From Our Correspondent
Guwahati: Two hundred additional branches of nationalized banks will be opened in rural areas of Assam next fiscal, while the credit flow to micro, small and medium enterprises (MSME) sector will be raised by 50 per cent in the state during the same period.
Informing this at a media briefing here, Reserve Bank of India (RBI) Governor Dr D Subbarao who was here to chair the quarterly Board meeting of the RBI said that the banks have agreed to these proposals, as urged by the Government of Assam during the special State Level Bankers Committee (SLBC) meeting that was also chaired Dr Subbarao here on February 6.
The credit to MSME sector will be extended to Rs 3800 crore in 2013-14 and banks have been asked to strictly adhere to existing guidelines of not asking for any collateral from MSME borrowers if the loan is covered by Credit Guarantee Fund Trust for MSME scheme and for loans up to Rs 10 lakh, collateral free lending is mandatory, Dr Subbarao said.
The RBI Governor pointed out that the credit-deposit (CD) ratio of the state at 47-48 per cent was much lower than the national average of over 75 per cent, but the CD ratio has been on an increasing trend in the state.
“The only way to raise the CD ratio is to increase flow of credit. The focus will be on MSME sector and agro-based sectors initially as there was no big industrial projects in Assam as on date,” he said.
Deputy Governor Dr KC Chakrabarty added that though the initially focus will be on MSME and agro sector, but for increased credit absorption capacity, big projects must come. He added that big projects would come only where proper infrastructure will be made ready.
Dr Subbarao also mentioned about complexity in the current policy of conversion of agriculture land to industrial land in Assam as a deterrent in increasing the CD ratio at present and said the chief minister Tarun Gogoi had assured of simplifying the process.
The NABARD and the state government have been asked to form one lakh joint liability groups during 2013-14 to encourage credit to agriculture and allied activities, he added.
Dr Subbarao informed that the chief minister had raised the issue of unincorporated and fly-by-night operators cheating people out of their savings in the state. The RBI Governor said since these companies fell under the state government’s purview as those were in unorganized sector . The RBI can assist the government in detecting such fraud institutions by training its officials including police officials.