RBI/2007-2008/282
RPCD.
MFFI. BC.No.56 / 12.01.001/ 2007-08 April 15, 2008 The
Chairman/ Managing Director/
Chief Executive Officer
All Scheduled Commercial
Banks Dear Sir, Total Financial Inclusion
and Credit Requirement of SHGs
Please refer to our Master
Circular on Micro Credit RPCD. MFFI. BC.No.08 / 12.01.001/ 2007-08 dated July
2, 2007 wherein it has been stated, inter alia, that such credit should cover
not only consumption and production loans for various farm and non-farm activities
of the poor, but also include their other credit needs such as housing and shelter
improvements. In this connection, we invite your attention to Paragraph
93 of the Union Budget announcement made by the Honourable Finance Minister
for the year 2008-09 (Copy enclosed) and advise you to meet the entire credit
requirements of SHG members, as envisaged therein. Please
acknowledge receipt. Yours faithfully (A.K.Pandey)
General
Manager
Extract of Budget Announcement- 2008-09 Para
No. 93: 'Banks will be encouraged to embrace
the concept of Total Financial Inclusion. Government will request all scheduled
commercial banks to follow the example set by some public sector banks and meet
the entire credit requirements of SHG members, namely, (a) income generation activities,
(b) social needs like housing, education, marriage, etc. and (c) debt swapping'. |
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