New Delhi, Oct. 26 -- Private-sector banks are lagging public-sector lenders in three government schemes for small entrepreneurs, artisans and street vendors, with gaps in credit disbursement, loan sanctions and the processing of interest-subvention claims, according to a government document reviewed by Mint and two people aware of the development.

The gaps have emerged as beneficiaries face rising input costs amid global supply-chain disruptions linked to geopolitical conflicts, particularly the West Asia war. Wholesale price inflation rose to 11.31% in September from 9.92% in August, while retail inflation hit a 23-month high of 5.54%. A deficient monsoon is also expected to weigh on rural incomes.

Queries emailed on 22 October to the...