Lok Sabha Question No. 1245 (UNSTARRED), answered on 2021-12-06
Subject: CSR Funds Spent by PSBs
Ministry: FINANCE
Asked by: Ashok Kumar Rawat

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

## LOK SABHA UNSTARRED QUESTION NO. †1245

TO BE ANSWERED ON THE 6 TH  DECEMBER 2021/ AGRAHAYANA 15, 1943 (SAKA)

## CSR Funds Spent by PSBs

## †1245 . SHRI ASHOK KUMAR RAWAT:

Will the Minister of FINANCE be pleased to state:

(a) whether  the  Government  has  fixed  any  criteria  for  spending  funds  under  the Corporate Social Responsibility (CSR) by various Public Sector Banks (PSBs)etc. and if so, the details thereof;

- (b) whether all PSBs are adhering to the provisions of the CSR and if so, the details of the works done along with the amount of funds allocated by each PSB during the last three years and the current year, bank-wise, State/UT-wise;
- (c) whether the Government has taken any step for monitoring the amount spent by the PSBs under CSR in the country particularly in the backward and scheduled castes dominated regions;
- (d) if so, the details thereof, State-wise including Uttar Pradesh; and
- (e) the  steps  taken/being  taken  by  the  Government  to  ensure  compliance  of  CSR initiatives by all PSBs?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a):  As  per  Reserve  Bank  of  India  (RBI)  inputs,  public  sector  banks  (PSBs)  are  not covered  by  the  Companies  Act  and  hence  the  Corporate  Social  Responsibility  (CSR) policy  related  provisions  of  the  Companies  Act  are  not  applicable  to  these  banks. However,  RBI  has  issued  guidelines  on  Corporate  Social  Responsibility,  Sustainable Development and Non-Financial Reporting -Role of Banks.

(b)  to  (e):  Bank-wise  details  of  amount  spent  on  CSR  during  the  last  three  years  is  at Annex. With regards to PSBs adherence to the provisions of CSR, RBI has apprised that no such deviations were observed.

As regard State / Union territory-wise funds allocated, and monitoring the amount spent by the PSBs under CSR in the country particularly in the backward and scheduled castes dominated regions, it may be noted that CSR spending, approved by the bank Board, includes expenditure on activities that are not attributable to specific locations and are spread  across  the  country  with  multiple  organisations,  including  PSBs,    supporting  a project pan-India, e.g., Swachh Bharat Kosh, National Sports Development Fund, Clean Ganga Fund, PM's National Relief Fund, etc. and therefore, the full CSR expenditure State / Union Territory-wise or backward and scheduled castes dominated regions wise cannot be apportioned. The major CSR activities on which the PSBs have spent funds include, inter alia , the following:

- (i) Education-  granting  scholarships  to  students,  improving  the  infrastructure  at schools, etc.;
- (ii) Healthcarewelfare of physically/mentally challenged persons, providing ambulances and critical care medical equipment to hospitals/health-centres, etc.;
- (iii) Enabling employment enhancing vocational skills through Rural Self Employment Training Institutes, vocational centres etc.;
- (iv) Ensuring  environmental  sustainability  by  initiating/supporting  programmes  for afforestation, rainwater harvesting, protecting forest cover, etc.;
- (v) Providing safe drinking water, sanitation etc.; and
- (vi) Rural and slum development

Further,  as  per  instructions  issued  by  RBI  in  respect  of  PSBs,  audit  of  expenditure incurred under CSR forms part of the statutory audit of the PSB, which is carried out by auditors appointed by the PSB concerned.

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Annex

| Details of the funds allocated to CSR, bank wise   | Details of the funds allocated to CSR, bank wise   | Details of the funds allocated to CSR, bank wise   | Details of the funds allocated to CSR, bank wise   | Details of the funds allocated to CSR, bank wise   | Details of the funds allocated to CSR, bank wise   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
|                                                    |                                                    |                                                    |                                                    | (amount in lakh Rs.)                               | (amount in lakh Rs.)                               |
| S. N.                                              | Bank Name                                          | FY 2018-19                                         | FY 2019-20                                         | FY 2020-21                                         | FY 2021-22 (up to 30.9.2021)                       |
| 1                                                  | Bank of Baroda                                     | 1,401                                              | 433                                                | 690                                                | 829                                                |
| 2                                                  | Bank of India                                      | 600                                                | 600                                                | 900                                                | 900                                                |
| 3                                                  | Bank of Maharashtra                                | 5                                                  | 5                                                  | 389                                                | 550                                                |
| 4                                                  | Canara Bank                                        | 3,855                                              | 4,900                                              | 5,994                                              | 6,085                                              |
| 5                                                  | Central Bank of India                              | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| 6                                                  | Indian Bank                                        | 1,917                                              | 400                                                | 618                                                | 1,000                                              |
| 7                                                  | Indian Overseas Bank                               | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| 8                                                  | Punjab National Bank                               | 581                                                | 500                                                | 2,100                                              | 2,500                                              |
| 9                                                  | Punjab & Sind Bank                                 | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| 10                                                 | State Bank of India                                | 624                                                | 2,747                                              | 14,488                                             | 13,718                                             |
| 11                                                 | UCO Bank                                           | 1,099                                              | 990                                                | 966                                                | 960                                                |
| 12                                                 | Union Bank of India                                | 0                                                  | 0                                                  | 0                                                  | 29                                                 |

(Source: Public Sector Banks)