Electronic benefit transfer may miss deadline in state

The nationalised banks in Karnataka have been advised to accelerate the flow of credit to housing, education, minority community, micro and small enterprises which are the thrust areas. The proportion of lending to these sectors in the state have not been upto expectations, according to senior government officials.

Meanwhile, under the electronic benefit transfer scheme (EBT), upto Rs 2,000 crore is envisaged to be transferred by December 15. But, the EBT pilot has been done across only seven districts. “At this rate, it will take years for the project to be implemented,” said convener of state-level banking committee (SLBC) G Ramanathan at the 119th State Level Bankers’ Committee meeting.

Basant Seth, CMD, Syndicate Bank, and Chairman-SLBC, said a focused attention needs to be given to the two areas of financial inclusion and credit flow to agriculture. As of October, 2011, banking services have been provided to 2,639 villages out of 3,395 unbanked villages that been identified that have a population of over 2,000, thus achieving a success rate of 78 per cent.

“There is a need to has ten the pace so that the remaining 756 villages are covered by March, 2012. He said that five RRBs are yet to cover 330 villages out of the uncovered villages and reiterated the sponsor banks to handhold them to accomplish the task,” he added.

In addition to that, 1,000-2,000 have also been allocated to the banks for opening banking outlets. The major banks have formed Financial Literacy and Credit Counselling Centres Trust and 32 financial literacy and credit counselling centres have been opened so far since success of financial inclusion depends upon financial literacy.

On the implementation of the revised annual credit plan, the chairman, SLBC, said that banks have disbursed Rs 27,512 crore under the priority sector credit during the first half year-ended September, 2011, against the revised annual target of Rs 46,027 crore, thus recording an achievement level of 60 per cent. Under the agriculture sector, through the Rapid Action Plan and Special Campaign mode, banks have disbursed Rs 15,610 crore up to September, 2011, against the revised annual target of Rs 31,308 crore, hence recording an achievement of 50 per cent.

Of the Rs 31,308 crore, the share of crop production loan was Rs 11,253 crore, amounting to 55 per cent achievement of the prescribed target of Rs 20,388 crore. A total of over half a million farmers have been assisted by lending them funds to the tune of Rs 3,781 crore.

Meanwhile, under the secondary and tertiary sectors, disbursement was to the tune of Rs 5,283 crore and Rs 6,613 crore respectively. Meanwhile, he added that the Centre has launched a special campaign from December 1 to December 15th for lending to eligible borrowers in the rural areas.