The intentions of the policymakers to uplift the economically weaker sections by extending financial help under the differential rate of interest (DRI) scheme failed to bear fruits in Haryana.
The Centre, under its DRI advances scheme, in which the funds are provided to the people below poverty line at the annual rate of interest of 4 per cent, has not been giving encouraging results in the state.
The information available with the banks reveals that public and private sector banks put together could open only 569 accounts till June 30, 2009 against the target of 4,970. This reflects an achievement of only 11 per cent of the target. Another noticeable trend is that the contribution of private banks is nil in this achievement. Against the target of 150 accounts, the private sector banks could not open a single account.
A senior official in one of the leading public sector bank told Business Standard that the family income eligibility criteria for the DRI advances was an annual income of Rs 18,000 in rural area and Rs 24,000 in urban areas. The states of Punjab and Haryana were comparatively affluent and it was difficult to meet the target.
He added that whatever eligible segment was available was the migrant population who didn’t fulfil the criteria. The maximum limit of loan is Rs 15,000 per account.
The banks as such are lagging behind targets and the Reserve Bank of India has revised the targets of DRI and it was apprised in the State Level Bankers’ Committee Meeting of Haryana that at least 10 loans per rural branch per quarter are to be made by all scheduled commercial banks instead of five loans per branch as hitherto.
The banks needed to make tailor-made schemes for different parts of the country to meet the targets of DRI advances, said another banker.
