(a) whether the norm for maintaining the 40% share of the priority sector credit in total outstanding credit is mandatory for all the private, domestic and foreign banks; and
(b) if so, the details thereof?
(a) whether the norm for maintaining the 40% share of the priority sector credit in total outstanding credit is mandatory for all the private, domestic and foreign banks; and
(b) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM):
(a) and (b) Reserve Bank of India has stipulated targets for banks in public and private
sector for lending to priority sectors including agriculture, small scale sectors,
weaker sections etc. Targets prescribed for various categories in priority sector
are as under:
Priority Sector 40% of the net bank credit
Agriculture 18% of the net bank credit
Small scale industries No specified target
Weaker sections 10% of the net bank credit
of 25% of the priority sector advances
A target of 32 percent of the net bank credit has been stipulated for lending to the priority
sector by foreign banks having offices in India.