Withdrawal of Master Circular on Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) and related circulars

## Report on Withdrawal of Master Circular on Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM) **1. Executive Summary:** This report analyzes the Reserve Bank of India's (RBI) announcement regarding the withdrawal of the Master Circular on Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) and related circulars. The core purpose, as stated in the text, is to formally acknowledge the conclusion of the DAY-NULM program on September 30, 2024, and to consequently relieve banks from reporting requirements associated with the program. The key finding is that all circulars pertaining to DAY-NULM listed in the annexure are withdrawn effective October 1, 2024. **2. Introduction:** The purpose of this report is to provide an informative overview of the RBI's decision to withdraw the Master Circular on DAY-NULM and related circulars, based solely on the information provided in the official notification. This report aims to clarify the implications of this withdrawal for the affected industry. **3. Policy Overview:** * This report addresses an *amendment* through a complete withdrawal of the existing Master Circular on Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM). * **Core Objective(s) as stated or inferred from the provided text:** The overarching objective of the original DAY-NULM policy (inferred) was to support urban livelihoods. The objective of *this withdrawal* is to formally cease the applicability and reporting requirements associated with the concluded DAY-NULM scheme. **4. Background and Rationale:** As the Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM) officially concluded on September 30, 2024, the existing circulars and reporting frameworks became redundant. This amendment, in the form of a complete withdrawal, simplifies regulatory compliance for banks by eliminating the need for them to adhere to guidelines and submit returns related to a program that is no longer active. **5. Key Provisions / Changes:** This document represents an *amendment*, specifically a *complete withdrawal* of the existing policy framework. * **What specific part of the original policy is being changed:** The entirety of the Master Circular dated April 5, 2021, on DAY-NULM and other related circulars listed in the Annex are being withdrawn. * **What the *new* rule/provision *is*:** Banks are no longer required to follow the guidelines outlined in the DAY-NULM Master Circular or submit returns prescribed in the associated circulars listed in the annex. This is effective from October 1, 2024. * **Explain the *difference* or the *effect* of this specific change:** The withdrawal alleviates the regulatory burden on banks. Previously, banks were obligated to adhere to the DAY-NULM Master Circular and submit related reports. Now, they are explicitly exempted from these obligations, simplifying their operational and compliance procedures. **6. Target Audience and Stakeholders:** Based on the provided text, the directly affected stakeholders are: * All Scheduled Commercial Banks * Small Finance Banks These entities were previously required to comply with the DAY-NULM Master Circular and submit associated reports. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies mentioned:** The Reserve Bank of India (RBI) is the responsible body initiating and implementing this withdrawal. Specifically, the Financial Inclusion Development Department (FIDD) is the division responsible for this communication. * **Any timelines or procedures specified in the text:** The withdrawal is effective from October 1, 2024. There are no specific procedures outlined in this document beyond ceasing the submission of reports. * **Implementation Aspects Related to the changes:** Banks need to cease the reporting activities related to DAY-NULM with effect from October 1, 2024. No further action is explicitly mandated by this document. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome *of these specific changes* is to reduce the administrative burden on banks. By withdrawing the Master Circular and related circulars, the RBI aims to streamline regulatory compliance for banks, freeing up resources previously allocated to DAY-NULM reporting. This should result in cost savings and improved efficiency for the banking sector. The potential impact is a more focused allocation of resources to active financial inclusion initiatives. **9. Conclusion:** The RBI's withdrawal of the Master Circular on DAY-NULM signifies the formal conclusion of the program's active phase and a streamlining of regulatory requirements for banks. The primary impact is a reduction in administrative burden for scheduled commercial banks and small finance banks, allowing them to focus on other ongoing initiatives. This action underscores the RBI's commitment to adjusting regulatory frameworks in response to the evolving landscape of financial inclusion programs.

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