Govt asks rural banks to adopt 750 villages,ensure services by next year

To extend banking services to rural areas,the state government has asked the nine regional rural banks (RRBs) operating in Uttar Pradesh to adopt a total of 750 villages,10 from each district,and provide banking services and other facilities,such as Kisan Credit Cards.

Written by Express News Service | Lucknow | Published:February 28, 2013 5:06 am

To extend banking services to rural areas,the state government has asked the nine regional rural banks (RRBs) operating in Uttar Pradesh to adopt a total of 750 villages,10 from each district,and provide banking services and other facilities,such as Kisan Credit Cards.

“We have ordered the nine RRB’s,which cover all districts of Uttar Pradesh,to take social responsibility and adopt villages in each district they cover. In all,a total of 750 villages are to be adopted and services extended to them within the next year,” said Shiv Singh Yadav,Special Secretary and Director of Institutional Finance.

The banks have also be asked to partake in beautification and tree plantation activities. The decisions were intimated by Yadav to the RRBs in a meeting on Wednesday.

The banks have also been instructed to actively take up the opening of proposed 656 rural branches as part of RBI Governor’s direction in January this year to open 3,000 bank branches in rural areas by March next year.

Also,to monitor state-sponsored schemes being delivered by these banks,they have been asked to sign a memorandum of understanding (MoU) where they will be given targets for each quarter and their progress monitored at the end of each quarter.

“The state government has (just) 15 per cent share and two directors of institutional finance in the boards (of these banks). So,much is in the hands of these banks,” Yadav said. “Hence,the government has tried to control and monitor (the banks through MoU),” Yadav said,adding that such an MoU is being signed for the first time.

He also said that the banks have been given a month’s time to meet the targets for delivery of Kisan Credit Cards (KCCs). “We have identified some banks,whose progress is not good,to organise mega camps and distribute KKCs and meet 100 per cent of their targets by March end,” he said. To monitor the progress,a meeting will be organised in April.

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