MINUTES

OF

135THMEETING OF

STATE LEVEL BANKERS’ COMMITTEE, PUNJAB

Held on 26.02.2016

AT

HOTEL MOUNT VIEW,

CHANDIGARH

CONVENER:

PUNJAB NATIONAL BANK

STATE LEVEL BANKERS’ COMMITTEE

PUNJAB, CHANDIGARH

135th MEETING OF SLBC PUNJAB

The 135th Meeting of the State Level Bankers’ Committee, Punjab was held on 26.02.2016 at Hotel Mount View, Sector-10, Chandigarh to review the performance of banking system in the State of Punjab for the period ended December2015. Shri Adaish Partap Singh Kairon, Hon’ble Minister for Food & Supply & IT, Punjab was the Chief Guest. Shri Gauri Shankar, Executive Directorof Punjab National Bank presided over the meeting. The list of participants is as per Annexure.

Shri Ashok Gupta, Field General Manager, PNB & Convener, SLBC extended a warm & hearty welcome to Shri Adaish Partap Singh Kairon, Hon’ble Minister for Food & Supply & IT, Punjab, Shri Gauri Shankar, Executive Director, Punjab National Bank and Chairman of the meeting,Shri Parveen Thind, IAS, Director, Institutional Finance & Banking, Government of Punjab, Shri Anjani Misra, General Manager, RBI, Chandigarh, Shri Sudhir Shyam,Director, Banking Operations, Ministry of Finance, Government of India, and Shri Kishan Singh, General Manager, NABARD, Regional Office, Punjab.

Shri Ashok Gupta, Field General Manager, PNB & Convener (SLBC)also extended a warm & hearty welcometo Senior Officers from State/Central Government, Banks, Financial Institutions, various Corporations, members from press & media .

Shri Ashok Gupta in his welcome addressexpressed his gratitude toShri Adaish Partap Singh Kairon, Hon’ble Minister for Food & Supply & IT, Punjab for his benign presence in the meeting.

Shri Gupta informed the august house that Shri Kairon is the longest serving minister in the State of Punjab, a great visionary and always contributing to keep the state on the fore front at National level under various sectors. Briefing the house about his earlier assignment, Shri Gupta informed that as Finance and Taxation Minister of Punjab, Shri Kairon had won accolades for implementation of VAT as well as Computerized Information Collection System at State Borders which has resulted in considerable increase in revenue collection of the State.

Shri Guptaalso briefed the house that Shri Kairon as Minister of Food and Supplies of the state has implemented the KISAN ARTHIYA INFORMATION AND ONLINE REMITTANCE NETWORK, thus making Punjab the FIRST state in the country to implement the Food grain Payment system by SWAP of Debit Card which resulted in the benefits to all the stakeholder i.e. Govt. of Punjab, Procurement Agencies, Arthias and Farmers. He has also been instrumental in setting up of fully computerized control network for Paddy procurement in the state.

Shri Guptainformed the house thatbanking sector in the State has always been executing the plans/schemes of the State with dedication.Punjab State has taken a lead in implementing all the schemes of Govt. of India i.e. PMJDY, PMSBY, PMJJY APY & PMMY in letter and spirit.

He on behalf of himself and all member banks, conveyedhis sincere thanks to the State Govt. for their active support and guidance for implementation of all schemes of Govt. of India. He requested all the member banks to keep up the momentum and ensure not only to maintain these mile stone but to surpass all the targets set by the Central/ State Government under different schemes.

Touching upon the RBI decision to focus on villages with population above 5000 without a bank branch of a scheduled commercial bank,Shri Gupta, informed the house that for increasing banking penetration and financial inclusion, brick and mortar branches are an integral component. He informed the house that 60 such villages has been identified having no Brick and Mortar Branch and allocation for opening of the branches at these identified centres has been made on the basis of SSAs to the respective bank. Shri Gupta urged upon all the member banks to ensure opening of Brick and Mortar branches at the identified centres as per the road map submitted by them.

Shri Gupta further mentioned that timely submission of correct SLBC data by stakeholders is a pre-requisite for adhering to the schedule of meetings. He requested that SLBC data duly checked/compared with previous data be made available to SLBC Secretariat by 15th of the close of each quarter.

Shri Gupta thanked the bankers and LDMs and urged upon them to continue with the same spirit in future as well.

Shri Gauri Shankar, Executive Director, Punjab National Bankand Chairman of the meeting in his address apprised the house of following initiatives taken by RBI during the intervening period between last and present meetings of SLBC. On2nd February, 2016 in the sixth Bi-Monthly Monetary Policy Statement 2015-2016:-

keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 per cent;

keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL);

continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and

continue with daily variable rate repos and reverse repos to smooth liquidity.

Consequently, the reverse repo rate under the LAF will remain unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent.

Shri Shanker further apprised the house that our country face the biggest challenge of providing banking facilities and insurance coverage to all. Having access to institutional finance has so far remained a far cry to a vast chunk of rural population. Keeping this aspect in view, Prime Minister Jan Dhan Yojana a flagship programme was launched by Govt. of India in which Banking Fraternity has created history by opening 1,80,96,130 bank accounts in one week as part of the Financial Inclusion Campaign from 23rd to 29th August 2014. This achievement has found its way in Guinness Book of World records.India’s rural poorwill now be able to meet their diverse financial needs like savings, credit and insurance against unexpected events through a well established system.

Shri Shanker further informed the house about grim reality of large number of people are still deprived of any kind of insurance coverage be it for health, accidents or life. To take Jan Dhan to next level and to move towards creating a universal social security system for all Indians especially the poor and the under-privileged, Hon’ble Prime Minister launched three social security schemes i.e Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana. He informed the house that Ministry of Finance has extended the date for enrolment under PMJJBY (without self certificate of good health) upto 31.05.2016 similarly under PMSBY the last date for enrolment has also been extended beyond 30.11.2015 and there is no requirement of any certificate of good health in PMSBY. The last date to join the Atal Pension Yojana (APY) for government co-contribution has also been extended up to the 31st of March 2016.He requested all the banks, Insurance Companies and government officials to mobilize their staff in the state for covering maximum number of population under all social security schemes during this period.

Shri Shankeron behalf of himself and all member banks conveyedhis sincere thanks to the State Govt. for their active support and guidance for implementation of the Prime Minister Jan Dhan Yojana.

Success of PMJDY and all social security schemesrests on appointment of Bank Mitras and providing training to them.Shri Shanker informed the house that to ascertain/verify the availability of Bank Mitras, executives of call centers and officers from SLBC, are making verification calls to each Bank Mitra/BC Agent working in their respective States. While calling, it was observed that many a banks have not provided the correct contact details of the Bank Mitras. He requested the banks to provide the correct contact detail of Bank Mitras immediately.Wherever yet to be deployed, Shri Gauri Shanker urged upon the member banks to appoint the Bank Mitras immediately.

Shri Gauri Shanker further apprised the house that in order to free the small entrepreneurs from the clutches of money lenders, Hon’ble Prime Minister has launched Micro Units Development and Refinance Agency Ltd. (MUDRA) scheme which aimed at “ funding the unfunded” and will instill a new confidence in small entrepreneurs who are contributing a lot to the task of nation building. Targets under the MUDRA scheme have already been allocated to all the banks. He requested all the member banks to rise to the occasion and take steps for not only achieving the targets but surpass them convincingly.

Shri Gauri Shanker expressed satisfaction over the achievements of banking system in the State of Punjab and assured the State Government, Ministry of Finance, Govt. of India, RBI and other stakeholders, of full cooperation on behalf of Bankers towards strengthening and uplifting the socio-economic conditions of the people of the State.

Shri Adaish Pratap Singh Kairon, Hon’ble MinisterforFood, Civil Supplies & IT, in his address, mentioned that he was privileged to be present in this meeting and thanked all the Bankers for their contribution in the growth of the economy of the state. Shri Kairon informed the house that the bigger issue in Punjab is farmers’ indebtedness. Our Prime Minister has very strong vision for this. Pradhan Mantri Jan Dhan Yojana has been launched to extend banking to all i.e. to poorest of poor. In order to provide social security to all, various insurance schemes i.e.Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jewan Jyoti Bima Yojana and Atal Pension Yojana have been launched. Shri Kairon impressed upon the house to make certain that these schemes are implemented effectively. Shri Kairon further apprised the house that in order to make sure that these accounts opened under PMJDY do not remain dormant and for successful implementation of all the shemes of Ministry of Finance, his department has developed a sytem by which all the accounts will become operative. Department has linked all the account of be beneficiaries through Aadhaar and PDS system has been computerized. He explained to the member banks that the simple step which banks are require to take is to mention the Aadhaar number on the magnetic strip of the ATM cards which can be read and by swapping the card , account of the beneficiary will be debited and amount credited to account. Touching upon the issue of rural indebtedness, Shri Kairon apprised the house that the Punjab indebtedness Act is being drafted to save farmers as they are under huge stressdue to crop failure or other natural calamities etc. In case of crop failure, farmer approaches the money lender for seeking money at high rate to deposit in the Bank, the entire amount outstanding in order to get the interest subvention. This is the major cause of stress and indebtedness in agriculture sector. He requested the member banks and RBI to consider payment of interest component only in case of short term loans.Further he requested the representative of RBI for enhancing the subvention limit in the accounts from existing 3 lacs to 5 lacs. Shri Kairon suggested banks for entering into tripartite agreement between Bank, State Govt. and Farmers by which the state will directly credit the amount of loan in the bank account of the farmer and rest of the amount will directly go to the Arhtias account. In the last he requested the member bank, RBI to help the state in implementation of all schemes of Govt. of India and to free the farmer from the clutches of money lenders.

SLBC Punjab became the first SLBC in India to launch Mobile Application for Financial Literacy. The application was launched by Shri Adaish Pratap Singh Kairon, Hon’ble Ministerfor Food, Civil Supplies & IT, Punjab.

Thereafter agenda for the meeting was taken for discussion and following Action points emerged:-

Item No.1 / Confirmation of minutes of 134th Meeting of State Level Bankers' Committee (Punjab) held on 04.11.2015.

The House confirmed the e-mailed/circulated minutes of above said meeting.

Item No. 2 / Pradhan Mantri Jan Dhan Yojana- Activation of Rupay Cards, Monitoring of Zero Balance Accounts & Appointment of Bank Mitras.

While reviewing the progress of Bank Mitras, Shri Gauri Shankar, Executive Director, Punjab National Bank and Chairman of the meeting desired that the working of the Bank Mitras must be monitored as many Bank Mitras are not working or yet to be replaced. It was resolved that all the member banks will confirm to the Convener bank that the Bank Mitras are appointed at all the identified centers and they are offering banking services within the area allocated. All the banks must have a regular monitoring system to ensure that Bank Mitras appointed by them are working. Bank must also update the particulars of Bank Mitras to SLBC on an ongoing basis.

Action: Member Banks.

Item No. 2(i) / Holding of Meeting at Branches on Distribution and Activation of Rupay Debit Card and on Financial Literacy.

The house was apprised of the instructions of Ministry of Finance for holding camps in each branch for activation of Rupay Cards. Member banks were again requested to ensure holding of camps as desired by the Ministry of Finance.

The performance of activation of Rupay Card was reviewed and Chairman of the meeting took a very serious view of activation of only 50% cards. He advised all the Lead District Managers to take up the matter with all the banks in the district for activation of Rupay cards and to review the progress in each DCC/DLRC meeting.

Action: Lead District Mangers/Member Banks

Item No. 3 / Launch of Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Atal Pension Yojana (APY)

The house was apprised of the extension in date of PMJJBY (without self certificate of good health)and in PMSBY(there is no requirement of any certificate of good health) from 30.11.2015 to 31.05.2016. The last date to join the Atal Pension Yojana (APY) for government co-contribution has also been extended up to the 31st of March 2016.Member banks were requested to enroll maximum persons during this extended period.

Action: Member Banks.

Item No. 4 / Pradhan Mantri MUDRA Yojana (PMMY).

While reviewing the progress, it was observed that the progress under the scheme is not the mark. Member banks were advised to take steps and ensure that the targets fixed for March-2016 be achieved in letter and spirit.Shri Sudhir Shyam, Director, Banking operations, Ministry of Finance stated that to boost credit under the scheme, banks should contact the skilling centres and obtain the list of trainees for making advance under the scheme. Likewise Lead District Managers must obtain the list of trainees from the RSETIs and apprise them about the MUDRA scheme. Shri Rakesh Gupta, General Manager, Punjab National Bank, advised LDMs to visit the RSETI at the start of the programme and apprise the participants about the MUDRA scheme and at the end of the programme application from the potential borrower must be obtained and forwarded to the banks.

Action: Member Banks/LDMs.

Item No. 4(i) / Convergence of Government Schemes with Pradhan Mantri MUDRA Yojana (PMMY)

The house was appraised of the convergence of different government schemes with PMMY and member banks were requested to explore the possibility of converging with the Government programmes and ensure maximum coverage of such candidates under PMMY.

Action: Member Banks

Item No. 5&6 / Start-up India Programme of Ministry of Finance. & Stand Up India’ Scheme of Govt. of India

The house was apprised of the schemes of Govt. of India which is to be launched from April 2016. No action point emerged.

Item No. 7 / Mapping of Industrial Training Institutes (ITIs), Vocational Training Partners (VTPs), Operational Centres (OCs) – Spread of Financial Literacy.

The house was apprised that all the 528 skilling centres have been mapped with the Financial Literacy centres operating in the state. Shri Gauri Shankar, Executive Director, Punjab National Bank and Chairman of the meeting informed that mapping of skilling centres with FLC is not important but it has to be seen whether FLCs are functioning as per RBI guidelines. It was resolved that all the member banks will confirm to the convener bank that FLCs of their bank are functioning as per RBI guidelines. He directed all the banks to ensure to open FLCs at each block allocated to them.