As per the data provided by Public Sector Banks, more than 12 lakh loans have been extended in rural areas across the country, after the Covid period i.e. from April, 2020 to November, 2022. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

The Minister also stated that setting up of industries is a State subject. However, the Minister further stated that banks provide credit to youths for setting up industries across the country including rural areas. As per RBI circular dated 9^th April, 2010, all credit related matters of banks, including charging rate of interest (ROI), have been deregulated and are governed by the bank’s own lending policies, considering relevant factors such as cost of funds, margin, risk premium etc. within the extant regulatory guidelines, the Minister stated.

The state-wise details are ANNEXURED.

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RM/PPG/KMN

Deregulation of bank credit enables increased rural lending after the Covid period under banks' own lending policies. Banks extended substantial numbers of loans in rural areas after the Covid period, with public sector banks reporting over twelve lakh loans between April 2020 and November 2022, and banks providing credit to youths for setting up enterprises. Credit decisions, including interest rates, are governed by banks' internal lending policies following the Reserve Bank circular of 9 April 2010, which deregulated credit matters and permits banks to set terms within regulatory guidelines considering cost of funds, margins and risk premiums. Establishment of industries remains a State subject.