RBI offers collateral free loans

Aizawl, Dec 5 (UNI) The Reserve Bank of India (RBI) has offered collateral free loans of up to Rs five lakh to the Mizoram banks.

Addressing a workshop on Banking Literacy and Insurance Products here yesterday, state chief secretary Haukhum Hauzel said, ''It would open the doors for small entrepreneurs.'' The RBI had issued a notification on September 21, informing the banks about the introduction of the collateral free loans, the chief secretary said.

''Banking rules and regulations have been poorly observed in Mizoram. However, recently positive developments have emerged following mutual understanding between the bank authorities as far as the PMRY loans are concerned,'' Mr Hauzel pointed out.

He stressed on the importance of bank and business studies for the state.

''Mizoram is still quite young in banking and business as compared to the other states of the country which have 5,000-year-old civilisations. There is an urgent need to improve banking and business studies in the state,'' he urged.

He also voiced concern over the fact that educational and housing loans for non-government employees were an almost impossible feat in the state.

Highlighting the frequent problems regarding insurance in Mizoram, including pending accident claims by insurance companies and failure to insure vehicles, Mr Hauzel said that as per the directives issued under the Insurance Regulatory and Development Authority on December four, 2006, all insurance companies had a pooling arrangement, according to which, the third party insurance would be co-shared.

''It is expected to solve most of the problems faced by insurance agents,'' he said.

The main objectives of the workshop were to spread awareness about banking and insurance services in the state for promoting industrial and economic growth and to provide a forum for the banks and insurance companies to interact with their clients and address issues of mutual concern.

Different bank experts presented papers on various topics, including SBI chief manager J Thatlinga, MRB senior manager Laldinpuia, Vijaya Bank chief manager C Rohuapa and representatives of insurance companies and other important officials at the workshop, presided over by CII national committee on NE chairman Dipendra Chatterji.

UNI