RBI allots funds to SIDBI and NHB

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Mumbai, Nov 20 (UNI) Keeping in tune with its November 15 policy measures to ensure growth momentum in the employment-intensive sectors of micro and small enterprises and housing, The Reserve bank of India today allocated Rs 2,000 crore to Small Industries Development Bank of India and Rs 1,000 crore to National Housing Bank.

The Funds would be parked respectively in Micro, Small&Medium Enterprises (MSME) (Refinance) Fund and Rural Housing Fund. The allocations have been made in advance on the basis of the banks' projected shortfall in achievement of sub-target of 10 per cent for lending to Weaker Section category as on the last reporting Friday of March 2009, RBI said in a release here.

It may be recalled that as announced in the Annual Policy Statement for the year 2008-09, the domestic scheduled commercial banks were advised that the shortfall in lending to weaker sections will also be taken into account for the purpose of allocating amounts for contribution to the Rural Infrastructure Development Fund (RIDF) maintained with National Bank for Agriculture and Rural Development (NABARD) or funds with other Financial Institutions, as specified by the Reserve Bank, with effect from April 2009. The above allocations now made to banks for placing with SIDBI and NHB will be adjusted against the banks' future allocations, if any, which may be made during the year 2009-2010 on the basis of the actual shortfall in achievement of priority sector lending target/sub-targets as on the last reporting Friday of March 2009.

UNI VK OBB NP1744

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