(a) whether the Ministry has proposed to bring Self Help Groups
(SHGs) under priority sector;
(b) if so, the details thereof;
(c) the benefits that SHGs would get once they get priority
sector status;
(d) whether any consultations in this regard have been held
with Finance Ministry and banking sector;
(e) if so, the details thereof; and
(f) the other demands being made by SHGs in the country?
(a) to (f): Based on the interface with various stakeholders including
Government of India, banks, financial institutions, non-banking financial
companies, associations of industries, the Reserve Bank of India has issued
revised guidelines on priority sector lending on 20.07.2012 under which loans
to Self Help Groups are covered under priority sector lending. The overall
target under priority sector is retained at 40 percent. The targets under
both direct and indirect agriculture are retained at 13.5 percent and 4.5
percent respectively while refocusing the direct agricultural lending to
individuals, Self Help Groups and Joint Liability Groups (JLGs) directly
by banks.
There is no specific concession in interest rates on the loans
extended by banks under Priority Sector Lending with effect from 1st
July, 2010 as banks are not permitted to lend below the Base Rates
approved by the Board of respective Bank.