The Hindu Business Line : Norms on lending to weaker sections modified: RBI

Mumbai May 19 Loans to members of the minority communities who belong to the weaker sections of the society will be included under the priority sector advances of banks.

The weaker sections under the priority sector as defined by the RBI include small and marginal farmers, landless labourers, tenant farmers, artisans, scheduled castes and scheduled tribes, self-help groups, among others.

In a notification issued, the RBI said that the recently issued guidelines on the priority sector have been modified to include loans granted to persons who belong to the weaker sections and are from minority communities, as may be notified by the Government from time to time.

Banks have to lend up to 40 per cent of their adjusted net bank credit to the priority sector, which include farmers, borrowers of home loans up to Rs 20 lakh, and education loans up to Rs 10 lakh for domestic education and Rs 20 lakh for overseas education.

In States where one of the minority communities notified is, in fact, in majority, the norms will cover only the other notified minorities. These States or Union Territories are Jammu and Kashmir, Punjab, Sikkim, Mizoram, Nagaland and Lakshadweep, the notification added.

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