The Hindu : National : Banks have not met priority lending targets

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Friday, Jul 22, 2005

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Banks have not met priority lending targets

Special Correspondent

About 1,2000 branches have not even begun lending to the poor, Consultative Committee told

NEW DELHI: Union Rural Development Minister Raghuvansh Prasad Singh has asked banks to consider lowering lending rates for the poor.

At a meeting of the consultative committee attached to his Ministry here, he said the banks had not fulfilled their targets for priority lending. About 1,200 branches had not even begun lending to the poor.

Responding to the concern expressed by members, Mr. Singh said the Ministry would take up the matter with the Finance Ministry to ensure that the poorest, who required loans at lower interest, were able to access banks. Efforts should be made to overcome poor lending in tribal areas.

Incentives

Giving details of incentives under the Swarnajayanti Gram Swarozgar Yojana, Mr. Singh said Rs. 5 lakhs was provided for marketing products from rural areas. Efforts were also being made to encourage formation of self-help groups.

The Ministry would share success stories achieved in some districts for replicating the performance in other parts to benefit the poorest of the poor.

Those who attended the meeting included Madhusudan D. Mistry, Prakash V.Patil, Arun Kumar Vundavalli, D.V. Sadananda Gowda, Ram Lakhan Singh, Thawar Chand Gehlot, Kailash Joshi, Bhupendrasinh Solanki, Saifuddin Soz, Vikram Verma, Jainarayan Prasad Nishad, Gingee N. Ramachandran, P.S. Gadhavi, Rupatai Diliprao N. Patil, C.S. Sujatha, Sukhdev Singh Libra and Pratyush Singh.

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