Incentive for banks to open branch in unbanked GPs in Odisha
Banks coming forward to open branches in unbanked Gram panchayats in Odisha will be provided space in Panchayat buildings and Rajiv Gandhi Seva Kendras free of cost for 5 years.
The state government will also provide the banks to access to government funds meant for the gram panchayats if they will open their branches in unbanked GPs. This was disclosed by Additional Chief Secretary Finance U N Behra while addressing the State level Bankers Committee ( SLBC) meeting here today. Chief Secretary J K Mohapatra, who also addressed the meeting, asked the Controlling Heads of the Commercial banks to cover all he unbanked GPs in the state by end this Plan period. The banks have been asked to open more branches in unbanked Gram Panchayats and boost up credit deposit ratio in the State. They have also been asked to achieve targets in sanction and disbursal of loans under agriculture and allied sectors.
The Chief Secretary also emphasised upon disbursement of crop loans and loans for promotion of diary projects in the State. He said the government has made budget provisions for interest subvention on short term cop loan, long terms crop loan, diary projects, fishery projects and other allied activities.
The banks, Mr Mohapatra said have to reciprocate in the matter and make full utilization of the budgeted amount in these sectors. A Banking Atlas of Odisha prepared by Odisha Space Application Center was presented in the meeting. This atlas has been prepared for achieving regional parity in banking facilities and bringing all the villages of Odisha under banking service.
Addressing the meeting, Director Ministry of Finance Dr Alok Pande said that in the financial year 2013-14 there has been visible progress in Odisha with regard to opening of new branches.
During this year a total number of 458 new branches have been opened which is much higher in comparison to 229 in 2012-13 and 260 in 2013-14. However, Dr Pande urged upon the banks to have parity in opening of ATMs as there is a large regional disparity in this matter. He also asked banks to give their suggestions regarding a proposal for credit guarantee scheme for those who do not have access to bank credits. Official sources said a total number of 4281 branches of various banks are operating in different parts of Odisha out of which 2335 are in rural area, 1143 are in semi urban area and 803 are in urban area.
(Posted on 27-05-2014)