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Banks should look at funding unorganised sector, says Arun Jaitley

To generate employment in the unorganised sector

Press Trust of India  |  New Delhi 

Arun Jaitley
Arun Jaitley

Finance Minister today exhorted financial institutions, including Nabard, and to focus on the unfunded so that employment in the goes up.

"It is a fact that people in the are much higher than the organised sector, but the former gets credit with a lot of difficulty," he said at an event organised by the National Bank for Agriculture and Rural Development (Nabard) here.

"If the resources of and financial institutions through various schemes are diverted towards this (unorganised) sector, it will help create more employment," he stressed.

Recalling the benefits of self-help groups (SHGs), Jaitley said they have come a long way and generated lakhs of jobs in rural areas.

Since most are women-led, these have brought in financial security for rural women, Jaitley said, adding that the SHG movement that started 25 years ago with very few entities has now crossed the 85 lakh mark.

It has been observed that the repayment capacity is much higher with regard to all microfinance schemes, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 11 2017. 14:10 IST