(a) whether the Ministry wants freedom for Public Sector Undertakings (PSUs) to invest
in private Micro Finance Institutions (MFls);
(b) if so, the details thereof; and
(c) the present status thereof?
(a) whether the Ministry wants freedom for Public Sector Undertakings (PSUs) to invest
in private Micro Finance Institutions (MFls);
(b) if so, the details thereof; and
(c) the present status thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c) : Public Sector Banks (PSBs) are regulated by Reserve Bank of India (RBI) and
their operations are governed by the instructions issued by RBI from time to time. At
present, PSBs are financing Micro Finance Institutions (MFls) which form part of Priority
Sector Lending. As per the data received from the Banks the loans outstanding to MFls by
PSBs as on 31 March 2010 stood at Rs 10,147.54 crore. In addition, Small Industries
Development Bank of India is also financing to MFls and the loans outstanding by SIDBI
as on 31 March 2010 stood at Rs. 3, 808.20 crore.