Lok Sabha Question No. 1030 (UNSTARRED), answered on 2021-02-08
Subject: Nationalised Banks
Ministry: FINANCE
Asked by: Hanuman Beniwal

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

## LOK SABHA UNSTARRED QUESTION NO. 1030

Answered on February 8, 2021 /Magha 19, 1942 (Saka)

Nationalised Bank

## 1030 . SHRI HANUMAN BENIWAL

Will the Minister of FINANCE be pleased to state:

- a) the percentage of the amount that is mandatorily sanctioned by the nationalized banks as per their banks limit located in urban and rural areas during their financial year for works related to agriculture and other works such as employment, etc;
2. (b) the number of applications received by the nationalized banks set up in the district of Nagor in Rajasthan during the financial years 2019-20 and 2020-21 under the Pradhan Mantri Yojana and Pradhan Mantri Mudra  Yojana for the works related to agriculture; Rojgar
3. the number of loan applications sanctioned by the concerned bank; and
4. (d) the number and details of loan applications which are still pending along with the progress made in this direction so far?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a Reserve Bank of India (RBI) earmarked specific targets for Commercial Bank [including Regional Rural Bank (RRB), Small Finance Bank (SFB), Local Area Bank] and Primary (Urban) Co-operative Bank (UCB) in respect of priority sector lending (PSL) by these banks with the objective to ensure that vulnerable sections of society access to credit and there is adequate flow of resources to those segments of the economy which have higher employment potential and help in making an impact on poverty alleviation. get

Accordingly, RBI vide their Master Direction dated 4th September 2020 on PSL have prescribed an overall target of 40% for Nationalised banks This; inter-alia, include 18% towards agriculture, 7.5% for Micro Small and Medium Enterprises and 10% for weaker Section:

The details of these targets are placed at Annexure:

(b) to (d) Pradhan Mantri Yojana (PMRY) Scheme has been discontinued by the Ministry of Micro, Small & Medium Enterprises (MSME) with effect from 01.04.2008. A new scheme namely Prime Minister' s Employment Generation Programme (PMEGP) was formulated and launched on 15.08.2008 by merging two employment generation schemes viz PMRY and Rural Employment Generation Programme (REGP) and is implemented with effect from FY 2008-09. Rojgar being

Details of applications received and sanctioned under the PMEGP and Pradhan Mantri Mudra   Yojana  (PMMY) in the   nationalized   banks in the district of Nagaur in Rajasthan during the financial years 2019-20 and 2020-21 are given below:

| Prime Minister' s Employment Generation Programme (PMEGP)   | Prime Minister' s Employment Generation Programme (PMEGP)   | Prime Minister' s Employment Generation Programme (PMEGP)   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Financial Year                                              | No. of applications received                                | No. of loan applications sanctioned                         |
| 2019-20                                                     | 167                                                         |                                                             |
| 2020-21 (as on 02.02.2021)                                  | 215                                                         | 78                                                          |

Source: SLBC, Rajasthan

| Pradhan Mantri Mudra Yojana (PMMY)   | Pradhan Mantri Mudra Yojana (PMMY)   | Pradhan Mantri Mudra Yojana (PMMY)   |
|--------------------------------------|--------------------------------------|--------------------------------------|
| Financial Year                       | of applications received             | No. of loan applications sanctioned  |
| 2019-20                              | 8653                                 | 8653                                 |
| 2020-21 (as on 02.02.2021)           | 9355                                 | 9355                                 |

Source: Data reported by Public Sector Banks (PSBs) on Mudra Portal as received from SLBC, Rajasthan

SLBC Rajasthan has further, apprised that during current FY (2020-21) 46 applications are pending under PMEGP scheme.

Annexure referred to in reply of Lok Sabha Unstarred Question No.1030 to be answered on &th February, 2021 regarding Nationalised Bank

## Targets /Sub-targets for Priority sector

| Categories                  | Domestic commercial banks (excl: RRBs & SFBs) & foreign banks with 20 branches and above                | Foreign banks with less   than 20 branches                                                                                            | Regional Rural Banks                                                                                                                                                                | Small Finance Banks                                                      |
|-----------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
| Total Priority Sector       | 40 per cent                                                                                             | 40 per cent out of which up to 32% can be in the form of lending to Exports and not less than 8%/ can be to any other priority sector | 75 per cent of However; lending to Medium Enterprises, Social Infrastructure and Renewable Energy shall be reckoned for priority sector achievement only up to 15 per cent of ANBC. | 75 per cent                                                              |
| Agriculture                 | 18 per cent; out of which a target  of 10 percent is prescribed for Small and Marginal Farmers (SMFs) # | Not applicable                                                                                                                        | 18 per cent out of which a target of 10 is prescribed for SMFs                                                                                                                      | 18 per cent; out of which a target of 10 percent# is prescribed for SMFs |
| Micro Enterprises           | 7.5 per cent                                                                                            | Not applicable                                                                                                                        | 7.5 per cent                                                                                                                                                                        | 7.5 per cent                                                             |
| Advances to Weaker Sections | 12 percent #                                                                                            | Not applicable                                                                                                                        | 15 per cent                                                                                                                                                                         | 12 percentl:                                                             |

Note: Target in terms of of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of OffBalance Sheet Exposures (OBE), whichever is higher, as of preceding March 3lst.

## Primary Urban Co-operative Bank

| Categories_                 | Target                                                                                                                                                               | Target                                                                                                                                                               | Target                                                                                                                                                               | Target                                                                                                                                                               | Target                                                                                                                                                               |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Total Priority Sector       | 40 per cent of ANBC, which shall stand increased to 75 per cent with effect from UCBs   shall   comply with the   stipulated target as per the following milestones: | 40 per cent of ANBC, which shall stand increased to 75 per cent with effect from UCBs   shall   comply with the   stipulated target as per the following milestones: | 40 per cent of ANBC, which shall stand increased to 75 per cent with effect from UCBs   shall   comply with the   stipulated target as per the following milestones: | 40 per cent of ANBC, which shall stand increased to 75 per cent with effect from UCBs   shall   comply with the   stipulated target as per the following milestones: | 40 per cent of ANBC, which shall stand increased to 75 per cent with effect from UCBs   shall   comply with the   stipulated target as per the following milestones: |
|                             | Existing target                                                                                                                                                      | March 2021 31,                                                                                                                                                       | March 2022 31,                                                                                                                                                       | March 31, 2023                                                                                                                                                       | March 31,2024                                                                                                                                                        |
|                             | 40%                                                                                                                                                                  | 45%/                                                                                                                                                                 | 50%                                                                                                                                                                  | 60%                                                                                                                                                                  | 75%                                                                                                                                                                  |
| Micro Enterprises           | 7.5 per cent of ANBC                                                                                                                                                 | 7.5 per cent of ANBC                                                                                                                                                 | 7.5 per cent of ANBC                                                                                                                                                 | 7.5 per cent of ANBC                                                                                                                                                 | 7.5 per cent of ANBC                                                                                                                                                 |
| Advances to Weaker Sections | 12 per cent of ANBC #                                                                                                                                                | 12 per cent of ANBC #                                                                                                                                                | 12 per cent of ANBC #                                                                                                                                                | 12 per cent of ANBC #                                                                                                                                                | 12 per cent of ANBC #                                                                                                                                                |