FM 'in the dark' on PM's minority lending letter

Finance Minister P Chidambaram today said he was in the dark about a letter from the Prime Minister's Office (PMO) stating that 15 per cent priority sector lending should be targeted at minorities.

"It is unfortunate that the letter was not brought to my notice between November 24 and January 3," Chidambaram told the Rajya Sabha today.

He said discussions were on with Prime Minister Manmohan Singh in this regard. "Whatever decision the prime minister takes will, of course, be implemented," he said.

He admitted that the government had differences with the Reserve Bank of India (RBI) and Indian Banks' Association (IBA) on enhancing credit flow to minorities.

"While we want to lend to minorities, the RBI's view is that there may be some double counting. I have taken a different view," Chidambaram said.

The RBI had suggested that the correct approach would be to concentrate on districts with heavy minority populations.

"We still have to iron out some differences with the IBA and the RBI," he added.

He said out of the priority loans of Rs 5,16,334 crore given in 2005-06, 8.81 per cent, amounting to Rs 45,490 crore, went to minorities. "This 8.81 per cent should certainly be enhanced," Chidambaram said, adding that the RBI and IBA had again been called for discussions.