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Minutes of Meetings
MINUTES
OF THE 92 ND MEETING OF STATE LEVEL BANKERS' COMMITTEE, RAJASTHAN
HELD AT JAIPUR ON 21ST MARCH, 2007 The 92nd Meeting of SLBC, Rajasthan was convened on 21.03.2007 at Jaipur. This meeting was chaired by Dr. Anil K. Khandelwal, Chairman and Managing Director, Bank of Baroda and other participants included Shri B.P.Vijendra, Regional Director, Reserve Bank of India, Shri B. M. Sharma, Managing Director, The Bank of Rajasthan Ltd., Shri Purushottam Agarwal, Secretary, Small Scale Industries & KVIB, Smt.Veenu Gupta, Secretary, Planning and other senior Secretaries of State Government. Representatives of Banks/ financial institutions & other agencies were also present on this occasion. The list of members, who attended the meeting, is annexed. Shri Nandan Srivastava, Convenor, State Level Bankers' Committee and Zonal Head, Bank of Baroda extended a hearty welcome to the Chairman of the Meeting Dr. Anil K. Khandelwal, Senior Functionaries of Banks, Senior Secretaries to the State Government & other dignitaries and participants of the meeting. In his opening remarks Sh. R. Narayan, CGM, NABARD talked about focussing on relationship building with the farmers in view of the fact that agricultural credit portfolio of the Banks has grown by more than 2 ½ times in the last two years. In this regard he highlighted the need for opening large number of new farmers' clubs and also bringing about vibrancy in the existing clubs. These clubs are proving to be an important tool for transfer of technology to the farmers. He also referred to the new policy guidelines on the farmers' club issued by NABARD which envisage cost sharing by Banks. He emphasized upon the need for inculcating ownership of the various programmes by the branch managers and also the controlling authorities. Shri Narayan congratulated all Banks and Government officials for maintaining exceedingly good performance to achieve targets where most of the trends indicate positive growth. He noted that Rajasmand District as a pilot project for 100 % financial Inclusion has been successfully completed and all the families have been financially included. He expressed his concern to increase the Credit Flow to Agriculture, which is a national priority. He emphasized about reaching the farmers, to know farmers aspirations on an on going basis and to build relationship with the farmers' under the relationship Banking. He was concerned about the poor progress of Chittorgarh District where in entire 14 blocks the Banks have promoted only 12 Kisan Clubs but expressed a sense of satisfaction with the overall performance under the Kisan Club movement in the State. He stressed upon the need to put in more efforts where Bankers have not been able to make much dent. He urged upon the Bankers to look at the new policy circular for farmers clubs, which will be in vogue from 1st of April 2007 and applicable to Commercial Banks, RRBs and other credit agencies to work together and to promote more Kisan clubs through their Branches. He anticipated that this policy circular would help in establishing better relationship between the Bankers and the farmer customers, to know the aspirations of the farmers and will also help in recovery. At the same time it would be helping farmers in diversification of cropping pattern and such other things. Sh. Narayan said that unless the Banks develop a sense of the ownership of schemes like other States, it will be very difficult to succeed in this regard. Shri. B.P. Vijayendra, Regional Director, Reserve Bank of India in his address brought to the notice of the house that a working Group has recently been constituted by RBI under the Chairmanship of Shri C.P. Swarnakar, Chairman and Managing Director, Syndicate Bank, to examine the procedures and processes for agricultural loans and make recommendations to reduce cost and time in obtaining loans especially for small and marginal farmers. A sub-group of this working group visited Jaipur on February 7 and 8th, 2007 and a meeting was organized on February 7, 2007 at RBI to facilitate the sub-group to interact with officials of major Banks and RRBs in the State and also Government officials concerned with land records, stamp duty etc. The sub group also visited one rural branch of State Bank of Bikaner and Jaipur, Govindgarh-Mallikpur Branch and interacted with farmers in two villages - Nangal Kala near Govindgarh and Anantpura village near Jetpura on February 8, 2007. From the feedback obtained from the farmers the following issues need to be looked into :
He drew the attention of the house to the fact that local Board for Southern region of RBI, while reviewing the report on Customer Service, Complaints, Grievances etc. had observed that the Customer Services are badly affected on account of staff absenteeism in Banks during festival seasons. He requested the Controller of the Banks to ensure that effective and satisfactory customer service is maintained by all its branches at all times. He reiterated his earlier observation that at the meeting of the Sub-committee on Business and Service Sector, held on March 5, 2007 progress under Government Sponsored Schemes were discussed and it appears from the minutes that issues pertaining to Government Sponsored Schemes were taken up for discussion only as a one time measure and not on an ongoing basis. He requested the house that we should have a sub-committee of the SLBC with a fair representation from the concerned Government Department so as to be able to focus our energy on qualitative issues, take care of the larger issues and leave the reconciliation to it. Regional Director categorically said that Government of India has decided to provide subsidy to agricultural graduates intending to start Agri-clinics/ Agri-business Centers. Credit linked capital subsidy will be @ 25 % of the capital cost of the project funded through Bank loan, 33.33 % in respect of candidates belonging to SC,ST, Women and other disadvantaged sections. A copy of the guidelines for administering subsidy under the scheme issued by the Department of Agriculture and Co-operation, Ministry of Agriculture, Government of India has been made available to the SLBC Convenor. He requested the controllers of the Banks in this regard to bring details of the scheme to the notice of all their Branch Managers. Convener SLBC mentioned that progress under Financial Inclusion in Rajasmand District is a matter of satisfaction which has been achieved with proactive support of District Collector. He shared with the house that the reconciliation work which has become possible only through one mechanism that there should be an ongoing exercise of reconciliation at the district level by the Lead District Manager of the Lead Bank as well as the incharge of the concerned Government Department under joint signatures. He urged the Bankers to send their figures from all the 32 districts on an ongoing basis so as to enable the compilation work and come back before SLBC with authenticated data base. He pointed out that the Artisan Credit Cards figures which is compiled by SLBC with the help of the special mechanism of joint signatures method (i.e. signature of General Manager, DIC and Lead District Manager of the Lead Bank in the District) has resulted in greater accuracy. Convenor, SLBC emphasized that this is a cause of concern that the Banking Sector in the State of Rajasthan in terms of Deposit has grown at a much lesser pace than the Credit, which is, a national phenomena. He also informed that the Credit Deposit ratio except Dungarpur, is comfortable everywhere and even if we exclude the cooperative Banks, the C:D ratio is more than 80 %. Dr. Anil K. Khandelwal, Chairman and Managing Director, Bank of Baroda in his keynote address extended a warm & hearty welcome to all dignitaries and participants. He said that on the economic front, economy is getting over heated by all monetary as well as physical steps, taken by government and Reserve Bank of India. While reviewing Indian Economy, Chairman of the Meeting pointed out that:
A. Doubling the Flow of Credit to Agriculture Sector :
C. Credit flow to SSI Sector : It is a matter of concern that SSI advances as percentage to Priority Sector Advances in the State has declined from 24.14% in March, 2002 to 13.42 % in December, 2006. Hence there is a need to focus on augmenting credit flow to SSI Sector through a well-planned strategy. D. Financial Inclusion & RUDSET Institutes :
Chairman and Managing Director, Bank of Baroda endorsed the view of Chief General Manager, NABARD about the aspirations of the farmers and relationship with farmers. He reminded the forum to take farmers as customers and not as beneficiaries because the moment we start seeing them as customer, we have to design new products, new delivery channels for distributions and the mind's whole paradigm would get changed for them. He said that there is a need to form sub-committee of SLBC for Government Sponsored Schemes as fast as possible which Regional Director, Reserve Bank of India also mentioned earlier. Thereafter Shri Nandan Srivastava, Convenor, SLBC took up the agenda items for discussions. Agenda No. 1 (i) Confirmation of Minutes of 91st SLBC Meeting held on 26.12.2006. The house confirmed the minutes of 91st SLBC Meeting held on 26.12.2006, which were circulated on 25th of January 2007. (ii) Status of Action Taken Report Convenor, SLBC informed the house about the status of following issues, which SLBC has taken up with concerned members / institutions and had invited reactions of the participants: 1. Amendment in Public Demand Recovery Act to effect recovery of Banks' dues : Smt. Veenu Gupta, Secretary, informed the house that finally they have got favourable opinion from Additional Advocate General which clears the road to move forward. The sum and substance of the opinion is that State Government has all the jurisdiction to bring in amendment in the concerned law and the Supreme Court does not bar any enactment facilitating recovery of money advances, in furthering Government Sponsored Schemes for self employment, poverty alleviation or under any other welfare schemes. Secretary (Planning) expected the detailed opinion within fortnight and thereafter they will organize meeting with their Law department and whatever amendment their department brings in, it would require getting vetted by the Law Department and then amendment is possible. Convenor, SLBC said that one of the roadblock has been removed for Bankers and SLBC will pursue with the Government on this enactment. 2. More RUDSETIs to be operationalized by Banks : The progress was fairly satisfactory and details are available in Agenda No. 11. 3. Constitution of Sub Group of SLBC for improving performances under Government Sponsored Programmes : The house was informed that the Sub Committee on "Business and Service Sector" met on March 5th, 2007 and suggested various measures to be initiated for improving the level of performance as also to sort out impediments coming in the way of implementation of these programmes. Sh. S.K. Lohra, Deputy General Manager, Punjab National Bank suggested that the sponsoring of applications related to Government sponsored schemes is at block level except PMRY which is being sponsored by General Manager, DIC, so the Bankers and the sponsoring agencies do meet regularly at that platform where both parties can refute or agree. Sh. Vijeyandra reiterated the need to constitute the sub committee for the Government Sponsored Schemes. 4. Adoption of 4-5 Districts for 100 % Financial Inclusion : This was informed that various Banks have planned to adopt other Districts of their lead district for the purpose of 100 % Financial Inclusion. Bank of Baroda itself has adopted Dungarpur District as centenary year project district in Rajasthan for integrated development with 100 % Financial Inclusion. 5. Artisans Credit Card to be issued to accredited Artisans : Convenor, SLBC informed the house that a series of meetings were convened at RBI office to ensure the issuance of ACCs and to scrutinize the actual position of data at the district level under the joint signature of Lead District Manager and General Manager, DIC which was placed before the house. Convenor outlined that the position is not very good so far and requested Bankers to dispose 16007 applications which are pending with various Banks. 6. NABARD to reconsider the decision of doing away with fixing unit costs : This was informed that this matter has been examined by NABARD, Head Office, and considering the all India implications, it has been decided to encourage the Banks to evolve their own mechanism. Convenor, SLBC explained that every Bank has to decide a benchmark for different districts for unit costs, so a meeting at district level for fixation of the units cost will have to be done. Chief General Manager, NABARD stated that NABARD was not fixing unit costs for non farm sector and it was only for agriculture sector. He reiterated to evolve a mechanism with the help of District Agricultural Officer alongwith a District Animal Husbundary Officer at the district to fix unit costs on their own mechanism. He also assured house that his District Development Manager would also attend the meeting for fixing the unit costs. Agenda No. 2 Performance under Key Business Parameters as of Sept. 2006. The house noted that performance of the Banks on Key Business Parameters as of December 2006 amply demonstrate that the Key Business Parameters are the basic indicators of the health of assets and liability portfolio which is prime concern of any commercial organisation like Banking industry for long. Rajasthan has been comparatively a less developed State from the point of view of banking outreach. Performance of Banks on all the related parameters is satisfactory except Weaker Section Advances which is nearing benchmark level of 10 % and over the time the qualitative aspect of credit control specified various sub sectors of Advances wherein credit flow to be ensured as per the directives of Reserve Bank of India. Convenor SLBC told that C:D ratio has gone upto 87.93 (that too excluding cooperative sector figures) which happens to be highest in Northern India except Chandigarh. Banks in the State are equally on sound footings in respect of Priority Sector Advances which is exceeding 58 % against the stipulated norm of 40%. Likewise increasing advances granted to agriculture sector have enabled a respectable ratio of around 33 %. He said that Dungarpur is the only district in the State where C:D ratio is less than 40 % and there is a steady and gradual improvement in the situation during the past 3-4 years. Regional Director invited attention of banks to the RBI circular dated 06 December 2006 regarding exclusion of inter Bank deposits and advances while computing CD ratio. He exhorted the Banks that while aggregate CD ratio for the State is excellent however, there is a need to focus our energies on 09 districts where CD ratio is in the range of 40-60%. He expected to have C:D ratio at more than 60 % in each district for comfortable level. Convener pointed out some Banks in the State which have very low CD ratio. Managing Director, The Bank of Rajasthan Ltd. assured the house that his Bank will improve its CD ratio in a phased manner. Agenda No. 3 Doubling the flow of credit to Agriculture Convenor said in the part of discussion that this is a terminal year of the package announced by the Hon'ble Finance Minister to double the flow of credit in 3 years. He told that Banks' performance against the target is reasonably good, reaching the level of 113.40 % and 102.40 % during 2004-05 and 2005-06 respectively but the achievement upto December 2006 is not proportionate to the time frame of 9 months. He expressed his concern while looking at the figures upto December 06 and in remaining 3 months period Banks were expected to do 32.80 % remaining. He expected that with so many campaigns like investment credit campaign, KCC etc., and the sowing season coming in Jan-Feb, Banks will reach the milestone of 100 % achievement till March 2007. Chairman and Managing Director, Bank of Baroda emphasized that this parameter is monitored at the highest level / Finance Minister also and requested Bankers to achieve the desired level. Convenor, SLBC observed that many farmers have been issued Kisan Credit Cards by cooperative sectors, but some of the cardholders are not yet being provided credit. He also stressed for accuracy in reporting of the number of new farmers and ensure that all KCC holders, especially those covered under Cooperative sector, are actually financed by Banking system. Secretary (Industries & KVIB) expressed his concern that while providing advances under crop loans, agriculture and allied activities during past meetings, Bankers are showing their keen intention to assist these smaller and important people through Kisan Credit Cards and Aritsan Credit Cards, RUDSET Institutes etc. But when we look at the numbers, these things come again and again to like Card issued but credit not followed, no adequate credit, numbers are declining regularly etc. He stressed to have a closure look on these issues and may require some institutional reforms, mindset, cost of transaction etc. Chairman and Managing Director, Bank of Baroda suggested that lot of people undertake summer projects from Management schools and we should approach Directors of Management Schools to give some of these projects like Bank of Baroda roped for Dungarpur Project from management school because lot of work has to be done on these issues which requires deeper deliberation. He suggested constituting commissions for the purposes of deeper study in this issue through the cooperation of NABARD or any Major Banks. Regional Director commented that instead of taking one years' time span, a larger perspective be kept in mind and also explained that from the Government side they see an issue in one prospect and from the Bankers side we are taking this issue in different prospect. We will be able to tackle all the problems from all the side when each of the side, Government, Banks or any other regulators are able to march together holding each others hands. He urged Government to take/ initiate some lead and appoint one responsible person, who will be the constant follower and act immediately and when this kind of response comes from Government side, the Bankers also get more enthusiastic. Shri Narayan, CGM shared that NABARD is also looking for this type of partnership between Banks and Government and planning to identify 10 backward blocks including one each in Banswara, Dungarpur, Chittorgarh and Udaipur districts under its scheme for integrated development of backward blocks. The objective is to facilitate convergence of various schemes of NABARD, Banks and the State Government including rural infrastructure development. These blocks are being identified in consultation with the district and State Government officials. He solicited the support of Banks and the Government. (Action : Banks and NABARD) Agenda No. 4 National Agriculture Insurance Scheme Convenor informed the house that the National Agriculture Insurance Scheme is compulsory for loanee farmers and all the Banks must ensure that the loans disbursed by them for eligible crops have been covered. He observed that there have been instances where farmers have been deprived of any benefit under the scheme due to the errors/ omissions/ commissions of the nodal Bank / Branch/ Primary Agriculture Societies (PACs). While elaborating the Agenda, Convenor, SLBC reiterated that the NAIS is compulsory for loanee Farmers and stressed that all the financial institutions should ensure compliance of the scheme by obtaining the insurance. He even quoted some examples where the farmers were in distress over non-coverage. This was also informed by the representative of NAIS to the house that as stated in the last meeting of Banks from some areas are obtaining the insurance and from other areas it is not being obtained and out of 28 DCCBs, only 10 DCCBs have obtained insurance for Rabi 2006-07 upto 20.03.2007. The insurance obtained by 10 DCCBs is for Rs.215 Crores against the loan disbursement of 835 Crores (28 DCCBs) upto 16.02.2007. Shri Manoj Sharma, Director & Special Secretary, Agriculture gave a background and expressed his happiness over the inclusion of this item as one of the Agenda. He informed that the Scheme has been beneficial to the farmers. He quoted that the Kharif, 2005 as against premium collection of around 46 Crores, Claims for an amount of about Rs.216 Crores were released. He was very particular on the issue of non-participation of certain Banks and even quoted a list of 49 Banks who did not remit the premium for Kharif, 2006 which included a few DCCBs as well. He also told that the Centre and State contribute towards the claims on 50:50 basis over and above the amount of premium. He also dwelt upon the issue relating to discrepancy in areas insured and area sown. He informed that claims for 28 NFA for Kharif 2006 Season have been with-held. He added that out of nearly 16 lakh farmers covered under the scheme for Kharif 05, 6 lakh farmers are getting this benefit. He said that settlement of claims of Kharif 2006 is under process and would be settled soon. He told the house that the process of crop cutting experiments is being streamlined. Shri Sharma emphasized that 10 DCCBs have unilaterally opted out of the scheme for Rabi 2005-06 which is a matter of concern. He indicated that apart from 5 DCCBs and some RRBs, 47 branches of Commercial Banks have not deposited the premium collected with the AIC in time. Mr. Sharma shared his observations that some Cooperative Banks and RRBs took a decision that farmers in some of their areas, need not undergo this scheme. He categorically emphasized that this is not a decision to be made at a local level, this is a national level scheme and mandatory for all crop loanee farmers so they have to abide by the scheme. He expressed concern at refusal of the Banks to accept premium of non loanee farmers. Giving details of large variation between area insured and actual area cultivated, he shared that such large variation were observed in Kharif 2006 in 28 Tehsils. He gave an example of Poshia Tehsil of Jodhpur district to avoid some discrepancies where against the actual cultivated area of 600 hectares of tilled crop, the Banks have reported financing of 12000 hectares as under crop loans. Some how there is a need to reconcile and be little more proactive in finding out the correct details at the district level, District Collectors are doing and Banks should also cooperate. SLBC desired that Banks should follow the extant instructions regarding the insurance scheme. He also informed that some Banks are withholding the premium collected / deducted, which is against the spirit of the Scheme. Dr. Jhadav, Deputy General Manager, SBBJ suggested to AIC to accept the advance premium which can take care of any mishaps with the farmers and there should be some relaxation in time period for the payment of premium for farmers. This was also suggested by Dr. Jhadav that in case of default on the part of any Bank for not remitting the premium in time, cover should be available with the farmers. He further stated that the Bank being an agent of Insurance Company, it should be deemed to have been collected in time even there is delay in remittance on the part of the Bank. Sh. Jhurani, representative of Agriculture Insurance Company informed that there is no such provision and seasonality discipline as provided in the Scheme, has to be followed. Sh.B.P. Vijeyandra suggested to form a small committee under the leader ship of Sh. M.V. Jhadav, DGM, SBBJ including Director, Agriculture to look into this issue and make recommendation to this effect which may be forwarded to Government of India. The suggestion was accepted for implementation. (Action : Banks) Agenda No. 5 Financial Inclusion Convenor, SLBC informed that despite the performance of Banks under various parameters, Bank have not been able to reach a vast segment of population in providing them with basic banking services and those who refused to open a accounts and those who were not available, are the cause of concern. Regional Director mentioned that if a household is not available and is not willing to come to the Banking fold, it is fine because this is clarified that Financial Inclusion is not compulsorily dragging somebody and bring him to the banking fold and we have to only convince them to open an account because he should be having the option to have an account. Dr. Jhatav, SBBJ thanked the proactive support of District Collector of Rajasmand District for giving his cooperation for the purpose of 100 % Financial Inclusion. RD, Reserve Bank of India also informed the house that the Hon'ble Chief Minister was keen about the pilot project and Principal Secretary (Rural Development) and Principal Secretary to Chief Minister have also visited Rajasmand and with their proactive support & pushing efforts, the pilot project of 100 % Financial Inclusion in Rajasmand District has been successfully completed. He also invited some more lead Banks to adopt at least one of their lead district for the purpose of 100 % Financial Inclusion. (Action : Banks & State Government) Agenda No. 6 Credit Flow to SMEs / Artisans Convenor, SLBC informed that SMEs have substantial share in industrial production, export and employment and all but despite the best intention of Banks and Government to expand the credit to SMEs, the results are not upto the expectations and it requires urgent relook on the measures of promotion of SMEs and iron out the problems hindering the growth of credit to this sector. He said that Banks have given a serious thought to address the problems of small enterprises and some pioneer Banks like Bank of Baroda have strengthened their SME portfolio by establishing a separate unit namely "SME Loans Factory". He informed that credit flow to SSI as percentage to Priority Sector Advances in the State has declined from 24.14 % in March, 2002 to 13.43 % in December 2006 but quatumwise it has more than double (i.e. Rs.2095 Crs. in March 2002 to Rs.4434 Crs. in Dec., 2006). As regard the percentage concern, there is an urgent need to focus on augmenting credit flow to SSI sector through a well-planned strategy. While reviewing the flow of credit to SME sector Shri Purushottam Agarwal, Secretary, SSI indicated that there are nearly 2.60 lakh registered units in the State and there are less than 500 medium scale units. The large size units are in single digit number. He further added that most of the SSI units are in tiny and small category. The State Government has identified 31 clusters of which 10 are for artisans and 6 for handlooms/handicrafts. The Government's intervention primarily relate to provision of capacity building, design and product improvement, technology, common facility centres and including providing services of the professionals. He requested Banks to specifically focus on these 31 clusters. He further added that a growth centre around Sikandra, Dausa area has been identified for promotion of stone based crafts, dairy development and tourism apart from some of the handloom sectors. The operational interventions may commence in next 2-3 months. He shared these issues for Banks to know about them and put in their credit mechanism in place. While discussing the Artisan Credit Cards Scheme he reiterated that the progress is far from satisfactory, against a modest target of 10,000 around 7,000 Cards have been issued while 35,000 applications have been sponsored by Deputy Commissioner (Handicrafts) but still less than 7,000 cards issued. He said that if this target is achieved in remaining part of the year, that would indicate a good signal. He urged to the Bankers particularly to the Cooperative sector to provide credit to these Artisans. As such there is a need to act very fast and very well at implementation level. Convenor, SLBC urged the house that Banks are not submitting data well in time and even the data reported is not correct. Under these circumstances it is very difficult to have a correct picture of SMEs financing or progress under Artisans Credit Cards in the State. He observed that the artisans did not avail the credit facility from the financial institution as per our expectations / targets. Convenor reiterated Bankers to issue card to those people who have been sponsored and identified by Deputy Commissioner Handicrafts, Government of India after due verification and authentications in due format and due formalities/ methodology. (Action : Banks & State Government) Agenda No. 7 Progress Under Government Sponsored Schemes Coming to the agenda pertaining to Government Sponsored Schemes, Convener informed that incidentally some decisions at the Government level randomly prevented smooth implementation of the schemes, for example following the order No.II2(II)Gra.Vi.Vi:4:2004 dated 10.10.2006, whereby Bankers cancelled the sanctioned cases under SGSY & could not sanction the cases further, pending the finalisation of BPL list in the State. He stated that however, this is a stray happening, so in order to achieve implementations effectively, there remains an urgent need to initiate remedial measures, like
Project Director of Local Bodies Department informed that they have already issued the subsidy to local bodies and communicated to the Bankers. Convenor, SLBC requested the Banks to expedite disbursement in the cases where sanctions have already been accorded under PMRY and also informed that if for want of training some disbursement is being withheld, Bankers must accept that a person (men or women) who has taken a training from one of these RUDSETI, no insistence for the training from DICs to be imposed upon. He urged the Bankers to act on that decision that for want of training no disbursement should be kept pending at branches. Secretary (Planning) complimented the house about the performance in every scheme upto the December 2006 had a lot of improvement as against last year. At the same time she also expressed her concern about some schemes which are meant for under-privileged sections like the scheme for rehabilitation of scavenger and loans disbursed to SC/ST etc. While observing the gap between the sanction and disbursement of the applications under PMRY Sh. Purushottam Agarwal informed that the scheme was discussed by the Estimate committee and recommended that there should be some kind of an order while sanctioning and disbursing the applications by the Banks. He said that this should be in chronological order and not in 'pick and choose' mode, otherwise it creates a lot of dissatisfaction. Convener urged Bankers to circulate instructions to their branches to prepare applications received register in seriatim and dispose it as first in first out method - either it is sanctioned or rejected and the guidelines of 14 days should also be followed by them. Sh. B.K. Chawla from KVIC brought to notice of the house that all the pending margin money claims, prior to 2004-05, pertaining to various National Banks and RRBs, received by KVIC, has been cleared for making payment, as per the approval of 91st meeting of SLBC held on 26.12.2006. (Action : Banks) Agenda No. - 8 SHG Bank Linkage Programmes Convener, SLBC said that SHG Bank linkage has witnessed significant progress in the State of Rajasthan and there were 23,257 new SHGs which were credit linked by the end of January, 2007 in the current financial year. He said that this progress is not satisfactory looking to the target of 40,000 for the current fiscal and the cumulative number of SHG credit linked in Rajasthan by the end of January, 2007 was 1,21,257. He informed that in order to give a push to SHG movement in the State, some of the action points have to be meticulously executed.
The grading format was approved by the house except some minor changes suggested by the representative of CmF. It was decided that a small group comprising SLBC, NABARD and CmF may review the rating norms proposed which would be circulated by SLBC. It was also decided to introduce the MIS from Banks to NABARD on monthly basis giving details of new and repeat SHGs financed. The house also noted some of the recent schemes introduced by NABARD for furthering the micro finance and micro enterprise movement in the State. (Action : NABARD) Agenda No. - 9 Annual Credit Plan 2006-07 Convener, SLBC apprised the house that every Bank is implementing Annual Credit Plan in their respective Lead District and NABARD has completed this exercise where most of the Bankers were present for the Potential Linkage Credit Plans (PLPs). He informed that the progress under ACP 2006-07 upto December 2006 is 72.32 % which is upto the mark but indicate more efforts to be put in by the Bank, particularly by Lead District Managers who is an instrument of monitoring at district level, so that cent percent target can be achieved. He requested the Bankers to suitably advise their branches to participate in the implementation of Annual Credit Plan and Private Banks have to accept allocation under ACP, in case these branch network is 5 or more in the district. He said financing SSI/ SME sector needs to be given preferred attention and Lead District Managers should take the help of line department at the district in order to implement the ACP effectively. Sh. B.P. Vijeyandra observed that in any case the district wise achievement is deliberated upon at the level of DCC / DLRC. He suggested SLBC to furnish Bankwise performance for the State as a whole in our agenda also in our future meeting so that we will be able to know who is doing well and who is lagging behind. (Action : All Banks & SLBC) Agenda No. 10 Credit Flow to Special Category Beneficiaries Convenor informed the house that Banks in Rajasthan are endeavouring to translate the objective of extending credit to Special Category Beneficiaries, in a greater measure. This is also an important dimension of the credit policy of Reserve Bank of India as well as Government of India and progress in this respect is being regularly reviewed at national level to ensure that financial assistance to select category of beneficiaries specially SC/ST, Minority Community and Women Beneficiaries is made available. He pointed out that during the current year these beneficiaries have been given financial assistance to the tune of Rs.6583.75 Crores and Banks are requested to continue their efforts in providing financial assistance to these category of beneficiaries. He requested Government to extend support by providing training facilities to these categories of beneficiaries and skill entrepreneurial development. He urged Lead District Managers to monitor the scheme invariably in DLCC / DLRC meetings and informed the house that this needs to be basically monitored at the District Level Committee Meeting where the Banks have a problem with DCCs. Bankers have been saying that district collectors will have to be proactive and supportive in attending the DCCs and deliberate the issues like recovery also. He said that these are the district level matters where there is a need to thresh out at that level. While reviewing the flow of credit to SC/ST, minority community and women beneficiaries. It was decided to further step up the efforts to reach out to them. (Action : Banks) Agenda No. - 11 Rural Development & Self Employment Training Institutes (RUDSETIs) Sh Purushottam Agarwarl informed the house that two more RUDSETIs are being shortly opened, viz. at Dausa by UCO Bank and Jaipur Thar Gramin Bank and Ajmer by SBI. Some more RUDSETI are proposed to be functional before 31st March, 2007 and different Banks have developed their own models of RUDSET Institute in their own way covering the philosophy of the basic concept. RUDSETIs
IN RAJASTHAN (The Position as on March 21, 2007) A. Existing RUDSETIs
B. Some more Banks have planned to open RUDSETIs
Convenor thanked State Government who played a role of a facilitator and has taken all possible steps to help Banks in setting up these RUDSETIs across the length and breadth of the State. He also indicated Government's support to Banks which entails the following elements.
On this occasion representatives of various Banks committed their expected date for opening of their RUDSETIs on or before 31st March 2007. Sh. Purushottam Agarwal placed on record the commendable job of Bank of Baroda in individual capacity as well as convenor SLBC for their relentless efforts in making the vast network of RUDSETIs possible in the State. He also thanked Chairman of SLBC, Regional Director, Reserve Bank of India for their efforts and enthusiasm being exhibited by Bankers to setting up of RUDSETIs. Sh. Agarwal requested that there is 2 % interest subsidy component and to work out this a simple mechanism should be there which differs scheme by scheme circulated, so that we need not transfer money to individual, we can transfer this money to one Bank and Bank in turn know the number and transfer unless it is small amount but we have to work out it separately. (Action : Banks and Government) While concluding the meeting Chairman and Managing Director underlined to monitor the issues related to the development of the State. He observed that consecutive meetings are moving towards a certain maturity level in the sense of believing each other and developing synergies between Bankers and the Government Officials. RUDSETI is one of the issues which give us some degree of satisfaction. He informed that the Government Programmes are very important and sub-committee will certainly look into this and also urged Government to sort out the pending issues. He found an excellent level of understanding between Bankers and the Government to undertake the task of development jointly. He emphasized that some of the deeper issues must be gone through. He hoped that PNB, SBBJ, The Bank of Rajasthan and may be the government also take some districts for deeper study. He also suggested to RBI, NABARD and Government to decide the issues, which are still bothering SLBC and then possibly we can still achieve higher level of qualitative discussions in subsequent meetings. The meeting concluded with a vote of thanks to the chair and to the most distinguished guests. |
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