Review of Extant Instructions – Withdrawal of Circulars

Posted On - 22 October, 2024 • By - Padma Priya

An internal review was carried out to identify and withdraw obsolete/ outdated/ superfluous instructions. Based on the same, the circulars listed stand withdrawn with immediate effect in view of subsequent updated instructions issued on the subject matters.

1. Credit facilities to Minority Communities

RPCD.No.SP.BC.14/PS.160-87/88 dated 31st July 1987,

RPCD.No.SP.BC.45/PS.160-87/88 dated 16th October 1987,

RPCD.No.SP.BC.46/PS.160/88-89 dated 17th November 1988.

The reporting formats prescribed in these circulars had been modified and the periodicity has been changed. The updated instructions are reflected in the master circular.

Master Circular on Credit Facilities to Minority Communities

The Reserve Bank of India has periodically issued guidelines/instructions/directives to banks about providing credit facilities to Minority Communities.

  1. Credit Facilities to Minority Communities
  2. Definition of Minority Communities
  3. Creation of Special Cell and designating an exclusive Officer
  4. Role of Lead Banks
  5. Advances under DRI scheme,
  6. Monitoring,
  7. Training
  8. Publicity
  9. National Minorities Development and Finance Corporation (NMDFC)
  10. Prime Minister’s New 15 Point Programme for the Welfare of Minorities

2. Opening of No-Frills accounts by students for availing various Government Scholarships

RPCD.CO/FID.BC.No.2433/12.01.012/2010/11 dated 26th August 2010.

The nomenclature “No frills account” has been discontinued, and the extant provisions of Basic Savings Bank Deposit Account (BSBDA) as normal banking service for all customers is in vogue.

3. Master Circular on Micro Credit

RPCD.FID.BC. No.53/12.01.001/2010-11 dated 14th February 2011

The guidelines contained in the circular have been subsumed under Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.

The Reserve Bank of India (the Bank), having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Bank to regulate the financial system to the advantage of the country and to prevent the affairs of any Non-Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND)from being conducted in a manner detrimental to the interest of investors or in any manner prejudicial to the interest of such NBFCs, and in exercise of the powers conferred under sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and section 3 read with section 31A and section 6 of the Factoring Regulation Act, 2011 (Act 12 of 2012).

Conclusion: The review was carried out by RBI to identify and withdraw the outdated instructions on the Credit facilities to Minority Communities, Opening of No-Frills accounts by students for availing various Government Scholarships, Master Circular on Micro Credit.