The Hindu Business Line : SLBC to facilitate rehabilitation of Gulf returnees, says RBI

The main objective of the Lead Bank scheme is to ensure credit flow to the priority sector. There is also a renewed emphasis on financial inclusion.

Our Bureau

Thiruvananthapuram, May 27

The State-Level Bankers’ Committee (SLBC) will be given the freedom to work out a rehabilitation plan for non-residents forced to return by global recession, according to Ms Usha Thorat, Deputy Governor, Reserve Bank.

Addressing newspersons through video-conferencing from Mumbai on Wednesday, Ms Thorat said that the draft report of a high-level committee reviewing the Lead Bank scheme has recommended a one-time State and district-level banking sector development plan along the lines mooted for the North-Eastern region.

This plan will chalk out roles and responsibilities of banks, State Governments and other stakeholders to ensure banking development for inclusive growth.

The plans would be drawn up by a sub-committee headed by the SLBC convener and officials of State Government, the RBI, the Nabard, and major participating banks.

The RBI will consider a proposal for preparing guidelines for rehabilitating Non-Resident Keralites (NRKs), among others. It has been proposed that workshops be organised for drawing up the various development plans.

The high-level committee has recommended extension, by year 2011, of banking services to 1.07 lakh villages with a population of 2,000 or more through resort to advanced technology. Considering Kerala’s track record, the SLBC would be given more functional freedom to identify its own thrust areas.

COUNSELLING CENTRES

The committee had also recommended the setting up of financial literacy and credit counselling centres by banks and redress of customer grievances through quarterly awareness and feedback exchange in the districts.

In order that the exercise becomes meaningful, the banking ombudsman may also attend such meetings. The report has called for strengthening of the recovery mechanism. The Regional Director, RBI, Mr S. Ramaswamy, and the General Manager, Mr Anil K. Sarma, told newspersons later that the main objective of the Lead Bank scheme was to ensure credit flow to the priority sector. There is also a renewed emphasis on financial inclusion.

Kerala has made a head-start by liberating certain villages from the stranglehold of private financiers who have been exploiting farmers. These villages have since been declared as moneylender-free villages. The RBI officials hoped that more such models will emerge in future.

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SLBC to facilitate rehabilitation of Gulf returnees, says RBI