Two major social groups not given a level playing field to thrive in business sector are STs and SCs. The attempts made by the Central and State Governments for inclusion of the communities in the business sector through different schemes for last half decade have not produced any satisfactory result.
The major reasons of such impact are lack of information with the targeted groups, the non-serious and unaccountable attitude of the people in charge of its implementation, and above all, lack of political will of the elected representatives of these communities who usually hold posts in various committees and are supposed to monitor these schemes.
The institutional mechanism and policies available are not being periodically reviewed and monitored at appropriate level; rather they are mechanically implemented by people without any understanding and commitment.
The post 90s' economic globalization phase of Indian economy witnessed a trend of privatisation, market economy and encouragement to self-employment and entrepreneurial activities followed by reduction in Government and public sector employment. In order to encourage STs and SCs in the changing economic process with financial inclusion, the Government has set up financial institutions exclusively to encourage SC and ST entrepreneurs for self-employment and the RBI has made a separate credit policy for these leftout social groups to encourage their entry into business sector. An independent review shows a huge gap between the policy and the ground reality.
The two major financial institutions such as the National Scheduled Caste Finance Development Corporation and National Scheduled Tribe Finance Development Corporation are sadly playing a very insignificant role in this regard.
As availability of credit is one of the most important requirements for business, the RBI in its credit policy has instructed all its banks to follow certain norms while dealing with the borrowers from these communities.
In its annual master circular, the RBI says the bank staff have to visit the habitations and conduct awareness meetings with the people on different available schemes and help the people in preparation of necessary documents such as filling up the forms and help them at each stage for easy access to credit. It is also said that the bank should not insist on deposits while considering loan application under various Government schemes specially relating to self-employment in case of STs and SCs and further the bank has the responsibility to ensure hassle-free release of subsidy. It is told that it is the duty of the bank to educate their filed staff on various schemes and policies relating to credit while dealing with these communities.
There is a provision of differential interest rate and relaxation in guarantee provisions. The bank at the branch level cannot reject any loan application; it can be only be rejected by the next higher level with explanation of sufficient reasons.
But unfortunately many well-intended policies and schemes donot reach to the most befitting beneficiaries. The question is why the policy and institutional mechanism are not being translated into reality for a long time?
It may be the ineffectiveness of the people heading these institutions and in charge of enforcement of the policy are not held accountable for lapses and missing the target. Many of our elected peoples' representatives have hardly made a review of the implementation process and asked for action taken reports at appropriate level.
It is told that every bank must have a special cell at head office level to monitor the credit flow to SCs and STs and see that the RBI policy has been effectively implemented along with building a data base on beneficiaries to share it with the Government and RBI. The State level bankers committee in its periodic review of progress must involve the bodies such as the National Commission for SCs, National Commission for STs, NSTFDC and NSCFDC and their State counterparts to discuss issues over the implementation and achievement over targeted results.
After going through available reports of these institutions and SLBC in public domain, it is well displayed that Odisha having 40 per cent of SCs and STs population lags behind other States in executing Central schemes for almost half of its backward population whose economic development is directly linked to the financial growth of the State. The Odisha SCs and STs Development Finance Corporation Limited which is the nodal agency of the State is most ineffective in implementation of entrepreneurship development programme among SCs and STs of the State. It has not roped in the banks, NSTFDC, NSCFDC, NABARD and other stakeholders in grounding the policies of the RBI as well as Central subsidies schemes.
These schemes are important because mostly these schemes aim at educational and economic development of the SC and ST populace. The economic activities can be undertaken in group or individual level using local resources and raw materials such as MFP and other produces such as handicraft etc. The educational loans for skill development and higher studies with lower rate of interest can be used by the poor beneficiaries of the communities who are mostly the first generation of learners and prospective businessman.