Press Information Bureau

Government of India

Ministry of Finance

7-December-2012 18:27 IST

As per extant guidelines of Reserve Bank of India (RBI) on Priority Sector Lending (PSL), al Scheduled Commercial Banks (SCBs) 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 minority communities.

Banks have reported that such loan melas are also orgnaised by them to facilitate their customers to apply for loans. Such melas are intended to generally cover all category of customers including SCs/STs/OBCs and minorities.

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

 

Priority sector lending requirement mandates earmarking for weaker sections; banks run loan melas to facilitate access for SC/ST/OBC/minorities. Priority sector lending rules require scheduled commercial banks to earmark lending for weaker sections, including Scheduled Castes, Scheduled Tribes and minority communities, measured against Adjusted Net Bank Credit or equivalent off balance sheet exposure. Banks organise loan melas to facilitate applications and broaden credit access to these groups, covering SCs, STs, OBCs and minorities.