Arunachal to get two new treasury offices

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Itanagar, May 13: With a view to extending banking facilities to the remote areas of Arunachal Pradesh, two new treasury offices would be established at Kurung Kumey and Anjaw districts.

Official sources said here today that Reserve Bank of India (RBI) Governor Dr Y V Reddy, who arrived here yesterday, during a meeting with Arunachal Chief Minister Dorjee Khandu, agreed in principle to create two new treasury offices at the two districts.

Dr Reddy also asked the state Finance department to prepare a proposal for provision of coverage to the state's uncovered areas under the RBI's financial inclusion.

Dr Reddy was earlier requested by the Chief Minister to provide banking facilities to at least five more villages, in addition to West Siang, by March 2009 next under the financial inclusion.

Assuring that the operational area for the state's Regional Rural Bank (RRB) would be extended, the RBI Governor asked the state government to identify areas and to provide land and infrastructure for the purpose. He added that the RBI would provide full support for extending banking services to the state.

Mr Khandu highlighted the rise in the Cash Deposit Ratio of the state from 34.78 per cent to 40.98 per cent. He reminded Dr Reddy of the state cooperative bank's claim to the tune of Rs 10 crore under the Centre's debt waiver scheme and pleaded with the RBI to convince the government to release the claim amount in one installment.

The state government released Rs 5.5 crore towards recapitalisation of the state's RRB, Mr Khandu informed, adding that the bank's operational area would be further extended in all the districts.

Mr Khandu also informed about the NABARD's willingness to share 50 per cent of the operational cost of entrepreneurship development programmes in the state and said the State Bank of India should set up such skill development institutions here.

He advocated providing more Kisan Credit Cards (KCC) and Kisan loans to the state's farmers by relaxing the existing guidelines, saying that strict loan guidelines had been the major setback in tapping the state's horticulture and agriculture potential by the farmers.

Mr Khandu also informed the RBI Governor that the present SBI regional office and SBI Itanagar branch office should be shifted to a better location.

Dr Reddy expressed satisfaction over the state's sound fiscal position and praised the state government for its fiscal management.

State Home Minister Jarbom Gamlin, Chief Secretary, Finance Commissioner, principal Secretary to Chief Minister, Regional Director RBI, Guwahati and high ranking state officials were also present at the meeting, the sources added.


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