Dr. Bhagwat Kishanrao Karad, MoS, Ministry of Finance, GoI chairs J&K Union Territory Level Bankers’ Committee Meeting
Lauds the performance of financial sector; urges adoption of digital ecosystem and financial inclusion
GANDERBAL : Dr.Bhagwat Kishanrao Karad, Union Minister of State for Finance appreciated the banks for their performance in higher credit delivery under various government sponsored/self-employment schemes and urged them to exert more to enable ushering in of digital ecosystem as well as financial inclusion in J&K.
Dr Karad made these remarks while chairing the 4th Meeting of J&K Union Territory Level Bankers’ Committee (J&K UTLBC) held at Mini Secretariat Ganderbal.
Dr A. K. Mehta, Chief Secretary, Atal Dulloo, Financial Commissioner, Finance and other Administrative Secretaries including Chairman & MD J&K Bank (Convenor J&K UTLBC) R. K.Chhibber, Regional Director, Reserve Bank of India Kamal P. Patnaik, CGM NABARD, A. K. Sood, CGM, SBI Anukool Bhatnagar and other senior executives of RBI, NABARD, Banks and insurance companies also attended the meeting.
While hailing J&K as the crown of country, Dr Karad stated that J&K has a unique significance for the country and that the central government will always support the J&K Government in its endeavours to improve the lives of its people.
Dr. Karad expressed satisfaction over the amount of NPAs under MUDRA and other government sponsored schemes in a predominantly retail economy like J&K, which he said was very low in comparison to other states/UTs across the country.
Stressing upon the bankers for 100% coverage of villages under financial inclusion programmes of Finance Ministry and RBI, Dr. Karad urged banks to make all out efforts to cover all the unbanked villages.
Dr A K Mehta, Chief Secretary, informed that all government payments in UT of J&K are transacted digitally.
He stated that the Government is committed to provide gainful employment to 1 lakh youth in J&K through various schemes and urged the departments and banks to synergise their efforts to achieve the target.
While elaborating, he informed that 50,000 youth under “Mission Youth” Programme shall be provided self employment opportunities during the current financial year. Besides, steps are also afoot to create 20000 jobs in the Government.
He stated that the Government has begun the process of creating employment opportunities both in the public and private sector to reduce unemployment rate to 5%.
Dr Mehta informed that “Banks for the most part maintained business continuity during the pandemic in the UT. Overall banks are doing well but need to improve greatly in certain schemes like Stand UP India, SC, ST, OBC etc.”
While stating that he was following credit delivery under CGTSME closely, he informed that there was a huge potential to create employment by suitably tapping the insurance coverage under CGTMSE.
“We have a robust financial inclusion mechanism in place, however CD ratio of private banks is not encouraging and their performance in priority sector lending also leaves a lot to be desired, “ Dr Mehta observed.
Earlier, while outlining the role of the financial sector in J&K during Covid-19 Pandemic, Chairman & MD J&K Bank, R K Chhibber said that banks in J&K responded proactively by providing uninterrupted banking services to the people of the Union Territory besides adhering to COVID 19 SOPs.
Mr Chhibber said that the targets assigned by J&K Government under ‘Back to Village’ programme have been achieved by disbursing an amount of Rs.337 Crore in favour of 20,000 Beneficiaries.
It was informed that the banks operating in Jammu & Kashmir have extended a total credit of Rs.7,296.58 crore in favour of 3,29,370 beneficiaries registering an achievement of 16% in financial terms and 22% in physical terms during the first quarter of FY 2021-22; against the Annual Credit Plan of Rs.44,980.57 crore for 14,97,700 beneficiaries.
Against the target of Rs.780.53 Crore spread over 38,560 beneficiaries for FY 2021-22, banks operating in UT of J&K have disbursed Rs.239.29 Crore in favour of 11,023 beneficiaries during the period from 1.4.2021 to 31.8.2021 under four major Government Sponsored Schemes, i.e. NRLM, PMEGP, NULM and SC/ST/OBC Schemes, this included Rs.62.74 Crore under NRLM (23% Ach.), Rs.168.72 Crore under PMEGP (94% Ach.), Rs.7.43Crore under NULM (2% Ach.) and Rs.0.40 Crore under SC/ST/OBC Schemes (1% Ach.).
Under KCC scheme, the Minister was informed that more than 9.50 lac borrowers have been covered under the scheme in UT of J&K and the NPA under the scheme was as low as 4.14%.