The Hindu Business Line : Minister raps banks for rural neglect

Inaugurating the 25th annual `Krishi Mela', organised by Sri Kshetra Dhramasthala Rural Development Project (SKDRDP) at Kateel in Dakshina Kannada district on Thursday, he said, "Lending is zero to rural areas by many bank branches. Many areas do not have banks at all."

Expressing grouse against the loan policies of the banks towards rural poor, he said that banks vied to offer low interest rates while extending loans for the purchase of cars and for buying/building houses. "But rural poor do not get bank loans easily. Even if they get also, they have to pay 10-12 per cent of interest", he said.

The Swarnajayanti Gram Swarozgar Yojna (SGSY) of the Government did not do well in some areas because of the `non-co-operation' of some bank branches. "We want the banks to address all the above issues," Mr Singh said.

Stating that the Government was committed for the welfare of rural poor, he said that it would place a draft National Rural Employment Guarantee Bill in Parliament soon. The Government wants to create employment opportunities in rural areas. It hoped to bring down the migration of rural people to urban areas once this Bill becomes an Act, he said.

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