Credit Facilities to Minority Communities
The Reserve Bank of India (RBI) has issued a Master Circular to ensure that minority communities receive a fair and equitable portion of credit within the overall target of the priority sector.
Key Provisions:
1. Definition of Minority Communities: The circular defines minority communities and outlines the creation of a special cell and designation of an exclusive officer to oversee credit facilities to these communities.
2. Advances under DRI Scheme: The circular provides guidelines for advances under the Differential Rate of Interest (DRI) scheme.
3. Monitoring and Training: Banks are required to monitor credit flow to minority communities and provide training to their staff to ensure effective implementation of the scheme.
4. Publicity: Banks are advised to publicize the credit facilities available to minority communities.
5. National Minorities Development and Finance Corporation (NMDFC): The circular outlines the role of NMDFC in providing financial assistance to minority communities.
6. Prime Minister’s 15 Point Programme: The circular highlights the importance of implementing the Prime Minister’s 15 Point Programme for the Welfare of Minorities.
The Master Circular consolidates existing circulars and provides a comprehensive guide for banks to ensure credit facilities are extended to minority communities in a fair and equitable manner.
Chat with the Master Circular:
Download: Master Circular- Credit Facilities to Minority Communities