With the phasing out of ‘one district one bank model', the State Level Bankers Committee (SLBC), Karnataka, is planning to empower lead bank in districts to take a decision on effective implementation of the Electronic Wages and Benefit Transfer (EWBT) scheme.
In view of the operational guidelines on implementation of the EWBT and its convergence with the financial inclusion plan (FIP), banks had, during the SLBC meet in September this year, agreed to follow ‘one district – many banks' and one leader bank model for the EWBT implementation, said Mr Basant Seth, Chairman and Managing Director, Syndicate Bank, and Chairman – SLBC, Karnataka.
In Karnataka, the ‘one district one bank' model is already in operation in the districts of Chamarajanagar (State Bank of Mysore), Mandya (Vijaya Bank), and Dharwad (Axis Bank).
At the SBLC meet on Tuesday, the Karnataka Chief Secretary, Mr S.V. Ranganath, said that the lead bank in the district should be empowered to take a decision for effective roll out of the FIP and the EWBT.
On costs incurred by the lead banks in these districts already and the infrastructure created, the SLBC Convenor said a final call will be taken at the district level in consultation with the lead bank.
“The success of the FIP and the EWBT depends on the pace with which it is effectively implemented,” he added.
Special campaign
SLBC was told that the Central Government has advised to launch special lending campaign from December 1 to 15 to eligible borrowers in rural areas.
“A check list of activities required to be done by various field-level functionaries have been circulated,” said Mr Seth.
In consonance with the directions of DFS, the Central Government, the rapid action plan for agriculture credit was taken up on a mission mode by involving all the banks, the RBI, the Nabard and line the departments of State administration by adopting a simplified procedure for providing credit to all eligible farmers.
Rapid action plan
Mr Seth said “In all, Rs 15,610 crore have been disbursed up to September 2011, accounting for 50 per cent achievement of the revised annual agricultural target of Rs 31,308 crore. Out of this, the share of crop loan was Rs 11,253 crore amounting to 55 per cent achievement of prescribed target of Rs 20,388 crore.”
“It may be recalled that in the previous SLBC meeting, having regard to the potential the target for agriculture credit was raised from Rs 25,970 crore to Rs 31,380 crore, an increase of 21 per cent,” he added.