Tummala underscores need for banks to open more branches in villages   

Agriculture Minister emphasizes need for more rural bank branches to boost economy, urges banks to support farmers and industries.

Agriculture Minister Tummala Nageswara Rao has underscored the need for bankers to enhance the number of bank branches in rural areas for empowering rural economy.

Of the more than 6,400 bank branches across the State, only 1,874 were functioning in rural areas prompting the need for opening more branches for taking banking services closer to people at grassroots level. The Minister, accompanied by Deputy Chief Minister (Finance and Energy) Mallu Bhatti Vikramarka, participated in the State Level Bankers Committee meeting here on Wednesday.

Mr. Nageswara Rao expressed concern that the banks were showing just enrolment status of beneficiaries under the Central government social security and insurance schemes without revealing the list of beneficiaries on quarterly or yearly basis. Though the banks had enhanced the quantum of crop loans by ₹13,000 crore as compared with the previous fiscal, the share of small and marginal farmers utilising them was not upto the expectations despite the fact that they constituted 73.11 per cent of the farming community. The banks should therefore enhance the loan portfolio of these sections of farmers without sticking to the limitations issued by the Reserve Bank of India in this regard. Besides, there was need to enhance the assistance for creating basic infrastructure in farm sector to 100 per cent against the existing 29.29 per cent.

The Minister requested the banks to maintain a comprehensive database of loanee farmers in all their branches as the absence of such database was depriving the benefits to some sections. There was need for banks to encourage oil palm cultivation for which the State had accorded maximum priority giving 90 per cent subsidy on drip and plantations.

The government had recently released subsidy of ₹100.76 crore to the companies providing drip irrigation equipment besides taking steps to enhancing area of oil palm cultivation to 59,261 acres. While 18,654 farmers opted for oil palm cultivation, financial assistance was provided to less than 50 per cent of them, he lamented.

The same was the case with the food processing parks for which loans were not extended, he said, calling upon the banks to keep the government’s priorities in mind and ensure adequate assistance to agriculture as well as the allied sectors. He said the time had come for bankers to introspect and come up with solutions to problems faced by the sector rather than confining themselves to rules and procedures. The government was committed to extend its full cooperation to bankers in this direction.

Mr. Bhatti Vikramarka recalled the emphasis laid by the State government on farming sector and assured bankers of its full cooperation to them in this direction. Several initiatives like Rythu Bharosa, free power supply to farm sector and bonus to select crops had been taken to assist farmers. The government was ensuring timely release of funds for agriculture products and incentives without giving scope for pendency. Banks should also provide adequate financing to MSME and major industries as these are the sectors providing maximum employment in the State as well as the country.