Jammu, March 21 (Scoop News) – Governor Reserve Bank of India (RBI), Dr. D. Subba Rao Wednesday called on Chief Minister, Omar Abdullah here and discussed various matters relating to the functioning of banks in the State.
During the meeting issues relating to credit disbursement status, share of agriculture advances out of total loans disbursement, lending of finance to MSME sector, financial inclusion programme under SWABHIMAN, implementation of Securitization and Reconstruction of Financial Assets and Enforcement of Scrutiny Interests (SARFEASI) Act 2002 and related matters were discussed in detail.
Laying stress on enhancing the credit disbursement ratio in the State Omar Abdullah sought the directions of RBI to the banks operating in the State to upgrade the share of agriculture advances making it 18 percent of the total loans. The Chief Minister expressed satisfaction on lending of loans to MSME sector describing it a positive trend and stressed on keeping it up.
While discussing financial inclusion programme under SWABHIMAN, the Chief Minister noted the positive progress of J&K Grameen Bank and Elaqei Dehati Bank. He emphasized for urgent efforts to give a solid push to this programme and involve J&K Bank in it actively to cover the 795 villages with a population of 2000 souls in each village. The strategy of the programme is linkage of people through Smart Cards.
The Chief Minister sought financial support of Rs. 203 crores from Union Finance Ministry for strengthening the two cooperative banks namely Jammu Central Cooperative Bank and Anantnag Cooperative Bank. He also sought financial support of Rs. 150 crores to the State Financial Corporation and classification of J&K Bank as a Public Sector Bank.
Reclassification of J&K Bank will help it to receive funding support out of Rs. 1500 crores earmarked for Public Sector Banks and Regional Rural Banks announced in the Budget recently. It will also help J&K Bank to be declared as eligible for a special credit dispensation of 7 percent to the agriculture sector.
The Governor RBI assured full support and cooperation in strengthening the financial institutions in the State and helping in enhancing CD ratio.
There are 35 banks with 1302 branches including 695 rural branches functioning in the State. Of these, 20 are nationalized banks, 4 in private sector, 2 regional banks and 8 cooperative banks.