State Level Bankers’ Committee, Tamil Nadu
Convenor: Indian Overseas Bank
Minutes of the 130th SLBC Meeting
Held on 28/06/2012
130th SLBC Meeting of Tamil Nadu was held at Chennai on 28th June, 2012. List
of participants is furnished in the annexure.
Welcome Address:
Shri. A.K. Bansal, Executive Director, IOB welcomed the participants to the
130th meeting of SLBC, Tamil Nadu. In his welcome address, he solicited cooperation, support from the members and the Departments of the State
Government for timely submission of precise data and steady flow of
information to SLBC.
Shri. A.K. Bansal also praised the SLBC for remaining consistently on top of all
States in respect of CD ratio.
Inaugural Address:
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and
Chairman, SLBC, Tamil Nadu reviewed the progress made by the Banking system
in Tamil Nadu under various key parameters.
He informed the forum on the salient points which came up for discussions
during the meeting convened by the Hon’ble Union Minister for Finance on
12.06.2012.
1. Achievement of 18 % target on Agricultural credit
2. Kisan Credit Card (Revised scheme) – Renewal of existing limits before
Khariff season.
3. General Credit Card to all non- farming households in the villages
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4. All transactions through electronic mode including credit facilities to
farmers (through debit cards)
5. A committee has been appointed to study the gap between flow of
agricultural credit & agricultural production in the states and also to
study the feasibility of establishing a credit guarantee scheme for small
& marginal farmers.
6. Action plan for enhancing agricultural production for each state to be
prepared.
7. Opening of land lease market.
8. Credit to Micro & Small Enterprises – Action plan to be prepared for
2012-13 to achieve the target of 100%
9. All banks should adhere to the IBA approved common application for loans
up to Rs.25.00 lacs for MSE.
10. Electronic tracking of MSE applications to be put in place by March 2013.
11. Revival of potential & viable and closure of other sick industries to be
done in a time bound manner.
12. All banks should complete transfer of the subsisting charges to the
Central Registry within the prescribed time limit of June 2012.
13. NHB to put in place, a mechanism to rate housing projects &
entrepreneurs.
14. Public Sector Banks to implement effectively the new scheme of
Educational loans. IBA’s scheme of Educational loans for vocational
courses to be marketed proactively by banks.IBA will issue guidelines for
rating of educational institutions & courses.
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15. Banks to open Ultra Small Branches in all the villages where Business
correspondents are functioning at present.
16. The Insurance companies shall extend their services in the FI villages
hereafter and present products like pension, micro insurance etc.
17. The business correspondents are to be well trained by the Banks. The
training programme would be co-ordinated by NABARD.
18. Opening accounts of migrant labourers, hawkers & vendors in urban areas.
19. Electronic benefit transfer – Coverage of all 32 schemes under EBT by
SLBC convenors. Integration with AADHAR.
20. Banks to provide facilities for online filing and tracking of loan
applications.
21. FLCCC in each district must be activated by the respective Lead Bank.
State Government should be requested to support the Financial Literacy
initiatives.
22. Banks to identify the districts of Minority Communities concentration and
focus on credit inputs to them. The target of 15% lending to minorities
should be met by the banks.

Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank
and Chairman, SLBC, Tamil Nadu said that SLBC and DCC are shouldering
huge responsibilities in the recent times. The newer tasks like Financial
Inclusion, Monitoring e-Payments, GIS and new KCC scheme are some of
the new assignments given to SLBC to be implemented through the
support of LDMs. He stressed the need for strengthening the manpower
and infrastructure at the LDM’s office by the four lead banks.

He informed the forum that Government of India recently introduced the
new KCC scheme and SLBC already identified 4 districts (Kanyakumari,
Salem, Theni & Ariyalur) in Tamil Nadu for implementation of the scheme
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on pilot basis.
All the eligible farmers in these districts are to be
covered under the new KCC scheme before June, 2012.
Financial Inclusion:
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank
and Chairman, SLBC, Tamil Nadu informed the forum that SLBC identified
1676 villages with population of 1600-2000 and allotted them to various
banks for coverage under Financial Inclusion before 31.03.2013. He
advised the banks that the services of the Business Correspondents who
are already in place (>2000 villages) can also be utilized for covering 02000 villages.

He had informed that SLBC already convened a special meeting on
19.05.2012 to discuss the issue of coverage of all villages with population
<2000, where representatives from all the banks accepted the proposal.
He advised all the banks to complete establishment of Ultra Small Branches in
their FI villages at the earliest.
He also advised that all the RSETIs should endeavour to provide quality training
to entrepreneurs.
Highlights of Banks’ Performance in Tamil Nadu
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and
Chairman, SLBC, Tamil Nadu then listed out the highlights of the achievements
of the banking system in Tamil Nadu as at the end of March, 2012 and also the
Performance under the Annual credit Plan 2011-12.
Before concluding his speech Shri M. Narendra, Chairman & Managing Director,
Indian Overseas Bank and Chairman, SLBC, Tamil Nadu requested the State
Government to notify all banked centres in the State under clause (f), section
58 of the Transfer of property Act, 1882, as the recent Government
notification covers only Municipal Corporations, municipalities and Town
Panchayats.
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He further added that at present no information is available on the number of
farmers in the state. He requested the State Government to compile a complete
village wise list of farmers which will enable the bankers to identify those
farmers who have not yet been brought into the banking fold.
He suggested the banks to submit monthly data to SLBC on flow of credit to
Investment credit/ crop loans / Allied activities separately and also quarterly
data on MSE under the 3 segments of Priority Sector along with data on sick
units & their rehabilitation.
He also requested the State Government to make available the land records
online for the entire State for easy verification and also requested the
Government to provide facility of online creation of charge over landed
properties. He also requested the State Government for integration of State
Registry with Central Registry set up under SARFAESI Act, 2002.
He suggested for creation of a supply chain in conjunction with Government,
Banks, Corporates and Farmers.
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and
Chairman, SLBC, Tamil Nadu acknowledged the whole hearted and continued
support received from the Government of Tamil Nadu, RBI, NABARD, LDMs and
the member banks both at the State and District Levels.
Keynote Address:
K. Shanmugam, I.A.S., Principal Secretary, Finance, Government of Tamil Nadu
observed the following in his keynote address:
1. There is a delay in onset of monsoon in the State. Already a part of
Kuruvai crop in Thanjavur delta is lost. It will be a tough year ahead.
Banks should be geared up to meet the challenges ahead.
2. It is heartening that the projection for farm credit during 2012-13
shows an increase of over 39% when compared to the previous year.
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3. At present the credit flow to Agriculture is dominated by crop loans and
there is no system to monitor the effective utilisation of crop loans for
agricultural operations.
4. To improve the productivity in Agriculture credit flow to investment
credit should be necessarily improved.
5. Projects like improvement of Water Conservation, High Technology
oriented projects like poly house cultivation, precision farming etc., are
to be identified and financed.
6. The allied activities to Agriculture also should be given a boost.
The
farmer’s income can be supplemented only by encouraging animal
husbandry activities.
7. Units like Mini Diary, Poultry etc can be financed and there are excellent
opportunities in financing Rural Godowns & Farm machinery.
8. Banks may think of encouraging corporates who are engaged in Agro
Processing who can have a contract farming arrangement with the
farmers.
9. The State Government recently issued a GO for payment through Bank
accounts in respect of paddy procured from farmers in the delta
districts.
10. The request for notifying all the banked centres under Clause (f) of
Section 58 of Transfer of Property Act, 1882 would be considered by
the Government.
11. Most of the land records in the State are already digitised but not made
online except two districts, Tirunelveli and Kancheepuram.
The State
Government is implementing a project namely “Tamil Nilam” which aims at
making the land records available online and the same will linked with the
Registration Department also.
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The ownership details will be made available in the public domain and the
bankers can verify the records for their requirement.
After the address by the dignitaries the Agenda was taken up for
discussion:AGENDA: 1
CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING
The forum confirmed the minutes of the 129th State Level Bankers’
Committee Meeting held on 19.03.2012.
AGENDA No: 2
New Issues
1. Setting up of Rural Self-Employment Training Institutes (RSETIs)
Shri. S.N. Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu
informed the forum that in all the 31 States, the RSETIs established by
the 4 lead Banks are functioning and one extra RSETI is functioning in
Kothagiri established by IOB.
Smt.P.Amudha, I.A.S., Managing Director, TNCDW requested that all
RSETIs should have full fledged infrastructure facilities like, Staff, Full
time Directors, and a separate building.
Action: 4 Lead Banks
2. Financial Inclusion & Green Initiatives - Electronic transfer of benefit
payments
The Convenor, informed that the benefit payments have already started
through electronic mode in the State under various schemes. The initial issues
if any would be sorted out in the course of the implementation of the schemes.
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Action: Banks & Government
3. Sanction of Revolving Fund to SHGs comprising Sri Lankan Tamil
Refugees:The Convenor, informed that the matter has already been discussed in the
forum and now it has been clarified by Reserve bank Of India that sanction of
Revolving Fund to SHGs comprising of Sri Lankan Tamil Refugees can be treated
at par with other SHGs and disbursement of revolving fund and granting of bank
loans to such SHGs is a normal credit decision, which the sanctioning authority
can take along with usual KYC norms.
Action: Banks & Government
4. Setting up of Financial Literacy & Credit Counselling Centres (FLCCC)
The Convenor, informed the forum that FLCCCs have been established in 29 out
of the 31 districts. State Bank of India has to set up FLCCC in two districts.
Shri.Sharad Sharma, Deputy Managing Director, State Bank of India, informed
that interviews for selection of FLCCC councellors was over and the FLCCCs will
be functional before July 2012. All the four Lead Banks were requested to
furnish to SLBC districtwise number of counselling given during every quarter
under broad parameters.
Action: State Bank of India
5. Extension of Swabhiman – providing banking services in remaining villages
of Tamil Nadu:The Convenor, SLBC Tamil Nadu informed that in the second phase of coverage
of villages under Financial Inclusion, villages with population of 1600-2000 are
to be covered as per the directives of the ministry of Finance. In addition to
these villages there is an expectation from the State Government that all
villages shall be covered regardless of the population. There are only 6316
villages left to be covered under all population categories. SLBC identified and
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allotted already 1676 villages with a population of 1600-2000 which must be
covered before March 2013 as per directives of Government of India. The
remaining villages are only 4640 which are to be covered as a special case in
Tamil Nadu by March 2013, so that benefits under 32 Central Government
schemes and other State Government schemes can be credited electronically.
After deliberations and discussions the Members banks have accepted the
suggestion and assured implementation.
6. Common Request for Proposal (RFP) for selection of BC services:
The Convenor, informed the forum that the common RFP is a new direction from
ministry of Finance, Government of India. Banks should engage one Business
Correspondent through a common RFP for a cluster of villages, each cluster
comprising of about 5000 villages. The common RFP was floated on 07.05.2012
by Indian Overseas Bank on behalf of the cluster consisting of Tamilnadu,
Kerala, Puducherry.Further developments in this regard shall be advised to
member banks.
7. Capturing of data entry module for Geographical Information System
(GIS) for Financial Inclusion through Web site of DFS, MOF, Government
of India.
The Convenor, informed the forum that the Lead District Managers are already
engaged in data entry through the web site of Ministry of Finance and advised
the LDMs present to complete the exercise fast.
8. Strategy and Guidelines on Financial Inclusion- Opening of Branches by
Banks:
The Convenor, informed the forum that Ministry of Finance, Government of
India advised that in the under banked districts, all villages with population of
5000 and above should have a bank branch by September 2012. Banks can start
with opening of Ultra Small Branches in villages where opening of a regular brick
& mortar branch is not viable at present and then convert it into a full fledged
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branch when the branch reaches the desired level of business. He advised the
LDMs to identify such villages and monitor the progress in opening of branches.
Action: Banks /LDMs
9. Financial Inclusion – Drive to open Bank Accounts for Migrant labourers,
Street Vendors / Hawkers in Urban Areas
The Convenor, informed the forum that as per the directives of the Ministry Of
Finance, every bank branch should send their staff to meet the migrant
labourers, street vendors & Hawkers located within 500 metres from their
branch and should open their accounts in the first phase. Thereafter, the
process should be extended to beyond 500 metres to enable all such persons
financially included.
Action: Banks
10. Launch of campaign to ensure at least one Bank Account for each
family in FI Villages
The Convenor, informed that the campaign to be launched only in villages,
covered under Financial Inclusion. This can be done through the Business
Correspondents who are already in place. The families who do not have a bank
account are to be identified and accounts are to be opened. He also advised the
banks to expedite the process and complete it by 30th June 2012 as per the
directives of Ministry Of Finance, Government of India. The Chairman, SLBC
advised all banks to submit the data in this regard to SLBC.
Action: Banks
11. Dairy Entrepreneurship Development Scheme (DEDS)
The Commissioner for milk production and Dairy Development, Tamil Nadu
requested sanction of loans under the above scheme to the tune of Rs.150.30
crores and to utilize the subsidy component of Rs.40.71 Crores. Shri. S.N.
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Misra, General Manager, IOB and Convenor, SLBC Tamil Nadu advised the
member banks that achievement of the target of Rs.150.30 crores may not be a
difficult task considering the Farm credit allocation of Rs.51910 crores for
Tamil Nadu under ACP for 2012-13.
Action: Banks
12. Government of India’s Revised KCC Scheme
The Convenor, informed the forum that this scheme was discussed in the special
review meeting convened by the Hon’ble Union Minister on 12.06.2012 at New
Delhi. The scheme is being implemented on a pilot basis in 4 districts of Tamil
Nadu viz. Kanyakumari, Theni, Salem and Ariyalur. He advised the member banks
to complete coverage of all the eligible farmers in the pilot districts as per
schedule.
Action: Banks
13. Credit Linked Capital Subsidy Scheme (CLCSS) of GOI:
The Convenor, advised the member banks to improve their performance under
SCSP, TSP and NER categories of borrowers.
Action: Banks
14. Target for Farm Sector Lending in line with Hon’ble Union Finance
Minister’s Budget announcement – 2012-13- Tamil Nadu
The Convenor, advised informed that after receipt of the targets from
NABARD,SLBC reallocated the district wise ACP targets under Farm credit and
placed the same in SLBC. The LDMs were already requested to redistribute the
enhanced targets to the banks in their districts. He had also made an appeal to
NABARD to reconsider the Farm credit target of Rs.51910 crores if possible as
it constitutes almost 10% of the National outlay of Rs.575000 crores which is
very heavy on a single state. Chief General Manager, NABARD informed that
the steep enhancement in the target is only for investment credit. She also said
that not only there is scope for investment credit but it is very much essential
to improve the agricultural production and productivity.
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Action: Banks
15. Meetings of LDMs by various Departments of State Government:
The forum resolved that matters relating to various Government schemes at the
State level be brought to SLBC for discussion and matters relating to district
level be discussed in DCC instead of convening separate meetings of LDMs and
other officials.
Action: Banks
16. Revival, Reform and Restructuring Package for Handloom Sector
Shri. Karnan, Additional Director of Handlooms & Textiles informed the forum
that they are yet to receive the claims from Banks under relief package
extended to handloom weavers and requested the banks to expedite submission
of claims to NABARD. He also added that the district wise targets for weavers
credit card had already been circulated to all the Lead District Managers and
requested the banks to process and sanction the applications at the earliest.
Action: Banks/LDMs
17. GOI Subsidy Schemes implemented through NABARD
The Convenor, advised the member banks to implement the schemes listed out in
the agenda vigourously as all of them are subsidy oriented and investment
credit schemes. He also added that this will help the banks achieve their
enhanced targets under investment credit.
Action: Banks
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18. Training programme for BC/BF/BCAs conducted by NABARD:
The Convenor, advised all the banks to utilize the training facilities offered by
NABARD to train their Business Correspondents/Business Facilitators and BC
Agents.
Action: Banks
19. Exemption of stamp duty for documents executed by Joint Liability
Groups (JLG) for borrowing loan from banks:
The Convenor, SLBC Tamil Nadu informed that the Government had exempted
stamp duty for document executed by Self Help Groups and Panchayat Level
Federations. Now the request had come from a member bank that similar stamp
duty exemption should be extended to Joint liability Groups also. The state
Government was requested to consider the request. The Principal Secretary
(Finance), Government of Tamil Nadu directed the concerned Department of
the State Government (Registrar of Co-op Societies) to look into the request.
Action : State Government
20. Swavalamban /NPS-Lite
The Convenor, advised that the scheme was introduced in 2010 to consider
micro pension scheme for farmers, labourers and unorganized sector workers.
All banks were requested to implement the scheme in letter & spirit.
21. Tamil Nadu Government’s Dr.Muthulakshmi Maternity Benefit Scheme
The Convenor, informed the forum that electronic benefit transfer mechanism
is already operational in the above scheme and requested the bankers to,
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a) Avoid delay in opening of accounts
b) Avoid delay in transfer of funds from Block Medical Officer’s Account
to the accounts of the beneficiaries.
Action : Banks
22. Creation / Release of Online charge by banks on land holdings:
The Convenor, informed that there is a directive from Ministry of Finance, GOI
to enable creation & release of online charge by banks on land holdings. He
further added that SLBC had already requested the State Government to make
the land records available online and to integrate the State registry with the
Central Registry. The Principal Secretary (Finance), Government of Tamil Nadu
agreed to look into the subject.
Action: State Government
23. Convergence of Insurance facilities with FI initiatives:
The Convenor, advised the insurance companies both life and non-life to prepare
district level Insurance plans in consultation with LDMs & DDMs of NABARD as
directed by Ministry Of Finance, Government of India.
Action: Insurance Companies
24. Ultra Small Branch (USB)
The Convenor, informed the forum that in Tamil Nadu already about 900 Ultra
Small Branches have been opened by banks. He also advised the member banks
that every single BC outlet should be converted into a Ultra Small Branch by
30.06.2012 as per the directives of Ministry of Finance, Government of India.
The chairman SLBC advised the SLBC to collect and furnish bank wise data.
Action: Banks
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Agenda No.3
REVIEW
ON
BANKING
DEVELOPMENTS
IN
TAMILNADU
ON
KEY
PARAMETERS AS OF MARCH 2012
The forum noted that year on year incremental deposits & credit growth was
30.65% and 19.49% respectively during 2011-12. The CD ratio has gone down
from 114.49% as of March 2011 to 104.71% as of March 2012. The share of
agricultural advances was 20.81% against the national norms of 18%. The forum
advised the banks to step up credit flow.
AGENDA No: 4
Review of performance under Annual Credit PLAN 2011 – 2012: APRIL
2011 to MARCH 2012
The forum took on record the achievements under ACP 2011-12 ( April 2011 to
March 2012). The banks have achieved 117 % under Farm sector, 89% under Non
farm sector and 100% under other priority sector. The forum advised Banks to
ensure 100% achievement under Non Farm sector which includes MSME. As the
crop loan (miscellaneous) comprises about 58% of crop loans, the forum felt
that it is misleading. All member banks were advised to report disbursements
under Banana, Tapioca, Turmeric, flower crops and any other major crops
separately and ensure only minimum is kept under miscellaneous category.
All member banks were also advised to cover all eligible crop loans including
Agricultural Jewel Loans under crop insurance without fail.
Action: Banks
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AGENDA: 4A
ANNUAL CREDIT PLAN 2012-13
The forum took on record the consolidated revised Annual Credit Plan
(sectorwise) as per NABARD allocation.
AGENDA No.5
Prime Minister’s Employment Generation Programme (PMEGP)
The State Director, KVIC informed the forum that they have received the
PMEGP subsidy from the Government and the same is deposited with the nodal
banks. Shri. L. Thirugnanasambandam, DGM, SLBC requested that KVIC should
avoid sending huge no. of PMEGP applications which is disproportionate to the
target.
Action : Banks /KVIC
AGENDA No:6
SWARNA JAYANTI SHAHARI ROZGAR YOJANA (SJSRY)
The forum noted that subsidy utilization for the programme year 2011-12 as on
31.03.2012 is 75% & 82% under USEP and UWSP scheme. Forum advised the
banks to speed up the sanction/disposal of the pending loan applications at the
earliest.
Action : Banks
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AGENDA No: 7
SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY 2011-12)
Smt. P.Amudha I.A.S., Managing Director TNCDW advised that the data given in
the agenda does not reflect the pending applications with banks as many
applications related to 2010-11,2011-12 and 2012-13 are pending with banks.
TNCDW was requested to furnish the list of pending applications bank wise to
SLBC for following up with respective banks.
Action : Banks / TNCDW
AGENDA No: 8
Interest Subsidy for Housing the Urban Poor (ISHUP)
The Convenor, advised the forum that the performance under the scheme is
very poor. He requested all the banks to disburse the sanctioned loans
immediately and to claim subsidy. Shri M. Narendra, Chairman & Managing
Director, Indian Overseas Bank and Chairman, SLBC, Tamil Nadu advised the
bankers to dispose of the pending applications immediately.
Action : Banks/TNHB
AGENDA No: 9
BANK FINANCE UNDER HOUSING SCHEME:
The forum noted that banks in Tamil Nadu have disbursed Rs. 3694.97 crores
under Housing Finance during the year 2011-12. The representative of National
Housing Bank requested that claims are to be submitted in time under 1%
interest subvention scheme. The forum advised all banks to provide the interest
subvention details also to SLBC.
Action : Banks
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AGENDA No: 9 (A)
GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHFS)
The forum noted that banks in Tamil Nadu have disbursed 6526 loans under the
above scheme amounting to Rs.15178.82 lacs during 2011-12
AGENDA No: 10
Educational Loans
The forum took note that banks in Tamil Nadu have sanctioned 1,38,869
educational loans to the tune of Rs.1721.58 crores during the year 2011-12, of
which SC/SC , Minority communities & women account for 18269 loans
amounting to Rs. 232.49 crores, 14722 loans amounting to Rs.235.30 crores and
41450 loans to the tune of Rs. 467.69 crores respectively. Shri. S.N. Misra,
General Manager, IOB and Convenor, SLBC Tamil Nadu advised all the banks to
submit the interest subsidy claims on educational loans before the deadline of
30.06.2012. Shri M. Narendra, Chairman & Managing Director, Indian Overseas
Bank and Chairman, SLBC advised the banks that Government will not consider
any claim submitted after the deadline as per the recent directives.
Action: Banks
AGENDA No: 11
MICRO & SMALL ENTERPRISES (MSE) SECTOR
The Chairman, SLBC advised that the share of Micro Enterprises in credit flow
to MSE is only 38.53 % against the target of 55% fixed by Reserve Bank Of
India. He also advised that potential SME clusters in the state may be
identified and specialised SME branches can be opened by banks to increase the
flow of credit to this sector and also advised that banks should enhance the
share of micro enterprises to 60% during 2012-13 as per RBI guidelines.
Action : Banks
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AGENDA No: 12
CREDIT FLOW TO WOMEN
The forum noted that the share of credit to women constitute 9.35 % of total
bank credit as against the national norm of 5% as on March 2012.
AGENDA No: 13
CREDIT FLOW TO MINORITY COMMUNITIES
As per the guidelines issued by Ministry of Finance, Government Of India, the
share of credit flow to Minority communities by Public sector banks should be
15% . The forum advised the PSBs in the state to achieve the target as the
present level is 14.03% as on March 2012.
Action : Banks
AGENDA No:14
KISAN CREDIT CARD SCHEME (KCC)
The Convenor, informed the forum that the present focus is on the revised KCC
scheme as per the directives of the Ministry of Finance, Government of India
which is currently under implementation in 4 districts of Tamil Nadu.
AGENDA No: 15
SELF HELP GROUPS (SHGs)
Smt.P. Amudha, I.A.S,Managing Director,TNCDW thanked the bankers for
surpassing the targets under SHG Finance both Mahalir Thittam and Non
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Mahalir Thittam. She requested all banks to actively consider loans to PLF.
During the year 2011-12 against the target of Rs.4000 crores, banks have
disbursed Rs.4030.30 crores (101%). A target of Rs.4000 crores has been fixed
for the current year 2012-13 also.
Action : Banks
AGENDA No: 16
Progress Report on Economic Development Schemes implemented by
TAHDCO
Shri.Anandraj, General Manager, TAHDCO informed the forum that 3300
applications are pending with banks and requested the banks to expedite
disposal of the same.
Action : Banks
AGENDA No: 17
REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING –
DECEMBER 2011
The forum noted with concern, the increase in NPA level under Educational
loans. The percentage of NPA under all categories except housing loans show an
increase over March 2011 level.
Shri M. Narendra, Chairman & Managing Director, Indian Overseas Bank and
Chairman, SLBC advised the banks who have not submitted NPA data to SLBC to
submit the statements without fail.
Table Agenda
1. Opening of Branches/ATMs
The Convenor, informed the forum that SLBC is continuously receiving requests
from Hon’ble Members of parliament and various authorities forwarded by
Ministry of Finance, Prime Minister’s office etc for opening of bank branches at
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various places in the state. A list of places for which the requests were
received for opening branches/ATMs is provided for the benefit of the member
banks. Banks should voluntarily come forward if they are interested and inform
SLBC. He also advised the Lead District Managers to study the viability and
submit a report to SLBC to enable them to submit reply to the MPs, concerned.
Action: Banks/LDMs
Table Agenda
2. Tamil Nadu Government’s Old Age Pension Scheme:
The Convenor, informed the forum that there were series of meetings on the
above scheme convened by Principal Secretary and Commissioner of Revenue
Administration and it has been observed that some banks are lacking in opening
of accounts and issuing smart cards to the beneficiaries.
He also appealed to the banks that deadline given for completion of coverage of
4445 is June 2012 and requested the banks to initiate immediate steps to
complete the coverage of beneficiaries in time.
Action : Banks
Table Agenda
3.
Mahatma
Gandhi
National
Rural
Employment
Generation
Scheme
(MGNREGS)
The Convenor, informed the forum that though it was decided that MGNREGS
wages would be directly credited electronically to the accounts of the
beneficiaries by the nodal banks, the guidelines of the Electronic Benefit
Transfer are not followed in real implementation. He also informed that in some
districts, the village Panchayat president deposit cheques in the branches,
asking them to credit the amount to numerous accounts and in some places cash
is deposited by the presidents. E payments envisage discontinuance of cash and
cheques. Shri.Ponniah, Additional Director, Dept of Rural Development informed
the forum that 2 meetings of bankers were held so far. Government of India,
has come out with a larger solution and developed a software which was
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operationalised on 29.05.2012. He also informed that another meeting will be
held during first week of July and the modalities will be worked out therein and
he assured that credits will be made into the accounts of the beneficiaries only
electronically and not by cheque or cash with a list of beneficiaries.
Table Agenda
4. Detection of Counterfeit Bank Notes –Revised Procedure Advised by RBI:
Shri.N.S.Vishwanathan, Regional Director, RBI informed the forum that RBI
and Government of India are very serious about the circulation of counterfeit
notes and taking necessary steps. He noted with concern that only 13 banks
have submitted the data to SLBC which is not in order. He advised all the banks
to submit the statements on 5th of succeeding month in the prescribed format
to SLBC without fail.
The meeting ended with vote of thanks proposed by Shri. Joseph Mathew,
Deputy General Manager, State Bank of India, Local Head Office, Chennai.
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