Lending/deposit in the banks is a commercial decision which is regulated by the banks as per their Board driven policies in line with various guidelines of Reserve Bank of India (RBI). Government has recently notified a deposit scheme viz, Sukanya Samriddhi Account Yojana 2014 through banks.

 RBI has advised banks to achieve a credit deposit ratio of 60% in respect of their rural and semi-urban branches separately on an all-India basis. The Banks should also ensure that wide disparity in the ratios between different States/Regions is avoided in order to minimize regional imbalance in credit deployment.

 RBI has advised Banks to set up a Special Sub-committee (SSC) of District Level Consultative Committee (DLCC) for those districts having Credit Deposit Ratio (CDR) less than 40% to draw up Monitorable Action Plans (MAPs), monitor such action plan on a regular basis and initiate necessary action for improving CDR.

 This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Credit deposit ratio targets require banks to raise rural and semi urban CDR and form district committees for low CDR areas. The Reserve Bank directs banks to target a 60% Credit Deposit Ratio for rural and semi urban branches nationwide, to avoid wide inter regional disparities, and mandates that districts with CDR below 40% convene a Special Sub committee of the District Level Consultative Committee to prepare, monitor and implement Monitorable Action Plans to improve credit deployment; banks' lending and deposit activity remains governed by board policies and RBI guidelines, and the Sukanya Samriddhi Account Yojana has been notified for operation through banks.