RBI consolidates guidelines for credit to SCs and STs, reinforcing priority sector lending norms and access to finance.
RBI Updates Master Circular on SC/ST Credit Access
On October 1, 2026, the Reserve Bank of India (RBI) issued a consolidated Master Circular on Credit Facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs), applicable to all Scheduled Commercial Banks, including Small Finance Banks. The document integrates earlier guidelines to streamline priority sector lending (PSL) compliance.
The circular emphasizes loan disbursal targets, simplified documentation, interest rate concessions, and outreach mechanisms for underserved communities. Banks are directed to strengthen internal monitoring and ensure fair access to credit without discrimination. Regional Rural Banks and co-operative institutions are also encouraged to align with these norms.
This update is crucial for compliance officers and CSR teams. Legal departments must review internal lending policies to ensure adherence to SC/ST credit mandates, which remain a key component of PSL targets. The consolidation improves clarity but reinforces RBI’s focus on inclusive growth.