Finance Minister Pranab Mukherjee has called upon the banks to play a pro-active role in achieving double digit growth. Addressing a function in New Delhi, he said that lending to the agricultural sector is still a matter of concern and asked the banks to step up direct lending for agriculture and credit to small and marginal farmers. He said, short term agriculture loans up to three lakhs are being provided at four percent interest rate to those who repay their loans on time. Government is providing three percent interest subsidy to them.

Making a strong case for inclusive growth which is the focus of UPA Government, Mukherjee said he had asked the banks to provide facilities to habituations having a population of more than two thousand.

Several initiatives have been launched for the purpose. These include concept of introducing Business Correspondents that enables Government Subsidies and social security benefits to be directly credited to the accounts of beneficiaries. Apart from this, Branchless banking is also in operation. This has helped in increasing the credit flow to rural population to four lakh seventy five thousand crores in this fiscal.