RBI's 2026 Master Circular consolidates credit guidelines for SC/ST beneficiaries, covering lending targets, DRI, CEGSSC, and monitoring mechanisms.
Master Circular on Credit Facilities to SCs and STs
The Reserve Bank of India has released the Master Circular 2026 on bank credit to Scheduled Castes (SC) and Scheduled Tribes (ST) beneficiaries, consolidating all existing instructions for inclusive financial access. The circular integrates planning, lending, monitoring, and reporting norms across public and private sector banks.
It reaffirms priority sector lending targets, emphasises the Differential Rate of Interest (DRI) scheme, and mandates functioning of the Committee on Elimination of Gray Areas in Special Schemes for SCs (CEGSSC). Banks must conduct annual credit planning in consultation with state governments and submit quarterly progress reports.
Legal advisors in public sector banks should ensure compliance with the circular’s procedural requirements, particularly in loan documentation and grievance redressal. This consolidation enhances transparency and accountability in welfare-focused credit delivery.