No Bihar govt funds in banks that failed in credit criteria

"We have decided not to deposit government funds in the two banks," Modi told reporters after the 41st Quarterly meeting of the State-level Bankers Committee here.

From April one, 2012, the state government introduced a system to deposit funds in the banks which would meet the credit criteria in priority sectors like agriculture and improving the CDR, he said.

The Grading Outcome would be declared within three or four days and names of the two erring banks would then be made public, said Modi who holds the finance portfolio.

"It will be warning to banks fulfil the criteria laid down by the state for receiving deposit of funds," Modi said.

He said it had also been decided that every family in the state should have one bank account and all the 35 state run schemes would be implemented through those accounts.

Over 14000 banking units -- having ultra small branches and a banking correspondent to provide banking services -- would be made operational in Bihar this fiscal to ensure wider expansion of banks, he said.

He said there would no need for furnishing Land Possession Certificates for agriculture loan up to Rs 50,000 and also there would not be any need for mortgage of properties for sanction of loan worth Rs one lakh.