RBI/2006-2007/436
RPCD.
SP. BC. No 101 / 09. 07. 01/ 2006-07
June13,
2007
The Chairman / Managing
Directors
Indian Scheduled
Commercial Banks (Excluding RRBs)
Dear
Sir,
Revision
of Differential Rate of Interest Scheme.
As
you are aware, Government of India had formulated in March, 1972 a scheme for
extending financial assistance at concessional rate of interest @ 4% to selected
low income groups for productive endeavours initially by public sector banks and
then by private sector banks also . The scheme known as Differential Rate of Interest
Scheme (DRI) is now being implemented by all Scheduled Commercial Banks. Detailed
guidelines to banks for implementation of the scheme were issued vide circular
DBOD No B. P. 1900/C.453 (U) -77 dated July 6, 1977.
2
In his Budget Speech ( Para 87) for 2007-08, the Hon’ble Finance Minister has
proposed to raise the limit of the loan under the Differential Rate of Interest
scheme from Rs 6500/ to Rs 15000/ and the limit of the housing loan from Rs 5000/
to Rs 20000/ per beneficiary.
3
You are, therefore, advised to issue necessary instructions to your controlling
offices and branch offices to ensure that the revised guidelines are implemented
immediately. The other terms and conditions of the scheme remain unchanged.
4
The target for lending under DRI scheme will continue to be 1% of the previous
years’ total advances as hitherto (para III of our circular RPCD
No Plan .BC 84 /04.09.01/ 2006-07 dated April 30, 2007.
5
Please acknowledge receipt.
Yours
faithfully,
(G
Srinivasan)
Chief General Manager