Kohima, August 23 (MTNews): Banker’s Conclave and Credit Outreach Program was held at the Capital Cultural Hall, Kohima on 23rd August 2022, with Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman gracing the program in the presence of Governor, Nagaland, Prof. Jagdish Mukhi, Chief Minister, Nagaland, Neiphiu Rio and his colleagues, senior government officials and bankers.

 

Union Finance Minister Nirmala Sitharaman, Nagaland Governor, Chief Minister and others with beneficiaries of the MSME loans at the Bankers’ Conclave / Credit Outreach Program at Capital Cultural Hall, Kohima, August 23. (DIPR photo)

 

Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman stated that the Government has attempted to bring in every government schemes to be executed in such a way that all eligible citizens are covered, and in Nagaland, it is more significant because of the nature and terrain that the State is endowed with, and access being a challenge, the only way to overcome the challenge is the mobile connectivity. She stated that banks which deal with very essential financial requirements need to keep themselves adept and up to date on technologies which enable mobile banking.

 

The Finance Minister commended the State of Nagaland for performing well in schemes like Atal Pension Yojana, MUDRA and Stand Up India schemes. Sharing about Start Up schemes, she stated that the PM wants young minds in rural areas to come up with innovative ideas which can be skilled up and which will need support, for which the banks were instructed through their branches to give one SC, one ST and a woman similar assistance which is given to Start Ups. She noted that the scheme is fairly well accomplished in Nagaland under which 523 accounts have been already given and 112 crores disbursed through loans for SCs and STs.

 

The Finance Minister, while noting that with 70% of the State’s population in agriculture, and Kisan Credit Card (KCC) target for Nagaland being 2.3 lakh farmers, including animal husbandry and fishery, she pointed out that Nagaland has reached a target of 70,000 only. She called for more inclusion of farmers in KCC and suggested for banks to go the extra mile and include those who are involved in animal husbandry. She also requested the government representatives to also help in identifying the eligible beneficiaries. She also suggested for banks to saturate by districts, focus on a district, announce in advance by using every medium and reach out to all eligible beneficiaries of the schemes that are provided by banks, and also to take in more banking correspondents if necessary.

 

Sitharaman set a target of outreach by district to commence by 1st September 2022 and to conclude by 30th November 2022 for all eligible beneficiaries to avail the benefits from the credit schemes, for which she called upon the banks to reach out, and requested the Chief Minister of Nagaland to use the State machinery to identify eligible citizens for the schemes provided.

 

 

Banks to extend credit of Rs. 223 crore in Nagaland

 

Thanking the Union Finance Minister for initiating and getting the Credit Outreach program organized, and for setting into motion a bouquet of initiatives which will move Nagaland towards 100% financial inclusion, Chief Minister, Neiphiu Rio said that through this credit outreach, the banks will be extending credit of Rs. 223 crore under various schemes as well as retail loans to the people of Nagaland. He stated that large proportion of the credit by banks, other than that extended under various Government schemes, has been for consumer goods or housing loans. While this is essential, it is also imperative to increase the credit flow to those who require it for running their enterprises. This is a critical area where banks have to put in more efforts, and the State Government is ready to support them and address their concerns, he added.

 

Chief Minister Rio acknowledged the pioneering role that State Bank of India (SBI) has played in establishing bank branches in the remotest of places in the State, and expressed hope that the SBI will continue their leadership role and expand their activities, for which the Government stands ready to extend all support. He said that the State Government has also been supporting private banks to expand their credit base, and resultantly, the deposit base of banks such as HDFC Bank, Axis Bank and ICICI Bank have expanded. He stated that it is expected that the private banks will also expand their network of branches, and not limit these only to Dimapur and Kohima. He urged them to cover the remoter towns, and especially the unbanked 26 of the 74 blocks.
Neiphiu Rio stated that the North East Small Finance Bank has expressed the intent to extend loans of Rs. 150 crore to small entrepreneurs and farmers, and also open up to 10 branches in the State. He 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.
Congratulating the State Government for organizing the program, Secretary, Finance Services, GoI, Sanjay Malhotra called for more credit and financial inclusion outreach programs to be conducted as there is tremendous scope and potential for various financial products including credit.

 

Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman flagged off the Mobile ATM Van of Nagaland Rural Bank funded by NABARD under FIF. During the program, Nirmala Sitharaman distributed the Token Cheques to all the beneficiaries of 11 major schemes, amounting to a total value of Rs. 205 crore to 3422 borrowers. She also virtually inaugurated the Nagaland Rural Bank, Chessore branch, Shamator district. The Finance Minister also launched two projects under Tribal Development Fund of NABARD. It was also announced that 100% saturation of all eligible farmers under KCC in two project areas in Wokha and Phek districts will be carried out by the Nagaland State Cooperative Bank.

 

During the program, a MoU was signed and exchanged between SIDBI (Small Industries Development Bank of India) and IDAN (Investment and Development Authority of Nagaland). Union Minister Nirmala Sitharaman and Chief Minister, Nagaland, Neiphiu Rio jointly launched the CM’s Micro Finance initiative (This initiative is to ensure availability of affordable credit for carrying out economic activities).

 

Welcome address was delivered by Managing Director (Retail Business and Operations), SBI, Alok Kumar Choudhary, and vote of thanks was delivered by Managing Director, Axis Bank, Amitabh Chaudhry.

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