Master Circular – Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
The Reserve Bank of India has issued a master circular outlining the credit facilities and guidelines for Scheduled Castes (SCs) and Scheduled Tribes (STs).
The circular covers the following key aspects:
Planning Process: Banks are required to prepare a plan for providing credit facilities to SC/ST beneficiaries.
Role of Banks: Banks are expected to play a proactive role in providing credit facilities to SC/ST beneficiaries, including identifying potential beneficiaries and providing financial assistance.
Role of SC/ST Development Corporations: These corporations will assist banks in identifying potential beneficiaries and providing financial assistance.
Reservations for SC/ST beneficiaries under major Centrally Sponsored Schemes: A certain percentage of funds under centrally sponsored schemes will be reserved for SC/ST beneficiaries.
Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC): This scheme provides a guarantee to banks for loans extended to SC beneficiaries, thereby enhancing their creditworthiness.
Monitoring and Review: Banks are required to monitor and review their credit facilities to SC/ST beneficiaries on a regular basis.
Reporting Requirements: Banks are required to submit regular reports to the RBI on their credit facilities to SC/ST beneficiaries.
The circular also includes an appendix and a list of circulars consolidated in the master circular.
Chat with the Master Circular:
Download: Master Circular – Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)