RBI consolidates lending guidelines for Scheduled Castes and Scheduled Tribes into a unified Master Circular effective October 1, 2026. The directive reinforces priority sector lending obligations for scheduled commercial banks.
RBI Issues Master Circular on Credit to SCs and STs
The Reserve Bank of India released a Master Circular on October 1, 2026, consolidating all existing guidelines on credit facilities extended to Scheduled Castes (SCs) and Scheduled Tribes (STs). Applicable to all Scheduled Commercial Banks, including Small Finance Banks, the circular aims to enhance financial inclusion and ensure consistent implementation of priority sector lending norms.
The document integrates previous instructions on target parameters, interest rate subvention, monitoring mechanisms, and reporting requirements. It also highlights RBI’s expectations on outreach, grievance redress, and use of government-linked schemes to facilitate credit access.
"The Reserve Bank of India has, from time to time, issued a number of guidelines/instructions to banks on credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)."
For practitioners, this circular serves as a single reference point for compliance audits and policy design. Banks are expected to align internal credit policies and training modules with the updated framework. The consolidation reflects RBI’s commitment to equitable credit distribution.