Pranab Mukherjee asks state governments and banks to improve credit flow

Mumbai, June 28 (ANI): Union Finance Minister Pranab Mukherjee on Monday asked State Governments and bankers to position themselves to finance the emerging demand for credit from agriculture, manufacturing and services sectors in their respective regions.

"I would urge the State Governments and Bankers to position themselves to finance the emerging demand for credit from all sectors in this region, whether from agriculture, manufacturing or services," Mukherjee said.

Addressing the Joint Meeting of the Chief Ministers of Central and West Zone States and CEOs /CMDs of public sector banks and Financial Institutions, Mukherjee asked them to make serious efforts to improve the credit flow to housing, weaker sections, minority communities and education loans.

"Though efforts are being made to improve the credit flow to housing, weaker sections, minority community and education loans, the credit growth in these sectors need closer monitoring in the State Level Bankers Committees," he said.

In his address, Mukherjee suggested to closely monitor them through state level bankers committees.

"The Financial Inclusion Plans for coverage of all habitations with banking facilities must be closely monitored by the State Chief Ministers and CEOs of all Public Sector Banks," he said.

Mukherjee said there is a need to ensure that financial literacy and financial inclusion is integrated with the technological development of banking infrastructure in rural and semi -urban areas.

"There is also need to ensure that financial literacy and financial inclusion is integrated with the technological development of banking infrastructure in rural and semi-urban areas," Mukherjee said.

He advised banks to convert savings from semi-urban and rural markets into financial assets through effective financial inclusion.

"I take this opportunity to advise the Banks to convert savings from semi-urban and rural markets into financial assets through effective financial inclusion," Mukherjee said.

"With the improvement in banking technology, financial inclusion initiatives will strengthen financial deepening," he added.

He also expressed concern over the financial sector not addressing needs of the poor, the marginalized, the small farmer, and the micro entrepreneur.

"There is urgent need for including people from all strata in the mainstream banking system and for putting our country firmly on the path of overall growth and development," Mukherjee said.

Mukherjee also stressed on effective implementation of Aam Admi Bima Yojna and Co-contributory Pension Scheme 'Swavalamban' as these are important priorities before the government.

He appreciate Reserve Bank of India's (RBI) efforts at financial inclusion and enhancing financial literacy. (ANI)