Business correspondents to provide door step banking in Himachal

With the objective of providing banking facilities at the doorstep, banks in Himachal have identified larger villages where the banking facilities available are at quiet a distance and directions have been issued to appoint business correspondents for meeting the daily banking needs of the residents.

Bankers who met for a special meet of the State Level Bankers Committee (SLBC) here, also reviewed the progress made under the Annual Credit Plan (2010-11) during the first quarter ending June, 2010.

Convener of the SLBC, Ripan Murgai, general manager UCO bank that with the object of providing banking at the doorstep, 48 villages with a population of over 2000 have been identified in 8 districts where the available banking outlet is at a distance.

Banks servicing the area have been asked to appoint business correspondents by June 2011 for meeting the regular banking requirements in these villages, he said.

Murgai also disclosed that UCO bank had a plan to 40 ATMs by March, 2011 and would be opening 8 of them by Diwali itself.

Speaking about the total financial inclusion plan, Jasbir Singh, regional director Reserve Bank of India, said that it would take a while for biometric UID systems to be integrated with the banking process, but the banks in Himachal have been asked to continuously review the achievements made under total financial inclusion of having covered each household with a credit facility.

Where ever loans to more than one member of the family could be extended, it should be considered, he said.

For ensuring inclusive growth, use of appointing business correspondents for handling payments under the electronic benefit transfer system needs to done in unbanked areas or where banks are at a distance, he added.

While reviewing the Annual Credit Plan, the meet was informed that against a quarterly loan target of Rs 1300.98 Cr banks had extended fresh loans amounting to 1620.39 Cr in the first quarter.

At the same time deposits grew by 18 % over the previous year and have reached a level of Rs 34650.30 crore.

The credit deposit (CD) ratio stood at 71.45 %, a significant growth on account of flow of credit from outside the state in Industrial projects and SME sector, said Murgai.