Jt Working groups of Banking services to come up : RBI Guv

Patna, Jan 18(UNI) RBI Governor Y V Reddy today underscored the need to constitute Joint Working Groups in the Banking sector in Bihar to implement the state's all round economic reform programmes.

Speaking to newsmen after a review of the performance of the banking sector in Bihar and holding day long meetings with Deputy Chairman of the state Planning Board N K Singh, Chief Minister Nitish Kumar, his deputy Sushil Kumar Modi, who also holds the Finance portfolio, and senior finance ministry officials, Dr Reddy said the high power groups would address several specific issues like educational loan and the usefulness of increasing the network of public sector banks in rural Bihar.

He said the Centre, particularly Union Finance minister P Chidambaram, had been taking special interest in the economic reform programmes of Bihar and paid special attention towards streamlining its financial growth and banking services.

'' Accordingly, it was decided at today's meeting to have institutional arragements with various groups comprising representatives of state government, public sector banks and the Reserve Bank of India to address several specific issues on top priority basis,'' he stated.

Expressing concern at the unsatisfactory credit-deposit ratio, low bank coverage in Bihar, the RBI Governor informed that Deputy Governor of the Apex Bank would soon visit the state to take stock of the situation and recommend steps to improve the credit disbursal portfolio.

When his attention was drawn towards the low volume of educational loans for higher studies for students in Bihar, Dr Reddy promised to solve the stumbling blocks in the way of distribution of such loans.

The cheque clearing mechanism and other banking services would also be improved all over the state, he said.

Dr Reddy admitted that the money laundering x x x x Eds picking up from para six of CA 32-- Banking Bihar-RBI.

UNI RS-ABA KK/src1947