The Hindu Business Line : Priority sector lending

This refers to the article, "Not the time to dilute priority sector lending" (Business Line, May 7). Going by the RBI's decision on priority sector lending, advances alone would be made eligible. Investments in selected bonds would be omitted from the eligibility list. Despite 35 years of nationalised commercial banking activities, attaining the 18 per cent norms on agricultural lending still remains a mirage. Announcements made by RBI to form an Expert Group to survey and assess customer satisfaction on credit delivery in rural areas must be meaningful. Due attention must also be given to simplification of formalities. This alone can severe the money-lender's noose from the farmers neck.

Expert groups and panels can suggest many good things. But the culmination of committee recommendations is the need of the hour. For that, political will is a prerequisite. Let the prerequisite pave way for the practical manifestations during the UPA regime, which has assumed power by promising the prosperity for the rural masses especially the farming community at the electorate.

V. Kumaresan

Madurai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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