Banks to give reasons for rejecting Muslims' loan requests: Govt

New Delhi, Aug 31 (UNI) Public sector banks will now have to give reasons for rejection of loan requests from Muslims.

Moreover, an Equal Opportunity Commission(EOC) will be constituted to look into grievances regarding discrimination against the community.

Besides, an expert group was constituted to propose an appropriate diversity index, which can be the basis for better representation of minority communities in educational institutions, work places and living spaces.

These were some of the measures as a follow up of the Sachar Committee Report announced in Lok Sabha today by Union Minister for Minority Affairs A R Antulay.

Mr Antulay said the banks will be asked to open more branches in Muslim concentration areas and financial institutions to promote micro-finance among the minorities, especially women.

The banks will monitor the disposal of loan applications for minorities and maintain reasons for rejections, he said.

Already 90 minority concentration backward districts and 338 towns were identified for developmental schemes.

Besides, an inter-ministerial group was constituted to plan and monitor the implementation of a comprehensive programme for skill and entrepreneurship development among Muslims.

For promotion of education among Muslims, the outreach of upper primary schools will be expanded, particularly for Muslim girls, and where necessary, with 'girls only' schools. For that more Kasturba Gandhi Balika Vidyalayas(KGBV) will be opened.

Three scholarships were proposed exclusively for minorities--one a merit-cum-means scholarship for 20,000 students for pursuing technical education and professional courses and two pre-matric and post-matric scholarships.

The Minister said a suitable agency would soon assist in the development of wakf properties so that the augmented income could be utilised for a purpose.

A comprehensive amendment of the Wakf Act was proposed to address existing deficiencies in the law, he added.

The Sachar Committee, Mr Antulay pointed out, had found that Muslims were one of the most educationally, economically and socially backward classes.

The literacy rate was 59.1 per cent , much below the national average of 64.8 per cent.

About 38 per cent of Muslims in urban areas and 27 per cent in rural areas live below poverty line. Moreover, they had insecurity of jobs with most of them employed in the informal sector, he said.

UNI