What changed
RBI has withdrawn the requirement for domestic scheduled commercial banks to submit quarterly data on priority sector advances related to agricultural lending. This change takes effect from the period ending March 2011, replacing the earlier mandate from January 2004.
What it means for you
Banks can reduce compliance overhead by eliminating one quarterly reporting obligation for agricultural priority sector lending. This simplifies data submission processes, though banks must still meet overall priority sector lending targets and maintain internal records.
What you must do
- Stop preparing and submitting the quarterly priority sector agricultural lending statement from March 2011 onwards.
- Update your internal reporting schedules and compliance checklists to remove this submission.
- Ensure continued compliance with priority sector lending targets for agriculture through other reporting channels.
- Retain historical records of previously submitted data for audit and reference purposes.
Who it affects
All domestic scheduled commercial banks, Compliance and reporting departments, Priority sector lending teams
Do we still need to report priority sector agricultural lending data in any other format?
This circular only discontinues the specific quarterly statement format prescribed in 2004. Banks must continue to meet priority sector lending targets and report through other existing channels as required by RBI.
From which quarter does this discontinuation apply?
The discontinuation is effective from the period ending March 2011, meaning the statement for Q4 FY2010-11 and onwards is not required.
Is this change applicable to all banks?
Yes, it applies to all domestic scheduled commercial banks that were previously required to submit this quarterly data.