J&K Chief Secretary urges banks to assist MSMEs-startup entrepreneurs

New Delhi, May 12 (KNN) Raising concerns over less lending by the banks in J&K, while chairing the 4th meeting of the RBI governor approved committee, J&K Chief Secretary BB Vyas directed all the banks to take necessary steps to achieve credit-deposit (CD) ratio targets.

The committee was constituted for the implementation of 16 major action points for enhancing credit flow in J&K.

A target of 60% CD ratio was fixed to be achieved by all the scheduled commercial banks by March 2018 but it was informed that the CD ratio for the state stood at 47.23% against the set target.

Thus to achieve a set target of 60%, Chief Secretary instructed all the banks to take all the necessary steps to achieve a CD ratio and said “Jack up your respective CD ratio and set targets for each of your bank branches to achieve.”

Further he directed the banks to organize credit camps across the state for enhancing credit flow for the existing and new entrepreneurs who want to start or expand their business and take benefit of the huge investments being made in the road, railways, power and other sectors in the state.

In addition to setting fully dedicated MSME help desks, banks should organize camps in industry hubs, he added.

Chief Secretary urged all the major banks including the J&K Bank to proactively facilitate entrepreneurs to avail loans under the Mudra Scheme and other start up schemes sponsored by the central government.

Besides, he urged banks to encourage aspiring youngsters to become first generation entrepreneurs and also to existing small businesses to expand their activities.

He directed banks to issue circular instructions to every bank manager regarding the RBI guidelines, according to which banks are restricted to accept any collateral security in case of loans extended to MSME units’ up to Rs 10 lakh.

With a view to create awareness about the financial inclusion schemes, Chief Secretary emphasized banks to organize financial literacy drives to ensure 100 percent saturation of financial inclusion schemes including PM Jan-Dhan Yojana, PM Jeevan-Jyoti Bima Yojana and PM Suraksha Bima Yojana.

He urged banks to organize financial literacy camps in schools and colleges besides distributing course material on financial inclusion among the students.

On linking Annual Credit Plan (ACP) with the District Development Plan (DDP), NABARD was asked to make presentations during the District Development Board meetings.

Also, meeting was informed about the revamped Lead Bank Scheme (LBS) by RBI.

NABARD was advised to undertake study on the impact of Potential Linked Plan (PLP) on Branch Credit Plan and Annual Credit Plan targets besides ensuring that PLPs are more focussed and aligned with the DDPs.

The Committee also discussed action points related to digitization of land records, greater use of e-payments and e-receipts, opening of bank branches, opening of coaching centres for organizing classes for banking related courses, establishment of Training Institutes etc. (KNN Bureau)