Focus On Farmers At CMs Meet

Union Finance Minister Pranab Mukherjee on Tuesday said that meeting of the chief ministers of southern states and union territories seems to has taken some positive decisions.

Addressing the gathering at the conclusion of the meeting, Mukherjee said that such meetings were held in different parts of the country in the last one month with a view to getting feedback on various development schemes and to review the efforts being made by the public sector banks in developmental programs.

Banks have been directed to increase the number of Kisan Credit Cards by 20% and their amount by 20% for the current financial year, 2010-2011.

All banks with licenses have been advised to open branches this year.

Chief ministers have been advised to closely monitor the Financial Inclusion Plans of the SLBCs for coverage of all habitations with population above 2000 with banking facilities by March 2012.

The CMs have been requested to ensure that residents of rural habitations are enrolled by the banks for opening of 'no frills' accounts during the UIDAI campaign.

It was informed in the meetings that the limit for collateral-free loans to the MSE has been increased from the present level of Rs. 5 lakh to Rs. 10 lakh, by the Reserve Bank Of India. Further, the RBI has decided that banks may waive margin/security requirements for agricultural loans from the existing level of Rs. 50,000 to Rs. 1,00,000 with effect from June 2010.

This was an issue raised by the chief ministers in the meetings.

States have been asked to utilize the State Level Bankers Committee (SLBC) forum to achieve adequate and timely disbursement of loans under the various schemes of the government, and thereby improve the C/D ratio.

The SLBC meetings must be chaired at a senior level, and state chief ministers have been advised to chair at least one SLBC meeting annually.

Under the Aam Aadmi Bima Yojana (AABY), implementing states have been advised to speed up coverage, and the other states have been advised to consider being part of the Scheme, which provides death and disability cover for the benefit of rural landless households in the country.

With respect to the Co-Contributory Pension Scheme by states for unorganized sector workers (Swavalamban), the states have been requested to consider making contributions along with the India government.

Bankers have been asked to actively associate themselves with state government programs, including complaint redressal.

Courtesy: INN