Minorities to come under 'weaker sections': RBI

Mumbai, May 21 (UNI) The Reserve Bank of India (RBI) has included 'minority communities' in the list of 'weaker sections' for the purpose of priority-lending by banks thus making them eligible to avail of banking privileges.

As per the new amendment, 'minority communities' will now be entitled to partake 10 per cent of the total loans from public and private sector banks, which has been mandated to the 'weaker sections'.

However, in States where one of the minority communities notified happens to be in majority, the norms will cover only the other notified minorities, said the Central Bank.

These States or Union Territories include Jammu and Kashmir, Punjab, Sikkim, Mizoram, Nagaland and Lakshadweep.

The directive is learned to have come due to immense pressure mounting on RBI from the UPA coalition in a bid to woo minority sections having decisive say in rolling the political juggernaut.

The present move has come after the Central Bank and Indian Banks Association (IBA) reportedly expressed reserveations in the issue with the Central government.

The RBI had earmarked 40 per cent of the total loans issued by banks to priority sector, which include agriculture, housing, small-scale industries and weaker sections.

The weaker sections mainly include small and marginal farmers, landless labourers, tenant farmers, artisans, scheduled castes and scheduled tribes and self-help groups.

The amendment is also likely to be benificial to the private-public sector banks as more number of customers will now come under the definition of 'weaker section'.

As of now, weaker sections include scheduled castes and tribes, small and marginal farmers, artisans and urban poorer sections who are unable to repay their debts.

UNI