As per extant guidelines of Reserve Bank of India (RBI) on Priority Sector Lending (PSL), all Scheduled Commercial banks (SCBs) including Public and Private Sector Banks are required to earmark 10% of Adjusted Net bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposure, whichever is higher, for Weaker Sections, which inter-alia, include Scheduled Castes (SCs) and Scheduled Tribes (STs) and loans to individual women beneficiaries upto Rs. 50,000 per borrower.

Indian Banks’ Association (IBA) has advised all member banks to provide at least 0.50% concession in interest rates on education loans to girl students under its Model Educational Loan Scheme for pursuing higher education in India and abroad.

At present there is no proposal with the Government to set up national banks exclusively for SCs and STs.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

Priority sector lending for weaker sections mandates dedicated credit share and concessions on education loans for girls. Priority Sector Lending obligations require scheduled commercial banks to allocate a dedicated portion of credit to weaker sections, including Scheduled Castes, Scheduled Tribes and certain individual women borrowers, measured against Adjusted Net Bank Credit or credit equivalent of off balance sheet exposures, whichever is higher; industry guidance recommends an interest rate concession on education loans for girl students and there is no current government proposal for national banks exclusively for SCs and STs.