Lok Sabha Question No. 2434 (UNSTARRED), answered on 2018-08-01
Subject: Lending to Minority Communities
Ministry: MINORITY AFFAIRS
Asked by: DHANANJAY BHIMRAO MAHADIK, RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, JAYAKUMAR JAYAVARDHAN

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2434

## TO BE ANSWERED ON 01.08.2018

Lending to Minority Communities

## 2434. SHRI DHANANJAY MAHADIK:

SHRI SATAV RAJEEV:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

DR. J. JAYAVARDHAN:

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 particularly in Maharashtra and Tamil Nadu as minority concentration district for this purpose and if so, the details thereof;
- (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; and
- (e) the  achievements  of  National  Minority  Development  and  Finance Corporation and State Minority Finance Corporation in this regard?

## ANSWER

## MINISTER OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

(a) to (c): In terms of Reserve Bank of India's (RBI's) extant guidelines on lending to priority sector, a target of 40 percent of Adjusted Net Bank Credit (ANBC)  or  Credit  Equivalent  amount  of  Off-Balance  Sheet  Exposures (OBE), whichever is higher, as on 31 st March 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 31 st March of the previous year, has been prescribed  for  lending  to  weaker  sections;  which  includes,  among  others, persons from minority communities.

As per the Prime Minister's New 15 Point Programme (PM's New 15-PP) for  the  welfare  of  minorities,  all  Public  Sector  Banks  (PSBs)  have  been advised to earmark a target of 15% credit flow to minority communities, out of  their  total  priority  sector  lending  (PSL).  The  quantum  of  lending  to minority  communities  as  percentage  of  the  total  priority  sector  lending  by Public Sector Banks in the last three years is given under:

| Year    | Amount Outstanding (in Rs. crore)   |   Achievement as %of PSL |
|---------|-------------------------------------|--------------------------|
| 2015-16 | 2,92,345.00                         |                    15.38 |
| 2016-17 | 3,02,526.00                         |                    15.4  |
| 2017-18 | 3,12,683.00                         |                    15.79 |

Source: PSBs

RBI's  Master  Circular  on  credit  facilities  to  minority  communities  dated 02.07.2018 provides the list of 121 Minority Concentration Districts (MCDs), including districts of States of Maharashtra and Tamil Nadu. As per this list, the  districts  of  Akola,  Amravati,  Aurangabad,  Buldhana,  Hingoli,  Mumbai, Mumbai (Suburban), Parbhani & Washim in Maharashtra and Kanyakumari in Tamil Nadu have been included as MCDs.

- (d): As  per  RBI  master  direction,  PSL  consists  of  various  categories under  which  PSBs  extend  loans,  inter  alia,  to  minority  communities,  viz. Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, others, etc. The details of  lending  to  minorities  under  PSL,  as  reported  by  PSBs,  are available on the website of the MoMA at www.minorityaffairs.gov.in.
- (e): 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  loans  are  sanctioned  under  its  financing schemes  for  any  technically  feasible  and  economically  viable  income

generating  venture.  The  projects  financed  under  the  schemes  of  NMDFC are covered under the following five sectors:

- (i) Agriculture and Allied;
- (ii) Technical Trades;
- (iii) Small Business;
- (iv)  Artisan and Traditional Occupations; and
- (v) Transport and Services Sector.

The concessional credit schemes of NMDFC are implemented through the State  Channelising  Agencies  (SCAs)  nominated  by  the  respective  State Governments/UT  Administrations.  Details  of  the  State-wise  quantum  of loans  disbursed  by  NMDFC  during  the  last  three  years  and  the  current financial year are available on website www.minorityaffairs.gov.in.

*****