Press Information Bureau

Government of India

Ministry of Finance

07-December-2012 18:38 IST

Government of India has been fixing credit for agriculture every year to ensure that adequate credit is made available to farmers by banks. The target and achievement for last three years and current year is as under: 

(Rs. in crore)

The credit flow to MSME by the Public and Private Sector Banks are as under: 

The ground level credit flow to priority sector which includes agriculture and allied sector is reviewed on a regular basis in the Block Level Bankers’ Committee Meeting (BLBC), District Level Consultative Committee Meeting (DLCC) and State Level Bankers Committee Meeting (SLBC) under the Lead Bank Scheme of Reserve Bank of India (RBI). Besides, the ground level credit flow to agriculture is also reviewed on an ongoing basis by the Government of India, RBI and NABARD.

The allocation of 60 per cent of the micro and small enterprises (MSEs) advances to the micro enterprises is in 3 stages, viz, 50 per cent in the year 2010-11, 55 per cent in the year 2011-12 and 60 per cent in the year 2012-13.

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

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DSM/RS/ka

Credit targets for agriculture ensure bank lending to farmers, with staged microenterprise allocation and regular priority-sector review. Government-fixed credit targets require banks to meet annual benchmarks for agriculture lending, with reported targets and achievements used to ensure availability of credit to farmers; MSME disbursement totals for banks are recorded centrally. Ground-level monitoring of priority sector credit is carried out under the Lead Bank Scheme through BLBC, DLCC and SLBC meetings and ongoing review by the Government, RBI and NABARD. A staged allocation mandates increasing proportions of MSE advances to micro enterprises over successive years.