Reserve Bank of India Governor Raghuram Rajan on Saturday assured taking measurable short-term initiatives’’ to create linkages of finance by overcoming physical barriers so as to put together a stronger financing structure in Jammu and Kashmir.
The RBI governor at a luncheon meeting with Chief Minister Mehbooba Mufti discussed a 12-point plan aimed at putting together a stronger financing structure in the state which goes beyond conventional banking.
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The first priority will be to create linkages of finance by overcoming physical barriers which will help in integrating the state with rest of the country and empowering young local entrepreneurs,’’ he said.
We are taking measurable short-term initiatives,’’ he said, adding that J&K is in a better position in making the state easy for financing, which can be a model for rest of the country to emulate’’.
Rajan stressed on branding of handicraft products by popularising logos and bringing tour operators, hoteliers and other stakeholders under one platform to aggressively promote Jammu Kashmir as a niche high-end tourist destination.
Chief Secretary B R Sharma, Principal Secretary to chief minister, Navin K Chaudhary who also holds charge of finance department, besides regional director RBI Damrudhar Sethi along with chief general manager and executive assistant to RBI governor Vivek Agarwal also attended the meeting. Urging the RBI to reach out to state’s young and budding entrepreneurs by helping them establish viable business units, chief minister expected the RBI to do more in exerting pressure on banking firms in the state so that small and medium entrepreneurs have hassle free access to loans. She asked the premier financial institutions to broaden the scope of their business operations, adding that banks need to focus on priority sector lending in the state especially targeting tourism, handicraft, handloom, agriculture and allied segments.
Saying that state’s economy needs resuscitation as it has gone through very difficult times, she said we need to achieve RBI benchmark of 60 per cent credit deposit ratio for which banks have to scale up lending’’. The CM requested Rajan to expedite working out modalities for establishing banking facilities for cross LoC trade.