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Centre call banks to reach out to all beneficiaries in Nagaland.
Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman has asked banks in Nagaland to reach out to all eligible beneficiaries to avail all benefits from the credit schemes by November 30.
The minister said this at the banker’s conclave/credit outreach programme which was held today in Kohima in the presence of Governor, Nagaland, Prof. Jagdish Mukhi, Chief Minister, Nagaland, Neiphiu Rio and his colleagues, senior government officials and bankers.
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.
The Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman and Chief Minister of Nagaland Neiphiu Rio jointly launched the Chief Minister’s Micro Finance Initiative at Capital Cultural Hall, Kohima on 23rd August 2022.
To ensure availability of affordable credit for carrying out economic activities, the scheme under the nomenclature of Chief Minister’s Micro Finance Initiative has been approved by the Government of Nagaland.
The scheme aims to enhance farmers’ income by increasing investment in agri and allied sector, improve agri-marketing network and infrastructure, promote credit discipline and boost private enterprise.
The eligible beneficiaries for the scheme are farmers, entrepreneurs, Self Help Groups, Farmer Producer Organisations/Company and cooperative societies. The eligible schemes are construction of circular eco-hatchery, rejuvenation of animal husbandry through credit linkage, procurement of transport vehicle for agriculture products, integrated farming system, horticulture crop loan scheme and micro finance scheme for micro-enterprises.
Interested persons may apply to the District Level Implementation-cum-Monitoring Committee (DLIMC) headed by the Deputy Commissioner of the concerned District.
The funding pattern are as follows, beneficiaries contribution - 10%, bank loan - 60%, back ended subsidy by Government of Nagaland – 30%. In addition, the State Government shall also provide interest subvention of 4% toKCC loans and credit linkage to farmers, over and above the 3% provided by the Government of India on prompt repayment of dues by the borrower. Moratorium period upto maximum of 6 months. Repayment period upto maximum of 7 years and maximum ceiling admissible under this scheme will be Rs. 15 lakhs.
The minister said 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.
Sitharaman highlighted the important role played by Bank Mitras in a state like Nagaland where even a block headquarter becomes difficult for villagers to reach, and expressed her happiness that Bank Mitras are serving its purpose well in the State. She encouraged the banks to have a few more of them so there is greater access for the villagers.
Thanking Union Minister, Finance and Corporate Affairs for initiating and getting the Credit Outreach programme 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.
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 to 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.
Union Minister, Finance and Corporate Affairs, Nirmala Sitharaman flagged off the Mobile ATM Van of Nagaland Rural Bank funded by NABARD.
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).
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