Rural India can progress when banks prioritize farm sector lending :RBI Dy. Governor

Rural India can progress when banks prioritize farm sector lending :RBI Dy. Governor

Mangalore Today News Network

Mangalore, Mar 22, 2014 : Rural India can progress  only when  rural banks  give priority to the agricultural sector, said HR Khan, Deputy Governor of Reserve Bank of India.

He was speaking after  inaugurating a seminar  on ‘ Gramin Banks and Inclusive Growth’ organised  at the Paneer Campus of Nitte University on March 21, Friday under the aegis of the Nitte Banking and Finance Division.

Continuing, HR Khan, said  of the  Gramin Banks in India only 27 per cent are agricultural banks while the rest are commercial banks. Fifty per cent of the farming community have not yet come into contact with  Gramin Banks and the need of the hour is banks which offer loans in accordance to the needs of the farmers in rural areas, he said.

Khan allayed the  misconception that  farmers, particularly those from rural areas  do not repay their loans on time. In reality they are  ahead of others in repayment of loans. He said  the number of bank accounts in India was less than half of its number of mobile connections. Even those opting for mobile banking transactions are less, he added.

On this occasion, H.R. Khan released a book  ‘Gramin Bank Revisited’  authored by Dr. NK Tingalaya, President of the Academic Council of Nitte University.

Dr. N Vinay Hegde, Chancellor of Nitte University, who presided over the function, said  there is a wrong notion that  agriculture is not profitable. Under such a situation, agricultural activities can be encouraged when Banks offer loans to rural farmers at attractive interest rates.

Prof. Shantharam Shetty, Vice Dean of Nitte University,  said the lack of basic infrastructure in rural areas has hindered the growth of rural farmers and urged banks to give priority to rural development.

Dr. S Ramanand Shetty, Dean of Nitte University, Dr N.K. Tingalaya, Director, Nitte Institute of Banking and Finance. Dr. M. S. Moodittaya, Registrar of Nitte University and others were present.