The Reserve Bank of India (RBI) will set up a task force for Jammu and Kashmir to identify areas where nationalised banks could help the state in advancing loans for self-employment projects. The RBI may also consider simplifying procedures for the purpose. | |
| The assurance was given by RBI Governor Y V Reddy during his meeting with Chief Minister Mufti Mohammad Sayeed here last week. |
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| Reddy was here to attend the meeting of the general board of directors of the RBI being held in Srinagar for the second time only since its inception. The board had last met here in 1998. |
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| Accompanied by Regional Director, M D Dassari, Reddy discussed with the chief minister the role of nationalised banks in the state's economic sector and the extent of help the RBI could provide. |
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| He said four banks, including the RBI, would be asked to monitor giving loans to young people seeking self-employment. |
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| The Small Industries Development Bank of India office in J&K would also be strengthened, he added. |
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| Earlier, the chief minister asked the RBI governor to direct the nationalised banks in the state to help the unemployed youth set up income-generating units. |
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| He told Reddy there was a general feeling that the banks' performance were not up to the mark. |
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| The chief minister said there was a wide gap between deposits and advances in the state and the nationalised banks should fill this gap. He also drew Dr Reddy's attention to the lack of full-fledged bank offices in Kashmir, which have re-opened their branches in the Valley, asking him at the same time to take necessary measures. |
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| Meanwhile, the central board of directors of the RBI met in Srinagar today to review the key economic, monetary and financial developments. The meeting was chaired by RBI, Governor Y V Reddy. |
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| It should be noted in this connection that the central board of directors meet at least once every quarter. |
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| Apart from holding four meetings in four metropolitan cities, with one in New Delhi after the Budget addressed by Finance Minister P Chidambaram, the rest of the meetings are generally held in the other state capitals by rotation. |
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