RBI consolidates credit guidelines for SCs and STs into a single master circular. Ensures equitable access and better credit flow to marginalised communities.
Updated Master Circular on Credit for Scheduled Castes and Tribes
The Reserve Bank of India (RBI) has issued an updated ‘Master Circular – Credit Facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs)’ effective October 1, 2026. This consolidation brings together all extant guidelines on credit delivery to members of SCs and STs, replacing fragmented notifications with a unified framework.
The circular mandates all Scheduled Commercial Banks, including Small Finance Banks, to ensure adequate and timely credit flow to SC and ST borrowers, particularly for livelihood, skill development, and self-employment. Banks are directed to strengthen outreach mechanisms, improve loan processing, and monitor disbursement through internal management information systems.
This update aligns with the RBI’s financial inclusion agenda and reinforces statutory obligations under Section 5(3) of the RBI Act, 1934, and the Priority Sector Lending (PSL) guidelines. Practitioners should note the enhanced reporting expectations and the emphasis on redressing credit bottlenecks in marginalised communities.