The Reserve Bank of India on 2nd August, 2022 issued Master Circular on Credit Facilities to Minority Communities, consolidating all circulars issued on the subject till date. It lays out details about the credit facilities available to the minority communities, and how the same has to be made available to them.
The facilities are available to minorities recognised by the Ministry of Minority Affairs, Government of India. It mandates the setting up of special cell and designating an exclusive officer in each bank to ensure smooth flow of credit to minority communities. In addition to this, lead banks have to proactively participate in the banking sector within minority concentration districts, in collaboration with District Development Managers, NABARD/NGOs. or SHGs to ensure that minority communities, particularly those who are poor and illiterate, have access to bank credit.
Additionally, bank staff and officers must be trained and sensitised as to how to assist minority communities to avail credit under various schemes available to them. Entrepreneurship development programmes may be held to help these communities to avail the benefits of the schemes financed by the banks. The Circular also mentions that banks should create publicity through various means as a part of Government programmes in areas with large concentration of minority populations. Banks may implement schemes evolved by the National Minorities Development and Finance Corporation (NMDFC), an apex body promoting economic and developmental activities for the backward sections among the minorities.
