SLBC directs banks to take up drought relief

SLBC has been collecting progress report on monthly basis for close monitoring and onward transmission to government of India: Sanghvi

The State Level Bankers Committee (SLBC) has advised all banks in the state to take up drought relief measures on a war-footing in the affected taluks. They have also been advised to review the progress on a weekly basis the implementation of the measures required for ameliorating the condition of drought-hit areas like conversion of short term loans to term loans, rephasing of existing term loans by postponing the installment due during the present year and provision of fresh finance wherever required.

“Most of the lead district managers (LDMs) of drought-affected districts have already convened Special DCC Meetings to deliberate upon drought relief measures. I appeal to all the banks to oversee and monitor the progress in implementation of relief measures at ground level periodically,” M G Sanghvi, chairman, SLBC, said.

 

Sanghvi, who is also chairman and managing director of Syndicate Bank, asked banks to provide in-built overdraft limit to all the No-Frill Account holders in addition to pure savings product in the form of RD, credit like GCC/KCC and remittance facility through these banking outlets to the targeted people as part of the financial inclusion programme.

He said, 1,562 villages with a population of 1,600 to 2,000 as per 2001 census, have been identified and allocated to the banks based on Gram Panchayat model for providing banking outlets. It is deemed that such villages have already crossed 2,000 population as per 2011 census.

As of July 2012, 151 business correspondents have been appointed in these villages. SLBC has been collecting progress report on monthly basis for close monitoring and onward transmission to government of India, he said.

Sanghvi said the Government of Karnataka intends to take up social security pensions, MGNREGA disbursement, housing schemes, distribution of scholarship and LPG subsidy in Tumkur & Mysore District for Aadhar enabled service delivery, since 95 per cent of Aadhar enrolment has already been completed in those Districts. SLBC has advised LDMs of Tumkur and Mysore districts to inform the current status of Banks’ preparedness in their Districts and time frame to take up the Aadhar enabled opening of accounts and disbursements of benefits through Aadhar enabled payment system.

UIDAI has informed during the meeting of stakeholders held on August 21, 2012, that crediting of subsidy to the beneficiaries’ accounts online in respect of 30 LPG distributors in Mysore city will commence from second week of September on pilot basis and thereafter to entire district by January 2013. Cauvery Kalpatharu Grameena Bank (CKGB) has also been identified by the Central government and NABARD for implementation of Aadhar Enabled Payment System in their operational area. The State Bank of Mysore is requested to facilitate CKGB in on-boarding to AEPS by creating necessary technological infrastructure, he added.

The RBI has identified the districts of Bidar, Chamarajanagar, Gulbarga, Bangalore Rural, Koppal and Raichur as underbanked. About 38 villages are identified with population of 5,000 and above.