BOTTLENECKS IN BANK CREDIT TO RURAL DEVELOPMENT PROGRAMMES TO
BE REMOVED
A high level meeting
will soon be convened to consider and remove bottlenecks in extending
credit assistance by banks to self employment programmes in rural
areas. This was announced by the Union Rural Development Minister,
Shri Shanta Kumar while concluding the two-day National Conference
of Ministers of Rural Development, Panchayati Raj and Public Works
Departments here today. He said the Union Finance Minister, representatives
of Reserve Bank of India and Banking Institutions will also participate
in this meeting.
Shri Shanta Kumar’s
announcement came in response to the views expressed by the States
and Union Territories on the delays in sanctioning loans as well
as high rate of rejection of loan proposals referred to the banks
under the Swaranjyanti Gram Swarozgar Yojana (SGSY). SGSY is an
integrated programme for self employment of the rural poor and
seeks to bring the assisted poor families above the poverty line
by organising them into Self Help Groups. Bank credit is a key
element of this programme while Government subsidy is an enabling
component. Although guidelines provide for involvement of bankers
at all stages of implementation of scheme, the States have pointed
out that the response from bank officials was not to the desired
extent.
Responding to the
observations of States and Union Territories, a senior representative
of the Reserve Bank of India said that RBI has even recently reiterated
instructions to the banks to tone up their performance by acting
in accordance with the guidelines of SGSY programme and further
said that RBI will again take up the matter with the banks.
In his concluding
remarks, Shri Shanta Kumar said that in view of the financial
constraints being faced by both the State and Central Governments
it was the collective responsibility of both to ensure maximum
returns from the scarce resources being invested in rural development.
He further said his Ministry will fix a specific time frame for
release of the second instalment of funds to the States and Union
Territories after all the necessary information is furnished by
them in respect of the first instalment. The Minister observed
that involvement of Members of Parliament and the State Legislatures
in the monitoring of the implementation of rural development programmes
will improve their implementation. Shri Shanta Kumar assured the
participants that their suggestions would be given utmost consideration
by his Ministry.
The States and Union
Territories have highlighted the issues relating to delivery and
quality of food grains besides transportation costs in respect
of the Sampoorna Gramin Rozgar Yojana (SGRY). They also referred
to the need to provide proper assistance for marketing of the
products of the Self Help Groups under SGSY programme.
Ministers and officials
from 30 States and Union Territories have participated in the
two-day conference to review implementation of various centrally
sponsored rural development programme.
