From 50 Years Ago: In Search of Neglect

In Search of Neglect

As part of the effort to give a new direction to banking policy, the Finance Ministry, under Y B Chavan, has been pursuing two suggestions: that bank finance should be provided to generate self-employment and that neglected sectors of the economy should be given bank finance on preferential terms. Two committees have now been appointed to suggest measures to implement these policies. One of the committees is to review the present extent of differential interest charges, define criteria for charging differential interest rates [and] the possible extent of difference and consider other concessions. The other committee is to review existing arrangements for supply of credit to self-employed persons, identify the self-employed eligible for special financing and evolve guidelines for such financing.