You are using an older browser version. Please use a supported version for the best MSN experience.

Banks should look at funding unorganised sector: Arun Jaitley

LiveMint logoLiveMint 11-07-2017 PTI

New Delhi: Finance minister Arun Jaitley on Tuesday exhorted financial institutions, including the National Bank for Agriculture and Rural Development (Nabard), and banks to focus on funding the unfunded so that employment in the unorganised sector goes up.

“It is a fact that people in the unorganised sector are much higher than the organised sector, but the former gets credit with a lot of difficulty,” he said at an event organised by Nabard.

“If the resources of banks 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 SHGs 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 a 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.

More From LiveMint

image beaconimage beaconimage beacon