What changed
RBI issued a Master Circular consolidating all existing guidelines on SJSRY, replacing previous circulars listed in Annexure III. The revised scheme guidelines, effective from April 1, 2009, aim to address implementation drawbacks and strengthen urban poverty alleviation efforts.
What it means for you
Banks must now refer to this single Master Circular for all SJSRY-related instructions, ensuring uniformity in lending and reporting. The scheme's focus on self-employment, wage employment, and community structures means lenders need to align their priority sector lending processes with these updated norms.
What you must do
- Review the Master Circular and replace all previous SJSRY circulars with this consolidated version.
- Train branch staff on the five components: USEP, UWSP, STEP-UP, UWEP, and UCDN.
- Ensure loan disbursements under SJSRY target only urban poor families below the poverty line as per Planning Commission definitions.
- Coordinate with urban local bodies and community structures (NHGs, NHCs, CDS) for scheme implementation.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Priority sector lending departments, Branch managers in urban areas, Community development officers
What is the effective date for the revised SJSRY guidelines?
The revised guidelines came into effect from April 1, 2009, as per the Master Circular issued on July 1, 2011.
Which banks are covered under this Master Circular?
All Scheduled Commercial Banks, excluding Regional Rural Banks (RRBs), are required to follow this circular.
What are the five components of SJSRY?
The five components are: Urban Self Employment Programme (USEP), Urban Women Self-help Programme (UWSP), Skill Training for Employment Promotion amongst Urban Poor (STEP-UP), Urban Wage Employment Programme (UWEP), and Urban Community Development Network (UCDN).