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ANSWERED ON:  05.01.2018
Credit/Loan Facilities to SCs/STs
Will the Minister of

FINANCE be pleased to state:-

(a) whether the Reserve Bank of India/ Public Sector Banks (PSBs)/financial institutions provide any credit/loan facilities to the people belonging to Scheduled Castes (SCs)/Scheduled Tribes (STs) for their socio-economic development and if so, the details thereof;
(b) the procedure adopted by the Government for the selection of SC/ST beneficiaries under different schemes;
(c) the total amount earmarked and disbursed under the said schemes by the PSBs/financial institutions to SC/ST communities during the last three years, bank-wise;
(d) the steps taken/being taken by the Government to ensure easy credit facility by PSBs/financial institutions to SCs/STs; and
(e) the number of households brought above poverty line as a result of inclusive policies of the Government during the above period?


(a) to (e) : A statement is laid on the table of House


Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. *274 to be answered on 05.01.2018 regarding Special Credit/Loan Facility to SCs/STs by SHRI RATTAN LAL KATARIA
(a) to (e) : In terms of Reserve Bank''s extant guidelines on lending to priority sector, a target of 40 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year, has been mandated for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 and above branches. Within this, a sub-target of 10 per cent of ANBC or Credit Equivalent amount of OBE, whichever is higher, as on March 31 of the previous year, has been set for lending to weaker sections which includes, among others, persons from SCs/ STs.
RBI has issued standing instructions to banks in the form of Master Circular - Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs) which is updated every year (latest being July 1, 2017) to give special emphasis to the welfare of the scheduled castes and scheduled tribes and take measures to step up their advances to SCs / STs which, inter-alia, includes:
• At the block level a certain weightage is to be given to scheduled castes / scheduled tribes in the planning process.
• Credit planning should be weighted in favour of SCs/STs. Loan proposals of these communities should be consideredof sympathetically and expeditiously.
• Banks should not insist on deposits while considering loan applications under Government sponsored poverty alleviation schemes / self-employment programmes from borrowers belonging to SCs / STs.
• If applications in respect of SCs / STs are to be rejected, it should be done at the next higher level instead of at the branch level. Further, reasons for rejection of applications should be clearly indicated.
There are several centrally sponsored schemes and other measures under which credit is provided by banks and subsidy is received through Government Agencies. Credit flow under these schemes is monitored by RBI. Under each of these, there is a significant reservation / relaxation for the members of the SC / ST communities. These measures, inter-alia, include:
• DeendayalAntyodayaYojana - National Rural Livelihoods Mission(DAY-NRLM):Underthe Ministry of Rural Development, Government of India has specified that 50% of the beneficiaries under the scheme would be SC/STs.

• DeendayalAntyodayaYojana - National Urban Livelihoods Mission(DAY-NULM):underthe Ministry of Housing and Urban Poverty Alleviation (MoHUPA), Government of India, has specified that advances to SCs / STs would be extended to the extent of their strength in the local population.

• Differential Rate of Interest (DRI) Scheme: under the DRI Scheme, banks provide finance up to ?15,000/- at a concessional rate of interest of 4 percent per annum to the weaker sections of the community for engaging in productive and gainful activities. Banks have been advised to grant to eligible borrowers belonging to SCs / STs such advances to the extent of not less than 2/5th (40 percent) of total DRI advances. Members of SCs / STs satisfying the income criteria of the scheme can also avail of housing loan up to ?.20,000/- per beneficiary over and above the individual loan of ?.15,000/- available under the scheme.

Further, the National Scheduled Castes Finance & Development Corporation (NSCFDC) National Scheduled Tribes Finance & Development Corporation (NSTFDC) functioning under aegis of Ministry of Social Justice & Empowerment and Ministry of Tribal Affairs also provide concessional Credit facilities to SCs & STs. Every year, (NSCFDC) notionally allocates its available resources to the State Channelizing Agencies (SCAs), in proportion to the Scheduled Caste population of the State/UT w.r.t. total Scheduled Caste population of the country.

The following schemes of the Government also facilitate credit flow to SC/ST entrepreneurs:

• Stand Up India scheme: Government of India launched this scheme in April, 2016 with the objective to promote entrepreneurship amongst women, SC & ST category. The Scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one Woman borrower per bank branch for setting up Greenfield enterprises. 6589 SC and 1988 ST beneficiaries has been financed as on 31.12.2017.

• Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs)-A sum of Rs. 200 crore has been allocated towards credit enhancement facility for young and start-up entrepreneurs, belonging to Scheduled Castes with the objective to promote entrepreneurship amongst the Scheduled Castes, facilitate economic development of SC entrepreneurs and enhance direct and indirect employment generation for SC population of India.

• Pradhan Mantri Mudra Yojana (PMMY) :With a view to ‘Fund the Unfunded’ segment of society and to bring them under formal credit system through Banks, NBFCs, Pradhan Mantri Mudra Yojana (PMMY) was launched on 08 April 2015. PMMY focus micro enterprises loans uptoRs. 50,000/- under `Shishu’ category, loans from Rs. 50,001 to Rs. 5 lakhs under `Kishore’ category and loans from Rs. 5 lakhs to Rs. 10 lakhs under `Tarun’ category.Under PMMY,6137017 No. of SC &ST beneficiaries were covered till 30.09.2017 for which Rs18942 Crore were disbursed.

Total amount of Loans disbursed by Public Sector Banks (PSBs) to SC/ST communities during the last three years, bank-wise is placed at Annexure –I

The poverty ratio data for SCs/STs is given below:

Social Group Rural Urban
2004-05 2011-12 2004-05 2011-12
SCs 53.53 31.50 40.56 21.70
STs 62.28 45.30 35.52 24.10
Total 41.79 25.40 25.68 13.70
Source: NITI Aayog
The data above indicates reduction in number of SCs/STs living Below the Poverty Line.


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