(a) whether certain banks are yet to achieve the targets of providing at least 18 percent loan
to the agriculture sector out of the total loan disbursed by them;
(b) if so, the names of such banks and the reasons for not achieving the targets by them and
(c) the action taken/proposed to be taken by the Government in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) & (b): Yes, Sir. The name of the Banks who could not achieve the 18% net bank credit to
the Agriculture Sector is Annexed. Some of the reasons for non-achievement of targets are low
capital formation in agriculture contributing to lack of credit absorption capacity, natural
calamities like draught/flood in some of the states which, adversely affect the credit off
take, etc.
(c) : Public Sector and private sector banks, which fail to achieve the priority sector and/or
agriculture lending targets, are required to deposit into Rural Infrastructure Development
Fund(RIDF) such amounts as may be allocated to them by Reserve Bank of India wi the basis of
extent of their default. As a measure of disincentive for non-achievement of priority sector
lending targets, interest payable on the deposits made by the contributing banks in RIDF is
linked in inverse proportion to the extent of shortfall in the agricultural lending vis-a-vis
the stipulated target of 18% greater the shortfall, lower the rate of interest.