Chief Secretary, B B Vyas Thursday chaired the 4th meeting of the Committee constituted for the implementation of 16 major action points for enhancing credit flow in J&K, approved by the RBI Governor, during the discussions with Jammu & Kashmir Government in 2015.Principal Secretary Finance, Principal Secretary, Industries & Commerce, Regional Director RBI, General Manager, RBI, Chief General Manager NABARD, General Manger, BSNL, Vice President JKSLBC, Executive President, J&K Bank, GM PNB, DGM SBI, GM Canara Bank, Regional Head ICICI Bank, State Head HDFC Bank and other senior officers were present in the meeting.On the basis of past trend and available potential, a target of 60% CD ratio was fixed to be achieved by all the scheduled Commercial Banks by March, 2018. However, the Committee was informed that against the target of 60%, the CD ratio for the State, as a whole, on March 31st, 2018 stood at 47.23%.Chief Secretary instructed the banks to initiate necessary steps to achieve the CD ratio targets. “Jack up your respective CD ratio and set targets for each of your bank branches to achieve” he said.He asked banks to organise credit camps across the state for enhancing credit flow for the existing and new entrepreneurs/businessmen who wish to start/expand their business and take benefit of the huge investments being made in the road, railways, power and other sectors in the state. “Banks should also organize camps in industry hubs besides setting fully dedicated MSME bank branches in these areas” he said.
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; meant to encourage aspiring youngsters to become first generation entrepreneurs, as also to existing small businesses to expand their activities. He asked the banks to issue circular instructions to every bank manager regarding the RBI guidelines in terms of which banks are mandated not to accept any collateral security, in the case of loans upto Rs 10 lakh extending to units in the micro-small enterprise (MSE) sector.Chief Secretary stressed on the banks to organize financial literacy drives to ensure 100% 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 of Annual Credit Plan (ACP) with the District Development Plan (DDP), NABARD was asked to make presentations during the District Development Board meetings. It was informed that the Lead Bank Scheme (LBS) has been revamped by RBI and NABARD has been 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 organising classes for banking related courses, establishment of Training Institutes etc.