Congress proposes national bank for SC, ST

With initial share capital of Rs 2,000 cr, proposed bank aims to finance entrepreneurial activities

The Congress has proposed to set up a National Bank for Development of Scheduled Castes (SC) and Scheduled Tribes (ST) on the lines of National Bank for Agriculture and Rural Development (Nabard). The initial share capital of the proposed bank, aimed at promoting entrepreneurial activities of SC/ST, will be Rs 2,000 crore. The party plans to include this in its manifesto.

SCs constitute 16.5 per cent of India’s population, while STs are nine per cent. The Congress, striving to tackle anti-incumbency, is keen to lure these sections in the run-up to the Lok Sabha polls.

Rajya Sabha member Bhalchandra Mungekar, who has prepared a draft in this regard, told Business Standard: “Currently, there are National Finance Development Corporations for SC/ST and safai karamcharis at the national level. State governments have set up similar corporations. The idea is to establish one bank on the lines of Nabard instead of separate finance corporations. The issue has been discussed in the party.'' Mungekar said the proposed bank will be fully government-owned.

According to Mungekar, the bank will work as a nodal agency.

“At present, Rs 4,000 crore is allocated for SCs and Rs 3,000 crore for STs in the annual budget for various development programmes. The proposed bank will be a one-stop-shop to meet the fund requirements of SCs, STs and safai karamchari. This will be in addition to the budgetary allocation,” said Mungekar.