Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
The Reserve Bank of India’s Master Circular outlines the credit facilities and guidelines for banks to provide credit to Scheduled Castes (SCs) and Scheduled Tribes (STs).
Flow of Credit: The circular emphasizes the importance of planning and monitoring the flow of credit to SCs/STs. Banks play a crucial role in providing credit, while SC/ST Development Corporations assist in identifying and financing viable projects.
Rejection of Applications: Banks must provide reasons for rejecting loan applications from SC/ST beneficiaries and offer guidance to help them improve their applications.
Centrally Sponsored Schemes: The circular highlights various schemes, including the National Rural Livelihood Mission, Swarna Jayanti Shahari Rozgar Yojana, Differential Rate of Interest Scheme, and Scheme for Rehabilitation of Manual Scavengers, which provide relaxations and reservations for SC/ST beneficiaries.
Monitoring and Review: Banks must regularly monitor and review their credit facilities to SCs/STs to ensure effective implementation of the guidelines.
Reporting Requirements: Banks must submit a statement showing advances granted to SCs/STs as on the last reporting Friday of March and September, as per the format specified in Annexure I.
The circular aims to increase access to credit for SCs/STs and promote their economic empowerment.
Chat with the Master Circular:
Download: Master Circular – Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)