http://timesofindia.indiatimes.com/NEWS/In...how/1630077.cms
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>RBI opposes priority loans to minorities</b>
Anita Bhoir
[ 17 Feb, 2007 0020hrs ISTTIMES NEWS NETWORK ]
MUMBAI: The Centre's proposal to banks to reserve a share of loans for members of minority communities seems to have been shelved after the Reserve Bank of India and banks wrote to the government that it was unviable.
The central bank and the Indian Banks' Association (IBA) have told the government that banks' lending practices are based on the borrower's creditworthiness and not his caste or creed.
Finance minister P Chidambaram is also not quite enthusiastic about the idea as bank managements are not in favour of it, a banking source said. Early this year, the government had sent a letter seeking the opinion of both RBI and IBA on a proposal to earmark 6% of loans to borrowers from minority communities.
At present, commercial banks must lend 40% of loans to farmers and small businessmen who constitute, along with a few other categories, the priority sector.
"We should not deviate from the basic principles of banking. This proposal is not feasible and not desirable as banks lend on the basis of creditworthiness of an individual. We have communicated this to the finance ministry. Banks do not ask for such information from any customer. Both the FM and RBI share the same view," said a senior IBA official.
"There are certain pockets in the country which are dominated by the minority community. Bank branches are present across the country. Any customer can come to the bank branch and if the individual is creditworthy the bank will not shy away from extending credit," the official added.<!--QuoteEnd--><!--QuoteEEnd-->Oh, drat. Damper on Sonia's plans to economically handicap Hindu majority in favour of further strengthening islamic terrorism and the funding thereof.
Why is it Sonia's christo brain and those dhimmi brains of her subordinates keep coming up with failures? Now's when she most needs her honorary degree in politics/economics/christoterrorism/theology/hate tactics.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>RBI opposes priority loans to minorities</b>
Anita Bhoir
[ 17 Feb, 2007 0020hrs ISTTIMES NEWS NETWORK ]
MUMBAI: The Centre's proposal to banks to reserve a share of loans for members of minority communities seems to have been shelved after the Reserve Bank of India and banks wrote to the government that it was unviable.
The central bank and the Indian Banks' Association (IBA) have told the government that banks' lending practices are based on the borrower's creditworthiness and not his caste or creed.
Finance minister P Chidambaram is also not quite enthusiastic about the idea as bank managements are not in favour of it, a banking source said. Early this year, the government had sent a letter seeking the opinion of both RBI and IBA on a proposal to earmark 6% of loans to borrowers from minority communities.
At present, commercial banks must lend 40% of loans to farmers and small businessmen who constitute, along with a few other categories, the priority sector.
"We should not deviate from the basic principles of banking. This proposal is not feasible and not desirable as banks lend on the basis of creditworthiness of an individual. We have communicated this to the finance ministry. Banks do not ask for such information from any customer. Both the FM and RBI share the same view," said a senior IBA official.
"There are certain pockets in the country which are dominated by the minority community. Bank branches are present across the country. Any customer can come to the bank branch and if the individual is creditworthy the bank will not shy away from extending credit," the official added.<!--QuoteEnd--><!--QuoteEEnd-->Oh, drat. Damper on Sonia's plans to economically handicap Hindu majority in favour of further strengthening islamic terrorism and the funding thereof.
Why is it Sonia's christo brain and those dhimmi brains of her subordinates keep coming up with failures? Now's when she most needs her honorary degree in politics/economics/christoterrorism/theology/hate tactics.