Lok Sabha Question No. 864 (UNSTARRED), answered on 2018-12-14
Subject: Loan Disbursal by PSBs
Ministry: FINANCE
Asked by: KAUSHAL KISHORE

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## TO BE ANSWERED ON THE 14 TH  DECEMBER 2018/ AGRAHAYANA 23, 1940  (SAKA)

## LOK SABHA UNSTARRED QUESTION NO. 864 Loan Disbursal by PSBs

## 864.  SHRI KAUSHAL  KISHORE:

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether  the Government  has taken  cognizance  that  the various  loan  services like education  loan,  personal  loans etc. by  the Public  Sector  Banks  (PSBs) are perceived  to be very   cumbersome,  slow  and time  consuming  as compared  to the private  sector banks; and
- (b) if  so,  the  details   thereof   along  with  the list  of steps taken  by  the Government  to improve  the system of  loan  disbursement  in PSBs?

## ANSWER Minister of State in the Ministry  of Finance

## (SHRI SHIV PRATAP  SHUKLA)

- (a): Comparable  data in this  regard  is not available.
- (b): A number  of steps have been taken  to improve  the system  of loan  services in PSBs, which  include, inter alia , the following:
- (1)  Vidya   Lakshmi,   a  common   web-based portal  (www.vidyalakshmi.co.in), has  been launched   to  facilitate   education   loans   application   to  banks   on  an  anytime, anywhere basis, on which  PSBs account  for 93% of all applications  received  till  6.12.2018.
- (3) Pradhan  Mantri  MUDRA  Yojana  has been launched  for providing  loans up to Rs. 10 lakh  to non-corporate,  non-farm  small and micro  enterprises  in which  PSBs along with  Regional  Rural  Banks (RRBs)  sponsored  by  them  account  for over 64% of the loan amount  sanctioned  by  Scheduled  Commercial Banks (SCBs) till  7.12.2018.
- (2) Overdraft  facility  for Prime  Minister  Jan Dhan  Yojana  (PMJDY)  accountholders  of an  amount   up to  Rs.  10,000  has  been  provided   upon   satisfactory   operation   of  the account  for six months,  in which  PSBs account  for over 80% of the accounts  opened till  5.12.2018.
- (4) Stand Up India scheme has been launched  to extend    institutional credit  system  for loans  between   Rs.  10  lakh   and  Rs.  1  crore   to  undeserved   strata   of  society   like   the Scheduled  Castes  and the Scheduled  Tribes,  and women  entrepreneurs.

(5) RuPay  Kisan Credit  Card  (KCC),  a smart  card cum debit  card has been introduced to  meet  the  production   credit   requirements of  farmers   in  a  timely   and  hassle-free manner,   and  PSBs  along   with   Regional   Rural   Banks(RRBs)   sponsored   by   them account  for over 96% (25.47 crore  RuPay  KCC)  of all RuPay  KCC  issued  by  SCBs till 5.12.2018.

(6)  Under   the  PSB  Reforms   Agenda   adopted   by   the  Boards  of  PSBs,  banks   have committed  to, inter alia, the following:

(i)  Enabling   online   application   facility   for  home,   education, vehicle   and  other personal   loans,   as  well   as  for  MSME  loans,   with   features   such  as  automated processing  for time-bound  decision-making  and transparent  status-tracking

(ii) Digitalisation of  non-retail   credit   appraisal   process  on  end-to-end  basis  for speedy  disposal  of applications

(iv) Enabling  of MSME financing  through  cluster-based  financing  and use of fintech

(v) Registration  of the bank  on the Trade  Receivables  electronic  Discounting  System

(TReDS) platform  for faster discounting  of bills  of MSMEs

(vi) Proactive  reach-out  to borrowers

(vii)  Institution  of efficient  practices  for effective  coordination in large  consortium loans  through   observance   of  a  minimum   threshold   of  10%  for  participation and adoption  of Standard  Operating  Procedures

(viii)   Board-approved   policy   for  enhanced   working   capital  to  GST-registered MSMEs

(7) In-principle  approval  for MSME loans up to Rs. 1 crore  within  59 minutes  by  PSBs through  the 59 minutes  portal  (www.psbloansin59minutes.com ).