12
Minutes of 38 th
Union Territory Level Bankers Consultative Committee
& Review Committee Meeting (UTLBCC&RC)
Of Lakshadweep held on 13 August 2008
The 38th UTLBC meeting to review the banking developments of the Union Territory of Lakshadweep (UTL) was held on 13 August 2008 in the Conference Hall of Secretariat at Kavaratti. The meeting was presided over by Thiru B V Selvaraj, IAS, Hon. Administrator, Union Territory of Lakshadweep. The dignitaries participated includes Dr. Pookunhi Koya, Hon’ble Member of Parliament, Shri A. Jalaludheenkoya, President - cum - Chief Counsellor, District Panchayat, Shri Achada Ahammed Haji, Chairperson of Village Dweep Panchayat, Kavaratti, as people’s representatives and Sri S. Ramaswamy, Regional Director, Reserve Bank of India, Kerala & Lakshadweep, Shri Bhawar Puri Chief General Manager, NABARD, Regional Office Kerala & Lakshadweep, Shri R N Panigrahi GM, RBI, and Sri G. Ramanathan, DGM, SyndicateBank, Regional Office, Ernakulam (convener). Heads of Developmental Departments of the Administration and Officers of State Bank of India and SyndicateBank also participated. The list of participants is at Annexure enclosed.
2. Opening the deliberations Hon’ble Administrator extended a very warm welcome to the Hon’ble Member of Parliament, Chief Counsellor, Chairperson and senior executives of Reserve Bank of India, NABARD, State Bank of India and Syndicate Bank. He said that despite best efforts the meeting of the UTLBC has to be postponed and was really concerned about the inconveniences caused. He assured the house, that all necessary efforts and support would be extended by the administration for the smooth and timely conduct of the meetings in future .He also invited the all the participants to kindly partake in the 61st Independence Day celebration of the UTL.
3. He emphasized about amble scope and viability for taking up ventures like boat building, net making, production and processing of copra, drying machines, cold storage, coir fiber and yarn making, fish pickle making, processing and packing, poultry rearing etc. finance by the banks in association with NABARD with the aim of prospering the economy of Lakshadweep and bring the islanders self reliant. Khadi & Village Industries Board should also offer schemes in these sectors, involving bank to finance. Administration is popularizing diesel operated outboard engines to ease out the fishermen problem in getting kerosene oil of PDS. The efforts taken by Banks and NABARD to popularize their programmes were not found appreciated and accepted by the people as the credit deposit ratio has not made improvements.
(Action : Banks / NABARD/LK&VIB/Ut. Admtn. Depts.of Ind / Fish. / Agrl/AH)
4. Shri Ramanathan, DGM Syndicate Bank and Convener of the Committee welcomed Hon’ble Administrator, dignitaries and other participants to the meeting. He said that despite best efforts due to logistic problems the UTLBC&RC could not be held in time. He thanked the Administrator and other officials of the UTL for extending the required support for the conduct of the meeting. In line with the directives of RBI, we have achieved 100 % Financial Inclusion in Union Territory of Lakshadweep. As a second phase of this exercise, we have initiated detailed survey of the households which will be followed by preparation of family credit plants.
(Action : Banks / NABARD)
5. The ‘Working group’ on improving banking facilities in the islands constituted by RBI has come out with detailed recommendations and an implementation Committee with UTLBC convener as the Chairman and with representatives from RBI, NABARD & Lakshadweep Administration and SBI has been constituted for monitoring the progress in the implementation of the recommendation on regular basis.
(Action : Convener UTLBC)
6. The review of the action taken on the decisions of the last UTLBC &RC (37th Meeting) was taken up for discussion.
a) On the issue of renaming of the District Level Consultative /Review Committee meeting to UT Level Consultative /Review Committee the convener said that the Reserve Bank of India has since approved the same and the forum has been renamed as Union Territory Level Banker’s Committee. The house welcomed the decision with a big applause.
b) Regarding the supply of the leaflets on the various schemes of Banks and NABARD for creating awareness amongst the islanders, DGM Syndicate bank informed the house that Malayalam version of the scheme details have already been furnished to the administration for distribution. SyndicateBank has been making efforts in getting the leaflets translated in to Mahal language and get it published for distribution in Minicoy Island. He also said that the branches of Syndicate Bank have been directed to conduct awareness programmes for the benefit of the islanders in association with the newly elected panchayat members. Kadamat, Chetlat and Agatty branches have already conducted the awareness programmes and the remaining branches would follow without further delay.
(Action : Syndicate Bank/NABARD/UTL Dir. Inf. &PR)
c) As regards popularizing the concept of the kitchen gardens in the island, the convener UTLBC indicated that the bank has already distributed vegetable seeds and kits to selected beneficiaries in all islands. With a view to encourage more and more agricultural activity, Syndicate Bank has come out with a proposal for awarding prizes to the three best farmers in each island. The Director of Agriculture informed the house that the performance of crops like Bhindi, Brinjal and Chillies is reported to be good under island conditions and welcomed the initiative of the Syndicate Bank.
(Action: Syndicate Bank/Dir.Agri.)
d) Regarding setting up of the apex level cooperative Bank in the UTL, the Registrar of Cooperative societies, informed the house that the administration has already initiated action in this regard and a formal request has been forwarded to the Reserve Bank of India for approval and issue of license. Shri Bhawar Puri CGM - NABARD said that NABARD has not received any application. He advised the RCS to submit the proper proposal in the requisite format to NABARD so that NABARD could examine the matter. The Administrator directed the RCS to obtain necessary formats from NABARD / RBI and submit the same with all necessary documents without further delay so the establishment of the apex level Cooperative Bank in the UTL can be expedited.
(Action: RCS/NABARD)
e) AGM, SBI, informed the house that the UTL was advised to send their proposal for sanction of financial support to Cooperatives on the lines of the Andaman & Nicobar islands; however the proposal is still awaited. They assured the administration the any proposal received from the administration would be considered as per the existing rules and conditions.
(Action :RCS/ SBI)
f) As regards the issue of setting up of the Cooperative Society for marketing products made by the SHGs with a good Brand Name, Director Women Child welfare informed the house that a Marketing Cooperative Society in each island has been registered and further necessary action would be initiated in this regard. Intervening in the discussion, The Hon’ble Administrator informed the house that the intention was to set up a apex level society for marketing all products from all islands. He said that the department in consultation with the Administrator may reexamine the matter and necessary steps may be initiated.
(Action :Dir W&CD/RCS)
g) With a view to assist the SHGs and other entrepreneurs of the island, CGM, NABARD informed the house that NABARD was implementing the Centrally Sponsored Scheme subsidy for marketing of agricultural produce wherein 25 percent subsidy of the total outlay subject to a maximum of Rs. 50.00 lakhs was available for establishment o Agricultural marketing infrastructure and construction of Rural Godown. The subsidy limit of Rs. 50.00 lakhs was not applicable in case the project is implemented by the PRIs. He advised the administration to make use of the scheme for the benefit of the islanders. CGM, NABARD also informed the house that Administration can use NABARD’s RIDF for creation of infrastructure
(Action:Dir. W&CD/RCS/Dir.F&CS/NABARD)
h) As regards the issue of inclusion of fish processing as an eligible activity under KVIB schemes the house was informed that the KVIB has expressed its inability to include the same as an eligible activity. Concurring with the view, the Administrator said the fish processing was not an activity in tune with the Gandhian ethos / principle and said that the matter may not be pursued further.
(Action:Dir. Ind./LKVIB)
i) As decided in the last UTLBC meeting the Credit Plan was redrawn taking into account the potential estimated in the Potential Linked Credit Plan prepared by NABARD and from inputs received from the various departments of the administration and was finalised at Rs. 12.60 crores. The achievement against this was Rs. 14.18 Cr. which was 113 percent of the target. The Hon Administrator complimented the banks for the over achievement of the District Credit Plan. There after the UTL credit plan at Rs. 17.13 Cr. fot the year 2008-09 presented and approved by the house. Administrator advised the bankers to not restrict to the targets but extend need- based credit in all islands.
(Action: Banks/NABARD)
7. The Deputy General Manager, Syndicate Bank, informed the house that with the support of SBI and Administration 100 % Financial Inclusion has been achieved in UTL. Each household should have at least one bank account, which may be in the nature of ‘No frills’ or Zero balance account. He thanked the administration and its official for all their support.
(Action: Banks/NABARD)
8. While appreciating the efforts of the banks, Administrator said that 100 % Financial Inclusion was indeed a great achievement. There is an urgent need to create awareness amongst the islanders of the various schemes of the bank and programmes of the NABARD. There is need for organising Credit Camps. These Credit camps need not be in the sense of credit Mela but in the form of educating the rural people of the ways and means of availing the benefits from the banks and other agencies. Shri Bhawar Puri, CGM NABARD in this connection informed that NABARD would in association with the Banks and Administration would organise sensitization workshop for the Panchayat Members as well as the islanders. The programme can be arranged on cluster basis for 1 or two islands and the necessary logistic support and also decide the time schedule for conduct of the sensitization programmes.
(Action: Banks/NABARD/Dir.ATI/PRD)
9. As regards the opening of additional branches by the State Bank of India Shri. Rajan AGM , SBI informed the house that the branch at Minicoy would be opened by November 2008. Adding to this the Deputy General Manager, Syndicate Bank said that the other branches of syndicate bank in the islands would be migrated to Core Banking System (CBS) as soon as broad band connectivity is made available by BSNL. Hon’ble Administrator added that the to address the issue of connectivity the possibility of using the UTL SWAN (State Wide Area Network ) can be explored by the banks.
(Action: Banks)
10. Administrator advised the State Bank of India open a branch in Bitra Island or alternatively put in place a suitable mechanism, if necessary, jointly with the administration for making available banking services to the residents of Bitra island. As for the criteria for opening of additional branches He said better banking services and competition should be the driving factors
(Action: SBI/Administration)
11. Hon. Member of Parliament, Dr. P.Pookunhi Koya wanted SBI to explain the status regarding the special recruitment of the islanders for manning of their branches in islands. AGM SBI informed the house that 10 posts, of clerical vacancies have been earmarked for the islanders in the recently concluded recruitment process. The results of the written test are expected soon. Hon. Member of Parliament complimented Syndicate Bank for their special recruitment drive of the islanders for manning the branches in the UTL.
(Action: SBI)
12. Shri. Bhawarpuri, CGM , NABARD, reiterated that NABARD could provide training for capacity building and inculcating entrepreneurship development among the island youth through their ‘Rural Entrepreneurship Development Programme’. Cost which can be borne by NABARD. The Hon’ble Administrator appreciated the efforts and informed that a Multi disciplinary Training Institute, an idea which germinated in the last meeting has been established. He requested NABARD and other banks to provide faculty support to the Administrative Training Institute (ATI), Kavaratti The CGM, NABARD and DGM.Sy. Bank further indicated that establishing a RUDSETI model training institute exclusively for UT of Lakshdweep may not be a viable proposition at present, considering the availability of trainees and inadequate inter island transport facilities, especially during Monsoon season. Instead it would more advantageous to conduct training programmes for various Islands as off campus programmes, for which Syndicate bank offered the services of SIRD institute with the help of NABARD and support of Administration..
(Action: NABARD/ Banks/Dir.ATI)
13. DGM Syndicate Bank, informed the house that Agatti branch has conducted an Entrepreneurship Development Programme in ‘Garment making’. The programme is sponsored by NABARD. Selected members of SHG groups are trained in stitching of school uniforms, for both boys and girls. 31 women participated in the programme. The programme has been well received by the participants. . It is proposed to conduct a similar programme for paper bag making.
(Action: NABARD / banks)
14. Shri S. Ramaswamy, Regional Director of RBI for Kerala and Lakshadweep thanked the UTL Administration for the support extended for holding this meeting. He appreciated the coverage given by the Administration to various developmental activities in the islands in their website which was very informative. He briefed the forum about the Working Group Report for improving banking facilities in the Union Territory of Lakshadweep which had been placed in the websites of RBI and the UTL Administration. Besides, various recommendations made for improving banking facilities, the Working Group made recommendations relating to development of agriculture, tourism and fisheries sectors. The principal focus was on value addition. He said that the report was a comprehensive inter-disciplinary study on banking and development in UTL and appreciated the inputs given by the various line departments in the UTL. To take the process forward, a Special Sub-Committee of UTLBC has been set up for implementing the various recommendations relating to banks. The Sub-Committee has to meet at monthly intervals and review progress made. After the UTLBC website was inaugurated, he asked the convenor to place all the RBI initiatives taken for financial inclusion and financial education in the website. He also suggested that the RBI publications on financial inclusion in Malayalam may be placed in the website. For the people of Minicoy Island, the Lead Bank can translate these books into Mahal Language and distribute to the people and also place it in the website. He expressed happiness over the achievement and declaration of 100% financial inclusion in UTL in the first phase. The focus would now be on financial literacy/education efforts to take the momentum of financial inclusion further forward.