Mangaluru : The district-level review committee of banking business felt for a need of relaxation in banking rules, towards the effective implementation of housing schemes of the government.

Speaking on the occasion, DK ZP CEO Tulasi Maddineni said that the implementation of housing schemes such as Rajiv Gandhi and Basava Vasathi are hit by technical problems. Income criteria has been causing hurdles to people below poverty line, to avail loans from banks. Under the Rajiv Gandhi Housing Scheme, the unit cost is Rs five lakh and government provides subsidy of Rs 1.25 lakh.

Without being able to manage the amount, people mortgage gold ornaments to meet the expenditure towards construction of house. If the government relaxes the income limit, rich people will take away the homes. Hence, RBI can give a settler to banks, directing to relax the rules so that the people belonging to BPL families could easily avail loans from banks, she said.

Lead Bank Chief Manager Amarnath Hegde said that banks in the district have disbursed a credit of Rs 4,134.86 crores against the annual target of Rs 7,782.00 crores under ACP.

Disbursement in farm sector as on September 30, 2014 was Rs 1,212.62 crore and the achievement to the annual target of 3,048.50 crore was 39.78 per cent.

Disbursement to micro and small enterprises was Rs 482.80 crore, to the tertiary sector is Rs 834.38, to the PSA sector was Rs 2,529.80 crore and non-PSA sector was Rs 2,529.80 crore. Pointing out that some banks are much below the target when it comes to disbursement in farm sector, RBI AGM Laxmipathi told bankers to concentrate on the agro based industry sectors like floriculture.

Also, banks have to educate farmer clients about the usage of Rupay cards.
Stating that more encouragement needs to be given to SHGs to operate bank accounts, he further said the banks in the district have credit linked 2,423 self help groups during the year 2014-15 and disbursed an amount of Rs 291.60 crores up to September 30, 2014.

About 432 SHG linkages have been done against 1,200. He said that banks should improve the CD ratio. A total of 10 villages in the district are to be covered under financial inclusion, he said.

Noting that the progress under Dr B R Ambedkar Development Corporation schemes during 2014-15 was zero, the CEO directed the Corporation Deputy Director to see to that the expected target is achieved. The Deputy Director said that subsidy has remained with the banks as no benificiaries came forward. Performance under ‘Chaitanya’ scheme and ‘swawalambana’ schemes for backward classes and minorities – 116 application are pending to be cleared.

Under Chaitanya scheme, 158 applications have been sanctioned out of 223 and under swavalambana scheme, 245 applications have been sanctioned out of 361, ZP CEO said.
Under Jan Dan Scheme, accounts have been made operational and bankers have to ensure that the customers develop the habit of banking, she added.

RBI (Bengaluru) AGM Laxmipathi, Nabard (Mangaluru) AGM Prasad Rao and Syndicate Bank DGM Sethuram were present.