Item No. & Subject

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ITEM NO. 2:   FOLLOW-UP ACTION ON DECISIONS OF EARLIER MEETINGS

 Action Point 1:     

Action Point   2.1:   Doubling Agriculture Credit during 2008-09

Government of India, in 2003-04, desired that institutional credit to agriculture sector be doubled in three years. Banks in Madhya Pradesh achieved the target in less than three years. Statistics of Madhya Pradesh is summarized below:

(Amt. in Crores)

              T- Target, A- Achievement

Action Point 2.2:   Implementation of 100% coverage of KCCs:

                        2.2.1  Progress of issuance KCC in all Districts of MP

            As decided in 133^rd SLBC Meeting, Director, Institutional Finance has written a letter No. PDF / Agril / 39/ KCC (DIF) 2008/ 2130  dated 20.10.2008 to State Level Heads of all the Lead Banks in MP requesting to issue necessary instructions to their LDMs to place the issue in DLCC / DLRM meetings to ensure that work is completed by the end of current financial year.

            Convenor vide letter ZO/SLBC/2008-09/177 dated 18.10.08 and 193 dated 21.10.08, and 196 dated 24.10.08 requested State Level Heads of all Banks to gear up the work.

Consequent upon the implementation of Agriculture Debt Waiver and Debt Relief scheme 2008, most of the farmers became eligible for fresh loan. Further in terms of instructions of Govt. of India, the farmers whose debts have been prudentially / regularly written off are also eligible for fresh financing. Member banks are requested to take detail review the position.

All the bankers are again requested to gear up the machinery to achieve the targets of 100% issuance of Kisan Credit Card during Rabi season and may appraise the steps taken in this regards.

NABARD wide their letter 7754 dated 24.11.2008 informed that they have revised the targets of RRBs (2008-09)  and as desired by Honorable Union Finance Minister, each RRB branch will issue at least 150 new KCCs in current financial year.

Reserve Bank of India and NABARD also issued necessary guidelines in the matter.

DIF vide letter PDF/NAIS/12/DIF/2008/2082 Bhopal dated 13.10.2008 informed that percentage coverage of crop loan disbursed under the Crop Insurance Scheme to the loan covered is not up to the desired level. The Govt. of India, Ministry of Finance has also expressed concern over the situation through a letter addressed to all Public Sector Banks. In view of above Banks are requested to ensure that KCC issued by them are covered under NAIS.

                         Data furnished in Table No. 19 page No. 86-87

2.2.2   Issuance of KCC to Kotwars

DIF vide letter Ikzkfofo@dslhlh&dksVokj@lafola@2008@2132 dated 20-10-2008 requested Revenue Department to make available district wise number of Kotwars. No information has been received so far. We request officials for same. Convenor vide letter ZO/SLBC/2008-09/177 dated 18.10.08 requested State Level Heads of all Banks to issue necessary instructions to all branches and Lead Districts Managers for extending financial assistance to Kotwars.

Progress is as follows:

                       2.2.3 Financial inclusion in 35 Districts of M.P.

Convenor SLBC, vide letter ZO/SLBC/2008-09/177 dated 18.10.08, 194 dated 21.10.08, and 217 dated 06.11.08 requested State Level Heads of all Banks to instruct their branches to accelerate the work of financial inclusion and complete the same within stipulated time frame.

DIF vide letter PDF/Fin.Inc./DIF/2008/2138 dated 20.10.08 requested all the State Level Heads of Banks, Collectors of 35 Districts and respective LDMs of 35 Districts to direct field level functionaries to accelerate the pace of work and complete the task at the earliest.

The status of implementation of Financial Inclusion in 35 Districts of Madhya Pradesh is that out of 39870 villages in 35 Districts only 3779 villages have been covered under the scheme of 100% Financial Inclusion. Banks have opened more than 15 lakh accounts of NREGP Job Card holders. We request the house to discuss the option for survey of villages so that left out inhabitants can be covered at an early date.

                        ‘Financial Inclusion’

District-wise details are given in Table No.12 -I Page No.72-74

                       2.2.4           IT ENABLED FINANCIAL INCLUSION PROGRAMME

In terms of the Reserve Bank of India policy guidelines, the IT enabled financial inclusion in Madhya Pradesh using hand held device by issuing smart card and mobile banking having interface with information technology was launched on pilot basis.. A meeting of  sub-group was convened on 18.09.08 at Directorate Institutional Finance to review the status of implementation.

Convenor vide letter ZO/SLBC/2008-09/177 dated 18.10.08 and 194 dated 21.10.08, requested State Level Heads of all Banks to direct their concerned branches to speedup the work of IT Enabled Financial Inclusion. DIF vide their letter PDF/ITeFI/DIF/2008/2140 dated 20.10.08  requested  State Level Heads to instruct their Field Level functionaries to initiate appropriate action and accelerate their activities to complete the task as early as possible.

As per information received, the Bank-wise progress in pilot project is as follows:

1             Bank of India:  800 cards have been issued and 3000 cards are in process.

2             State Bank of India: Vendors and Banking Correspondent have been finalized. Work yet to be started.  A special cost sharing package exclusively for Government of Madhya Pradesh had been drawn by the bank and same has been reportedly to Government for consideration.

3             State Bank of Indore: work has been started and 14011 cards have been issued.

4             Union Bank of India: Approximately 2500 cards have been prepared and ready for distribution.

5             Central Bank of India:  Vendor has been finalised.  3500 forms are ready for preparation of cards.

6             Narmada Malwa Gramin Bank: Bank is in the process of finalization of vendor and Banking Correspondent.

7             APEX Bank:  Yet to finalize the vendor.

8             AXIS Bank: Work has been started in the slum area of Ward No 52 of Bhopal City comprising Saibaba Nagar, Ishwar Nagar and P.C.Nagar with the help of NGO named little world.  60 cards have been prepared.

9             ICICI Bank: Vendor M/s Financial Information and Network Operations Ltd has been finalized.  Work has been started through Mahila Chetna Manch at Bhopal; Unnati Mahila Sangh at Indore and Sambhav SSO at Gwalior respectively.  Enrolments of 1058, 187 and 274 persons respectively have been done for preparation of cards.

Reserve Bank of India and Director Institutional Finance, Government of M. P., Govt. of India have expressed their displeasure on the slow progress of the Pilot Project. Besides pilot project, RBI suggested for up scaling the coverage to more areas. Bankers are requested to inform the progress made in this regard. House may deliberate on the issue.

2.2.5       Settlement of SLR Bonds

An amount of Rs.176.63 crore is overdue in respect of MPEB bonds.  Bank wise details are given in Table No. 33 Page No.113

State Government is requested to settle the same.

Discounting of SIDBI / IDBI bills

A sum of Rs 0.73 crore is due under the bill discounting scheme of IDBI / SIDBI.

Bank wise data is given in Table No. 33 Page No.113.

2.2.6     Rural Development and Self Employment Training Institutes (RUDSETI)

In the meeting of sub-group of SLBC held on 28.07.08  banks have agreed in principle for opening of RUDSETI institutions in the following  districts.

Convenor SLBC, vide their letter No. ZO/ZM/SLBC/08-09/235 dated 4.08.08, requested Director Institutional Finance to allot the land at no cost / nominal lease for establishment of RUDSETI.

Central Bank of India vide letter CO/RD/2008-09/1041 dated 20.08.2008, requested the Secretary, Panchayat & Rural Development, Government of Madhya Pradesh for allotting suitable land for construction of building at these centres.  State Government has agreed in principle to provide land for centres.  The Director, Rural Employment, Panchayat & Rural Development Department vide letter 13939 dated 25.09.2008 requested concerned Collectors to identify suitable land/building for the purpose. A meeting was conveyed by Director Rural Employment under chairmanship of Principal Secretary (RD) Govt. of Madhya Pradesh on 3.10.08. All the State Heads having Lead Bank responsibilities attended the meeting. It was decided in the meeting that vacant Govt. buildings in the district/taluka will be provided by Govt. through respective Collectors pending allotment of land and construction so as to start RUDSETI as early as possible but before Dec.08. Banks may also take building on rent & Collectors will help on providing rented buildings. Central Bank is going to start the RUDSETI at Hoshangabad as building has been arranged. Other banks are requested to please inform the progress because 25 RUDSETI institutions are to be opened in the state in first phase. DIF vide letter 2134 dated 20.10.2008 requested Revenue & Rural Development Deptt. to implement the announcement of Hon’ble Chief Minister for allotting half acre of land for the purpose.  The Convenor vide letter 1801 dated 02.12.2008 requested the Rural Development Deptt  to expedite allotment of land.

RBI vide letter 209 dated 06.11.2008 informed that 12^th meeting of Central Level Coordination Committee of SGSY held on 08.08.2008 reiterated the need for establishment of training institutes like RUDSETIs to assist beneficiaries of SGSY in capacity building and skill upgradation.

House may further discuss the issue.

2.2.7  Drought Relief measures - Payment of input subsidy for Kharif  2001 & Kharif 2002 

State Government released an amount of Rs. 32 crores as input subsidy for Kharif 2001 & Kharif 2002 through the Convener Bank to commercial banks and RRBs.  SLBC, vide letter ZO:SLBC:07-08/12 dated 30.04.2007, distributed  the amount to all  the concerned state level heads with a request  to adjust the amount in the beneficiaries  accounts  and  submit the information  in prescribed format to Convenor at the earliest so that consolidated  information could be sent to State Government through Director Institutional Finance. Details of Bank-wise distribution  of amount is as follows: 

Except SBOI other banks have submitted partial utilisation certificate.

Convenor vide their letter No. ZO/SLBC/2008-09/177 dated 18.10.08 &  vkadk@,l,ychlh@2008&09@192 fnukad 21-10-2008 and ZO/SLBC/2008-09/472 dated 5.12.08 requested the Bankers to provide us details of utilisation at the earliest.

2.2.8   AGRICULTURE DEBT WAIVER AND DEBT RELIEF SCHEME 2008 (ADWDR)

In the last SLBC meeting convenor expressed his gratitudes to all fellow bankers, Govt. officials, RBI, NABARD for timely & successful implementation of the scheme. The position regarding redressal of grievances has also been communicated to Govt. of India. In terms of Govt. of India, Ministry of Finance, Deptt. of Financial Services directions contained in their letter dated 22.10.08.(copy already sent to all fellow bakers/LDMs), all the LDMs are requested to submit the data of farmers covered under the scheme village wise in the CD form to SLBC. We have received data in CD form from 23 districts. We request all the bankers having lead bank responsibilities to advise their LDMs to expedite.

                                                                                                             Data Tables