Priortise achieving Priority Sector Lending targets: Chief Secretary to Banks

Jammu, Nov 12: Urging banks to prioritize their efforts in achieving Priority Sector Lending (PSL) targets, Chief Secretary (J&K) Atal Dulloo directed the banks to ensure the establishment of banking touchpoints in all unbanked rural areas across Jammu and Kashmir.

These directives were issued during the 14th Union Territory Level Bankers’ Committee (UTLBC) meeting, chaired by the Chief Secretary, where he reviewed the performance of banks and financial institutions in dispensation of credit and other banking services for the first half of the fiscal year 2024-25.

The meeting was attended by MD & CEO J&K Bank and Convenor J&K UTLBC, Baldev Prakash; Principal Secretary, Agriculture Production Department, Shailendra Kumar; Principal Secretary, Finance, Santosh D. Vaidya; Commissioner Secretary, Housing and Urban Development, Mandeep Kaur; Commissioner Secretary, Industries and Commerce, Vikramjit Singh; Regional Director (RBI), Chandrashekhar Azad; Chief General Manager NABARD, Bhallamudi Sridhar; Deputy Secretary, DFS (GoI), Garima Kapoor, along with other senior officials from RBI, NABARD, banks, state government departments, insurance companies and Lead District Managers.

Emphasising the need for improved outreach, Chief Secretary Dulloo expressed concern over the reduction of banking touchpoints by some Public Sector Banks and called for the use of Business Correspondents to extend essential banking services to Gram Panchayats across the UT. “For Jammu & Kashmir to make progress, banks have to achieve PSL targets. Banks must ensure that pre-sanction and pre-disbursement formalities align with RBI and NABARD guidelines, facilitating hassle-free credit access for potential borrowers, especially aspiring entrepreneurs,” he said, urging banks and sponsoring departments to work together to bolster PSL in both urban and rural areas.

He also stressed upon the role of sponsoring agencies in helping banks meet these targets, adding, “The role of these agencies is as critical as that of banks for achieving the targets laid out in the Annual Credit Plan (ACP).”

Pointing out the directions of the Union Finance Minister, Government of India, he said, “The banks need to increase their presence in rural areas as per the guidelines of the Honorable Finance Minister to ensure the widespread access to banking services.”

In a significant push towards financial inclusion, he advised banks to engage Village Level Entrepreneurs and Digi-Sakhis as Business Correspondents, emphasizing that all resolutions from the meeting should be implemented promptly to achieve meaningful results. Additionally, he highlighted the need for a timely integration of Farmer Producer Organizations (FPOs) within the banking network, stating, “FPO movement will be effective and taken to the next level once integrated into the banking system, with encouraging progress already being made in the form of plans rolled out by the banks for them.”

The Chief Secretary also encouraged banks to expand the coverage of farmers under the Kissan Credit Card (KCC) scheme, holding regular district and block-level committee meetings as per the ACP calendar, and creating awareness about social security schemes.

Earlier, in his welcome address, MD & CEO Baldev Prakash, expressed optimism about the credit growth scenario in the UT, saying, “With the invaluable support from the UT Government, RBI, and NABARD, we have every reason to believe that the banking credit scenario in Jammu & Kashmir will experience new beginning, and be a key enabler for the region’s inclusive development.” He further assured that J&K Bank, along with other financial institutions, would provide full support in implementing schemes aimed at promoting entrepreneurship, employment and poverty alleviation.

Earlier, J&K Bank’s General Manager Syed Rais Maqbool presented the financial achievements of banks for the first half of FY 2024-25, revealing that banks in J&K had disbursed over Rs. 35018.94 crore to 9.27 lakh beneficiaries, achieving 68% of the Annual Credit Plan in financial terms and 36% in physical terms. Furthermore, loans amounting to Rs. 860.95 crore were sanctioned for 18,102 beneficiaries under major employment generation schemes.

The meeting concluded with a vote of thanks presented by the General Manager, J&K UTLBC.