The Reserve Bank of India (RBI) on October 1, 2026, has issued a Master Circular consolidating its guidelines and instructions to banks regarding credit facilities for Scheduled Castes (SCs) and Scheduled Tribes (STs).
The following has been stated:
Credit planning: Banks should give appropriate weightage to SC/ST borrowers in block and district credit planning, formulate suitable bankable schemes for self-employment and periodically review lending procedures to ensure timely and adequate credit.
Support to borrowers: Banks should assist SC/ST borrowers with loan application formalities, create awareness of available credit schemes and should not insist on deposits for loans under Government-sponsored poverty alleviation and self-employment programmes.
Loan application rejections: Rejection of SC/ST loan applications under Government programmes should be undertaken at the next higher level instead of the branch level, with reasons for rejection clearly recorded.
Special provisions under schemes: The circular highlights reservations and relaxations for SC/ST beneficiaries under schemes including DAY-NRLM and the Differential Rate of Interest (DRI) Scheme. Under DRI, eligible SC/ST borrowers should receive at least 40% of total DRI advances, subject to the applicable scheme conditions.
Monitoring and reporting: Banks should establish a special cell at Head Office to monitor credit flow to SC/ST beneficiaries, undertake quarterly reviews and report advances to SCs/STs in accordance with the applicable Priority Sector Lending requirements.
[RBI/2026-27/272]
