Under the Differential Rate of Interest (DRI) Scheme,

Solution

Under the Differential Rate of Interest (DRI) Scheme, banks provide finance up to ₹15,000 at a concessional interest rate of 4% per annum. Differential Rate of Interest (DRI) Scheme • Purpose: The DRI Scheme aims to uplift weaker sections by offering financial assistance at a reduced rate, enabling them to pursue productive, self-employment, or income-generating activities. This concessional financing supports economic independence and financial inclusion. • Eligible Groups: o Primarily targets Scheduled Castes (SCs), Scheduled Tribes (STs), minorities, physically handicapped individuals, and people involved in cottage and rural industries. o Individuals who collect forest products or fodder are also eligible, extending financial support to communities that rely on natural resources for livelihood. • RBI Mandate for SC/ST Allocation: The Reserve Bank of India has instructed banks to ensure that at least 40% of DRI Scheme advances go to borrowers from SC/ST communities, reinforcing the scheme’s commitment to social equity.