MUMBAI, Dec 4: The Reserve Bank of India today constituted two committees to study the system of credit delivery to the agricultural and small scale industries (SSIs) sectors and propose changes in it.Former RBI deputy governor, R V Gupta, would study the working of the agricultural credit system and the problems faced by them, while former Union SSI secretary, S L Kapoor, would undertake a similar exercise in respect of flow of credit to SSIs. The RBI Governor Bimal Jalan announced the central bank decision to appoint two committees here today.The Gupta committee would personally visit select branches and regional offices of commercial banks, get a feedback from agriculturists, agricultural scientists and extension workers as well as the field level bank staff and also make proposals on any further initiatives that might be taken by commercial banks to meet genuine credit requirements of agriculturists.Similarly, Kapoor would review the working of the credit delivery system for SSIs with a view to making the system much more effective, simple and efficient to administer.Both Gupta and Kapoor have been requested to give their recommendations to the central bank by March 1998. RBI said setting up of both the committees were reflective of the high priority RBI attached to make the credit system for agriculture and SSI entrepreneurs hassle-free and customer-friendly.Gupta would recommend, on the basis of feedback received at the ground level, further procedural improvements and simplifications, including reduction in paper work for the delivery of farm credit.Agriculture constitutes 29.4 per cent of the GDP, employing 64 per cent of the country's work force. Since the inception of the economic reform process, there has been a significant expansion in the flow of credit to the agricultural sector from Rs 11,202 crore by all agencies in 1991-92 to Rs 28,653 crore in 1996-97 and further to an estimated Rs 34,274 crore in 1997-98, an RBI press statement said.
