New Delhi: The government has asked public sector banks to raise lending to minority communities, including Muslims, Christians and Sikhs, to 15 per cent of total priority sector advances over the next three years.
"The lending to minority communities has reached about 9 per cent out of total lending to the priority sector. The goal is to take it to 15 per cent in three years and banks will move in that direction," Finance Minister P Chidambaram said after a meeting with chairmen of state-run banks.
He said banks have also agreed to open more branches in minority-concentrated districts. The lead bank in such districts will take initiative in this regard.
Out of total bank advances, the banks must give 40 per cent credit to priority sectors including agriculture, small and medium enterprises and socially and economically weaker sections.
The government had earlier identified 103 districts, where minority communities such as Muslims, Christians, Sikhs, Buddhists and Zoroastrians make up 25 per cent or more of the population. Most of these districts are in West Bengal, Uttar Pradesh, Bihar, Assam, Andhra Pradesh, Maharashtra and Kerala.
On the basis of the Sachar Committee report, which lays out the poor social, economic and educational conditions of Muslims, the government had sought to initiate measures aimed at delivering tangible benefits to minorities.
Prioritising lending is one of the initiatives outlined under the Prime Minister's 15-point programme for minorities.
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