RBI consolidates bank lending guidelines for Scheduled Castes and Scheduled Tribes, covering planning, monitoring, and reporting obligations.
Consolidated Lending Framework for SC/ST Beneficiaries
The Reserve Bank of India has issued the Master Circular 2026 on Credit Facilities to Scheduled Castes and Scheduled Tribes, consolidating all existing guidelines on priority sector lending, target planning, and monitoring mechanisms.
The circular integrates directives on the Differential Rate of Interest (DRI) scheme, Credit Guarantee Fund for SCs and STs (CGESSC), and reporting through the Central Repository of Information on Large Credits (CRILC). It mandates annual action plans, staff training, and grievance redressal systems tailored to underserved communities.
Banks must align internal credit policies with the circular’s benchmarks. Legal advisors should assist in drafting compliance frameworks, especially for public sector and regional rural banks with significant rural outreach. The move supports financial inclusion and audit preparedness.