labels: banks & institutions
Government invites suggestions on increasing lending to minorities news
18 January 2007

The government has written to the Reserve Bank and the Indian Banks Association (IBA) seeking their views on how to increase the flow of credit to minorities.

According to finance minister P Chidambaram, "The Prime Minister's new 15 point programme for the welfare of minorities talks of more award of credit to minorities. We have asked RBI and IBA on how it can be operationalised."

The finance ministry says that no extra funds are being asked for minorities, but the government just wants that they should get a share of loans under the priority sector lending by banks.

Earlier, media reports had said that the Finance Ministry has told banks to examine the proposal to set aside 15 per cent of priority sector lending in all categories for minority communities.


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Government invites suggestions on increasing lending to minorities