Lok Sabha Question No. 2017 (UNSTARRED), answered on 2022-03-14
Subject: Loan by PSBs
Ministry: FINANCE
Asked by: Saikia Dilip, Ramesh Chander Kaushik

## Government of India Ministry of Finance Department of Financial services

## LOK SABHA UN-STARRED QUESTION No. 2017

ANSWERED ON MARCH 14, 2022/ Phalguna 23, 1943 (SAKA)

## Loans by PSBs

## 2017. SHRI DILIP SAIKIA: SHRI RAMESH CHANDER KAUSHIK:

Will the Minister of FINANCE be pleased to state:.

- (a)   whether the Public Sector Banks (PSBs) are hesitant in giving loans to the common people under the various schemes;
- (b)   if so, whether the Government has received any complaints in this regare;
- (c)   if so, the details thereof;
- (d) whether the Government has fixed any accountability in this regard; and
- (e)   if so, the details thereof?

Minister of State in the Ministry of Finance

(DR. BHAGWAT KARAD)

- (a) Loans by Public Sector Banks (PSBs) are extended as per their Board-approved policies and extant Reserve Bank of India (RBI) guidelines which, inter-alia includes, viability of project, assessment of repayment capacity of the borrower, etc.

The  total  outstanding  credit  by  PSBs  under  Retail  and  Priority  Sector  category,  which, inter-alia, includes loans to common people, farmers etc. is as follows:-

| (Amount in Rs. Crore)   | (Amount in Rs. Crore)    | (Amount in Rs. Crore)       | (Amount in Rs. Crore)        |
|-------------------------|--------------------------|-----------------------------|------------------------------|
| S. No.                  | Category                 | Oustanding as on 31.03.2019 | Outstanding as on 31.12.2021 |
| 1                       | Retail Loans             | 13,57,354                   | 17,84,131                    |
| 2                       | Priority Sector Advances | 20,75,900                   | 23,24,174                    |

(Source: RBI Domestic Operations)

## ANSWER

As evident from above data, the growth witnessed in Retail Loans and Priority Sector Advances is approx. 31% and 12% respectively.

Details of loans sanctioned under some of the people-centric flagship Schemes of the Government viz. Pradhan Mantri Mudra Yojana (PMMY), Stand Up India (SUPI) and PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) are tabulated below:-

| (as on 25.02.2022)   | (as on 25.02.2022)   | (as on 25.02.2022)     | (as on 25.02.2022)            |
|----------------------|----------------------|------------------------|-------------------------------|
| S. No.               | Scheme Name          | No. of loans (in lakh) | Amount Sanctioned (in Rs. Cr) |
| 1                    | PMMY                 | 3385.52                | 18,19,256.00                  |
| 2                    | SUPI                 | 1.33                   | 29,932                        |
| 3                    | PM SVANidhi          | 33.21                  | 3,454                         |

(b) to (e)  Any complaints relating to implementation of flagship Schemes of Government including, delay in turn-around-time (TAT), turning down of loan applications etc. are redressed in coordination with  the  respective  Banks.  A  number  of  steps  have  been  taken  to  improve  implementation  of  the Schemes which, inter alia, include:

- (i) provision for online loan applications through psbloansin59minutes, udyamimitra and other digital lending platforms;
- (ii)    intensive  publicity  campaigns  by  PSBs  for  increased  visibility  of  the  Schemes  amongst  the stakeholders;
- (iii)  simplified of application forms;
- (iv) periodic monitoring of performance of PSBs etc.

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