Govt for microcredit regulatory regime

Under the new scheme, a portion of credit would be made available to the rural poor, downtrodden and weaker sections of society, Chidambaram said. All banks should provide credit to poor borrowers, who were normally treated as 8220;non-trustworthy8221;, he said.

The minister said one must put an end to the misconception that only rich people could easily avail loans to the tune of crores of rupees and that it was difficult for the poor people to get even Rs 1,000 as loan.

The reality was that poor borrowers were more trustworthy than rich business houses and rich people, he said.