Govt seeks suggestions on increasing lending to minorities

The government said it has written to the RBI and Indian Banks Association seeking their views on how to increase flow of credit to minorities.

The government on Thursday said it has written to the Reserve Bank and the Indian Banks Association (IBA) seeking their views on how to increase flow of credit to minorities.

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"The Prime Minister's New 15 Point Programme for the Welfare of Minorities talks of more award of credit to minorities. We have asked RBI and IBA on how it can be operationalised," Finance Minister P Chidambaram told reporters.

The Finance Ministry officials say that no extra funds are being asked for minorities, but the government just wants that they should get a share of loans under the priority sector lending by banks.

Earlier, media reports had said that the Finance Ministry has told banks to examine the proposal to set aside 15 per cent of priority sector lending in all categories for minority communities.

Chidambaram described the reports as speculative.