tailieunhanh - Master Circular on SHG-Bank Linkage Programme

Although the FHLBB legally had enforcement powers similar to those of the banking agencies, it used these powers much less frequently. 11 The S&L supervisory environment simply was not conducive to prompt corrective enforcement actions. As indicated above, S&Ls were traditionally highly regulated institutions, and before the 1980s the industry had exhibited few problems of mismanagement. The industry s significant involvement in its own supervision stemmed from its favorable image and protected status with lawmakers. As one S&L lobbyist later wrote: When we [the . League of Savings Institutions] par- ticipated in the writing of the supervisory law, hindsight shows that we probably gave the business too much protection against unwarranted. | __RESERVE BANK OF INDIA_ RBI 2012-13 87 RPCD. FID. . 04 2012-13 July 02 2012 The Chairman Managing Director Chief Executive Officer All Scheduled Commercial Banks Dear Sir Master Circular on SHG-Bank Linkage Programme The Reserve Bank of India has from time to time issued a number of guidelines instructions to banks on SHG-Bank Linkage Programme. In order to enable the banks to have instructions at one place a Master Circular incorporating the existing guidelines instructions on the subject has been updated and enclosed. This Master Circular consolidates and updates the circulars issued by Reserve Bank on the subject up to June 30 2012 as indicated in the Appendix. Yours faithfully . Srinivasan Chief General Manager Encl As above Rural Planning Credit Department Central Office 10th Floor Central Office Building post box no. 10014 Mumbai -400001 Tel No 91-22-22661602 Fax No 91-22-22621011 22610948 22610943 Email ID cgmicrpcd@ Master Circular on SHG-Bank Linkage Programme 1. Despite the vast expansion of the formal credit system in the country the dependence of the rural poor on moneylenders somehow continued in many areas especially for meeting emergent requirements. Such dependence was pronounced in the case of marginal farmers landless labourers petty traders and rural artisans belonging to socially and economically backward classes and tribes whose propensity to save is limited or too small to be mopped up by the banks. For various reasons credit to these sections of the population had not been institutionalized. The studies conducted by NABARD APRACA and ILO on the informal groups promoted by Non-Governmental Organizations NGOs brought out that Self-Help Savings and Credit Groups had the potential to bring together the formal banking structure and the rural poor for mutual benefit and that their working had been .