Still 416 gram panchayats in State have no bank branches. Banks need to reach the unreached and expand their operations on a war footing to ensure financial inclusion though credit support, said Minister of Finance and Excise Shashi Bhusan Behera at the 151st State level Bankers Committee (SlBC) meeting held here on Thursday.
He further said though achievements under the Annual Credit Plan (ACP) 2017 vis-a-vis annual target under priority sector is 85 per cent, with agriculture 72.62 per cent and MSME 131.67 per cent, but education, housing and social infrastructure remain still neglected.
"We need more funds for priority sector. We need to spread financial literacy. The State Government has decided to rope in small savings officers to create awareness on financial literacy," said Behera.
"Besides these, the Government of India should be forthcoming to establish viable bank branches though the State Government has promised to provide building, power and facilities in rural unbanked areas," he added.
Behera expressed concern over low banking expansion and low banking credit delivery.
According to a review report in the meeting of SlBC Sub-Committee on Banking Expansion held on August 18, 2017, the RBI in consultation with the SlBC allotted 247 unbanked GPs to different banks based on their response. The SBI was allotted 797 unbanked GPs for opening banking outlets.
The exercise of opening of banking outlet has to be completed by March 2019. While outlining the need for more rural penetration, as has been underlined by the Government of India, Additional Secretary in Department of Financial Services, Government of India, Debasish Panda said,
“While expanding banking networks or outlets, we need to give first priority to SHGs, cooperatives and fair price shops besides Common Services Centres.
There is no restrictions for opening additional banking touch points and the Government has decided to open and convert 10,000 such outlets as Banking Correspondents (BCs)”.
Panda asked the bankers to speed up process of implementing MUDRA Yojana, Pradhan Mantri Krushi Bima Yojana, Jivan Jyoti Yojana and sought the cooperation of both the bankers and the State Government in effectively participating in Gram Swarajya Aviyan, the second phase of which has started on June 1 and will end on August 15.
All banks and insurance companies need to be part of the Aviyan as it is being run in 117 Aspirational Districts in country of which10 are from Odisha, he stated.
Among others, Additional Chief Secretary cum Principal Secretary Finance Tuhin Kant Pandey, Agriculture Production Commissioner Gagan Kumar Dhal, MSME Secretary lN Gupta, Regional Director RBI MK Mall, General Manger SlBC, Head Office UCO Bank AK Sharma, GM NABARD S Soren, GM SBI Gautam Bhattacharjee and Convenor SlBC Ambuja Charan Pradhan spoke. More than 200 participants from banks, Union and State Governments and other stakeholders participated.