The government has asked all public sector banks to open at least one branch in each of the 25 minority concentrated blocks, apart from stepping up lending to people belonging to the minority communities.
"We have instructed all public sector banks that they should open at least one branch in each of the 25 minority concentrated blocks in the country," Finance Minister Pranab Mukherjee told Rajya Sabha.
Answering supplementaries during Question Hour, he said the banks have also been asked to step up disbursement to minority communities to 15 per cent of their priority sector lending by the end of 2009-10.
He said the lead bank in each of the minority concentrated districts should have an officer to exclusively look after problems regarding credit flow to minority communities.
Mukherjee told the House that banks have been asked to organise awareness campaigns in such blocks, districts and towns and monitor disposal of loan applications from minority communities.
He hoped the target set by public sector banks for lending would improve during the current fiscal.