August 23, 2005
The Chairman and Managing Director All Scheduled
Commercial Banks
(Excluding RRBs)
Dear Sir,
Meeting of Parliamentary Committee on the Welfare
of Scheduled Castes and Scheduled Tribes held on July 18, 2005
As Banks are aware, Reserve Bank of India monitors
closely credit flow to the Scheduled Castes and Scheduled Tribes and detailed
instructions in this regard have been issued in the form of Master Circular
to banks.
2. In the recent meeting of the Parliamentary
Committee on the Welfare of Scheduled Castes and Scheduled Tribes, held on July
18, 2005, to review the credit flow to SCs/STs, members have made certain observations/
suggestions. In the light of the concern expressed by the Committee, banks are
advised
a. to ensure that sufficient publicity is
given on the facilities extended to SCs/STs so as to bring awareness among
the poorer sections of the society.
b. to make all out efforts in achieving the
targets set for increasing the credit flow to SCs/STs under priority sector
advances as well as under the Government Sponsored Schemes such as SGSY, SJSRY,
SLRS and PMRY.
c. to ensure that all the instructions contained
in the Master Circular on Credit facilities to SC/STs are strictly followed
by your bank branches while granting loans, the failure of which should be
brought to the notice of Banks’ Board of Directors.
d. to ensure adherence to the guidelines issued
by RBI (i) for providing relief measures by banks in the areas affected by natural
calamities vide Master Circular Ref. RBI/2005-06/35/
RPCD. PLFS. BC. 6/ 05. 04. 02/ 2005-06 dated July 1, 2005, (ii) on relief
measures to farmers indebted to non-institutional lenders vide our circular
Ref.RBI/2004/266; RPCD. No. Plan. BC. 92 / 04.09.01/ 2004-05 dated June 24,
2004 and (iii) on participation of public representatives in District Level
Meetings vide our circular RBI/2005-06/45;RPCD.CO.LBS.
BC.No.11/02.01.01/2005-06 dated July 6, 2005.
3. Banks are requested to play a pro-active
role in achieving the targets set for the SCs/STs under priority sector advances
keeping in view the significance attached to them.
4.. Please acknowledge receipt and advise us
the action taken by 15th September, 2005.
Yours faithfully,
(G.Srinivasan)
Chief General Manager