Lok Sabha Question No. 5837 (UNSTARRED), answered on 2026-03-30
Subject: Financial Inclusion by Improving Credit-Deposit (CD) Ratio
Ministry: FINANCE
Asked by: Shri Anurag Singh Thakur

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

## LOK SABHA UNSTARRED QUESTION NO. 5837

ANSWERED ON MONDAY, MARCH 30, 2026/ CHAITRA 09, 1948 (SAKA)

## Financial Inclusion by Improving Credit- Deposit (CD) Ratio

## 5837.    SHRI ANURAG SINGH THAKUR:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  is  aware  that  Credit-  Deposit(CD)  Ratio  in  certain  districts  of Himachal  Pradesh,  including  Hamirpur,  remains  below  national  target,  if  so,  the  details thereof, district- wise and the reasons attributed to such persistently low credit deployment in these districts; (b) the  measures  being  taken  by  the  Government  to  encourage  banks  to  accelerate  credit disbursement under flagship selfemployment, livelihood schemes such as  PM Vishwakarma,  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Mudra Yojana in rural and semi- urban areas; (c) the number of Kisan Credit Card (KCC) holders without debit card in Himachal Pradesh, district wise; (d) whether the Government is likely to advise Public Sector Banks to ensure full compliance with mandatory issuance of Rupay Debit Cards to all eligible Kisan Credit Card holders, particularly in districts where farmers are yet to receive their cards despite being entitled to them, if so, the details thereof; and (e) the current progress and steps being taken by the Government to resolve Non- Performing Assets,  stressed  MSME  accounts  and  strengthen  financial  literacy  programmes  in
- Himalayan and Northeastern States to improve overall banking outcomes?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e): The Reserve Bank of India (RBI) has advised banks to ensure that wide disparity in the  Credit-  Deposit  (CD)  ratios  between  different  States/Regions  to  be  avoided  in  order  to minimise regional imbalance in credit deployment, and banks may review the performance of their branches in such areas and take necessary steps to augment the credit flow. Further, the credit dispensation in certain districts may be low affecting the CD Ratio, due to various factors, including, inter alia, infrastructure challenges, varying ability of different regions to absorb credit. The CD ratios in districts of Himachal Pradesh in last three years are at Annexure-I.

As per inputs received from State Level Bankers' Committees (SLBCs) of Himachal Pradesh and North-Eastern States, various efforts have been undertaken by banks to strengthen financial literacy and to increase the CD ratio and credit disbursement under various schemes such as PM Vishwakarma, PMEGP, Mudra Yojana in rural and semi- urban areas. These include, inter alia, actively working on credit outreach programs, engaging banking correspondents/ customer service points in sourcing loans, expanding financial inclusion to every village, sector-specific lending, community engagement, simplified loan application processes, strategic partnerships, collaboration  with  government  bodies,  exploring  opportunities  to  finance  through  farmers producers'  organisations,  engagement  of  Bank  Sakhis  and  organising  financial  literacy programs.

With the objective of scaling up financial literacy efforts at ground level, Lead Banks conduct camps covering various aspects of financial literacy through their Financial Literacy Centres for the  general  public  as  well  as  for  different  target  groups  viz.  farmers,  micro  and  small entrepreneurs, school children, Self Help Groups and senior citizens. Rural branches of banks conduct  one  camp  per  month  covering  all  the  messages  that  are  part  of  RBI's  Financial Awareness Messages booklet, which, inter alia, contains messages on various facets of financial literacy including basic banking, digital financial literacy, consumer protection etc.

With regard to compliance with mandatory issuance of Rupay Debit Cards to all eligible Kisan Credit Card (KCC) holders, as per RBI's Modified Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through KCC, banks may encourage farmers to utilize all available digital banking channels, including RuPay cards, for seamless account operations and transactions. The details of number of KCC holders without debit card in the districts of Himachal Pradesh are at Annexure-II.

Sustained  and  coordinated  measures  are  undertaken  regularly  by  RBI,  SLBC,  with  active participation of all banks, to address the issues relating to Non- Performing Assets (NPAs) and stressed MSME Accounts. These measures include, inter alia, the following:

- (i) Implementation of structured resolution frameworks such as restructuring and one-time settlement  schemes.  The  recovery  ecosystem  has  been  strengthened  through  IBC, SARFAESI actions and Lok Adalats.
- (ii) Under the RBI's Framework for Revival and Rehabilitation, banks are required to identify early signs of stress and  initiate corrective action plans, including rectification, restructuring, or recovery, for MSME loans up to ₹25 crore.
- (iii) For MSME exposures above ₹25 crore, RBI's Prudential Framework for Resolution of Stressed  Assets,  allows  lenders  flexibility  to  restructure  loans  based  on  viability assessment. These measures aim to ensure timely resolution, prevent asset deterioration, and support the continued viability of MSMEs.

*****

Annexure-I Annexure  referred  in  reply  of  Lok  Sabha  Unstarred  Question  no.  5837  for  30.3.2026 regarding Financial Inclusion by Improving Credit- Deposit (CD) Ratio Credit Deposit Ratio of Scheduled Commercial Banks (including Regional Rural Bank) (in %) in districts of Himachal Pradesh

| S.no.   |               | As on     | As on     | As on     |
|---------|---------------|-----------|-----------|-----------|
|         | District      | 31.3.2023 | 31.3.2024 | 31.3.2025 |
| 1       | Bilaspur      | 24.11     | 25.18     | 27.55     |
| 2       | Chamba        | 32.25     | 34.10     | 35.54     |
| 3       | Hamirpur      | 21.20     | 22.18     | 23.37     |
| 4       | Kangra        | 23.01     | 24.61     | 25.88     |
| 5       | Kinnaur       | 44.89     | 46.50     | 46.10     |
| 6       | Kulu          | 40.62     | 42.74     | 43.84     |
| 7       | Lahul & Spiti | 23.59     | 24.93     | 21.71     |
| 8       | Mandi         | 25.31     | 27.39     | 29.53     |
| 9       | Shimla        | 28.46     | 30.34     | 33.05     |
| 10      | Sirmaur       | 72.79     | 77.00     | 79.42     |
| 11      | Solan         | 68.53     | 76.10     | 80.92     |
| 12      | Una           | 29.96     | 31.44     | 32.60     |

*Source: Reserve Bank of India (RBI)

The Credit  Deposit  (CD)  Ratio  is  computed  on  the  basis  of  Credit  and  Deposit  Data provided by RBI .

- *****

## Annexure  referred  in  reply  of  Lok  Sabha  Unstarred  Question  no.  5837  for  30.3.2026 regarding Financial Inclusion by Improving Credit- Deposit (CD) Ratio

The number of KCC holders without Rupay Debit Card, District- Wise in the State of Himachal Pradesh

|   S.no. | District      | As on 31.3.2025   |
|---------|---------------|-------------------|
|       1 | Bilaspur      | 16,267            |
|       2 | Chamba        | 7,021             |
|       3 | Hamirpur      | 19,742            |
|       4 | Kangra        | 44,384            |
|       5 | Kinnaur       | 5,649             |
|       6 | Kulu          | 14,476            |
|       7 | Lahul & Spiti | 1,742             |
|       8 | Mandi         | 33,537            |
|       9 | Shimla        | 45,292            |
|      10 | Sirmaur       | 18,390            |
|      11 | Solan         | 20,797            |
|      12 | Una           | 20,304            |

*Source: State Level Bankers' Committee, Himachal Pradesh

*****