation (NSFDC) and State Scheduled Castes and
Scheduled Tribes Finance and Development Corporation (SCDC) to attend SLBC
meetings
2.3 A periodical review should
be made by the Head Office of banks of the credit extended to SCs / STs on
the basis of returns and other data received from the branches.
2.4 The Board of Directors
should review on quarterly basis, the measures taken to enhance the flow of
credit to SC / ST borrowers. The Review Notes, besides indicating the
actual performance of the bank during the relevant quarter, should also
contain information about how the bank proposes to expand the coverage of
this sector in the context of potential for business and its network of
branches with particular reference to Centrally Sponsored Schemes. The
review should also consider the progress made in lending to these
communities directly or through the State-level Scheduled Caste / Scheduled
Tribe Corporations for various purposes based, amongst others, on field
visits of the senior officers from the Head Office / Controlling Offices. A
copy each of such review notes should be sent to Reserve Bank.
3. Reporting Requirements
It has been considered necessary
to have data of banks' advances for SCs and STs under priority sectors and
Differential Rates of Interest (DRI) Scheme separately. Accordingly banks
may submit to RBI on half-yearly basis as on the last reporting Friday of
March and September a statement showing the credit extended to SCs and STs
under priority sectors (Annexure I).
Further, banks may submit to Reserve Bank on yearly basis as on the last
reporting Friday of March a statement showing the credit extended to SCs
and STs under DRI Scheme (Annexure II). The
statements should reach RBI within one month from the end of the relevant
half-year / year.
Annexure
I (Paragraph 3)
Statement
showing Advances granted to Scheduled Caste/Schedule Tribes as on the
last reporting Friday of March/September
|
(Amount
in thousands of rupees)
(Numbers in Actual)
|
Serial
No.
|
Item
Description
|
Schedule
Castes
|
Schedule
Tribes
|
TOTAL
|
No.
of A/cs
|
Balance
Outstanding
|
No.
of A/cs
|
Balance
Outstanding
|
No.
of A/cs
|
Balance
Outstanding
|
1
|
2
|
3
|
4
|
5
|
6
|
A
|
Priority Sector Advances (sum
of 1 to 8)
|
|
|
|
|
|
|
1
|
Agriculture
|
|
|
|
|
|
|
|
Of which
|
|
|
|
|
|
|
i)
|
Crop Loans
|
|
|
|
|
|
|
ii)
|
Investment Credit
|
|
|
|
|
|
|
iii)
|
Allied Activities
|
|
|
|
|
|
|
iv)
|
Others
|
|
|
|
|
|
|
2
|
MSMEs
|
|
|
|
|
|
|
(i)
|
Micro Enterprises
|
|
|
|
|
|
|
(a)
|
Manufacturing Enterprises
|
|
|
|
|
|
|
(b)
|
Service Enterprises (advances
up to ? 5 crore)
|
|
|
|
|
|
|
(ii)
|
Small Enterprises
|
|
|
|
|
|
|
(a)
|
Manufacturing Enterprises
|
|
|
|
|
|
|
(b)
|
Service Enterprises (advances
up to ? 5 crore)
|
|
|
|
|
|
|
(iii)
|
Medium Enterprises
|
|
|
|
|
|
|
(a)
|
Manufacturing Enterprises
|
|
|
|
|
|
|
(b)
|
Service Enterprises (advances
up to ? 10 crore)
|
|
|
|
|
|
|
(iv)
|
Advances to KVI
|
|
|
|
|
|
|
(v)
|
Other Finance to MSMEs
|
|
|
|
|
|
|
3
|
Export Credit
|
|
|
|
|
|
|
4
|
Education
|
|
|
|
|
|
|
5
|
Housing
|
|
|
|
|
|
|
6
|
Renewable Energy
|
|
|
|
|
|
|
7
|
Social Infrastructure
|
|
|
|
|
|
|
8
|
'Others' category under
Priority Sector
|
|
|
|
|
|
|
ANNEXURE
I (a)
Statement
to be submitted by the public sector banks as on the last reporting Friday
of March/September
|
(Amount
in thousands of rupees)
|
|
Scheduled
Tribes
|
Applicable only for Public
Sector Banks
|
No.
of accounts
|
Balance
Outstanding
|
Loans disbursed to SHGs
belonging to STs under the NSTFDC* Micro-credit Scheme
|
|
|
|
|
|
*NSTFDC – National Scheduled
Tribes Finance Development Corporation
Annexure
II
|
Advances
under Differential Rate of Interest Scheme as on the last reporting
Friday of March
|
|
Scheduled
Castes
|
Scheduled
Tribes
|
Total
|
|
No.
of Accounts
|
Balance
Outstanding
|
No
of Accounts
|
Balance
Outstanding
|
No
of Accounts
|
Balance
Outstanding
|
|
1
|
2
|
3
|
4
|
5
|
6
|
1.
|
Advances directly granted
|
|
|
|
|
|
|
2.
|
Routed through
|
|
|
|
|
|
|
|
(a) Regional Rural Banks
|
|
|
|
|
|
|
|
(b) State sponsored
Corporations of Scheduled Castes/ Scheduled Tribes
|
|
|
|
|
|
|
|
(c) Co-operatives/LAMPS
identified in specific tribal areas by Government
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
Annexure
– III
Credit
Facilities to Scheduled Castes / Scheduled Tribes
List of Circulars Consolidated in the Master Circular
No.
|
Circular
No.
|
Date
|
Subject
|
1.
|
DBOD.No.BP.BC.172/C.464(R)-78
|
12.12.78
|
Role of Banks in Promoting
Employment
|
2.
|
DBOD.No.BP.BC.8/C.453(K)-Gen
|
09.01.79
|
Agricultural Credit to Small
and Marginal Farmers
|
3.
|
DBOD.No.BP.BC.45/C.469(86)-81
|
14.04.81
|
Credit Facilities to SC / ST
|
4.
|
DBOD.No.BP.BC.132/C.594-81
|
22.10.81
|
Recommendations of the Working
Group on the Development of Scheduled Castes
|
5.
|
RPCD.No.PS.BC.2/C.594-82
|
10.09.82
|
Credit Facilities to SC / ST
|
6.
|
RPCD.No.PS.BC.9/C.594-82
|
05.11.82
|
Concessional Bank Finance to
SC / ST Development Corporations
|
7.
|
RPCD.No.PS.BC.4/C. 594-83
|
22.08.83
|
Credit Facilities to SC / ST
|
8.
|
RPCD.No.PS.1777/C. 594-83
|
21.11.83
|
Credit Facilities to SC / ST
|
9.
|
RPCD.No.PS.1814/C.594-83
|
23.11.83
|
Credit Facilities to SC / ST
|
10.
|
RPCD.No.PS.BC.20/C.568(A)-84
|
24.01.84
|
Credit Facilities to SC / ST -
Rejection of Loan Applications
|
11.
|
RPCD.No.CONFS/274/PB-1-84/85
|
15.04.85
|
Role of Private Sector Banks
in Lending to SCs / STs
|
12.
|
RPCD.No.CONFS.62/PB-1-85/86
|
24.07.85
|
Role of Private Sector Banks
in Lending to SCs / STs
|
13.
|
RPCD.No.SP.BC.22/C.453(U)-85
|
09.10.85
|
Credit Facilities to Scheduled
Tribes under DRI Scheme
|
14.
|
RPCD.No.SP.376/C-594-87/88
|
31.07.87
|
Credit Facilities to SC / ST
|
15.
|
RPCD.No.SP.BC.129/C.594(Spl)/88-89
|
28.06.89
|
National SC / ST Finance and
Development Corporation
|
16.
|
RPCD.No.SP.BC.50/C.594-89/90
|
25.10.89
|
Scheduled Caste Development
Corporation - Instructions on Unit Cost
|
17.
|
RPCD.No.SP.BC.107/C.594-89/90
|
16.05.90
|
Credit Facilities to SCs / STs
|
18.
|
RPCD.No.SP.1005/C.594/90-91
|
04.12.90
|
Credit facilities to Scheduled
Castes and Scheduled Tribes - Evaluation Study
|
19.
|
RPCD.No.SP.BC.93/C.594.MMS-90/91
|
13.03.91
|
Scheduled Caste Development
Corporation (SCDCs) - Instructions on Unit Cost
|
20.
|
RPCD.No.SP.BC.122/C.453(U)-90-91
|
14.05.91
|
Housing Finance to SCs / STs -
Inclusion under the DRI Scheme
|
21.
|
RPCD.No.SP.BC.118/C.453(U)-92/93
|
27.05.93
|
Priority Sector Advances -
Housing Finance
|
22.
|
RPCD.No.LBS.BC.86/02.01.01/96-97
|
16.12.96
|
Inclusion of National
Commission for SCs / STs in State Level Bankers Committees (SLBCs)
|
23.
|
RPCD.No.SP.BC.124/09.09.01/96-97
|
15.04.97
|
Parliamentary Committee on the
Welfare of SCs / STs - Insisting on Deposits from SCs / STs by Banks
|
24.
|
RPCD.No.SAA.BC.67/08.01.00/98-99
|
11.02.99
|
Credit Facilities to SCs / STs
|
25.
|
RPCD.No.SP.BC.51/09.09.01/2002-03
|
04.12.02
|
Proceedings of the work shop
on the role of financial institutions in the development of SCs and STs
|
26.
|
RPCD.No.SP.BC.84/09.09.01/2002-03
|
09.04.03
|
Amendment to the Master
Circular
|
27.
|
RPCD.No.SP.BC.100/09.09.01/2002-03
|
04.06.03
|
Changes in the reporting
system
|
28.
|
RPCD.No.SP.BC.102/09.09.01/2002-03
|
23.06.03
|
Sample study for review of
credit flow to SCs and STs - Major Findings
|
29.
|
RPCD.SP.BC.No.49/09.09.01/2007-08
|
19.02.08
|
Credit facilities to SC / STs
- Revised Annexure
|
30.
|
RPCD. GSSD. BC.
No.81/09.01.03/ 2012-13
|
27.06.13
|
Restructuring of SGSY as
National Rural Livelihood Mission (NRLM)
|
31.
|
RPCD. CO. GSSD. BC.
No. 26/ 09.16.03/2014-15
|
14.08.14
|
Restructuring of Swarna
Jayanti Shahari Rozgar Yojana (SJSRY) as National Urban Livelihoods
Mission (NULM)
|
|