Proceeding 116th SLBC


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Proceeding 116th SLBC

  1. 1. PROCEEDING OF 116TH SLBC MEETING HELD ON 31.12.08 AT BHUBANESWAR The 116th State Level Bankers Committee meeting of Orissa was held on 31.12.2008 at Bhubaneswar under the Chairmanship of Shri S.K.Goel, Chairman & Managing Director, UCO Bank and Chairman, SLBC. Among others it was attended by Shri Prafulla Chandra Ghadai, Hon’ble Finance Minister, Orissa; Shri T.K.Mishra, Addl.Chief Secretary-cum- Development Commissioner,Govt. of Orissa; Shri D.P.Das, Special Secretary to Finance Department, Govt. of Orissa; Shri Kaza Sudhakar, Regional Director, Reserve Bank of India, Bhubaneswar; Shri Chitta Ranjan Pattnaik, CGM, NABARD, Regional Office, Bhubaneswar; Shri M. N. Rao, Chief General Manager, State Bank of India, Local Head Office, Bhubaneswar. The list of participant is annexed. Shri R. K. Mukherjee, General Manager, UCO Bank and Convenor, SLBC, Orissa welcomed Shri Prafulla Chandra Ghadai, Hon’ble Finance Minister, Orissa; Shri S.K.Goel, Chairman & Managing Director, UCO Bank and Chairman, SLBC, Orissa; Shri T.K.Mishra, Addl.Chief Secretary cum Development Commissioner, Orissa; Shri Kaza Sudhakar, Regional Director, Reserve Bank of India and other dignitaries in the dais, participants from Government Departments, Agencies and banks. KEY NOTE ADDRESS BY SHRI S.K.GOEL, CMD, UCO BANK AND CHAIRMAN SLBC, ORISSA The Chairman, UCO Bank welcomed Shri Prafulla Chandra Ghadai, Hon’ble Finance Minister, Orissa and other dignitaries and participants to 116th SLBC meeting. While extending New Year greeting to all present in the meeting, Shri Goel, expressed as follows:- • The global economic crisis has affected the almost all countries in the world while Indian economy is survived and banking in India is safe due to remedial measures taken jointly by Reserve Bank of India and Government of India. Various packages have been given by Govt. of India to bell out Indian economy from that crisis. • The year ahead is going to be very challenging because of the turbulence in global economy. The economic melt down will have cascading effect and they are going to be hit
  2. 2. 2 in one form or the other. All of us have to be vigilant and to work united to face any panicky of any kind. • Fall in crude oil prices and inflation has come as a great relief and the twin phenomena will enable us to sail through during this critical juncture. • The 116th SLBC has been convened at the behest of Reserve Bank of India to discuss important issues particularly relating to MSME (Micro Small & Medium Enterprises) in Orissa. • He said that issue of MSME (Micro Small & Medium Enterprises) and performance of this sector is of great importance. • As a result of globalization and liberalization, coupled with WTO (World Trade Organization) regime, Indian SMEs have been passing through a transitional period. With slowing down of economy abroad, particularly in USA and EU (European Union) and enhanced competition from China and a few low cost centers of productions, many units have been facing a tough time. • Small & Medium Enterprises are the blood vessels of the national economy and SMEs provide the country with a diverse range of products from very basic to the highly sophisticated. They are the backbone of industrial development of the country as every major industry has several SMEs on the supplier side contributing to its success. Apart from mineral based industries, there are enough opportunities in Orissa to establish agro based, food processing, automobile and information technology projects in the state. With huge investment, coming into Orissa for setting up of large scale industrial units, there is a great prospect and opportunity for banks and financial institutions in the state to expend their credit portfolio in this sector. • Further SMEs being the second largest employment provider after agriculture deserve all possible financial help for their existence and growth. • Lack of timely and adequate finance has been quoted by such enterprises as the biggest bottleneck for their growth and expansion. It is desired that banks should provide adequate and timely credit.
  3. 3. 3 • Banks should take coverage of Credit Guarantee Fund Trust for Micro & Small enterprises (CGTMSE) which helps the entrepreneurs to avail collateral free loan up to Rs.50 lakhs. • It is observed that financing SME units under cluster approach is not picking up to the desired extent. Hence banks and Govt. Line Department should make joint strategies to increase finance to SME sectors under cluster approach. • In response to the call of Hon’ble Finance Minister, Govt. of India in the Parliament on August 10, 2005 for stepping up credit to Small & Medium Enterprises, all public sector banks in Orissa have doubled the credit flow to SME by September, 2008, much prior to scheduled date of March, 2010. • He requested the bankers to concentrate on Financial Literacy. It is a fact that bankers are making commendable efforts in implementation of 100% Financial Inclusion. There is an urgent need to inculcate Financial Literacy among the poor beneficiaries of the rural areas. Financial Inclusion without Financial Literacy will only render many of the accounts inoperative. • He praised the efforts of Mr.Sudhakar,Regional Director, who has been a source of great inspiration for implementation of IT enabled Financial inclusion and UCO bank has already introduced IT enabled Financial Inclusion amongst the vulnerable sections of the society to have access to the bank. • 80% of the population of Orissa depend upon agriculture and allied activities for their livelihood. There is an urgent need for implementation of 100% Financial Inclusion throughout the state. Banks have to issue more number of Kissan credit cards to the eligible farmers. • The process of Financial Inclusion of 14 districts namely Kendrapara, Koraput, Kandhamal, Kalahandi, Nuapada, Bargarh, Jharsuguda, Jagatsinghpur, Bhadrak, Balasore, Angul, Dhenkanal, Mayurbhanj and Gajapati which was scheduled to be
  4. 4. 4 completed by 31st Oct, 2008 is lagging behind. All out effort must be made by all concerned to complete the task as soon as possible. Technology based Financial Inclusion will be a better method of enabling the rural folk to have easy access to the banking activities. He requested the State Government to kindly support such IT enabled Financial Inclusion. • Under the umbrella of Mission Shakti of Govt. of Orissa, more than 3 lakhs WSHGs (Women Self Help Groups) have been credit linked with the banks and more than 3 million women have been involved in the movement. It is definitely a commendable achievement. He urged the banks and financial institutions to increase the credit linkage to Self Help Groups, particularly Women Self Help Groups and there by reach out to a large number of people. This will go a long way to achieve empowerment of women which is one of our important social objectives. • In the past years, credit delivery under PMRY has been commendable. It is desirable that the same trend in the form of PMEGP advance should continue. He was quite hopeful that PMEGP (Prime Minister’s Employment Generation Programme) would be implemented successfully by the banks during 2008-09 in letter and spirit. Industries Department, Govt. of Orissa / KVIC (Khadi & Village Industries Commission) and KVIB (Khadi & Village Industries Board) are requested to render handholding services in implementation of PMEGP as has been given to banks in previous years in implementing PMRY and REGP schemes. • Credit flow to SC / ST sector is to be given top priority by the banks as the SC / ST population constitutes 39% of the total population of the state as per 2001 census. He requested the bankers to finance scavengers and dependants under SRMS (Self Employment Scheme for Rehabilitation of Manual Scavengers) as 2008-09 is the year of implementation of subject scheme and scheme will come to end by 31.3.2009. • He had no hesitation in stating that there is excellent rapport and understanding between the banks and Govt. officials in the state of Orissa. The synergic relationship only enabled
  5. 5. 5 the banking sector to discharge its role very effectively to facilitate the overall growth and development of the state. HIGHLIGHTS OF THE SPEECH OF SRI PRAFULLA CHANDRA GHADAI, HON’BLE FINANCE MINISTER, GOVT. OF ORISSA While extending New Year good wishes to all he observed as follows:- • The Government has faced many ups and down during 2008. The devastating flood situation in 2008 has been combated successfully by the Government in a big way. Steps have been taken to handle the drought in many parts of the state. The communal riot of Kandhamal has been successfully dealt with. • SHG Bank Linkage Programme can be regarded as most potent incentive since independence for delivering financial services to the poor in a sustainable manner. SHG Bank Linkage Programme is now more than 15 years old. There are large numbers of SHGs in our country who are well established in their savings and operations. Savings of SHG members constitutes the rural strength on which SHG Bank Linkage Programme is based upon. Experience of Financial management is a means of developing self governance, capabilities, skill upgradation and capacity buildings of the members. • He said that in our state, there has been increasing of SHG numbers everyday and are functioning very well. All concerned should extend support to the cause of WSHGs with an objective of empowerment of women in our state. • He expressed that MFIs because of their uniquely positioned plays a significant role in facilitating inclusion and reaching out the rural poor. • He told that nationalized banks who have been financing to MFIs should have control over the activities of MFIs as it is observed that most of the borrowers are financed by MFIs for consumption loan, Retail trade and small business loans at a exorbitant rate of interest even though MFIs have access to cheap bank credit. • He requested the Regional Heads of banks to ensure that MFIs financed by them should not charge exorbitant rate of interest from the ultimate borrowers. He desired that loan taken by MFIs are not reaching the ultimate borrowers in some cases or other as MFIs do not provide KYC data and personal data of the loanees, they even produce forged land records at the banks.
  6. 6. 6 • It is noticed that some of the MFIs are indulged in fraudulent practices to siphon crores of rupees particularly from the ICICI bank. • He cautioned ICICI bank which is not contributing in the poverty alleviation programme of the state are indulged in these activities. • He expressed that to augment the economy of the state, SME sector plays a very vital role. In mega project, in 5 lakhs rupees investment generates only one employment while in small investment in SME sector provides large number of employment. • He raised that why the banks are feeling shy to lend to this sector. • He expressed happiness that banks in Orissa have doubled the loan to SME sector much ahead of the stipulated date of March, 2010. • He said that each urban and semi urban branch of Public Sector banks and RRBs should finance at least five new SME account per year. • Banks should come forward to finance SME sector under cluster approach and treat it as thrust area. • He observed that tiny segment of small enterprises have inadequate access to the finance due to lack of financial information and non formal business practices. SME has also lack access to private equity and venture capital and a very limited access to secondary market instrument. • SME face fragmented market in respect of their inputs as well as products which are vulnerable to market fluctuations. SMEs lack easy access to interstate and international market. • He told that there is an immediate need for banking sector to focus on finance requirement of SMEs. • IPR (Industrial Policy Resolution) is being amended in the state for growth of SME sector in the state. • In view of the melting down of World economy, all are the victim of world recession, as said by Reserve Bank of India, Governor, it will continue up to 2010. All concerned should chalk out a plan how to wriggle out of the situation which is going on. The effect is more on mega industries like steel industries, charge chrome industries etc.
  7. 7. 7 • He emphasized that focus area for the upliftment of the economy of the state is SME sector. • He touched upon the bankers to improve the CD ratio of the banks in the state. As revealed from 115th agenda note of SLBC meeting held on 30.10.2008 it was noticed that some banks like Allahabad Bank, Canara bank, Corporation Bank, IDBI bank, Indian Overseas Bank, Punjab National Bank, Punjab & Sind Bank, State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore, Syndicate Bank, United Bank of India, Vijaya Bank, Federal Bank, HDFC Bank, Axis Bank, Indus Ind Bank had low CD ratio which is to be improved in coming days. He requested the Regional Heads and Chairman of RRBS with low CD ratio to take necessary steps to increase their credit in different sector to improve CD ratio. • Finally he stressed upon the implementation of Financial Inclusion in true sense. It implies that people should have access to the bank / Financial Institutions at a large in putting their savings which can be withdraw in case of emergency. It necessitates that unbanked population get bank accounts, such banks accounts ensures safe and reliable payment system, old age pension, creation of track records to provide bank service in remote areas. • Finally he concluded that state is in the path of progress & prosperity and all have to explore the speeder progress of the state. HIGHLIGHTS OF THE SPEECH OF SHRI TARUN KANTI MISHRA, ADDL. CHIEF SECRETARY-CUM-DEVELOPMENT COMMISSIONER, GOVT. OF ORISSA While speaking about the global recession in a globalization era, a small economy somewhere in the globe world influence the economic activity of other nations, there is a need to have rigorous thinking, pragmatic approach to protect the economy and to maintain the tempo of development he observed as follows: • Resources are dwindling due to recession in the market. In the context of burden of pay revision, consequent upon the pay revision of Central Government, banking sector has a crucial role to play to securitize the economy particularly the unprotected section of the people and to empower them also.
  8. 8. 8 • He appealed the bankers to consider the genuine needs & potentials & the commitment of WSHGs. Bankers should cooperate to achieve the target set to them in financing WSHGs for empowerment of women in rural areas. • He gave emphasis for financing to MSME sector which are the driving force for any economy. MSME are the engine of growth. • It is a fact that return on capital or employment potential of a small industry or medium industry is much more in compare to a big industry. In many cases it is eight times in terms of employment potential. Banks have to consider the genuine needs and opportunities of the industries. • Under coverage of CGTMSE (Credit Guarantee Fund Thrust for Micro & Small Enterprise) it is observed that the average loan size covered under the scheme in Orissa is Rs.1.73 lakhs, which is much less than national average of Rs.2.94 lakhs. • While telling about the extremist activities, naxal activity in specific which is surfaced in some parts of country notably in backward areas in Orissa, Andhra Pradesh, Chhattisgarh, he told that there is sense of depression among people, although development takes place in the state, but the people in those area are not the partners of progress and they do not get their legitimate due, the fruits of development do not reach them. • All concern have to address the backward areas where percept sense of deprivation prevail. • State Government has initiated number of programmes like State Employment mission, number of programme for them in Educational Institutes for the backward areas, Agriculture Programmes etc. • To meet the needs of local people, credit must be available to the people of backward areas.
  9. 9. 9 HIGHLIGHTS OF SPEECH OF SHRI KAZA SUDHAKAR, REGIONAL DIRECTOR, RBI, BHUBANESWAR. While telling the importance of MSME sector in generation of employment, in the context of global recession, he noticed as follows:- • Large areas of the state are unbanked. In the large areas of the district no bank branches are there. There must be some infrastructure in somewhere for doing lending activities. In areas having access to the bank between 50km. to 100 kms, lending activities cannot be undertaken. To mitigate this problem some methods / technologies must be adhered to sort out the problems and banks should come forward to face the situations. He gave importance for technology based financial inclusion in unbanked areas through IT enabled Financial Inclusion. In implementation of NREGA, initiatives of State Government has to be supported. He requested the State Government to share the implementation of NREGA with UCO bank also. The programme has to be completed in fixed time frame, not open ended time frame. • He opined that currency note position is very bad in Orissa and advised the banks to open currency chest in unbanked areas where RBI will bear 50% of the cost. • In all thirty districts of Orissa, Lead bank should organize workshop / meeting with bankers and entrepreneurs of MSME sector to popularize MSE code which BCSBI (Banking Codes & Standards Board of India) to make them aware of their rights and obligations. It should be completed within 2 months. • All the bank branches must adhered to BCSBI and should do for their customers. • Banks operating in the state should finance MSME sector to boost the economy of the state. Agenda Item No. : 01 Performance under MSME Sector After the brainstorming discussions on the issue, following action points emerged out to be followed by all concerned. 1) The performance of banks in financing SME sector requires improvement. Banks operating in the state and Govt. Line Department should take all possible steps for increasing credit
  10. 10. 10 flow to this sector. Pending SSI (MSME) loan proposals with various banks must have to be disposed of at the earliest. It was pointed out by CGM, NABARD that banks should adopt the clusters identified by NABARD. Project reports, Project profiles can be formulated with bank’s assistance when banks adopt cluster, then identification of entrepreneurs can take place. DIC should come forward regarding identification of entrepreneurs. Diagnostic study is supported by Ministry of MSME, Government of India. Banks operating in the state should adopt the clusters as given below. Plastic cluster in Balasore Rice mill cluster in Baragarh Rice mill cluster in Kalahandi Cashew cluster in Ganjam & Gajapati Pottery & Granite cluster in Bolangir Banks should adopt 70clusters identified by NABARD. NABARD was requested to share the list of clusters / cluster map amongst all banks operating in the state for their adoption. NABARD is agreed to be the partner in the process of adoption of clusters. Action : Banks / Industries Deptt., Govt. of Orissa / Directorate of Textiles & Handloom. 02) The bank should finance more & more under MSE sector and take coverage under Credit Guarantee Fund Trust Scheme for MICRO & SMALL ENTERPRISES which help the entrepreneurs to avail collateral free loan upto Rs.50 lakhs. It was noticed that average loan size covered under the scheme is Rs. 1.73 lakhs which is less than all India coverage of Rs.2.94 lakhs. RRBs suggested that coverage of scheme of CGTMSE (Credit Gurantee Fund Trust Scheme) should be applicable to the units set up by entrepreneurs availed loan from RRBs. SIDBI may be requested to look into it. Action : Banks / KVIB / KVIC / SIDBI. • As regards implementation of CLCSS (Credit Linked Capital Subsidy Scheme) banks should cover more number of units for technology upgradation of the industrial unit and the scheme has been extended up XIth plan period (2007-2012). The scheme is useful for the bankers as well as for the entrepreneurs who are availing finance for upgradation to technology to increase the production of goods. It has been decided
  11. 11. 11 that banks should incorporate whether the unit is eligible for CLCSS or not in application form and loan processing proposal. • SIDBI & NABARD is the nodal agencies for implementation of Credit Linked Capital Subsidy Scheme(CLCSS). Government of India has appointed nine more agencies which include State Bank of India, Canara bank, Bank of Baroda, Punjab National Bank, Bank of India, Andhra Bank, State Bank of Bikaneer & Jaipur, etc. • SIDBI should make awareness campaign and conduct the workshop to popularize the scheme. It was also decided that SIDBI to hold the workshop involving NABARD, bankers and Government Department to popularize the scheme in our state. • Strategies to improve finance under SME sector as mentioned in page no. 2 to page no. 5 of 116th SLBC meeting is to be followed by all concerned to increase the credit flow to SME sector. Action : SIDBI / Banks /Govt. Line Department. Agenda Item No. : 2 Fresh Issues A. Issue relating to PMEGP • The PMEGP is being implemented through 3 implementing agencies i.e. KVIC, KVIB & DICs. Target of KVIC. Both District wise and Bank wise and target of KVIB of District wise has been given in agenda of 115th SLBC meeting held on 30.10.2008 and target of DIC ( both Bank wise & Dist. wise) and target of KVIB of Bank wise has been given in 116th SLBC meeting. • It was decided that more target of KVIC, KVIB & DIC is to be given to PVT. Sector banks operating in Orissa. KVIB, KVIC and Director of Industries were requested to allocate more target to Private Sector Bank, operating in the state. • It was reported in many district that District Level Task Force Committee already constituted. The districts where Dist. Level Task Force was not constituted, it should be constituted without further delay. The Director of Industries is requested to kindly look into the matter. • All banks were requested to achieve the target set to them under PMEGP for 2008-09.
  12. 12. 12 Agenda Item No. : 3 Financial Inclusion • 100% Financial Inclusion of 14 district i.e. Kendrapara, Koraput, Kandhamal, Kalahandi, Nuapara, Baragarh, Jharsuguda, Jagatsinghpur, Bhadrak, Balasore has to be completed as soon as possible. • Follow up action is to be taken by SLBC and all Regional Heads of bank to complete the task. All out efforts should be made to complete the 100% Financial Inclusion of entire state by 2009. Action : Banks / SLBC. Agenda Item No. : 4 A. Issue related to Mission Shakti Department • It was decided to reschedule the loan of 12647 WSHGs belonging to 137 flood affected blocks of 19 number of districts. It has to be discussed and finalized in the district level meeting. • Banks may consider financing WSHGs registered under Self Help Co-operative Act,2001 as per Chapter V, Column 2 under mobilization of funds / Credit assistance, given in Annex-VII ( Page no.27 to 30 of 116th SLBC meeting Agenda Note held on 31.12.2008) • To build up the capacity of SHGs, funds given by Government is to be released to WSHGs by the banks without further delay. • Regarding collection of commission from Government transactions it was opined by RBI that banks should not charge commission, if funds is transferred from one department to other Department of Government. If any bank deviating the guideline collects commission wrongly, it may be referred to RBI for its remedial. If also cheque issued by the Government in favour of beneficiaries and commission is charged, this may be referred to RBI for its redressal. • The district wise data on WSHGs has to be submitted in a simplified format to Mission Shakti Department as well as to SLBC by the Lead District Manager under his signature if he is not able to reconcile with DSWOs / NABARD a monthly basis. All
  13. 13. 13 LDMs are requested to submit monthly data to the Mission Shakti Department with a copy to SLBC. • Transparency in the operation of MFIs and the area of operation are to be determined. The lending Institution / banks have to share the details information of financing to MFIs and MFIs on lending to SHGs / WSHGs / JLGs for monitoring their activity. Lending institutions which have financed MFIs must have to monitor about functioning of MFIs for on lending to SHGs / WSHGs / Joint Liability Groups and lending Institutions must know interest charged by the MFIs / NGOs to the ultimate borrower. MFIs and NGOs should not charge exorbitant note of interest to ultimate WSHGs / SHGs/ JLG. Agenda Item No. : 5 State Employment Mission • Under Sate Employment Mission, banks have to achieve the targets allotted to them for 2008-09 to provide self employment to unemployed youth. • Public Sector Banks have been doing well in financing to entrepreneurs / beneficiaries under Self Employment Mission where as Pvt. Sector Banks are not involved in Sate Employment Mission. Hence Pvt. Sector Banks are requested to participate and finance to beneficiaries under State Employment Mission. RBI was requested to kindly look into the matter. Action : Banks / RBI / State Employment Mission. Agenda Item No. : 6 Performance under OSFDC Scheme • Banks have to finance Scavengers and their dependants under SRMS (Self Employment Scheme for Rehabilitation of Manual Scavengers) as a national priority. The objective of scheme is to assist the Scavengers and their dependants which are yet to be rehabilitated in a time bound manner by March, 2009.The year 2008-09 is the year of implementation of subject scheme and the scheme will come to end by 31.3.2009.
  14. 14. 14 • It was found that large number of applications under SC/ ST sector is pending with various banks to be financed during 2008-09. • Banks have to sanction and disburse the same without violating the guidelines. • It was stated by MD, OSFDC that release of subsidy is not at all a problem, banks should finance SC/ST sector not only to increase the credit flow to SC/ST sector but also for their empowerment. Agenda Item No. : 7 Issue raised by Department of Information Technology, Govt. of Orissa, Bhubaneswar ROLLING OUT OF JAN SEVA KENDRA (Common Services Center) & PROVIDING FINANCIAL INCLUSION SERVICES THROUGH THE CSCs. While telling about the CSCs, Shri P.K.Mohapatra, Secretary, Information Technology Deptt, Govt. of Orissa, observed as follows: • Govt. of India will establish one lakh Common Services Centers and Orissa will have 8500 centers which will be located in Panchayat Head Quarter. Aim is to provide all services at village level in all Panchayat. • Govt. of Orissa has already set up 500 centers and there will be 6000 centers by April, 2009. In other states, banks have come forward to utilize the services of these centers. This is the best network for all Financial Inclusion services. • Govt. has plan to establish all 8500 Common Services Centers by Sept, 2009. • All B2B (BUSINESS TO BUSINESS), B2C (BUSINESS TO CITIZEN OR BUSINESS TO CUSTOMERS) will be provided in Common Service Center. • It will have 150 sq.ft room in each Panchayat. Department of Information Technology gave a Power Point Presentation on Common Services Center. The features of the Presentation in brief are enumerated below.
  15. 15. 15 Objective: Anytime, Anywhere, Service delivery at doorsteps of rural citizen The natural e-governance plan is based on a three pillar model i.e. 1. STATE DATA CENTER 2. STATE WIDE NETWORK (Delivery Channel) 3. FRONT AID MECHANISM ( Common Services Center i.e JANA SEVA KENDRA IN ORISSA) 8558 CSCs has to be rolled down in Orissa. Focus is rural entrepreneurship and market mechanism. Govt. of India, Govt. of Orissa, Rural entrepreneur join their effort together. Salient Features of CSC • It is a Public-Private partnership Programme. • The focus is on rural entrepreneurship and market mechanism • The banking service is to be provided whether rural & urban in a mission model through this CSC. (Services like issue of Bus pass, Birth & Death Certificate, Patta, Bill payment, Railway ticket booking & many other services will be provided at doorsteps) • There will be two laptop at the desktop with 24 hour connectivity. • Uninterrupted connectivity is to be provided to this sector. • After the post offices and PACS (Primary Agriculture Co-operative Society) this will be the largest network center in rural areas. • This will be the largest IT enabled infrastructure on the basis of which anything and everything can be provided to the rural people. • Registrar, Co-operative Society and MD, Co-operative Bank were requested to allow PACs (Primary Agricultural Co-operative Societies) to operate through CSCs because in the Baidyanathan Committee Report Scenario, PACs can be emerged as the front line delivery mechanism in rural areas and it is a better opportunity.
  16. 16. 16 As a part of National e-Governance plan, Govt. Of Orissa has signed Master Service Agreement (MSA) with reputed private partner to rollout 8558 JANA SEVA KENDRAS IN Orissa as apart of CSC project. ALLOCATION OF CSCs TO SCAs Name of SCA CSCs allocated ZOOM Developers Ltd. 3236 SREI Infrastructure Ltd 3648 BASIX 1674 • Village Level Entrepreneur (VLE) would play an important role in operating the project and would provide both Government/Non Government citizen centric services in the rural areas. The JANA SEBA KENDRAS would function at least one in each Gram Panchayat. • It was suggested that these JENA SEBA KENDRAS may be considered to function as Financial Inclusion Centre or Business Correspondent of different banks. • RBI has said that CSCs (Common Service Centre) cannot be the BUSINESS CORRESSPONDENTS of the banks. Banks have to be guided by the RBI directives only in the matter of appointing Business Correspondent of a particular bank. Actions: RBI / Banks/ Deptt. of Information Technology, Govt. of Orissa. TABLE AGENDA Issues raised by banks in Orissa • In the (SRFAESI) Act 2002, Chief Metropolitan Magistrate or District Magistrate are empowered to grant permission for taking possession of such assets by the secured creditors and at the time of taking physical possession of secured assets, banks are facing difficulties in eviction of tenants or the occupants of the mortgaged properties. If the district authority does not co-operate the banks in taking possession, the very purpose of SRFAESI Act is defeated. After the exchange of deliberations it was decided that Finance Deptt, Govt. of Orissa will write to all the collectors for doing the needful. Action: Finance Department, Govt. of Orissa.
  17. 17. 17 Issue raised by Chief Manager, SBI, Lead Bank Office, Nawarangpur & Malkanagiri Exclusion of Malkanagiri district from crop insurance (Paddy) for current Rabi season • In response to the issue it was decided that, the matter will be reviewed and will be taken up with the appropriate authority of State Govt. so as to include the Malkanagiri District for crop insurance for current-Rabi season (Paddy). • DIF, Govt. of Orissa was requested to kindly look into the matter. Action: DIF/ Regional Manager, Crop Insurance, Bhubaneswar. At the end, Shri C.P.Das, Chief Officer, SLBC, UCO bank proposed vote of thanks to Chair as well as to participants.
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