RPCD. Plan. BC. 32 / 04.09.01/ 2002-03 October 29, 2002 The Chairman/ Managing Director /
Chief Executive Officer
All scheduled commercial banks
[including RRBs] and Local Area Banks Dear Sir/ Madam, Lending to Weaker Sections under Priority Sector Please refer to our circular RPCD. No. Plan. BC. 166/ 04.09.01/ 94-95 dated June 13, 1995 and Section III.2.4 of the Master Circular on Lending to Priority Sector giving a list of borrowers included under weaker sections. As advised therein, the weaker sections under priority sector include, inter alia, artisans, village and cottage industries where individual credit limits do not exceed Rs 25,000. 2. In this connection, a reference is invited to Paragraph No. 108 of Governor's Statement on "Mid term Review of the Monetary and Credit Policy for the year 2002-03" forwarded with circular No. MPD. BC. 222/ 07.01.279/ 2002-03 dated October 29, 2002. As mentioned therein, in order to further increase credit flow to the weaker sections, the individual credit limit to artisans, village and cottage industries for reckoning under 'advances to weaker sections' is increased to Rs 50,000 from the present limit of Rs 25,000 with immediate effect. This limit will be under the overall limit of financing for weaker sections at 25 per cent of advances under priority sector or 10 per cent of net bank credit. 3. Please acknowledge receipt. Yours faithfully, (A.V. Sardesai)
Chief General Manager-in-Charge |