RBI Issues Master Circular on Bank Credit to SC/ST Communities

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  • Last Updated on 18 June, 2025

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RBI SC/ST Credit Master Circular

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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied