Question : LOANS TO RURAL AELEAS BY FOREIGN BANKS



(a) whether the Government proposes to frame any rule for foreign banks to extend 30 percent of their total loans to the rural areas;

(b) if so, the details thereof; and

(c) if not, the reasons therefor?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI PAWAN KUMAR BANSAL)

(a): No,Sir.However,as per Reserve Bank of India guidelines on Priority Sector Lending,foreign banks are required to extend 32% of their Adjusted Net Bank Credit or equivalent amount of off-balance sheet exposure,whichever,is higher to Priority Sector.

(b) & (c): Do not arise.