Bihar Chief Minister Nitish Kumar today expressed dissatisfaction over banks opening new branches much below the target set which has been hampering the state's development.
Addressing the 60th Platinum jubilee meeting of state level Bankers Committee here, Kumar also pointed to low CD (Cash Deposit ratio) in the state at 43.94 per cent in 2016-17 financial year which was 100 per cent in developed states.
Kumar said that State Industrial Security Force (SISF) is being created in the state for safely transfering money from one bank branch to another.
"Decision has already been taken to set up two such battalions at Begusarai and Dumroan in Buxar district for providing security to banks in cash transactions," he said.
State Finance minister Abdul Bari Siddiqui, Agriculture minister Ramvichar Rai, Urban development minister Maheshwar Hazari, Rural Development minister Shrawan Kumar and representatives of RBI, State Bank of India aqnd Nabard were present among others.
On slow pace of opening bank branches, the CM said against a target to open 1640 new branches in 2016-17, only 139 new branches were started which is too less.
Banks have a policy to open a new branch in a place having a population of 5000.
"You should open bank branch in every Panchayat of Bihar whose population is over 10,000," he added.
He said panchayat bhawans have been built by the state government in which space would be provided to banks to open new branches.
The Bihar CM also regretted the low CD ratio in the state.
"The CD ratio has gone only upto 44 per cent by now whereas it is 100 per cent in developed states. People of Bihar deposit their income but if they do not get loan for developmental works, the growth is impacted," he said.
"Today there are only a few islands of prosperity in the country and this is the reason behind fluctuation in growth rate," he said and added inclusive growth of all the states is needed for faster progress of the country.
Kumar stressed that for promoting digital transaction in the country, banks have to improve their infrastructure.
"For promoting digital transactions there is a need to popularise Rupay card among people," he added.
The CM made reference to the state government launching student credit card scheme providing interest free loan to youths for pursuing higher education and asked the banks to promptly accept application made under the programme.
He said the state government is taking guarantee for loan under student credit card scheme so there was no cause for the banks to fear for the loans.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)