Page 52 - Banking Finance May 2020

RBI CIRCULAR

RBI

CIRCULAR

Submission of regulatory returns - Non-achievement of Priority Sector
Extension of timelines Lending Targets by Primary (Urban) Co-

RBI/2019-20/228 operative Banks (UCBs) - Contribution to
April 29, 2020 the Rural Infrastructure Development
Fund (RIDF) and other funds
1. In order to mitigate the difficulties in timely submission
of various regulatory returns, in view of disruptions on RBI/2019-20/226
account of COVID-19 pandemic, it has been decided to
April 24, 2020
extend the timelines for their submission.
2. Accordingly, all regulatory returns required to be 1. Please refer to the circular DCBR.BPD (PCB).Cir.No.07/
submitted by the above entities to the Department of 09.09.002/2017-18 dated May 10, 2018 on Revised
Regulation can be submitted with a delay of upto 30 Guidelines on Lending to Priority Sector for Primary
days from the due date. The extension will be applicable (Urban) Co-operative Banks (UCBs).
to regulatory returns required to be submitted upto
June 30, 2020. Further details are furnished in the 2. On a review of the extant guidelines, it has been
decided that, with effect from March 31, 2021, all UCBs
Annex. Those entities that are in a position to submit
(excluding those under all-inclusive directions) will be
the returns earlier may continue to do so.
required to contribute to Rural Infrastructure
3. It may be noted that no extension in timeline is Development Fund (RIDF) established with NABARD
permitted for submission of statutory returns i.e. and other Funds with NABARD / NHB / SIDBI / MUDRA
returns prescribed under the Banking Regulation Act, Ltd., against their priority sector lending (PSL) shortfall
1949, RBI Act, 1934 or any other Act (for instance, vis-à-vis the prescribed target. The operational details
returns related to CRR/SLR). in this regard are as under:
4. Further, all communication to the Department of i) The PSL achievement will be determined at the
Regulation should be through corporate e-mail to the end of the financial year based on the average of
extent possible (i.e., without involving physical priority sector target / sub-target achievement as
movement of papers). This arrangement shall continue at the end of each quarter of the year. UCBs
till further notice. (excluding those under all-inclusive directions)
having shortfall in PSL lending targets will be
(Saurav Sinha) allocated amounts for contribution to the Rural
Chief General Manager-in-Charge Infrastructure Development Fund (RIDF)
established with NABARD and other relevant

52 | 2020 | MAY | BANKING FINANCE