RBI sets new mortgage rules for NE tribals

Aizawl, Dec 12 (UNI) With an aim to benefit the tribal farmers of NE, the Reserve Bank of India (RBI) has recommended the commercial banks in the region accept mortage from tribal cultivators for loan.

According to the recommendation, tribal farmers can now avail of bank loans by mortgaging their right to cultivate community land.

Banking sources here today told UNI that the Deputy Governor of RBI Usha Thorat has recently recommended banks sweeping policy changes for commercial banks in NE region after reviewing the loan policy.

''The idea is to expand services in NE region to achieve greater financial inclusion,'' they added.

Officials also pointed out this in conformity with the system of communities, not individuals, retaining control over land in Mizoram, Meghalaya, Tripura, Arunachal Pradesh and Nagaland, as village heads generally authorise individuals to cultivate or use land in these areas.

RBI has also asked the banks to provide at least 50 new households a deposit account every month in the next four years and considering the balances maintained in the accounts over a period, banks may offer small overdrafts or General Credit Cards against such accounts and other products, the sources added.

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