Banking system is important in giving thrust to economic activities: Dr. Shrikant Baldi

Shimla, March 24, 2017: "Banking system is important in giving thrust to economic activities therefore, banks should come forward to advance loans in priority sector areas so that initiatives of the government in social security and development became fruitful," said Additional Chief Secretary Finance Dr.Shrikant Baldi while presiding over State level Bankers Committee meeting here today.

He expressed concern over declining credit deposit ratio of banks in the State and asked bankers to identify growth areas and mobilize investment so that pace of development was accelerated, to the benefit of masses.

He expressed apprehension that out of 8 lakh Kisan Credit Cards only 2.4 lakh were active. He asked bankers to motivate farmers to use and avail benefits of Kisan Credit Cards (KCC) by holding camps in rural areas. Rs. 9266 crores have been disbursed under KCC to farmers since inception of the Scheme in the State, he said.

He asked banks to arrange Point of Sale (POS) terminals in government offices, hospitals and public utility services in order to reduce dependency on cash, and to promote cashless transactions in the State.

Dr. Baldi said that Rs. 9823 crores had been disbursed so far under annual credit plan 2016-17 upto December in the State with achievement of 82 percent in priority sector activities. He asked bankers to enlist reasons for rejection and pendency of advances in priority sector areas and social security schemes.

He asked bankers to provide training in financial literacy to Panchayati Raj functionaries at the training centres in Shimla so that benefits of banking system could reach to the grass root level in the State.

Additional Chief Secretary Shri Arvind Mehta asked banks to fund micro irrigation schemes in rural areas to boost economic activities in villages.

Managing Director and C.E.O of UCO Bank Shri R.K. TAkkar expressed concern on growing non performing assets of banks having total amount of Rs. 2005 crores. The adverse trend of growing NPA was putting lot of pressure on banks on fresh credit expansion. Banks should focus on compromise settlement as well as recovery as per provisions of law.

Regional Director, Reserve Bank of India Shri Amarnath impressed upon the banks to pay thrust on financial inclusion campaign at grass root level so that outreach of banking services could be extended.

Chief General Manager, NABARD Shri Deepak Kumar said that GoI had targetted to double the income of farmers by 2022 and it needed to be coordinated by the bankers for capacity building of farmers.