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Proceedings of the 107th State Level Bankersí Committee Meeting for the State of West Bengal held on 19th June 2009

The 107th meeting of the State Level Bankers’ Committee, West Bengal, was held on 19th June 2009 at The Hotel Hindusthan International where performance of the banks during the year 2008-09 was reviwed.  Sri S C Gupta, Chairman & Managing Director, United Bank of India could not attend the meeting due to other important preoccupation and Shri R K Mohanty, General Manager (Plg. & Prisec) presided over the meeting. The meeting was, inter alia, attended by Shri V Vasanthan, Banking Ombudsman, RBI, Kolkata, Shri Dipankar Mukhopadhyay, Principal Secretary, Finance Deptt. GoWB, Dr G D Goutama, Principal Secretary, MSSE & T., GoWB   Shri Pawan Kr Agarwal, Secretary, Cooperation Deptt, GoWB, Shri Vikram Sen, Special Secretary, SHG & SE Deptt., GoWB, Sri P Mohanaiah, Chief General Manager, Nabard, and Shri C D Srinivasan, General Manager, Reserve Bank of India. Besides, many other top executives of Govt. Departments, banks and NABARD participated in the meeting. A list of participants of the meeting is enclosed. 

At the outset Md. Abdul Wahid, Asst. General Manager (Prisec), UBI welcomed all the participants to the meeting and requested Shri R K Mohanty, General Manager (Planning and Prisec), UBI to preside over the meeting and give his inaugural address to the house.

Shri R K Mohanty, General Manager (Prisec), UBI , in his inaugural speech inter alia mentioned the following points:

  • As against target of at least 90% disbursement under ACP 2008-09, the achievements of the banks have been 99%. Achievements under both Agriculture and SSI sector have been 93%. The achievement under SSI sector is 19% higher than what it was during 2007-08 (74%).
  • There is an improvement of disbursement figures in MSME sector which indicates effectiveness of holding special monthly SLBC meetings on IBA Economic Package. Member banks have done a commendable job under MSME sector.
  • In implementing the IBA Economic package, the main focus on MSME sector will continue and the views of MSME Associations will be considered as important feedback.
  • 109617 nos. of new SHGs have been deposit linked and 105450 SHGs have been credit linked during the year, which are 73% and 70% of the annual target respectively.
  • Under Employment Generation Schemes the achievement is 83%.
  • In the eight districts identified for 100% Financial Inclusion, about 80% of the households have been financially included.
  • Outstanding Advance to Minority Communities as percentage of the total Priority sector Advance has increased from 7.89% as on March 2008 to 14.51% as on March 2009 as against 13% envisaged. 

Thereafter, Sri Mohanty invited other dignitaries to place their observations on the performance of the banks during the year 2008-09.
Sri V Vasanthan, Banking Ombudsman, RBI, Kolkata made the following observations during his speech and inter alia mentioned the following areas usually handled by the Banking Ombudsman:

  • Problems/ Grievances relating to Commercial banks, RRBs and scheduled Cooperative banks both urban and rural.
  • Deficiency in banking services including Internet banking.
  • Non-adherence to the provisions of Code of Bank’s commitment to customers.
  • Non-adherence to Reserve Bank Guidelines in engagement of Recovery Agents by banks as grounds of complaints.
  • Omission of complaints related to guarantee/ export bills from grounds of complaint
  • Non – adherence to the provisions of the Fair Practices codes for lenders.

He also insisted on the need of compliance of the following stipulations of Banking Ombudsman:

  1. Compensation up to Rs 1.00 lac may be awarded in case of complaints relating to credit cards on harassment mental agony etc.
  2. Displaying of contact details of the Banking Ombudsman and a copy of the scheme to be placed in bank’s websites.
  3. Appointment of Principal nodal officers for such zones or regions where more than one zones/ regions fall under jurisdiction of a Banking Ombudsman.
  4. Banks to strengthen their internal complaint reddress mechanism i.e. deployment of adequate knowledgeable staff to the special cells at controlling offices for effectively handling the issue.
  5. Banks should endeavor to compress the 30 days time period for redressing grievances.
  6. Create facility for manual intervention for handling the customers’ complaints in addition to the Toll Free tele services.
  7. Financial Education (Literacy) Programme which is one of the important components of Financial Inclusion.
  8. On 24th May 2007, the clause for rejection of the complaint and time limit for acceptance/appeal has been included in an amendment.

Dr G D Goutama, Principal Secretary, MSSE & T, GoWB during his brief deliberation impressed upon the following issues:

  • India is the least affected country by economic recession and recovering fast from its effect whatever it had.

  • Our emphasis should be on Small and Micro Industries where scope of employment generation is much more. Creation of jobs should be our main objective.

  • A monitoring mechanism to identify the reasons for poor recovery and units becoming sick should be developed.
  • Under PMEGP scheme, West Bengal has achieved the target in respect sanction of proposals. Disbursement of sanctioned cases needs to be speeded up.
  • The target under PMEGP for the year 2009-10 has been kept at the same level at what it was in 2008-09. The pending proposals of 2008-09 will be re sponsored during the current year.

Shri Dipankar Mukhopadhyay, Principal secretary, Finance Deptt., GoWB mentioned the followings during his opening remarks.

  • Achievements under ACP 2008-09 have been commendable and performance under MSME sector has improved markedly.
  • Advance to Minority community has increased to 14.51% against targeted 13%.
  • Recovery in Govt, sponsored scheme is a matter of concern.
  • Sponsoring for SHG credit linkage should be increased and the banks should see that no delay takes place in disbursement.
  • In the 11th conference of Finance Ministers the emphasis was on i) increase in demand in the domestic market, ii) Investment in Infrastructure development, iii) reduction in interest rate etc.
  • The State Govt. is about to introduce interest subvention scheme for SHGs against the interest charged by the banks over 4% p a.
  • The State Govt. has decided to disburse salary of the employees through electronic fund transfer system of the banks and the process to take of soon with Group “A” employees.

Shri Pawan kr Agarwal, Secretary, Cooperation Deptt. in his brief deliberation talked about strengthening of Coop Credit Sector and wanted it to diversify its service parameters so that it can compete with the commercial banks. However, there should not be any unhealthy competition, he opined.

Shri Vikram Sen, Special Secretary, SHG & SE Deptt. GoWB gave his observations as under:

  1. The performance of the banks in respect of deposit and credit linkage of SHGs has been at a lower side compared to their performance during the year 2007-08. However, the amount of credit disbursed has gone up during the year under review.. In any case the small groups should not be ignored, he desired.
  2. Lot of complaints is being received from the loan applicants under BSKP and SHGs alleging delay in disposal of their proposals. Disbursement should immediately follow the sanction.
  3. Reiterated the interest subvention scheme for the SHGs to be launched by the State Govt.

Shri P Mohanaiah, Chief General Manager, Nabard highlighted the following issues in his deliberations:

  1. During the year under review Nabard has achieved a record performance in utilizing RIDF and formation of Farmer’s Club. 350 Farmer’s Clubs have been formed during the last year.
  2. Focus for the current year is on extension of credit to Agriculture sector and formation of Farmer’s Club. The target for Agricultural Advance has been kept this year at Rs 9015 core compared to a target of Rs 6693 crore envisaged last year. All left over farmers benefited under Agril. Debt Waiver and Debt Relief Scheme are to be issued fresh KCCs during the year.
  3. 6000 Farmer’s Clubs have to be formed by the end of March 2012 i.e at least one farmer’s Club for each Rural/SU branch.
  4. SHG – bank linkage is to be strengthened further with timely credit linkage/ review of limit. About 2.00 lac matured groups need to be credit linked early.
  5. Camps may be organized for opening of accounts under Financial Inclusion and Financial Literacy programme. For formation and financing SHGs/JLGs assistance under Financial Inclusion Fund / F I Technology Fund is available.

The deliberation of Sri C D Srinivasan, General Manager, Reserve Bank of India inter alia included the following points:

  • The extent of loss caused by the recent Aila in the affected districts is yet to be completed. LDMs of 24 Pgs (N), 24 Pgs (S), Hooghly and Howrah should take part in the rehabilitation process with a sympathetic approach.
  • The recommendations of the K C Chakraborty Committee report on credit delivery to the Micro and Small Enterprise is to be implemented by the Banks, Central and State Govt and SIDBI.
  • Banks have come forward to open about 150 branches in the unbanked GPs identified by the Task Force for extension of banking facilities.
  • The last date of disbursement of proposals under SRMS has been extended up to 31st August, 2009.
  • Mere opening of No Frills A/cs will not serve the purpose of Financial Inclusion. It is also to be seen that the A/cs remain operative and small overdrafts are allowed in the A/cs.
  • Compulsive selling of insurance products to SHG members should not be insisted upon.
  • At least some percentage of transaction cost relating to Electronic Benefit Transfer should come from the State Govt. so that RBI can also continue to provide subsidy of Rs 50/- per smart card.

 Thereafter, at the instruction of Shri R K Mohanty, Chairperson of the meeting, Agenda wise discussion was undertaken on the under noted items through Power Point presentation:

  • Confirmation of Proceedings of the 104th meeting of SLBC for West Bengal held on 29.9.2008: Accepted by the house
  • Progress made against action points up to December 2008: The implementation status of the action points was discussed during the opening remarks of the speakers. For the sake of brevity, the discussion held is not repeated.
  • Performance of the banks in Key areas: Covered during opening remarks of the speakers
  • Implementation of Annual Credit Plan: Covered during the opening remarks of the speakers.
  • Progress of credit linked Self Employment Programme: The house observed that the performance could be better in  PMEGP and  disbursement of sanctioned BSKP and SCP cases.
  • Progress in savings/credit linked SHGs: Sri Barun Dasgupta, Consultant, Panchayat and Rural Development Deptt. highlighted the following issues:
    • Some banks are insisting for insurance coverage against the will of the SHG members.
    • Targets for Nabard SHG and SGSY SHG has not been segregated. (Shri Mohanty informed him that such segregation of target would be made effective from the current year.)
    • About 56000 groups have passed Grade –II level but only 13000 groups have been project linked.
    • The amount of credit extended is disproportionate to the corpus of the Groups.

Shri D Mukhopadhyay. Pr Secretary, Finance Deptt. opined that introduction of interest subsidy scheme will cause a spurt in credit of take by the SHGs. He also opined that 70% of Nabard SHGs are formed by BPL members and can well be covered under SGSY scheme.

  • Recovery : Sm Chhanda Sarkar, Director, SUDA invited the bankers to submit the defaulters list under SJSRY to the respective Municipalities so that they can take timely recovery measures. Shri Barun Dasgupta opined that the poor recovery percentage in SGSY (Individual) cases must have been relating to old cases as no fresh proposals of Individuals are sponsored now.
  • Flow of credit to Agriculture: Shri Dipankar Mukhopadhyay, Principal Secretary, Finance Deptt., observed that achievements in financing Share Croppers and Pattaholders have been at a lower side during 2008-09 in comparison to the previous year. The performance should be improved in the current year. Shri Ashit Sinha, Lead District Manager, Dk. Dinajpur district informed the house that land holding certificates are always not made available. Sponsoring of proposals under the above segments has also been at a lower side during the year. Shri Samir Ghosh, Chairman, West Bengal State Coop Bank opined that the Land Reforms Deptt.  should maintain better coordination with the banks so as to promote better performance in the area. The State Coop bank would welcome such proposals, he added.
  • Financial Inclusion: Covered by the speakers during their opening remarks
  • Extending relief measures by bankers to Bird Flu affected Poultry Industry: The performance did not reach the level of expectations.
  • Financing Minority and backward classes: The house welcomed the commendable performance of the banks in this area. The effort should continue in the coming years also.
  •  Loans for replacement of two stroke auto Rickshaws and old metered Taxis registered prior to 1.1.1993: Shri S N Pal, Director, Public vehicles Deptt, placed the following issues before the house:
    • Proposals for replacement of multiple number of vehicles owned by a single applicant should be considered as a single proposal as the M V Act, 1988 allows holding of multiple permits and possess multiple vehicles in single name.
    • As KYC forms are issued after due vetting by the Office of the Public Vehicles Deptt. as per norms set forth, the issue of rechecking of the antecedents of the applicants may be kept at a minimum level.
    • As M V Act, 1988 allows scope for recording both permanent and present addresses, proposals of the applicants who have given their recorded temporary address may also be entertained on production of suitable documents for the same.
    • The last date of replacement of Auto Rickshaws and metered Taxis registered prior to 1.1.1993 is 31.07.2009; hence, the proposals need to be disposed of with utmost urgency.
  • Flow of credit to Micro and Small Enterprises

Shri Debabrata Banerjee, Secretary, FACSI was of the opinion that though the position has improved, the MSME entrepreneurs are still not getting the desired extent of support from the banking system.
Shri B L Baheti, Secretary General, IFTE desired the banks to look in to the following issues:

  • To focus more on financing Tiny and Micro Enterprises where credit requirement in 90% of the cases is less than Rs 5.00 lac.
  • Providing marketing support to Tiny and Micro Enterprises for their survival and development.
  • Simplification of loan application forms for small and micro enterprises and ensure their easy access to the banks.
  • Representation of MSME Associations in different in different Block/District level credit committees.

14. Other Misc, Issues:

  • Setting up of RSETIs: Seven RSETIs are already functioning in the State. The eighth RSETI has informally started functioning at Jalpaiguri pending its formal inauguration. The other ten districts have also been allotted to different banks for seting up of RSETIs. The allottee banks informed that the process is on and some of the proposed RSETIs are expected to start functioning within Sept 2009.
  • The revised guidelines on SJSRY: The revised guidelines on SJSRY was produced in the house by Sm. Chhanda Sarkar, Director, SUDA which has subsequently been circulated by the SLBC amongst the member banks.
  • Payment of Crop Insurance Claim to the Aila victims: Shri D Singh, RM, AIC Ltd informed the house that under the existing norms, no insurance claim would be admissible to the Aila victims against crop insurance, which covers only standing crops.
  • Inclusion of W B State Coop Bank as MLI under CGTMSE: Shri Samir Ghosh , Chairman, WB State Coop Bank informed the house that if State Coop Bank is included as an MLI of CGTMSE , the bank can play a very important role in augmenting credit under MSME sector in the rural areas of the State.
  • Registration of Equitable Mortgage at nominal cost: In view of spurt in the incidents of frauds in mortgage-based loans, the issue came up for discussion in the instant meeting also. The issue of reduction of stamp duty on legal mortgage was also discussed simultaneously. Shri Dipankar Mukhopadhyay, Principal Secretary, Finance Deptt. informed the house that the State Govt will examine the issue and take decision in the matter soon.

The following major action points emerged from the meeting are:

  • 100% of the targets set under ACP 2009-10 will be achieved by March 2010. (Action: Banks & Govt. Deptts)
  • Implementation of the remedial measures declared by RBI/ Govt of India for increased flow of credit to MSME sector will be continued. (Action: Banks & Govt. Deptts).
  • Targets for SHG linkage under Nabard and SGSY schemes have to be segregated soon for circulation (Action: Banks & Govt. Deptts)
  • About 1.00 lac matured SHGs not yet linked up with credit, are to be linked up speedily. The groups, which have completed Grade –1 and Grade II, will be promptly linked up with adequate Cash credit Limit and Project lending as the case may be.   (Action: Banks & Govt. Deptts).
  • The relief measures recommended by RBI and approved in the SLBC meeting held on 09.6.2009 (Conversion, rescheduling etc.) would be implemented in true spirit for rehabilitation of Aila victims. (Action: Banks & Govt. Deptts).
  • SB A/cs are to be opened in the name of the Aila victims with zero balance for crediting subsidy on housing etc to be provided by the State Govt. (Action: Banks & Govt. Deptts).
  • The proposals for replacement of two stroke Auto Rickshaws and metered Taxis registered prior to 1.1.1993 have to be disbursed within 31.7.2009, the last date agreed by Hon’ble Kolkata High Court. (Action: PVD, GoWB and Banks)
  • Flow of credit to Minority communities will continue and districts having larger percentage of minorities will intensify lending. (Action: Banks )
  • Hooghly district should complete 100% Financial Inclusion in true spirit by December 2009 and other eight districts identified for 100% Financial Inclusion will also attain 100% achievement by December 2009. (Action: Banks & Govt. Deptts)
  • Commercial Banks are to increase Crop Insurance coverage for their borrowers during the year. (Action: Banks )
  • In view of repeated instances of fraud in mortgage-based loans, the State Govt. may kindly explore the possibility of registering of equitable mortgages at nominal charges. A centralized Registration system may also be introduced to prevent multiple registration of same property at different Registry Offices. (Govt. Deptt.)
  • The State Govt. may also consider to reduce the Stamp duty on legal mortgages not exceeding Rs 10000/= per case to encourage creation of legal mortgages which are seldom done now. (Govt. Deptt.)

Vote of Thanks

Ms M V Shyamala, Field General Manager, UCO Bank extended the vote of thanks to the Chair. She expressed her satisfaction over the 99% achievement made by the banks under ACP 2008-09. She expected that the performance of the banks in the segments of SHGs, Share Croppers , Pattaholders will improve this year. She thanked the house for the valuable discussion on different issues, and desired that the next year’s target be also achieved.

List of RSETIs at present functioning in West Bengal

Sl No.

Name of the RSETIs

of the District

of the sponsoring Bank



24-Parganas (South)

United Bank of India


R.K. Mission Samaj Sevak Shikshan Mandir, Belurmath


United Bank of India


UBI Shamayita Math RUDSETI, Amarkanan


United Bank of India


UCO EDC, Howrah


UCO Bank


RUDSETI, Berhampore, Bhakuri


Syndicate Bank & Canara Bank


ABFETI, Paschim Beguni, PS-Debra

Paschim Medinipur

Allahabad Bank


ABFETI, Bolepur


Allahabad bank


CBI, RSETI, Jalpaiguri


Central Bank


Bank of India, RSETI

24 Parganas (N)

Bank of India












UCO Bank

Allocation of other districts to different banks for seting up of RSETIs:

Sl No

Name of the district

Allottee Bank

Whether lead bank in the district



UCO Bank




Central Bank of India



Purba Medinipur

Punjab National Bank




Central Bank of India




United Bank of India



Dakshin Dinajpur

United Bank of India



Uttar Dinajpur

United Bank of India


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