RBI Master Circular on Credit to SC/ST Communities
Why in the news
RBI consolidated its lending instructions for SC and ST borrowers: simpler procedures, credit set-asides and tighter monitoring.
Key facts
| Scheme | Key terms |
|---|---|
| DAY-NRLM | Launched 1 April 2013, replacing SGSY; at least 50% SC/ST beneficiaries |
| Differential Rate of Interest (DRI) | Loans to weaker sections up to ₹15,000 at 4%; 40% of advances to SC/ST; extra ₹20,000 housing loan |
| CEGSSC | Launched 6 May 2015 by Ministry of Social Justice and Empowerment; nodal agency IFCI Ltd. |
- SC/ST applicants are exempt from DRI landholding ceilings (1 acre irrigated, 2.5 acres unirrigated).
- CEGSSC eligibility: over 51% SC ownership and 6+ months of management control; tenure up to 7 years or the loan term, whichever is earlier.
Exam angle
- CEGSSC nodal agency: IFCI Ltd.; DRI rate: 4%.