FINANCIAL INCLUSION AND DEVELOPMENT

This role encapsulates the essence of renewed national focus on Financial Inclusion, promoting financial education and literacy and making credit available to productive sectors of the economy including the rural and MSME sector.

Information pertaining to Financial Inclusion and Development

RIA No	Information Sought	Reply given/ Information provided	Date of Reply
	What is the rate of interest on agricultural loans that can be charged by the financial institutions under RBI?	1. In terms of Master Directions – Reserve Bank of India (Interest Rate on Advances) Directions 2016 (updated as on February 26, 2020), the interest rate on agricultural advances and advance to farmers shall be charged as per the instructions contained in the following circulars: i) RPCD.No.PLFS.BC.60/PS.165-85 dated June 06, 1985 stipulated that the total interest debited to an account should not exceed the principal amount in respect of agricultural advances to small and marginal farmers, and, ii) RPCD.No.PLFS.BC.129/05.02.27/97-98 dated June 29, 1998 stipulated that in respect of short duration crops and allied activities, compounding of interest by banks to agricultural advances be applied only if the loan/instalment becomes overdue. 2. In terms of para 13 (a) of Master Directions - Reserve Bank of India (Interest Rate on Advances) Directions 2016 (updated as on February 26, 2020) for loans covered by schemes specifically formulated by the Government of India, banks have to charge interest rates as per scheme. Accordingly, the interest rate under the Interest Subvention scheme shall be governed by RBI circulars FIDD.CO.FSD.BC.No.15/05.02.001/2018-19 dated March 7, 2019 (for short term crop loans) and FIDD.CO.FSD.BC.No.10/05.02.001/2019-20 dated August 26, 2019 (for animal husbandry, dairying and fisheries).
	What are the Reserve Bank of India's guidelines on One Time Settlement (OTS) to small and medium enterprises	In terms of circular RPCD.CO.MSME & NFS.BC.40/06.02.31/2012-2013 dated November 1, 2012 all Scheduled Commercial banks were advised to put in place a Non-discretionary One Time Settlement scheme for recovery of non-performing loans for the MSE sector, duly approved by the Board of Directors. The circular is available on our website www.rbi.org.in.
	What are RBI guidelines on Education Loans?	Reserve Bank of India vide its Circular RPCD.PLNFS.BC.N. 83/ 06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ had forwarded the Model Education Loan Scheme prepared by Indian Banks’ Association (IBA), for implementation by all Scheduled Commercial Banks (SCBs). The scheme has since been modified by IBA from time to time. The Scheme provides broad guidelines to the banks and implementing bank will have the discretion to make changes suiting to the convenience of students/parents etc. The scheme can be accessed at IBA’s website.
	What are the guidelines pertaining to PMEGP scheme?	The PMEGP Scheme was formulated by Government of India and circulated by Reserve Bank of India. Vide its circular RPCD.PLNFS.BC.41/09.04.01/2008-2009 dated October 10, 2008, which is available on our website www.rbi.org.in.
	What are the guidelines pertaining to resolution of stressed MSME units?	In consultation with the Government of India, Ministry of MSME, RBI had issued the guidelines on the Framework for Revival and Rehabilitation of MSMEs along with operating instructions to banks vide Circular FIDD.MSME & NFS.BC.No.21/06.02.31/2015-16 dated March 17, 2016. The revival and rehabilitation of MSME units having loan limits up to ₹25 crore are undertaken under this Framework. The Committee approach is to be adopted for deciding corrective action plan which includes rectification, restructuring and recovery. The circular is available on our website www.rbi.org.in
1. RBIND/ R/2018/ 01994/6 dated May 08, 2018	Recently is there any Awareness Campaign available with RBI for promotion of Financial Literacy in Educational Institutions, if yes what were the provisions and procedures, if so furnish details from 2012 to Till Now.	Reserve Bank of India (RBI) disseminates financial literacy through its Regional Offices (ROs) and Scheduled Commercial Banks (SCBs). With a view to spread financial literacy among school/college students, RBI has issued following guidelines to SCBs and its ROs: a) Regional offices of RBI have been advised since 2014 to target school and college students in the activities undertaken by them under Financial Literacy Initiatives, for inculcating saving and responsible banking habits. Regional offices of RBI conduct the financial literacy programs in schools/colleges. b) With a view of commencing financial education at school level with incorporation of Financial Education in School Curriculum, Regional offices of RBI have been advised in 2015 to get the financial education workbooks (developed by CBSE) translated into vernacular language and pursue with the state education boards in their jurisdiction to adopt the financial education workbooks in their school curriculum. c) In 2016, Financial Literacy Centres operated by Banks have been advised to adopt a tailored approach for different target groups viz. Farmers, Micro and Small Entrepreneurs, School Children, SHGs, Senior Citizens etc while conducting financial literacy programs. d) In addition to the above, RBI has developed tailored financial literacy content for five target groups' viz. Farmers, Small entrepreneurs, School children, Self Help Groups and Senior Citizens that can be used by the trainers in financial literacy programmes.	May 23, 2018

Sr. No.	RIA Number	Applicant’s query	Our reply
1	RBIND/R/E/22/00232	CGTMSE fee yadhi account se jyadha kat liya gaya hai to uski shikiyat kaha kare?	किसी भी बैंक के खिलाफ बैंकिंग सेवाओं में कमी से संबंधित विशेष शिकायत के मामले में, इसे संबंधित बैंक में दर्ज किया जा सकता है। यदि एक महीने के भीतर शिकायत का कोई जवाब नहीं मिलता है या बैंक से असंतोषजनक प्रतिक्रिया होती है, तो वह 'रिज़र्व बैंक - एकीकृत लोकपाल योजना, 2021' से संपर्क कर सकता है, जो बैंक ग्राहकों को बैंकिंग सेवाओं में कमी से संबंधित उनकी शिकायतों के समाधान के लिए एक त्वरित और सस्ता मंच प्रदान करता है। पूर्वोक्त योजना के तहत शिकायतें समर्पित ई-मेल (crpc@rbi.org.in) के माध्यम से योजना में दिए गए प्रारूप के अनुसार दर्ज की जा सकती हैं। या भारतीय रिजर्व बैंक, चौथी मंजिल, सेक्टर 17, चंडीगढ़ - 160017 में स्थापित केंद्रीकृत रिसीप्ट और प्रोसेसिंग केंद्र'(Centralised Receipt and Processing Centre-CRPC)को भौतिक मोड में भेजी जा सकती हैं। भारतीय रिजर्व बैंक की शिकायत प्रबंधन प्रणाली के तहत https://cms.rbi.org.in पर भी शिकायतें ऑनलाइन दर्ज की जा सकती हैं।
2	RBIND/R/E/22/05829	Whether it is mandatory to have bank account of all members at the same branch or same bank for opening account of SHG under DAY-NRLM?	As per para 7.1 (Opening of Savings/Current Accounts) of the RBI Master Circular on Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), the role of banks would commence with opening of accounts for all the SHGs including those having members with disability and for the federations of SHGs. (i) The SHGs engaged in promoting of savings habits among their members would be eligible to open savings bank accounts. (ii) For KYC verification pertaining to SHG members, instructions in the Master Direction on KYC (dated February 25, 2016, as updated from time to time) shall be adhered to. (iii) Business Correspondents deployed by banks may also be authorized to open saving bank accounts of the SHGs, subject to adherence to extant BC guidelines and in accordance with the bank’s Board approved policy on Business Correspondents. (iv) Opening of savings account of all members with the bank shall not be made a prerequisite for credit linkage of SHGs. Banks are advised to maintain separate savings and loan accounts for SHGs. For detailed information, you may refer the above mentioned circular on RBI’s website on the link given below: (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12665) (Click on the link to access the given Master Circular/ Circular or type web-link on an internet browser).
3	RBIND/R/E/23/00818	एक SHG समूह का खाता खोलने के लिए SHG समूह का कार्यालय होना आवश्यक है क्या?	आवेदक को सूचित किया जाता है कि वह दिनांक 01 अप्रैल 2022 के स्वयं सहायता समूह – बैंक सहलग्नता कार्यक्रम पर मास्टर परिपत्र के पैरा 4 ‘बचत बैंक खाता खोलना’ का संदर्भ ग्रहण करें। उपर्युक्त मास्टर परिपत्र के लिए लिंक सुलभ संदर्भ हेतु सलंग्न है. https://www.rbi.org.in/hindi/scripts/FS_Notification.aspx?Id=6963&fn=2748&Mode
4	RBIND/R/E/23/02113	Please provide me a copy of RBI Circular No.RPCD.Plan.BC.15/04.09.01/2001-02 dated 17.08.2001 on Charging of Penal Interest by Banks on Priority Sector Loans	Copy of the circular is attached. The link to access the same is as under: https://rbi.org.in/scripts/NotificationUser.aspx?Id=445&Mode=0
5	RBIND/R/E/23/02575	RBI circular RPCD.PLNFS.BC.NO.29/06.02.(II)/99-2000 clearly Say Exemption limit of collateral security/third party guarantee was raised to Rs. 1 lakhs and RBI subsequently the limit was revised from time to time, but RBI circular RPCD.SME & NFS.BC.No.79/06.02.31/2009-10 say up to 10 lakhs mse loan banks are not to accept Collateral security but my question is RBI circular RPCD.PLNFS.BC.NO.29 /06.02.(II)/99-2000 say Exemption of collateral security/third guarantee and RBI circular RPCD.SME &NFS.BC.No.79/06.02.31/2009-10 say not to accept Collateral security above Collateral security mean include third party guarantee?	The circular RPCD.SME & NFS. BC.No.79 /06.02.31/2009-10 on Working Group to Review the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) – Collateral free loans to MSEs, applies to collateral security only.
6	RBIND/R/E/23/04920	Required Documents for Kisan Credit Card Loan: Please provide a list of the documents required when applying for a Kisan Credit Card loan as per RBI guidelines.	i. You may refer to our Master Circular on ‘Kisan Credit Card Scheme’ dated July 04, 2018 available on the link given below: https://rbi.org.in/scripts/FS_Notification.aspx?Id=11325&fn=2754&Mode=0 (Type the web-link on an internet browser to access the given circular) ii. As per para 13.3 of above said Master Circular, required documents for availing of KCC loan are as per banks’ internal guidelines.
7	RBIND/R/E/23/04920	Q.1.Security Requirements for Kisan Credit Card Loan: Share information on the security requirements for KCC loans, both for amounts up to Rs 1 lakh and exceeding Rs 1.6 lakhs and above Rs 1.6 lakhs, in accordance with the RBI guidelines mentioned in the above-mentioned letter.	i. As per para 12.2 of the Master Circular on ‘Kisan Credit Card Scheme’ dated July 4, 2018 furnished in our reply to your query 1 above, Security requirement may be as under: Hypothecation of crops: For KCC limit upto ₹1.00 lakh banks are to waive margin/security requirements. With tie-up for recovery: Banks may consider sanctioning loans on hypothecation of crops up to card limit of ₹3.00 lakh without insisting on collateral security. Collateral security: Collateral security may be obtained at the discretion of Bank for loan limits above ₹1.00 lakh in case of non-tie-up and above ₹3.00 lakh in case of tie-up advances. In states where banks have the facility of on-line creation of charge on the land records, the same shall be ensured. ii. Further, you may refer to our circular on ‘‘Credit Flow to Agriculture- Collateral free agricultural loans’ dated February 07, 2019 available on the link given below: https://rbi.org.in/scripts/FS_Notification.aspx?Id=11469&fn=2754&Mode=0 (Type the web-link on an internet browser to access the given circular)
8	RBIND/R/E/23/03851	What is the eligibility condition for availing education loan?	Information is not available. However, regarding education loan, Reserve Bank of India vide circular RPCD. PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ has advised all Scheduled Commercial Banks to adopt Model Education Loan Scheme, formulated by Indian Banks’ Association (IBA). The Scheme has since been revised by IBA from time to time and its latest revision is Model Education Loan Scheme (MELS), 2022. For more details on MELS 2022, you may refer to above scheme available on IBA website, www.iba.org.in and path to access the same is https://www.iba.org.in -> IBA Departments ->Retail Banking -> Educational Loan -> Circulars Issued by IBA -> IBA Model Educational Loan Scheme for Pursuing Higher Education in India and Abroad, 2022.
9	RBIND/R/E/23/03851	On the educational loan provided by the bank, no guarantee or security is required on the loan up to what amount?	RBI vide circular RPCD.SME&NFS.BC.No.69/06.12.05/2009-10 dated April 12, 2010, on Collateral Free Loans - Educational Loan Scheme, has advised all Scheduled Commercial Banks that banks must not, mandatorily, obtain collateral security in the case of educational loans upto Rs. 4 lakh.
10	RBIND/R/E/23/02780	Q.1.What is the procedure to close an education loan availed from Indian Overseas Bank only by paying the principal amount after the moratorium period?	Financial Inclusion and Development Department, Central Office has no information to furnish in this regard. However, regarding education loan, Reserve Bank of India vide circular RPCD. PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ has advised all Scheduled Commercial Banks to adopt Model Education Loan Scheme, formulated by Indian Banks’ Association (IBA). The Scheme has since been revised by IBA from time to time and its latest revision is Model Education Loan Scheme (MELS), 2022. For more details on MELS 2022, you may refer to above scheme available on IBA website, www.iba.org.in and path to access the same is https://www.iba.org.in -> IBA Departments ->Retail Banking -> Educational Loan -> Circulars Issued by IBA -> IBA Model Educational Loan Scheme for Pursuing Higher Education in India and Abroad, 2022.
		Q.2.When does an education loan turn NPA?
		Q.3.If an education loan turn NPA, What are the procedures available for a one-time settlement that is only paying the Principal amount and closing the loan?
		Q.4.Do the borrowers have the right to demand a one-time settlement for an education loan availed from Indian Overseas Bank?
		Q.5.Whom should I approach if the concerned Branch Manager refuses a one-time settlement?
		Q.6.Can the Indian Overseas Bank file Police Complaint and arrest the borrower if the Education loan is not repaid?
11	RBIND/R/P/24/02562	Provide the name and details of Lead Banks in districts of Kerala.	The applicant may refer to Annex I to RBI’s Master Circular on Lead Bank Scheme dated April 01, 2024 available at the link https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12643
12	RBIND/R/E/24/03424	Is it mandatory to submit no due certificate for availing crop loan from bank as still some banks are asking no due for disbursement of fresh crop loan?	Regarding service area approach and requirement of ‘No Due Certificate’, applicant may refer to para 8 and 8.1 of RBI’s Master Circular on Lead Bank Scheme – FIDD.CO.LBS.BC.No.01/02.01.001 /2024-25 dated April 01, 2024 available at Bank’s website (https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12643)
13	RBIND/R/E/24/02856	I want to have the information regarding the complete methodology and the entire list of 97 indicators along with their assigned weights in the construction of financial inclusion index for India by Reserve Bank Of India. I want to know the complete step by step process used by RBI in the construction of this financial inclusion index. I want this information for my PhD in economics in which I will be constructing a financial inclusion index at district level.	Please refer to article on ‘Financial Inclusion Index (FI Index) for India’ published in RBI Bulletin (September 2021 edition). The link for the same is provided below: (https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=20502)
14	RBIND/R/P/24/02390	We request you please provide us is there any provision for the private financial organization to issue financial loans (Money Lending Act) (exclusive for the Scheduled Areas) if there any orders/license/permission/GO issued by your office. Please provide us the information from FY 2000-01 to 2023-2024 as follows List of the Money Lending private financial organization of A.P. (exclusive for Scheduled Areas) Rate of Interest for those loans Maximum - Minimum Tenure and Mode of EMI Rate of Interest for the loan Does and Do Nots while collecting the EMI's	No specific information is available. However, you may refer to the following Master Circular dated April 16, 2024 issued by Reserve Bank of India, which is available on RBI website www.rbi.org.in at the link provided below: Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12664) (Click on the link to access the given Master Circular/ Circular or type web-link on an internet browser).
15	RBIND/R/P/24/02211	Give me the information following Point’s about Conditions, Rules and Regulations to maintaining the CFL Centers and program implementation in Telangana State.	CFLs are to be set up at a rented space at the block level and should have basic facilities like furniture, LCD, laptop, help lines for addressing queries, handheld projectors for use during conduct of camps, stock of financial literacy material, seating arrangements, or any other assets considered necessary. Each Centre is expected to usually cater to 3 blocks. NGOs are required to include all segments of population in their training activities, however it is desirable that focused intervention should be towards women, working members of the family, young adults and vulnerable segments of the community such as differently abled who have remained excluded from the financial system.
16	RBIND/R/P/24/02232	Provide all government schemes in saving bank account. Like- Insurance, Pension plan and other	You may refer to the following Master Circulars issued by Reserve Bank of India on select Govt. of India schemes. These Master Circulars are available on RBI website www.rbi.org.in at the link provided below: a) Master Circular - Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12665) b) Master Circular - Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12066)
17	RBIND/R/T/24/00361	What is being done to help more people access banking services?	“In order to systematically accelerate the level of financial inclusion in the country in a holistic manner, the National Strategy for Financial Inclusion (NSFI): 2019-24 has been put in place. NSFI sets forth the vision and key objectives of the Financial Inclusion policies in India to expand the reach and sustain the efforts through a broad convergence of action involving all the stakeholders in the financial sector. As per one of the recommendations of NSFI:2019-24, more than 99 percent of identified villages have been provided some form of banking services within a radius of 5 KM / hamlet of 500 households”.
18	RBIND/R/E/24/01734	I request you to provide the data pertaining to priority sector lending targets achievement (in absolute figures and % to their ANBC) of below mentioned banks for the last five financial years (FY2022-23,FY2021- 22,FY2020-21, FY2019-20,FY2018-19).	Data on bank-wise outstanding advances to Priority Sector can be accessed from the following path: www.rbi.org.in->statistics->Database on Indian Economy->Time Series Publications->Statistical Tables relating to Banks in India->Other Tables-Table No:4
19	RBIND/R/E/24/01734	And also I request you to provide the data pertaining to Priority sector lending certificates (PSLC) (in absolute figures and % to their actual PSL figures) purchased by these banks for mentioned years. Bank Names: 1) State Bank of India 2) Bank of Baroda 3) Canara Bank 4) ICICI Bank 5) HDFC Bank 6) Axis Bank	The information pertaining to PSLCs traded by a bank can be accessed from ‘Disclosures to the Balance Sheet’ of the respective banks, in terms of point no. xiv of our circular FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 7, 2016 issued on Priority Sector Lending Certificates (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10339&Mode=0)
20	RBIND/R/E/24/01734	I request you to provide the data by below mentioned categories wise and also overall PSL achievement. i. Agriculture ii. Micro, Small and Medium Enterprises iii. Export Credit iv. Education v. Housing vi. Social Infrastructure vii. Renewable Energy viii. Others	Data on bank-wise outstanding advances to Priority Sector can be accessed from the following path: www.rbi.org.in->statistics->Database on Indian Economy->Time Series Publications->Statistical Tables relating to Banks in India->Other Tables-Table No:4
21	RBIND/R/E/24/03792	Q.1.The guidelines and eligibility criteria for sanctioning loans to Micro, Small, and Medium Enterprises (MSME).	Information is not available. However, the Reserve Bank of India has, from time to time, issued a number of instructions/guidelines to banks relating to lending to the Micro, Small and Medium Enterprises Sector. The Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18 dated July 24, 2017 (Updated as on June 11, 2024) on Lending to Micro, Small & Medium Enterprises (MSME) Sector incorporates the updated instructions/guidelines on the subject.
21	RBIND/R/E/24/03792	Q.2.The documentation and collateral requirements, if any, for MSME loans.	Information is not available. However, in term of para 4 of the above-mentioned Master Direction following guidelines have been issued: As per para 4.1, banks are mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in the Micro and Small Enterprises sector. And as per para 4.7.(ii), banks have been advised to furnish the MSME borrowers with an indicative checklist of documents required for processing the loan application at the time of applying for the loan.
22	RBIND/R/P/24/03412	किसान क्रेडिट कार्ड के लिए न्यूनतम कितनी जमीन का स्वामितत्व होना चाहिए	विशिष्ट जानकारी उपलब्ध नहीं है। हालांकि, आप हमारे किसान क्रेडिट कार्ड योजना से संबंधित निम्न परिपत्रों का संदर्भ ले सकते है- i. ‘किसान क्रेडिट कार्ड योजना’ पर दिनांक 04 जुलाई 2018 का परिपत्र नीचे दी गई लिंक पर उपलब्ध है – https://www.rbi.org.in/hindi/scripts/FS_Notification.aspx?Id=6079&fn=2748&Mode ii. ‘किसान क्रेडिट कार्ड (केसीसी) योजना : पशुपालन और मत्स्य पालन के लिए कार्यशील पूंजी’ पर दिनांक 04 फरवरी 2019 का परिपत्र नीचे दी गई लिंक पर उपलब्ध है – https://www.rbi.org.in/hindi/scripts/FS_Notification.aspx?Id=6199&fn=2748&Mode=0 iii. ‘किसान क्रेडिट कार्ड योजना : मत्स्य पालन/ एक्वाकल्चर में संलग्न किसानों के लिए पात्रता मानदंड’ पर दिनांक 18 मई 2022 का परिपत्र नीचे दी गई लिंक पर उपलब्ध है – https://www.rbi.org.in/hindi/scripts/FS_Notification.aspx?Id=7008&fn=2748&Mode (दिए गए परिपत्र तक पहुंचने के लिए वेबलिंक को इंटरनेट ब्राउज़र पर टाइप करें।)
23	RBIND/R/P/24/02232	Provide all government schemes in saving bank account. Like- Insurance, Pension plan and other.	You may refer to the following Master Circulars issued by Reserve Bank of India on select Govt. of India schemes. These Master Circulars are available on RBI website www.rbi.org.in at the link provided below: a) Master Circular - Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12665) b) Master Circular - Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12066) (Click on the link to access the given Master Circular/ Circular or type web-link on an internet browser).
24	RBIND/R/P/24/02390	We request you please provide us is there any provision for the private financial organization to issue financial loans (Money Lending Act) (exclusive for the Scheduled Areas) if there any orders/license/permission/GO issued by your office. Please provide us the information from FY 2000-01 to 2023-2024 as follows List of the Money Lending private financial organization of A.P. (exclusive for Scheduled Areas) Rate of Interest for those loans Maximum - Minimum Tenure and Mode of EMI Rate of Interest for the loan Does and Do Nots while collecting the EMI's	No specific information is available. However, you may refer to the following Master Circular dated April 16, 2024 issued by Reserve Bank of India, which is available on RBI website www.rbi.org.in at the link provided below: Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs) (https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12664) (Click on the link to access the given Master Circular/ Circular or type web-link on an internet browser).