Proceedings of the 116^th Special State Level Bankers’ Committee Meeting for the
State of West Bengal held on 8^th December 2011

Proceedings of the Sideline meetings of the Governor on December 07-08, 2011 –Action points.

The Central Board of the Reserve Bank of India had met in Kolkata on December 08, 2011. During this period, the Governor, Reserve Bank of India had a meeting with the officials of the State Government and the bankers in a Special SLBC convened on December 08, 2011. Earlier, on December 07, 2011 he also met the Hon’ble Governor of West Bengal and also the Chief Minister of West Bengal. Based on these meetings certain action points have been mandated by the Governor, Reserve bank of India which are indicated as per the Annexure.

1. As the SLBC Convenor bank, you are requested to coordinate with the banks operating in West Bengal and take necessary action to ensure compliance to the action points which would include the following:

1. 100 percent achievement of Financial Inclusion Plan (FIP) for all the 7486 villages by March 31, 2012.
2. Achievement of CD Ratio of 65% by the end of current fiscal.
3. Each bank to achieve their respective internal target for KCC.
4. Banks to credit link one lakh SHGs by end of March 2012. Necessary coordination between banks and State Government for grading of SHGs and additional staff from the controlling offices of the banks may be deployed as task forces.
5. A study on the current status of GCC disbursement should be completed by December 31, 2011 for the four districts identified viz. North 24 Parganas (Allahabad Bank), Murshidabad (United Bank of India), Howrah (UCO Bank) and Malda (State Bank of India).
6. The matter of bank lending should take into account the cropping patterns specific to district crop zones in the State and could be taken up at DCC level.
7. Bank Managements to ensure that non-collateralised loans up to Rs.10 lakh is provided to the MSME sector.

2. As regards the study regarding the current status of GCC disbursement a questionnaire has been prepared in consultation with all the above-mentioned banks and a representative of the State Government. Since the pilot study is to be completed by December 31, 2011. SLBC Bank is requested to identify the names of the coordinating officers from all the banks and forward the same to RBI.

ANNEXURE

1. The target 7486 villages under FIP to be covered by March 31, 2012. The banks should strive to achieve meaningful financial inclusion. State Government to provide adequate security to frontline managers in districts with law & order problems to facilitate FI awareness drives in these sensitive districts.
2. Banks to achieve credit deposit ratio of 65% by the end of the current fiscal. While it is acknowledged that enhancement of CD ratio will require big ticket investment in the State, attempts to be made to progressively increase CD ratio over the coming years by enhancing the ACP.
3. The banks to step up lending through KCC and under Government sponsored schemes; Separate KCC targets to be set internally by each bank would have to be fully realized.
4. One lakh SHGs to be credit linked by end of March 2012. SHG Credit Linkage and the ongoing KCC drive should aim to ensure that the CD ratio reaches 65%. To obviate the problem of coordination between banks and the State Government for grading of SHGs, additional staff from the controlling offices of banks to be deployed as task forces with specific focus on this area.
5. Efforts need to be intensified regarding issue of Genera Credit Cards (GCC) to all eligible non-farm households. To study the current status of GCC disbursement, teams comprising of the concerned bank, LDO, DM and State Government officials to undertake field surveys in select districts on a pilot basis.

The districts selected are as under :

• North 24 Parganas (Allahabad Bank)
• Murshidabad (United Bank)
• Howrah (UCO Bank)
• Malda (SBI)

All teams would submit their reports by December 31, 2011 and the position would be reviewed in the subsequent SLBC. The Regional Director, RBI Kolkata to take stock of the situation and decide on the way forward.

6. The matter of bank lending taking into account the cropping patterns specific to distinctive crop zones in the state could be taken up at the DCC level.
7. The bank managements to ensure that non-collateraized loans up to Rs. 10 lakh is provided for the MSME sector.

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