This has been discussed and decided in the State Level Bakers Committee Meeting attended by Chief Secretary Sri Gokul Chandra Pati in the premises of Hotel Mayfair today. Chief Secretary has directed to revise the unit wise scale of finance for Rabi so that adequate money would be available to the farmers to grow the crop and they would not be required to borrow from any other source. The banks have also been asked to ensure 100% agricultural insurance of the crops so as to protect the farmers from any loss caused by calamities.
The issues relating to improving Credit Deposit ( CD) ratio in the State, covering all villages through banking service, financing to priority sectors, improving the NPA position, skill development of rural entrepreneurs through RSETI, Adhara seedling of bank accounts, implementation of CGTMSE scheme for advancing loans to small & micro entrepreneurs without asking for guarantee, financing for self employment projects under urban livelihood programme etc. prominently figured in the meeting.
It has been decided in the meeting that no bank will collect Kharif loan from the farmers at present and all banks will extend agricultural loans to the farmers for Rabi crop during 2015-16. The credit requirement through Kisan Credit Cards will be encouraged. Technical persons of the banks will advise farmers to go for more non-paddy cultivation to make up the loss incurred during the Kharif.
As scarcity of fodder is likely to be encountered more particularly in drought affected areas, banks will also finance for fodder cultivation during this season. As of now, the district level technical committees in 15 districts have already revised the scale of loan for rabi crop. Chief Secretary has directed the lead bank managers and officers of agriculture department present in the meeting to revise the scale of finance for Rabi in rest of the districts within 7 days.
Speaking on the occasion, Development Commissioner Sri U.N. Behera expressed concern about low level of CD ratio during the current year and urged upon the banks to increase it to the level of more than 85%. It may be pertinent to mention here that by September, 2015 the CD ratio in Odisha has been recorded at 70% against that of 74% during the corresponding period of 2014. Though the overall CD ratio in the State is above the benchmarking ratio of 60%, in some districts it is found below 40%. The Lead Branch Managers (LDM) of the districts having CD ration below 40% have been asked to constitute sub-committees of the DCC and take necessary steps to scale up the CD ratio.
Participating in deliberations, Additional Chief Secretary Finance, Sri R. Balakrishnan emphasized upon covering of all villages in banking service. The banks have been advised to scale up Banking Correspondence (BC) and Banking Van models to cover all the villages at least once in a week. Available data shows that during 1st half of the current FY 61 new branches have been opened in the State out of which 30 are in rural area. As of now, a total number of 4727 branches are operating in the State including 2584 rural branches. As of 30th September, 2015 banks have covered around 39.392 villages through banking correspondent model. Each bank has been advised to engage more banking correspondents and banking vans to cover each village.
The Regional Director RBI Sri P.K.Jena, CGM U.Co Bank, senior officers from, NABARD, Various departments of Govt along with Lead Bank Managers from all districts participated in the deliberations.