Priority Sector Lending - 28386 Words

The Draft Technical Paper on Review of Priority Sector Lending, prepared by the Internal Working Group set up in Reserve Bank under the chairmanship of Shri C. S. Murthy, Chief General Manager-in-Charge, Rural Planning and Credit Department, was placed on the RBI website on September 30, 2005 for public opinion. Subsequently, on November 8, 2005 one subparagraph has been added under paragraph 6.10 of the Technical Paper. DRAFT TECHNICAL PAPER BY THE INTERNAL WORKING GROUP ON PRIORITY SECTOR LENDING This Draft Technical paper does not necessarily reflect the views of Reserve Bank of India SEPTEMBER 2005 RESERVE BANK OF INDIA RURAL PLANNING AND CREDIT DEPARTMENT CENTRAL OFFICE MUMBAI CONTENTS Sr. No. 1 Section 1†¦show more content†¦In December 2004, it was decided that direct advances to priority sector will be encouraged, thus beginning a phased withdrawal of eligibility in special bonds of specified institutions. 1.3 In paragraph 90 of the Annual Policy, ibid, it was stated that â€Å"one view is that lending to any infrastructure project should be made eligible for priority sector lending while making subtargets fungible within the overall target. There is another view that enlargement of areas has resulted in loss of focus. It is also held that credit growth in housing, venture capital and infrastructure has been strong while it has been sluggish in agriculture and small industries. Further, it is argued that only sectors that impact large population, weaker sections and are employment-intensive such as agriculture, tiny and small industry should be eligible for priority sector. Since there are several issues that need to be considered in this regard, it is appropriate that these are debated and examined in depth†. 1.4 In order to examine the issues raised in the Annual Policy, it was decided that an Internal Working Group be set-up for the purpose. a) to examine the need for continuance of priority sector lending prescriptions; b) to review the existing policy on priority sector lending including the segments constituting the priority sector, targets and sub-targets, etc.; c) to examine the suggestions received regardingShow MoreRelatedPriority Sector Lending2487 Words   |  10 PagesPRIORITY SECTOR LENDING Some areas or fields in a country depending on its economic condition or government interest are prioritized and are called priority sectors i.e. industry, agriculture. These may further be sub divided. Banks are directed by the state bank of the country that loans must be given on reduced interest rates with discounts to promote these fields. Such lending is called priority sector lending. The different segments of the priority sector are as follows: 1.  Ã‚  Ã‚  Ã‚  Ã‚   Agriculture 2Read MoreThe Case Of China s Credit Policy1552 Words   |  7 Pagespolicy lending under the Chinese planning system. Budgetary funds were to be utilized to finance Chinese investment and production. Thus, policy lending was one of the main instruments of financing economic growth and development. The importance of policy directed lending for China s overall economic growth and development was later reduced by the rise of the more market-oriented non-state economic sectors. This type of lending has evolved into a vehicle for financing a certain state sectors thatRead MoreOriental Bank of Commerce analysis Essay1150 Words   |  5 PagesExposure to different sectors Performance analysis -Segment Analysis -Asset Quality Restructuring/Provisioning -Key ratios -CAR and capital requirement -Peer analysis -Camel Road ahead/Future Outlook OVERVIEW HEADQUARTERS: GURGAON, HARYANA Mr. S L Bansal Chairman MD Founded established in Lahore in 1943 Nationalised in 1980 GTB amalgamated into OBC in 2004 Crossed Business mix of Rs 2 lakh crore in 2010 Reorientation of lending strategy from Large CorporatesRead MoreEssay On Credit Advancements963 Words   |  4 Pagesthe advances in different sectors and the techniques to control the level of bad loan and advances in banking sectors. In the era of globalization the entire banking sector and financial institution is facing lot of problem. These problems include severe competitions, advanced technology, modern management methods etc. Hence the strength and weakness can be studied by comparative analysis in the entire banking system. The researcher has tried to analyse the gaps in sector on banking advances issuesRead MoreDevelopment Role of Rbi1196 Words   |  5 Pagesdirect role in supporting developmental activities in their country. The Reserve Bank’s developmental role includes -ensuring credit to productive sectors of the economy, -creating institutions to build financial infrastructure, Read MoreNarasimham Committee on Banking Sector Reforms1298 Words   |  6 PagesNarasimham Committee on Banking Sector Reforms (1998) The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organization, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India.[4] It focussed on issuesRead MoreBanking Sector Reform in India1406 Words   |  6 Pages both in the industrial sector and the financial sector, released a variety of forces that propelled India into a new growth trajectory.2 In this paper, we are going to assess the role that the banks played in making this growth happen and the impact that these reforms had on banks. We start with a brief history of banking regulation in India. We then move on to outline some of the principal reforms that were implemented in the 1990s and their impact on the banking sector. Although this section doesRead MoreImproving Health, Education, And The Environment1106 Words   |  5 Pagesorganized by the UN in the past 10–15 years. Each goal is to be achieved by 2015, with progress to be measured by comparison with 1990 levels. Although the goals are sometimes numbered, the numbers are not intended to indicate any differences of priority or urgency. The goals establish threshold for measuring results for developing countries and also for the high-income countries that help fund development programs and for the international institutions that help countries implement these programsRead MoreRole of Commercial Bank in Economic Development in India1737 Words   |  7 Pagesleading role in developing other financial intermediaries and markets. Second, due to the absence of well-developed equity and bond markets, the corporate sector depends heavily on banks to meet its financing needs. Finally, in emerging markets such as India, commercial banks cater to the needs of a vast number of savers from the household sector, which prefer assured income and liquidity and safety of funds, because of their inadequate capacity to manage financial risks. Forms ofRead MoreWb, Idb And The International Development Association1279 Words   |  6 Pagespresidencies: Sub-Saharan Africa, East Asia and Pacific, Europe and Central Asia, the Middle East and North Africa, South Asia and Latin America and the Caribbean. Latin America and the Caribbean is responsible for 20% of Bank lending and for more than one third or 32% of all IBRD lending over the past decade. World Bank President Robert Zoellick (2015), in the publication, A Global Partner for a Region on the Rise, pointed out that to achieve the aforementioned objectives the Bank is committed to fostering