MoS Finance Karad urges banks to improve credit penetration in northeastern states


Minister of State for Finance Bhagwat Karad called on lenders to improve access points to banks and also increase credit penetration in northeastern states. Karad, who is on a week-long tour of Assam, Tripura and Manipur, reviewed the performance of various government flagship programs aimed at accelerating development in the northeast.

The minister advised banks through the State Bankers Committee (SLBC) to raise awareness of the public sector bank door-to-door banking service (PSB DBS) which can be registered by customers, according to an official press release. As part of this program, various services such as check pickup, drafts, payment orders and new check books, etc. This facility launched earlier this year is currently limited to a few locations around the country.

Regarding greater physical presence, SLBC members have pledged to open 56 new bank branches and 150 Correspondence Bank (BC) facilities in Assam by March 2022. Of these, 34 will be established by public sector banks while the other 22 by private banks. He participated in the Credit Outreach Program in these states and encouraged banks to provide loans to required segments.

To strengthen financial inclusion, he called on banks to promote PM Jan Dhan Yojana (PMJDY) accounts for citizens who have recently come of age. The Minister advised them to promote safe credit practices with a healthy dissemination of financial knowledge.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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