Punjab Minister to discuss refinance issues with NABARD

Chandigarh, July 23 (UNI) Punjab Cooperation Minister Capt Kanwaljit Singh would call on NABARD Chairman and RBI Deputy Governor at Mumbai on July 25 to discuss vital issues relating to raising quantum of refinance, rate of interest on refinance, assistance to five District Central Cooperation Banks and refinance facility for rural housing besides financial assistance for water harvesting and women cooperatives.

These issues were discussed in detail at a high level meeting of the Cooperative department held here today. The meeting was chaired by the minister.

It was decided in the meeting to impress upon the NABARD Chairman for providing liberal finances through the State Cooperative Banks to meet the short term as well as long term credit requirements of all the farmers under cooperative fold in the state and to enhance the refinance from the existing 40 per cent to at least 70 per cent of the advances made by the District Central Cooperative Banks.

It was also decided in the meeting to raise the issue of not enhancing the rate of interest on refinance from 2.50 per cent as on this very rate the Cooperative Banks could provide agricultural credit at the rate of seven per cent to the farmers, thereby helping them immensely by saving them from felling prey into the hands of unorganised sector.

Besides this, the issues of no insistence upon Government guarantee in case of conversion of short term agri loans to medium term loans and starting refinancing of 5 District Central Cooperative Banks of Amritsar, Patiala, Tarn Taran, Ropar and Mohali which was stopped due to creation of new districts.

The Minister would also plead to enhance refinance to Punjab State Cooperative Agri Development Banks to the tune of Rs 491.73 crore for the year 2007-08 which was limited to Rs 235.85 crore in the previous year.

The other issues to be taken up with NABARD would include conversion of Co-operative Agricultural Development Banks as full fledged banks to reduce their dependence on external resources.

The Minister would also advocate for refinance facility for rural housing directly to Housing Federation and significant assistance for water harvesting and women Co-operatives. A case for approval of new Urban Cooperative Banks will also be pleaded so as to take care of the urban consumers.

UNI