Circular No. RBI/2025-26/56 FIDD.CO.GSSD.BC.No.07/09.09.001/2025-26, Dated: 16.06.2025
The Reserve Bank of India (RBI) has released a Master Circular that consolidates all existing guidelines and instructions related to the extension of credit facilities by banks to Scheduled Castes (SCs) and Scheduled Tribes (STs).
1. Purpose of the Circular
The objective behind issuing this Master Circular is to:
- Streamline and unify earlier instructions issued over the years
- Ensure uniformity in implementation across all banks and financial institutions
- Promote clarity and consistency in policies aimed at empowering SC/ST communities through institutional credit
2. Scope and Applicability
The circular is applicable to all scheduled commercial banks and provides a comprehensive reference for extending credit support to SC/ST borrowers. It outlines key provisions such as:
- Priority sector lending norms
- Targets for lending to SC/ST categories
- Monitoring and reporting mechanisms
- Capacity-building and financial literacy initiatives
3. Significance for Inclusive Banking
By bringing all earlier guidelines under one framework, the RBI seeks to:
- Strengthen the commitment of the banking sector towards financial inclusion
- Facilitate better outreach and service delivery to underrepresented communities
- Ensure that credit flows are accessible, adequate, and effectively monitored
4. Conclusion
This consolidated circular reinforces RBI’s ongoing efforts to promote inclusive growth and equal access to financial services. It serves as a ready reference for banks to effectively meet the credit needs of SC/ST communities in a structured and compliant manner.
Click Here To Read The Full Circular
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