Lok Sabha Question No. 274 (STARRED), answered on 2018-01-05
Subject: Credit/Loan Facilities to SCs/STs
Ministry: FINANCE
Asked by: RATTAN LAL KATARIA

## Government of India Department of Financial Services Ministry of finance LOK SABHA STARRED QUESTION NO. *274

TO BE ANSWERED ON THE 5 th  January, 2018/ Pausha 15, 1939 (SAKA)

## Credit/Loan Facilities to SCs/STs

## QUESTION

## †*274. SHRI RATTAN LAL KATARIA :

- Will the Minister of FINANCE be pleased to state: (a)  whether  the  Reserve  Bank  of  India/  Public  Sector  Banks  (PSBs)/financial institutions  provide  any  credit/loan  facilities  to  the  people  belonging  to  Scheduled Castes (SCs)/Scheduled Tribes (STs) for their socio-economic development and if so, the details thereof; (b) the procedure adopted by the Government for the selection of SC/ST beneficiaries under different schemes; (c)  the  total  amount  earmarked  and  disbursed  under  the  said  schemes  by  the PSBs/financial institutions to SC/ST communities during the last three years, bankwise; (d) the steps taken/being taken by the Government to ensure easy credit facility by PSBs/financial institutions to SCs/STs; and (e)  the  number  of  households  brought  above  poverty  line  as  a  result  of  inclusive
- policies of the Government during the above period?

## ANSWER (FINANCE MINISTER) (ARUN JAITLEY)

- (a)  to (e) : A statement is laid on the table of House
- --------

## Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. *274 to be answered on 05.01.2018 regarding Special Credit/Loan Facility to SCs/STs by SHRI RATTAN LAL KATARIA

(a) to (e) : In terms of Reserve Bank's extant guidelines on lending to priority sector, a  target  of  40  per  cent  of  Adjusted  Net  Bank  Credit  (ANBC)  or  Credit  Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 and above branches. Within this,  a  sub-target  of  10  per  cent  of  ANBC  or  Credit  Equivalent  amount  of  OBE, whichever is higher, as on March 31 of the previous year, has been set for lending to weaker sections which includes, among others, persons from SCs/ STs.

RBI has issued standing instructions to banks in the form of Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs) which is updated every year  (latest  being  July  1,  2017)  to  give  special  emphasis  to  the  welfare  of  the scheduled castes and scheduled tribes and take measures to step up their advances to SCs / STs which, inter-alia, includes:

-  At  the  block  level  a  certain  weightage  is  to  be  given  to  scheduled  castes  / scheduled tribes in the planning process.
-  Credit planning should be weighted in favour of SCs/STs. Loan proposals of these communities should be considered   of sympathetically and expeditiously.
-  Banks should not insist on deposits while considering loan applications under Government sponsored poverty alleviation schemes / self-employment programmes from borrowers belonging to SCs / STs.
-  If applications in respect of SCs / STs are to be rejected, it should be done at the next higher level instead of at the branch level. Further, reasons for rejection of applications should be clearly indicated.

There  are  several  centrally  sponsored  schemes  and  other  measures  under  which credit is provided by banks and subsidy is received through Government Agencies. Credit flow under these schemes is monitored by RBI. Under each of these, there is a significant reservation / relaxation for the members of the SC / ST communities.  These measures, inter-alia, include:

-  Deendayal Antyodaya Yojana - National Rural Livelihoods Mission ( DAYNRLM): Under the Ministry of Rural Development, Government of India has specified that 50% of the beneficiaries under the scheme would be SC/STs.
-  Deendayal  Antyodaya  Yojana  -  National  Urban  Livelihoods  Mission (DAY-NULM): under the Ministry of Housing and Urban Poverty Alleviation (Mo HUPA), Government of India, has specified that advances to SCs / STs would be extended to the extent of their strength in the local population.
-  Differential Rate of Interest (DRI) Scheme: under the DRI Scheme, banks provide finance up to ₹15,000/- at a concessional rate of interest of 4 percent per annum to the weaker sections of the community for engaging in productive and gainful activities. Banks have been advised to grant to eligible borrowers belonging to SCs / STs such advances to the extent of not less than 2/5th (40 percent) of total DRI advances. Members of SCs / STs satisfying the income criteria  of  the  scheme  can  also  avail  of  housing  loan  up  to  ₹.20,000/-  per beneficiary over and above the individual loan of ₹.15,000/- available under the scheme.

Further,  the  National  Scheduled  Castes  Finance  &  Development  Corporation (NSCFDC) National Scheduled Tribes Finance & Development Corporation (NSTFDC) functioning under aegis of Ministry of Social Justice & Empowerment and Ministry of Tribal Affairs also provide concessional Credit facilities to SCs & STs. Every year, (NSCFDC) notionally allocates its available resources to the State Channelizing Agencies (SCAs), in proportion to the Scheduled Caste population of the State/UT w.r.t. total Scheduled Caste population of the country.

The  following  schemes  of  the  Government  also  facilitate  credit  flow  to  SC/ST entrepreneurs:

-  Stand Up India scheme : Government of India launched this scheme in April, 2016 with the objective to promote entrepreneurship amongst women, SC & ST category. The Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch for setting up Greenfield enterprises. 6589 SC and 1988 ST beneficiaries has been financed as on 31.12.2017.
-  Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs)A sum of Rs. 200 crore has been allocated towards credit enhancement facility for young and start-up entrepreneurs, belonging to Scheduled Castes with the objective  to  promote  entrepreneurship  amongst  the  Scheduled  Castes, facilitate economic development of SC entrepreneurs and enhance direct and indirect employment generation for SC population of India.
-  Pradhan  Mantri  Mudra  Yojana  (PMMY)  : With  a  view  to  'Fund  the Unfunded' segment of society and to bring them under formal credit system through  Banks,  NBFCs,  Pradhan  Mantri  Mudra  Yojana  (PMMY)  was launched on 08 April 2015. PMMY focus micro enterprises loans upto Rs. 50,000/- under `Shishu' category, loans from Rs. 50,001 to Rs. 5 lakhs under `Kishore' category and loans from Rs. 5 lakhs to Rs. 10 lakhs under `Tarun' category.  Under  PMMY,  6137017  No.  of  SC  &  ST  beneficiaries  were covered till 30.09.2017 for which Rs 18942 Crore were disbursed.

Total  amount  of  Loans  disbursed  by  Public  Sector  Banks  (PSBs)  to  SC/ST

communities during the last three years, bank-wise is placed at Annexure -I

The poverty ratio data for SCs/STs is given below:

| Social Group   | Rural   | Rural   | Urban   | Urban   |
|----------------|---------|---------|---------|---------|
|                | 2004-05 | 2011-12 | 2004-05 | 2011-12 |
| SCs            | 53.53   | 31.50   | 40.56   | 21.70   |
| STs            | 62.28   | 45.30   | 35.52   | 24.10   |
| Total          | 41.79   | 25.40   | 25.68   | 13.70   |

Source: NITI Aayog

The data above indicates reduction in number of SCs/STs living Below the Poverty Line.

- -------

Annexure -I Annexure referred to reply of part (a) to (e )Lok Sabha Starred Question No. 274 to be answered on 5th January 2018

regarding Special Credit /Loan Facilities to SCs/STs

| Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   | Total amount of loans disbursed by Public Sector Banks to SC/ST communities during the last three years (No. of Accounts in absolute terms; Amount in Rupees thousands)   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                           | 2015                                                                                                                                                                      | 2015                                                                                                                                                                      | 2016                                                                                                                                                                      | 2016                                                                                                                                                                      | 2017                                                                                                                                                                      | 2017                                                                                                                                                                      |
| Bank Name                                                                                                                                                                 | No of A/C                                                                                                                                                                 | Amount                                                                                                                                                                    | No of A/C 178257                                                                                                                                                          | Amount 24983168                                                                                                                                                           | No of A/C 157669                                                                                                                                                          | Amount 23909608                                                                                                                                                           |
| State Bank of Bikaner & Jaipur                                                                                                                                            | 70282                                                                                                                                                                     | 10739741                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                           |                                                                                                                                                                           |                                                                                                                                                                           |
| State Bank of Hyderabad                                                                                                                                                   | 12997                                                                                                                                                                     | 1776037                                                                                                                                                                   | 18932                                                                                                                                                                     | 3024073                                                                                                                                                                   | 31467                                                                                                                                                                     | 4331052                                                                                                                                                                   |
| State Bank of India                                                                                                                                                       | 66207                                                                                                                                                                     | 96509579                                                                                                                                                                  | 581510                                                                                                                                                                    | 19506747                                                                                                                                                                  | 698684                                                                                                                                                                    | 41616042                                                                                                                                                                  |
| State Bank of Mysore                                                                                                                                                      | 5898                                                                                                                                                                      | 1233219                                                                                                                                                                   | 5319                                                                                                                                                                      | 845052                                                                                                                                                                    | 6107                                                                                                                                                                      | 1659892                                                                                                                                                                   |
| State Bank of Patiala                                                                                                                                                     | 41755                                                                                                                                                                     | 2329108                                                                                                                                                                   | 18842                                                                                                                                                                     | 1704166                                                                                                                                                                   | 24808                                                                                                                                                                     | 3207795                                                                                                                                                                   |
| State Bank of Travancore                                                                                                                                                  | 232459                                                                                                                                                                    | 23805165                                                                                                                                                                  | 102749                                                                                                                                                                    | 19860114                                                                                                                                                                  | 192197                                                                                                                                                                    | 30255092                                                                                                                                                                  |
| SBI and its Associates                                                                                                                                                    | 429598                                                                                                                                                                    | 136392849                                                                                                                                                                 | 905609                                                                                                                                                                    | 69923320                                                                                                                                                                  | 1110932                                                                                                                                                                   | 104979482                                                                                                                                                                 |
| Allahabad Bank                                                                                                                                                            | 41832                                                                                                                                                                     | 4493018                                                                                                                                                                   | 117205                                                                                                                                                                    | 13642508                                                                                                                                                                  | 135238                                                                                                                                                                    | 17050493                                                                                                                                                                  |
| Andhra Bank                                                                                                                                                               | 278053                                                                                                                                                                    | 35132127                                                                                                                                                                  | 148862                                                                                                                                                                    | 15890441                                                                                                                                                                  | 143778                                                                                                                                                                    | 13698221                                                                                                                                                                  |
| Bank of Baroda                                                                                                                                                            | 80646                                                                                                                                                                     | 14083686                                                                                                                                                                  | 91815                                                                                                                                                                     | 15664587                                                                                                                                                                  | 137615                                                                                                                                                                    | 17949778                                                                                                                                                                  |
| Bank of India                                                                                                                                                             | 194657                                                                                                                                                                    | 18917156                                                                                                                                                                  | 194573                                                                                                                                                                    | 19227563                                                                                                                                                                  | 178256                                                                                                                                                                    | 21387                                                                                                                                                                     |
| Bank of Maharashtra                                                                                                                                                       | 15001                                                                                                                                                                     | 4762773                                                                                                                                                                   | 59193                                                                                                                                                                     | 8101603                                                                                                                                                                   | 58781                                                                                                                                                                     | 8209446                                                                                                                                                                   |
| BHARATIYA MAHILA BANK LTD.                                                                                                                                                | 0                                                                                                                                                                         | 0                                                                                                                                                                         | 340                                                                                                                                                                       | 30820                                                                                                                                                                     | 0                                                                                                                                                                         | 0                                                                                                                                                                         |
| Canara Bank                                                                                                                                                               | 347238                                                                                                                                                                    | 33301738                                                                                                                                                                  | 530659                                                                                                                                                                    | 53746645                                                                                                                                                                  | 294658                                                                                                                                                                    | 35021131                                                                                                                                                                  |
| Central Bank of India                                                                                                                                                     | 365028                                                                                                                                                                    | 70857829                                                                                                                                                                  | 205045                                                                                                                                                                    | 25100768                                                                                                                                                                  | 209156                                                                                                                                                                    | 24313020                                                                                                                                                                  |
| Corporation Bank                                                                                                                                                          | 36117                                                                                                                                                                     | 5702303                                                                                                                                                                   | 17021                                                                                                                                                                     | 2405705                                                                                                                                                                   | 42708                                                                                                                                                                     | 12869173                                                                                                                                                                  |
| Dena Bank                                                                                                                                                                 | 26131                                                                                                                                                                     | 4621881                                                                                                                                                                   | 33989                                                                                                                                                                     | 6765847                                                                                                                                                                   | 26241                                                                                                                                                                     | 5692020                                                                                                                                                                   |
| IDBI Bank Ltd.                                                                                                                                                            | 6548                                                                                                                                                                      | 1935038                                                                                                                                                                   | 63046                                                                                                                                                                     | 5453642                                                                                                                                                                   | 102444                                                                                                                                                                    | 7731799                                                                                                                                                                   |
| Indian Bank                                                                                                                                                               | 120430                                                                                                                                                                    | 10411438                                                                                                                                                                  | 10152                                                                                                                                                                     | 705292                                                                                                                                                                    | 124117                                                                                                                                                                    | 10948263                                                                                                                                                                  |
| Indian Overseas Bank                                                                                                                                                      | 147289                                                                                                                                                                    | 49903858                                                                                                                                                                  | 114804                                                                                                                                                                    | 44677121                                                                                                                                                                  | 244704                                                                                                                                                                    | 56487927                                                                                                                                                                  |
| Oriental Bank of Commerce                                                                                                                                                 | 66214                                                                                                                                                                     | 36325856                                                                                                                                                                  | 61749                                                                                                                                                                     | 14836523                                                                                                                                                                  | 50807                                                                                                                                                                     | 42684685                                                                                                                                                                  |
| Punjab and Sind Bank                                                                                                                                                      | 5888                                                                                                                                                                      | 861795                                                                                                                                                                    | 3553                                                                                                                                                                      | 675460                                                                                                                                                                    | 1969                                                                                                                                                                      | 624212                                                                                                                                                                    |
| Punjab National Bank                                                                                                                                                      | 236491                                                                                                                                                                    | 29719517                                                                                                                                                                  | 233722                                                                                                                                                                    | 32038259                                                                                                                                                                  | 178977                                                                                                                                                                    | 32363779                                                                                                                                                                  |
| Syndicate Bank                                                                                                                                                            | 146026                                                                                                                                                                    | 14615040                                                                                                                                                                  | 137463                                                                                                                                                                    | 16153528                                                                                                                                                                  | 134662                                                                                                                                                                    | 67412763                                                                                                                                                                  |
| UCO Bank                                                                                                                                                                  | 43777                                                                                                                                                                     | 5485022                                                                                                                                                                   | 43949                                                                                                                                                                     | 5547265                                                                                                                                                                   | 41631                                                                                                                                                                     | 5122529                                                                                                                                                                   |
| Union Bank of India                                                                                                                                                       | 81476                                                                                                                                                                     | 25240671                                                                                                                                                                  | 114992                                                                                                                                                                    | 11365774                                                                                                                                                                  | 100457                                                                                                                                                                    | 12368908                                                                                                                                                                  |
| United Bank of India                                                                                                                                                      | 58622                                                                                                                                                                     | 5351473                                                                                                                                                                   | 52791                                                                                                                                                                     | 11387438                                                                                                                                                                  | 51447                                                                                                                                                                     | 6873455                                                                                                                                                                   |
| Vijaya Bank                                                                                                                                                               | 29916                                                                                                                                                                     | 8880375                                                                                                                                                                   | 38045                                                                                                                                                                     | 6548847                                                                                                                                                                   | 64099                                                                                                                                                                     | 12431116                                                                                                                                                                  |
| Nationalised Banks                                                                                                                                                        | 2327380                                                                                                                                                                   | 380602594                                                                                                                                                                 | 2272968                                                                                                                                                                   | 309965636                                                                                                                                                                 | 2321745                                                                                                                                                                   | 389874104                                                                                                                                                                 |
| Grand Total                                                                                                                                                               | 2756978                                                                                                                                                                   | 516995443                                                                                                                                                                 | 3178577                                                                                                                                                                   | 379888956                                                                                                                                                                 | 3432677                                                                                                                                                                   | 494853586                                                                                                                                                                 |

Source: RBI