RBI/2008-09/ 41
RPCD.SME&NFS. BC. No.2/ 06.02.31/ 2008-09

July 1 , 2008

The Chairman/Managing Director/
Chief Executive Officer
All Scheduled Commercial Banks
(including Regional Rural Banks/Local Area 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 regard to 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, 2008, which are listed in the Appendix, to theextentthey deal with the MSME sector lending by commercial banks.

Please acknowledge receipt.

Yours faithfully,
(G.Srinivasan)
Chief General Manager