Udyog Bandhu

Reserve Bank of India

भारतीय रिजव बैंक

Date: Jul 01, 2011

Master Circular - Lending to Micro, Small & Medium Enterprises (MSME) Sector

RBI/2011-12/83
RPCD.SME & NFS. BC. No. 09/06.02.31/2011-12

July 1, 2011

The Chairman/Managing Director/
Chief Executive Officer

All Scheduled Commercial Banks
(excluding Regional Rural Banks)

Dear Sir

Master Circular -
Lending to Micro, Small & Medium Enterprises (MSME) Sector

As you are aware, the Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks in the matters relating to lending to Micro, Small & Medium Enterprises Sector. To enable the banks to have current instructions at one place, a Master Circular incorporating the existing guidelines/instructions/directives on the subject has been prepared and is appended. This Master Circular consolidates the instructions issued by the RBI up to June 30, 2011, which are listed in the Appendix, to theextentthey deal with the MSME sector lending by commercial banks.

2. Please acknowledge receipt.

Yours faithfully

(C.D.Srinivasan)

Chief General Manager

SECTION - I : Micro, Small & Medium Enterprises Development (MSMED) Act, 2006

SECTION - II : Certain types of funds deployment eligible as priority sector advances

SECTION - III : Targets for priority sector lending by Domestic Commercial Banks

SECTION - IV : Common Guidelines / Instructions for Lending to MSME Sector

Annex I : MINISTRY OF SMALL SCALE INDUSTRIES, NOTIFICATION

Annex II : LIST OF MSME CLUSTERS COVERED BY EXISTING SIDBI BRANCHES

Annex III :List of MSME Clusters in India (identified by UNIDO)

Appendix : List of Circulars consolidated by the Master Circular

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