FM urges public sector banks to increase Scheduled Caste coverage in their welfare lending programs

28 Sept 2022 , 03:05 PM

On Tuesday, Public Sector Banks (PSBs) were urged by Finance Minister Nirmala Sitharaman to increase the coverage of Scheduled Castes (SCs) in all programs. She also urged taking a closer look at their requirements for entrepreneurial growth and capacity building. Additionally, she urged institutions to quickly fill the remaining openings.

All of the programs, including the Venture Capital Fund (VCF) and the Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC), need to be improved. After talking with organizations like the Dalit Indian Chamber of Commerce and Industry (DICCI), which works with scheduled castes at the grassroots level, it may be taken up by the Department of Financial Services (DFS), she added.

The FM was presiding over the PSBs' credit and other welfare program performance reviews for scheduled castes. The Reserve Bank of India's priority-sector lending guidelines includes credit facilities for SCs and scheduled tribes (STs) (RBI).

The goal of the CEGSSC, a ministry of social justice and empowerment project, is to support and stimulate entrepreneurship. These are for members of the scheduled castes, who are encouraged to innovate and supported by PSBs and financial organizations.

In turn, this should lead to the creation of money, jobs, increased confidence, and successful enterprises. By offering low-interest financing, VCF for SCs is committed to encouraging entrepreneurship.

In terms of the proportion of MSMEs held by SC-affiliated business owners, Maharashtra leads the list in India. It has up to 96,805 of these businesses. In addition, the finance minister mandated that PSBs inform the National Commission for Scheduled Castes twice a year in April and October of their success in hiring and providing credit to SCs.

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