Finance Minister to meet CEOs of PSBs to review progress of schemes for SCs

Finance Ministry to consider Insurance as a Bank security

Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks and financial institutions later this month to review progress of various government schemes aimed at welfare and upliftment of scheduled castes. Schemes like Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and Credit Enhancement Guarantee Scheme for Scheduled Castes (SCs) and their progress would be discussed during the meeting, sources said.

The meeting would review the performance of public sector banks (PSBs) and financial institutions to provide credit to people belonging to the SC community and other welfare measures under implementation, they said.

The meeting, to be chaired by the Finance Minister, would see participation from chairman of National Commission for Scheduled Castes (NCSC), financial services secretary and other senior officials.

The Stand-Up India scheme was launched in 2016 to promote entrepreneurship among the scheduled caste/ scheduled tribe and women by facilitating bank loans of Rs 10 lakh to Rs 1 crore to at least one SC/ST borrower and one woman borrower per bank branch for setting up new enterprises in trading, manufacturing and services sector.

In 2019-20, Stand-Up India was extended for the entire period coinciding with the 15th Finance Commission period of 2020-25.

The scheme, being implemented through all scheduled commercial banks, is expected to benefit at least 2.5 lakh borrowers. Total 1,44,223 loans have been sanctioned to women and SC/ST entrepreneurs across the country as on July 22, 2022 under the scheme, as per the latest government data.

Under PMMY, collateral-free institutional credit of up to Rs 10 lakh is provided by Member Lending Institutions (MLIs) to micro/small business units, for income generating activities in sectors such as manufacturing, trading, services and also for activities allied to agriculture.

Since inception of PMMY, more than 35.88 crore loans amounting to Rs 19.61 lakh crore have been extended as on July 1, 2022.

Source: Economic Times

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