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RBI Revises Master Circular on SC/ST Credit Facilities
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Reserve Bank of Indiabankingconsumerregulatory

RBI Revises Master Circular on SC/ST Credit Facilities

October 5, 2026

RBI consolidates and updates credit facility guidelines for Scheduled Castes and Tribes. Banks must ensure adequate credit flow and report progress under priority sector lending norms.

RBI Revises Master Circular on SC/ST Credit Facilities

The Reserve Bank of India has updated the Master Circular on Credit Facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs), effective October 1, 2026. The consolidation includes all previous instructions to promote inclusive credit access.

The revised circular mandates all Scheduled Commercial Banks, including Small Finance Banks, to frame internal policies to identify, assess, and monitor lending to SC/ST communities. Banks must set internal targets aligned with priority sector lending (PSL) requirements and ensure last-mile delivery in remote and tribal areas.

Legal and compliance view: The Master Circular reinforces social banking mandates. Legal departments must ensure that credit appraisal systems do not inadvertently exclude eligible borrowers and that audit mechanisms track fund utilization to prevent diversion.

Citations

  • RBI/2026-27/272
  • Priority Sector Lending Guidelines
Practice Areas:bankingconsumerregulatory

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