RBI Issues Master Circular to Facilitate Credit Facility for SC/ST Communities

Reserve Bank of India (RBI) has released a Master Circular summarizing guidelines on credit facilities to Scheduled Castes (SCs) and Scheduled Tribes (STs). The circular, dated June 16, 2025, offers guidelines to banks on how to enhance financial inclusion, streamline lending procedures, and extend credit in a timely fashion to the weaker sections.

 

Key Highlights:

Banks must accord SC/ST borrowers priority in district-level credit planning.

 

Specific bankable schemes to be formulated for self-employment pursuits.

 

Enhanced liaison with District Industries Centres to foster entrepreneurship.

 

Regular review of lending policy to ensure that loans are adequate and production-oriented.

 

Awareness programs to educate SC/ST borrowers regarding credit programs on offer.

 

Monitoring mechanisms to track loan approvals and prevent unnecessary rejections.

 

This change in policy reiterates RBI's commitment towards economic empowerment and equitable access to credit for the SC/ST communities.

 

Source: RBI Official Notification | TaxGuru | CAClubIndia