Lok Sabha Question No. 2945 (UNSTARRED), answered on 2017-08-02
Subject: Lending to Minority Community
Ministry: MINORITY AFFAIRS
Asked by: SUPRIYA SADANAND SULE, RAJEEV SHANKARRAO SATAV, JAYAKUMAR JAYAVARDHAN, DHANANJAY BHIMRAO MAHADIK, HEENA VIJAYKUMAR GAVIT, P.R. SUNDARAM, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA

## MINISTRY OF MINORITY AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2945

## TO BE ANSWERED ON 02.08.2017

## LENDING TO MINORITY COMMUNITY

2945. Shrimati Supriya Sule:

Shri Satav Rajeev:

Dr. J. Jayavardhan:

Shri Dhananjay Mahadik:

Dr. Heena Vijaykumar Gavit:

Shri P.R. Sundaram:

Shri Mohite Patil Vijaysinh Shankarrao:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a)  whether  lending  to  minority  communities  is  covered  under  weaker  sections category of Priority Sector Lending and if so, the details thereof;
- (b)  whether banks  are providing loans and  advances  exclusively for minority communities and if so, the details thereof;
- (c)  whether any district has been identified as minority concentration district for this purpose and if so, the details thereof; and
- (d)  the  details  of  the  types  of  business/enterprises  getting  loans  along  with  the quantum of loans sanctioned therefor during each of the last three years and the current year, State-wise and district-wise?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

(a) to (d): As  provided  in  the  Prime  Minister's  New  15  Point  Programme  for  the Welfare  of  Minorities,  the  Reserve  Bank  of  India  has  issued  a  Master  Circular  dated 01.07.2017 for credit facilities to minority communities that care should be taken to see that minority communities secure, in a fair and adequate measure, the benefits flowing from various Government-sponsored schemes. The Master Circular was issued to all the commercial  banks  to  ensure  smooth  flow  of  bank  credit  and  also  advised  all  the scheduled commercial banks to specially monitor the credit flow to minority communities (viz.  Muslims,  Christians,  Sikhs,  Buddhists,  Jains  and  Parsis)  in  the  121  Minority Concentration  Districts  (MCDs)  having  at  least  25%  minority  population  but  excluding those  States  /  UTs  where  minorities  are  in  majority  (Jammu  &  Kashmir,  Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep). This is to ensure that the minority communities receive a fair and equitable portion of the credit within the overall target of the priority sector.

Under the Prime Minister's New 15 Point Programme for the Welfare of Minorities (PM's new 15-PP), an earmarking of 15% of the PSL is targeted for the minority communities. All scheduled commercial banks are required to ensure that within the overall target for PSL and the sub-target of 10% for the weaker sections, sufficient care is taken to ensure that  minority  communities  also  receive  an  equitable  portion  of  the  credit.  The  RBI  has advised  the  lead  banks  to  keep  this  requirement  in  view  while  preparing  district  credit plans.

The  Union  Government  has  also  established  National  Minorities  Development  and Finance Corporation (NMDFC) in September, 1994 to promote economic and developmental activities for the backward sections amongst the minorities. NMDFC works as an apex body (under Ministry of Minority Affairs, MoMA) and channelizes its funds to the beneficiaries through the State Minority Finance Corporation of the respective State / Union Territories.

The names of the Minority Concentration Districts and details of bank-wise (Public Sector Banks) lending  to  minorities  under  PSL  are  available  on  the  website  of  the  Ministry  of Minority Affairs at www.minorityaffairs.gov.in.

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