BANKS ASKED TO MEET TARGETED TEN PERCENT LENDING TO SCs/STs
The Workshop on the Role of Financial
Institutions for Economic Development of Scheduled Castes and
Scheduled Tribes has called for substantially enhancing financial
lending to these communities in a concerted manner. This was stated
by the Chairman of the National Commission for Scheduled Castes
and Scheduled Tribes (NCSCST) while addressing a press conference,
here today. He said that the Workshop called upon all the banks
to meet the target of 10% lending to weaker sections as per the
guidelines of the Reserve Bank of India. Dr. Shastri said that
the participants unanimously urged for concerted efforts to create
awareness among SCs and STs about various developmental programmes
as well as sensitisation of bankers and development officials
at the district and block levels about socio-economic development
of SCs and STs. He said that the other recommendations include
encouragement of lending through self-help groups and NGOs, entrepreneurial
development programmes through training, priority sector advances
to SCs and STs and new schemes for unemployed youths in rural
and urban areas. It also stressed for strengthening the monitoring
mechanism by the National Commission for SCs and STs. It was admitted
during the one-day workshop that there is a lack of sensitivity
in the ground functionaries towards the special problems and SCs
and STs. It was said that the marketing of products made by people
belonging to SCs and STs should be tied up. Earlier, inaugurating
the Workshop, the Minister of State in the PMO, Shri Vijay Goel
asked the banks and financial institutions to simplify procedures
for lending to weaker sections. He said that the ceiling on loan
amounts should be increased and financial institutions should
take some risk while funding the schemes for poor people. He said
that economic deprivation is one of the main reasons for social
unrest. The Minister of State for Tribal Affairs, Shri Kulesteji
urged the National Commission for SCs and STs to extend its reach
to grass root level to monitor effectiveness of various schemes.
He said that special awareness campaigns should be launched to
familiarize the SC / ST communities about various development
schemes aimed at their socio-economic development. Welcoming the
participants, the Chairman of the National Commission for SCs
and STs, Dr. Bizay Sonkar Shastri expressed concern at the poor
lending by financial institutions to weaker sections. He said
that genuine aspirations of the under privileged sections of our
society cannot be swept under any longer as the country can no
longer afford islands of prosperity in a vast sea of poverty.
The workshop organised by the NCSCST was attended by the CMD of
the State Bank of India, Shri Janaki Ballabh, CMD, Dena Bank,
Shri A.G. Joshi, CMD, Allahabad Bank, Dr. B. Samal, CMD, Bank
of India, Shri K.V. Krishnamurthy, CMD, Union Bank of India, Shri
V. Leeladhar, CMD, Punjab National Bank, Shri S.S. Kohli and the
representatives of the various State and Central Financial Institutions.
The CMDs outlined the efforts being made by their banks in economic
empowerment of SCs and STs, the problems banks face in financing
their projects and the structural reforms which the Government
should make to enable the banks to play a more proactive role
in the economic development of SCs and STs.
