In India, people will get loans from Public sector banks on the basis of their religion from now. The banking officials, who sanction loans for public, will have to take into account the receiver’s religious background.

The government has issued a note on this in the name of secular politics, it seems. However, in reality, this is nothing but a politics of vote bank on its extreme.

The government has said the Indian Banks’ Association (IBA) to reflect on assigning a portion of total loan disbursement only for the people who belong to minority communities. According to a report, it will go to as high as 6% of the total loan disbursement by the banking sector.

The banking division of ministry of finance, in a January 9 letter, has asked IBA to examine the proposal to set aside 15% of priority sector lending in all categories only for the people of minority communities.

Later, the IBA has told the member banks to provide details of loans sanctioned to minorities. It also sought the views of bank managements on this news proposal came from the ministry of finance.

In India, lending 40% of total disbursements to farmers and small businessmen, who constitute, along with a few other categories, the priority sector is necessary for banks.

With the new guidelines, banks will require to grant 15% of the 40% priority sector loans (6% of total loans) to people of minority communities.

However, some senior bankers said;

In India, there is no discrimination reported from institutional lenders against minority communities. There is no need to disclose anybody’s religious background to get the loan from banks.

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