Morung Express News
Kohima | August 24
State Chief Minister, Neiphiu Rio said it is imperative to increase the credit flow to those who require it for running their enterprises and that the banks have to put in more efforts.
Addressing the Bankers’ Conclave & Credit Outreach programme at the Capital Cultural Hall, Rio appreciated that through this credit outreach, the banks will be extending credit of Rs 223 crore under various schemes as well as retail loans to people of Nagaland.
This, he maintained “will also boost the Credit Deposit ratio for the State, which was hovering at around 50 percent, much below the RBI benchmark of 60 percent.”
Rio also informed that the state government has been able to address the issue raised by the Banks with regard to implementation of the SARFAESI Act, 2002 in the State to enable them to extend loans against secured assets.
To this, he informed that the State Assembly had passed a Resolution in 2021 after detailed consultations with all stakeholders, including the banks, clarifying on the implementation of the Act to Nagaland.
Rio also thanked the Union Finance & Corporate Affairs Minister for launching the Chief Minister’s Micro Finance Initiative today, which was formulated with a view to increase offtake of credit to priority sectors.
He viewed that through this Initiative, it will make credit more affordable and available to individuals, SHGs and Farmer Producer Organizations with additional credit of Rs. 200–Rs. 250Cr disbursed during the year.
“This will further help increase farmers’ incomes, promote credit discipline, encourage private enterprise and improve the agri marketing network and infrastructure in our State. I am sure that all the banks, including the private banks, will utilize this Initiative effectively” stated Rio.
Meanwhile, he also assured to support the private banks in their credit outreach activities, to facilitate in expansion of their credit portfolios so that they take on a greater share of priority sector lending.
He also appreciated the North East Small Finance Bank who has expressed its intent to extend loans of Rs. 150Cr to small entrepreneurs and farmers, and also open upto 10 branches in the State.
Also speaking, Chief Secretary, J Alam reminded “while the crux of this event is about credit outreach and credit access one must not lose sight of the need to inculcate financial behaviour and mobilise domestic savings. Financial literacy is also a pivotal aspect of financial inclusion.”
As the rest of the country forges ahead with these technological developments, Alam stated that Nagaland cannot be left behind. In this regard, he pointed a common refrain from the bankers side is ‘the lack of proper internet connectivity comes in the way of providing banking services in remote and unbanked parts of the state.’
Suggesting on an urgent need to have some alternate solutions, Chief Secretary said “it is all the more necessary because, the experiment of having BCs is yet to have impact in our state as their cash carrying limits are too low.”
Also in the absence of a deep penetration of post office net work in the state, he also emphasised on the need to find a ‘workable solution’ to provide banking services especially for the DBT payments to the beneficiaries in remote places.
He also urged the banking sectors in the state ‘to factor in the unique characteristics of the state and infuse innovation in designing financial products, delivery models and financial literacy campaigns to cater to the requirements of local population in remote areas of the State.’
