Public banks outclass private ones in loan types & approval: Fin Min
Published: Jun 24, 2019
By TIOLCORPLAWS News Service
NEW DELHI, JUNE 24, 2019: THE Union Minister for Finance & Corporate Affairs, Ms Nirmala Sitharaman, today hailed the performance of Public Sector Banks in several capacities. She highlighted how PSBs led in the delivery of loan services in many respects. PSBs have taken the initiative for hassle-free and expeditious in principle approval for loans to MSMEs in contact less digital mode through the psbloansin59minutes.com platform, which private sector banks have subsequently on-boarded, she mentioned.
The Minister also stated that PSBs lead in lending in several loan categories, such as loans for education and for priority sector agriculture and allied activities, in which PSBs account for 96% (as on 30.9.2018, as per RBI data) and 76% (as on 31.3.2019, as per RBI data) respectively of lending by Scheduled Commercial Banks. Further, PSBs have led in extending credit through the overdraft facility available under Pradhan Mantri Jan Dhan Yojana (PMJDY) to account holders having satisfactory conduct of account, accounting for over 99.8% (including through Regional Rural Banks, which are sponsored by PSBs) of the total overdraft amount availed of as on June 14, 2019.
Moreover, all PSBs have on-boarded the Trade Receivable electronic Discounting System (TReDs) platform, enabling online discounting of trade receivables by MSMEs for faster realisation against the receivables.
