MoS Karad urges lenders to improve credit penetration in NE states

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Karad has asked lenders to improve banking access points and also increase credit penetration in north-eastern states.

Karad, who is on a week-long tour to Assam, Tripura, and Manipur, reviewed the performance of various flagship schemes of the government aimed at expediting development in the northeast. The minister advised banks through the State Level Bankers’ Committee (SLBC) to increase general awareness about the Public Sector Banks Doorstep Banking Service (PSB DBS) that can be registered by the customers, an official statement said.
Under the scheme various services like pick-up services for cheques, drafts, pay orders, and new checkbooks, etc, can be availed at the doorstep without visiting the branch. This facility launched earlier this year is currently limited to a few locations in the country.

With regard to greater physical presence, SLBC members promised to open 56 new bank branches and 150 bank correspondence (BC) facilities in Assam by March 2022. Among these, 34 will be established by public sector banks while the remaining 22 by private banks.

He attended Credit Outreach Program in these states and encouraged banks to give loans to required segments. To bolster financial inclusion, he asked banks to promote the PM Jan Dhan yojana (PMIDY) accounts for citizens that have recently attained majority.

The minister advised them to promote safe credit practices with sound dissemination of financial knowledge.