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Office of the Field General Manager,PNB House, Sector-17B,

Chandigarh.

REF: FGMO:SLBC:HRY:109. December 4, 2009.

TO ALL MEMBERS OF SLBC, HARYANA

Dear Sir/Madam,

MINUTES OF THE 109th MEETING OF STATE LEVEL BANKERS’ COMMITTEE, HARYANA

Please find enclosed the minutes of 109th Meeting of State Level Bankers’ Committee, Haryana held on 24.11.2009 to review the performance of banks upto the period ended 30th June, 2009. During the meeting performance of banks under IBA Package for MSME, Housing and Auto Sectors upto the period ended September 2009 was also reviewed. You are requested to take necessary action on the action points that emerged in the meeting pertaining to your Bank/ Department/ District. Please send us the progress report so that the same may be incorporated in the agenda/ background notes of next SLBC meeting.Thanking you,

Yours sincerely,

CONVENER (SLBC)

Encl: (a/a)

Minutes of 109th SLBC (Hry)

MINUTES OF

109th MEETING OF

STATE LEVEL BANKERS’ COMMITTEE, HARYANA

HELD ON 24.11.2009

AT

HOTEL MOUNTVIEW, SECTOR 10,

CHANDIGARH

CONVENERPUNJAB NATIONAL BANK.

STATE LEVEL BANKERS’ COMMITTEE, HARYANA.

OF 109TH MEETING OF SLBC HARYANA, HELD ON 24.11.09


The 109th Meeting of the State Level Bankers’ Committee, Haryana was held on 24.11.2009 at Hotel Mountview, Sector-10, Chandigarh to review the performance of banking system for the period ended June 2009. Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana was the Chief Guest and Shri Nagesh Pydah, Executive Director, Punjab National Bank presided over the meeting. Shri Anil Kumar, IAS, Director, IF & CC, Shri Sandip Ghose, Regional Director, RBI, New Delhi, Dr. B.S.Yadav, General Manager, NABARD (Haryana) Chandigarh, Shri S. Chaudhuri, GM, RBI, New Delhi and other officials from State Govt., various Banks & Media participated in the meeting. The list of participants is as per Annexure.

WELCOME ADDRESS OF SHRI NC JAIN, FIELD GENERAL MANAGER, PNB & CONVENER SLBC

At the outset Shri Jain extended a warm & hearty welcome to Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana on his behalf and on behalf of all the participants present in the meeting. He expressed his sincere gratitude to him for accepting the request to be the Chief Guest of 109th meeting of SLBC Haryana despite his very busy schedule. He also extended a very warm welcome to Shri Nagesh Pydah, Executive Director of Punjab National Bank and Chairman of the meeting, Shri Anil Kumar, IAS, Director, IF & CC, Haryana, Shri Sandip Ghose, Regional Director, RBI, New Delhi, Shri S. Chaudhuri, General Manager, RBI, New Delhi, Dr. B.S.Yadav, General Manager, NABARD (Haryana) Chandigarh and Senior officials from State Government, various Banks, Financial Institutions and friends from Media who had assembled to participate in 109th meeting of SLBC Haryana. Before proceeding further, Shri Jain shared with the members some of the important developments concerning SLBC which took place recently.

Electronic Benefit Transfer (EBT) Scheme:

Sh. Jain informed the house that the Deputy Governor RBI had conveyed about implementation of Electronic Benefit Transfer (EBT) Scheme by State Government & Banks for NREGA & other payments under social security schemes of State Government through Bio Metric Smart Cards. He expressed his pleasure in sharing with the members that the State Government has shown its keen interest for implementation of the scheme and has signed an MOU with five Banks for implementation in 5 districts of Haryana on pilot basis. Issuance of notification for raising the exemption limit of stamp duty to secure the crop loans & loans for allied activities:


Sh. Jain also informed the house that Revenue & Disaster Management Department, Haryana has issued Notification dated 20.07.2009 notifying raising of exemption limit on Stamp Duty to secure the Crop loan and Loan for Allied activities. He further informed that a copy of the said notification has been sent to all the Controlling offices of the banks in Haryana and its copy was also placed as an annexure of the Agenda papers. He thanked the State Govt. on behalf of banker Colleagues for accepting this long standing demand of the banks and expressed hope that raising of exemption limit would help the farmers to meet their credit requirement for short term as well as long term agriculture activities. Briefly reviewing the performance of the banks up to June, 2009, Sh. Jain informed that performance of the banks was satisfactory particularly in respect of:

- C D Ratio- Doubling of Credit flow to Small & Medium Enterprises (SME).- Credit flow to women beneficiaries and Minority Communities. - Self Help Groups &- National Goals in respect of Priority Sector, Agriculture,

Weaker Sector & Women Beneficiaries etc.

Sh. Jain, however, requested bankers to initiate more efforts for:

Implementation of IT Enabled Business Correspondent/Business Facilitator Model;

Establishment of Financial Education & Credit Counseling Centers (FLCCs) in the remaining Districts;

Achievement of national goal under DRI advances specially in view of the revised norms for eligibility and upward revision of loan amount as also the revised target under DRI i.e. 10 cases per rural branch per quarter.

Before concluding, Shri Jain requested all the members to participate actively during the course of presentation of agenda items.

KEY NOTE ADDRESS BY SHRI NAGESH PYDAH, EXECUTIVE DIRECTOR, PNB & CHAIRMAN OF THE MEETING

At the outset Shri Nagesh Pydah extended a warm welcome to Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana who was the Chief Guest of 109th meeting of SLBC Haryana and other distinguished Members senior officials from State Government, various Banks & Media.

Before proceeding further, Shri Pydah shared some of the important macro economic developments which took place recently:


MACRO LEVEL DEVELOPMENTS

Shri Pydah informed the house about the economic crisis of last about one year and its impact in India but at the same time its impact was less severe in India as compared to what has been experienced by other emerging market economies. He informed that the Central & State Governments, Reserve Bank of India & Banks have responded to the challenge strongly and in close coordination & consultation with each other.

SIGN OF RECOVERY

Shri Pydah informed that there were definitive indications of the economy attaining the “escape velocity” and reverting to the growth track. As per the recent estimates by Reserve Bank of India, the growth projection for GDP for 2009-10 has been retained at 6% with an upward bias.

The Industrial output was coming back into positive territory and continued to post robust growth of 6.5% during April to September 2009 over the corresponding period last year. Mining, Manufacturing & Electricity segments recorded 8.6%, 9.3% & 7.9% growth respectively. As many as 12 out of 17 Industry Groups registered positive growth in September 2009.

Shri Pydah informed that all these signs of recovery indicated better outlook for the key segments of our economy. Moreover, the domestic demand had not shown any sign of slackness.

He informed that the support by the Banking Sector by way of timely & adequate flow of credit had played an important role to navigate the economy to the sustained recovery.

MANAGING THE RECOVERY: SOME ISSUES

Shri Pydah informed that the attention of policy makers around the world, as also in India, had shifted from managing the crisis to managing the recovery. The policy dilemma for our country was different in some important respects from that of advanced economies as well as other emerging market economies (EMEs) for the following reasons:-

Most of these countries do not face an immediate risk of inflation whereas India was actively confronted with an upturn in inflation.

India had the challenge of reviving of domestic consumption, the traditional dominant drivers of our growth.

India had traditionally being a supply constrained economy in contrast to advanced economies which were demand starved. The supply


constraints which remained subdued during the crisis period due to weak demand, will re-emerge and may indeed become binding.

India was one of the few large emerging economies with twin deficits i.e. fiscal & current account.

He informed that the regulators and concerned Departments of the Governments have responded strongly to the challenges by initiating various fiscal & monetary measures.

MONETARY POLICY REVIEW

Shri Pydah informed that the RBI in its second quarter review of Monetary Policy 2009-10 had announced various measures & he shared briefly the main points which were as follows:

RBI had kept Repo Rate (4.75), Reverse Repo Rate (3.25%) and CRR (5%) as un-changed,

SLR had been restored to 25% from 24%, The limit for export credit refinance facility was being returned from

50% to the pre crisis level of 15%, Provision for standard advances to commercial real estate increased

from 0.40% to 1.0%, Banks have been allowed to appoint the additional entities as BCs and

to collect reasonable service charges from customers for delivering the services through BC,

Lead Banks have been advised to draw up a road map by March, 2010 to provide services through banking outlets in every village having a population of over 2000, by March 2011 as this was one of the important recommendations of the High Level Working Group on Lead Bank Scheme.

Constituting a Working Group to examine the issues involved in the introduction of Priority Sector Lending Certificates (PSLCs).

He informed that these policy initiatives taken by RBI would further smoothen the flow of credit to the key sectors of the economy.

INCENTIVE SCHEME FOR QUICKER ADOPTION OF ELECTRONIC BENEFIT TRANSFER (EBT) FOR GOVERNMENT SCHEMES

Referring to Electronic Benefit Transfer (EBT) for Government Schemes, Shri Pydah was pleased to announce that the State Government has approved the scheme for implementation on pilot basis in five districts by adopting “One District One Bank” Approach. He appreciated the proactive approach of


the Government specially for agreeing to pay 2% fee and quick action taken by the Convener Bank in perfect coordination with the respective Banks for finalizing the modalities of the scheme. He called upon the Controlling Heads of respective banks to implement the Scheme quickly so that its benefit reached the beneficiaries.

SPECIAL PACKAGE OF IBA FOR MSE, HOUSING & AUTO SECTORS

He informed that SLBC, Haryana had organized a Special Meeting on MSE as desired by the Ministry of Finance and was also organizing special monthly meetings on MSE regularly. The progress made by the banks under the special package of IBA was being reviewed in such meetings.

The progress made by the banks up to September 2009 revealed that:

Banks had sanctioned 7660 fresh working capital loans amounting to Rs 1830 Crore upto September, 2009 since announcement of the IBA Package in December 2008.

Banks had also sanctioned enhancements in the existing 2419 accounts to the tune of Rs. 882 crore upto September, 2009 since announcement of the IBA Package in December 2008.

Banks had also restructured 1580 accounts for an amount of Rs. 482 crore upto September 2009 (December 2008 to September 2009).

He expressed his satisfaction about the progress made by the banks in implementing the scheme under IBA package and took the opportunity to inform the Chief guest that the banks in Haryana had risen to the occasion and put their best efforts to help this employment oriented sector of economy.

AGRICULTURE DEBT WAIVER & DEBT RELIEF SCHEME (ADWDR) 2008

Shri Pydah informed that the main objective of the scheme was to provide much awaited relief to the distressed farmers and to extend timely and adequate fresh loans to such beneficiaries enabling them to restart their farming and other related economic activities. In this regard, he informed as under:

The banks were disbursing fresh loans to the beneficiaries under the scheme and so far 101500 farmers had been granted fresh loans amounting to Rs. 621.81 Crore. However, he observed that the pace of fresh lending needed further acceleration and requested bankers to quicken the pace of fresh lending.

REVISED GUIDELINES FOR DEPOSIT OF 75% SHARE OF ‘OTHER FARMERS’ AND CUT OFF DATE FOR ACCEPTING GRIEVANCES.


He informed that as per the Budget proposals 2009-10 , the due date for deposit of 75% of the share of other farmers had further been extended by another 6 months i.e. up to 31.12.2009 and cut-off date for Acceptance of Grievances from the farmers had also been extended by the Ministry of Finance, Govt. of India to 31.01.2010.

He requested Bankers and the concerned Govt. Departments to widely publicize the same so that more farmers were benefitted under the Scheme.

REVIEW OF PERFORMANCE OF BANKS UPTO JUNE 2009

After this, Sh. Pydah reviewed the performance upto the quarter ended June 09. At the outset, he informed that that banking system in the State had achieved all the National Goals except under DRI. He further informed as under:

Commercial Banks and RRBs had opened 147 new Branches since June 2008, thus raising the total number of branches to 2150 and no Block of Haryana was unbanked. 29 Branches had been opened in rural areas, 36 branches in Semi Urban areas & 82 branches had been opened in urban areas.

The Banks in Haryana installed 116 ATMs during the quarter ended June 2009 taking the total number of ATMs to 1013 as at 30.06.2009. The process for 39 ATMs to be installed in Rural Area was also in progress.

Total deposits increased from Rs. 71247 crore as at June 2008 to Rs. 86192 crore as at June 2009 registering a growth of 21%.

Total Advances during the period June 2008 to June 2009 increased from Rs. 48699 crore to Rs. 58986 crore registering a growth of 21%.

Priority Sector advances increased from Rs. 26894 crore as at June 2008 to Rs. 33169 crore as at June 2009 showing a growth of 23%.

Agriculture advances increased from Rs. 13444 crore as at June 2008 to Rs.17581 crore as at June 2009 recording a growth of 30%.

Advances to Micro & Small Enterprises increased from Rs. 6618 crore as at June 2008 to Rs. 8034 crore up to June 2009 showing a growth of 21%. He expressed his satisfaction that Banks in Haryana had already doubled the SME Advances much ahead the target date i.e. 31.03.2010.

Weaker Sector advances increased from Rs. 5071 crore as at June 2008 to Rs. 5643 crore as at June 2009 thereby showing a growth 11%.

Overall CD Ratio was 68% and expressed his satisfaction that no district in Haryana has CD Ratio below 40% as at June 2009.

DRI Advances increased by Rs. 155 lakh from Rs. 107 lakh as at June 2008 to Rs. 262 lakh as at June 2009 registering a growth of 145%.

PERFORMANCE UNDER ANNUAL CREDIT PLAN: 2009-10


He informed the house that achievement under Agriculture was 118%, MSE – 104% & overall achievement was 112% of prorata targets for the Q.E. June 2009.

PROVISION OF KISAN CREDIT CARD (KCC) TO ALL THE ELIGIBLE & WILLING FARMERS

Referring to KCC Scheme, Sh. Pydah informed that the Ministry of Agriculture, Govt. of India vide its letter dated 15.06.2009 addressed to State Government had advised that in order to achieve the desired growth rate in the Agriculture Sector, more emphasis had to be laid on improving the flow of credit for enabling the farmers to fully realize the benefits of various Agriculture Development Programmes being implemented by Central & State Governments.

He called upon the NABARD, Agriculture Department and the Banks to initiate coordinated action plan in this regard.

PERFORMANCE OF BANKS UNDER GOVERNMENT SPONSORED SCHEMES

SGSY & SJSRY

He informed the house that the achievement under SGSY was 36% whereas the achievement under SJSRY was 50%.

PMEGP

He further informed that against a target of 1193 cases involving margin money of Rs. 14.31 Crore, the banks had sanctioned 798 cases, with margin money of Rs. 13.97 Crore, showing an achievement of 99%. He requested bankers to pass on the suitable instructions to their branches for lodging the claims of margin money with the Nodal branches immediately and also to speed up the processing of applications for the current fiscal and to ensure achievement of targets positively.

SETTING UP OF RURAL SELF EMPLOYMENT TRAINING INSTITUTES (RSETIs)

Sh. Pydah expressed his satisfaction that RSETIs had been established in all the 5 identified centres in the existing premises on temporary basis. He requested the Rural Development Department of the State to provide the land/permanent premises to the banks and required support to RSETIs as per provisions contained in the Govt. guidelines for setting up such Centres in all the districts.


SELF HELP GROUPS (SHGs)

Referring to SHGs, Sh. Pydah observed that Micro financing had assumed greater importance and the role of banks had become even more demanding. There was a need to have close rapport with NGOs and other agencies including Social Welfare Agencies to help formation and linkage of SHGs. Regarding performance of the banks during the period under review, Sh. Pydah informed that 33149 SHGs had been Saving-linked and 20093 credit-linked up to June 2009. The percentage of Women groups was 71%.

POSITION REGARDING RECOVERY CERTIFICATES Regarding performance of the banks during the period under review under Recovery Certificate cases he informed that

440 Recovery Certificates amounting to Rs. 8 crore had been disposed of during the quarter ended June 2009, which was satisfactory.

2756 cases amounting to Rs. 34.08 crore were pending as at 30.06.2009 out of which 887 cases involving an amount of Rs. 4.72 crore were pending for more than 3 years.

He requested LDMs to make earnest efforts to bring the pendency of old Recovery Certificates to almost Nil during current financial year 2009-10.

EDUCATION LOAN- GENERAL SCHEME

Sh. Pydah informed that outstanding under Education Loans registered a growth of 52.4% from June 2008 to June 2009.

SPECIAL EDUCATION LOAN SCHEME FOR FEMALE STUDENTS OF HARYANA

He further informed that during 2009-10 upto September 2009, the banks in Haryana extended Education Loans to 192 female students amounting to Rs. 7.25 Crore. He requested banks to continue to keep the pace of growth in extending education loans to female students and refer these cases to the Women Development Corporation, Haryana for availing 5% interest subsidy so as to provide the benefit of the Scheme to the eligible female students of Haryana.

In the end, Shri Pydah assured the State Government of full cooperation by member banks in discharging their responsibilities towards strengthening and uplifting the socio-economic conditions of the people of the State and requested Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana & Chief Guest of the meeting to address the House.


ADDRESS BY SHRI ROSHAN LAL, IAS, FINANCIAL COMMISSIONER & PRINCIPAL SECRETARY, AGRICULTURE, GOVT. OF HARYANA & CHIEF GUEST OF THE MEETING

At the outset Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana expressed his pleasure to be associated with the 109th Meeting of SLBC Haryana. During his address, he touched upon the following major points:-

Regarding State of Haryana, Sh. Roshan Lal informed the house that state has emerged as the most preferred destination due to the investor friendly policies, better law and order situation and quality infrastructure available in the State. Haryana was most progressive State in the country with an impressive trail of achievements in every sphere of human activity, be it agriculture, industry or transport, its progress has been phenomenal.

Sh. Roshan Lal further informed that Haryana State had made spectacular progress and has become one of the most prosperous states of the country, with second highest per capita income after that of Goa. Haryana ranked 1st in the country so far as Basmati Rice export was concerned. However, in software export position was third in the country, after Karnataka and Tamilnadu. The main exports were Software, Basmati, Handlooms, Carpets, Readymade garments, Scientific Instruments, Pickles, Chemicals, Automobiles, Electrical goods etc.

Referring to National Agriculture Insurance Scheme (NAIS), Sh. Roshan Lal informed that National Agriculture Insurance Scheme was being implemented for the benefit of the farmers of the State. The scheme would go a long way in mitigating the economic hardships of the common farmers whose crops were adversely affected by natural calamities.

Swarozgar Credit Card Scheme had been implemented in order to provide adequate and timely credit to small artisans, handloom weavers, fishermen, self employed persons etc. in a flexible, hassle free and cost effective manner.

While speaking on the performance of Banks under ACP 2009 -10, Shri Roshan Lal expressed his satisfaction at the performance of the banks as the overall progress under Annual Credit Plan 2009-10 upto June, 2009 was 112%. Banks disbursed loans to the order of Rs. 7251.92 crore against quarterly target of Rs. 6481.92 crore.


He congratulated the banks for achieving CD Ratio of 68% as at June 2009 as against National Goal of 60%.

Some banks which could not achieve their targets of CD ratio under National Goal were advised to ensure that National Goal of 60% under CD ratio was achieved during the remaining period of current financial year. These banks were IDBI, Indian bank, Corporation Bank, Andhra bank, Axix bank, HDFC bank and representative of these banks were requested to improve upon their CD ratio.

Sharing his concern about some areas, Sh. Roshan Lal observed that credit delivery to beneficiaries under Agriculture Debt Waiver & Debt Relief Scheme (ADWDRS) 2008 needs further acceleration. Fresh lending to eligible beneficiaries be done on priority so as to improve their income level and social status.

Similarly, under Debt Swap Scheme, Sh. Roshan Lal expressed his concern that target of providing 3% credit of the target of disbursements for agriculture has not been achieved. He requested banks to look into this aspect and take appropriate steps in this regard.

He further desired that the banks, RBI, NABARD & LDMs should work in co-ordination with each other and identify the agricultural activities so that the credit flow to Agriculture is ensured.

Regarding performance of the Private sector banks, Sh Roshan Lal requested representatives of the Pvt. Sector banks to actively participate by giving credit under various development schemes of the Govt. and they should endeavour to open more branches in the State so that their out-reach encompasses more population instead of focusing and concentrating their branches in Urban areas.

Referring to power sector, Sh. Roshan Lal observed that power plays a crucial role in the development and growth of the State. Therefore, it was primary concern of the State Govt. to provide round the clock assured and affordable power supply to the people. In order to achieve this objective, State government was committed to strengthen the working of power utilities. Effective steps have been taken to reduce the transmission and distribution losses and to bring about improvement in other power parameters. In this regard, he was of the view that Banks could play a vital role in privatizing the power sector by liberally financing generation and transmission projects on easy lending terms.


As regard empowerment of Women, Sh. Roshan Lal informed that programmes for women empowerment should be emphasized. The adverse sex ratio was a major area of concern and exhorted Banks to formulate credit schemes for the women and special incentives should be provided to women entrepreneurs.

As regards major IT initiatives undertaken by the State Govt. he informed that the system of e-governance was being promoted in all Government and non Government organization to bring in efficiency and creating employment opportunities.

He also observed that Banks should come forward with meaningful employment generation schemes with easy availability of credit to rural unemployed youth. The banks should also work out schemes to provide market linkages to products from such units.

Referring to implementation of SHG Scheme, Sh. Roshan Lal observed that there was a need for effective monitoring of progress in Self Help Groups formation and linkage. Proper marketing tie-up arrangements should be made at district level. Publicity of SHG programme be done through media and success stories should be highlighted. Training should be provided to the group members for skill upgradation. For expanding the network of SHGs, involvement of NGOs need to be ensured. Economic development of rural poor by improving their access to formal financial system through various credit delivery mechanism/ innovations in a cost effective and sustainable manner needs to be pushed up.

In the end, Sh. Roshan Lal observed that top priority be given to the development of rural areas and a number of programmes have been launched aiming at sustainable development with focus on BPL families and other weaker sections in this regard. The National Rural Employment Guarantee Scheme was being implemented in the State. The objective of the scheme was to ensure that local employment was available to every rural household whose adult members volunteer to do unskilled manual work, for at least 100 days in a financial year. This programme had been linked with other line departments like Forest, Horticulture, Irrigation etc. to ensure creation of durable assets in the villages.

After Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana & the Chief Guest of the meeting concluded his address, Shri KB Singh, Chief Manager, PNB requested Shri Sandip Ghose, RD, RBI, New Delhi to address the participants.

ADDRESS BY SHRI SANDIP GHOSE, REGIONAL DIRECTOR, RESERVE BANK OF INDIA, NEW DELHI


At the outset Shri Sandip Ghose expressed that both Sh. Nagesh Pydah, ED, PNB and Chairman, SLBC, Haryana and Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana have elaborated the performance of the banks during the period under review and he congratulated the banks for achieving good performance under various banking parameters and also appreciated the Government for active support and involvement.

Shri Ghose further touched upon the following points during his address:-

Sh. Ghose informed the house that Financial Inclusion was the principal focus area of RBI and requested banks to give top priority to this. In this regard, he observed that BC system be implemented in right earnest so that goal of financial inclusion was achieved. He further informed that only about 28% of the State population was covered by the organized credit sector and if this was the status in an advanced State like Haryana then situation obtaining in less developed states could easily be imagined. Most of the financing was still being done through unorganized sector and banks bear primary responsibility to unshackle the farmers from the clutches of the moneylenders.

Sh. Ghose expressed that many things pertain to Financial Inclusion which include Govt. Sponsored Schemes, Women Empowerment Programmes, DRI and Agriculture Debt Waiver & Debt Relief Scheme - 2008 etc.

Sh. Ghose informed that concerted efforts are required to be made by banks so that the goal of covering all villages having population of more than 2000 through FI is achieved by 2011.

Banking Network Expansion be given due priority, particularly, in respect of two districts, namely Jind & Narnaul, which are under-banked districts of the state.

He further observed that key to the success of implementation of Financial Inclusion would be setting up of RSETI’s and FLCC’s in all the districts of the State and their effective employment as a tool to upgrade the skills of the local rural population and providing them with requisite credit so that their financial standing improves.

He observed that banks have a social responsibility towards emancipation of underprivileged sections of the society and Private Sector Banks could play a major role in this regard.

He also called upon the Controlling Heads of all the Banks to participate in the welfare programmes so as to fulfill the Corporate Social Banking obligation.

He further expressed that once the banks have undertaken to alleviate poverty, all the Bank Branch Managers have to work a lot in this direction as we are yet to reach the doorsteps of the poor people.


Referring to the Global Economic Scenario, Sh. Ghose shared with the house that the Management Gurus mentioned in 1995-96 that it will be difficult for many countries to manage the change. They also expressed that Asia would be the engine of growth. He also quoted that during the recent Trade Fair in Delhi, the Chinese Companies achieved their targets within a period of 5 days and left as their goals were very clear.

Further referring to the average age of Employees of Public Sector Banks at 54, he called upon the Private Sector Banks to come forward and share the responsibilities of social commitments.

While concluding, Shri Ghose urged upon all the Bankers’ to give better performance under Financial Inclusion in the 110th meeting of SLBC and also inform the bottlenecks/ impediments in this regard so that the solutions could be worked out together.

After Shri Ghose concluded, Shri KB Singh, Chief Manager, PNB requested Dr. B.S.Yadav, GM, NABARD to address the participants.

ADDRESS BY DR. B.S. YADAV, GENERAL MANAGER (OIC), NABARD (HARYANA) CHANDIGARH

Dr. Yadav expressed his pleasure to be present amongst the senior dignitaries from the State Government, RBI and various Banks who were present in the meeting.

Dr. Yadav mentioned that most of the important issues have already been covered, he, however, touched upon the following main points:-

He observed that the achievement of Commercial Banks & RRBs under Annual Credit Plan 2009-10 has been quite satisfactory but the Co-operative Banks could achieve only 67% of quarterly Target of disbursement under Agriculture. He, therefore, called upon the Controlling Heads of Cooperative Banks to make more efforts for bridging the gap and to achieve the Annual Targets under ACP during the remaining period of current Financial Year.

He observed that share of Investment credit be increased in emerging sectors of the economy like food-processing and other Non-Farm sector schemes of NABARD. Dr. Yadav also requested all the Bankers to participate in CLSS being promoted by NABARD as well as co-financing with NABARD for Hi-tech projects.

As desired by Govt. of India and the State Government, all the Banks must take all possible steps to cover all the remaining eligible & willing farmers under KCC Scheme.


Referring to the number of KCCs more than the number of land holdings, Dr. Yadav observed that the no. of land holdings might have increased by now.

Shri Yadav also apprised the house about the major activities of NABARD during the review period:

NABARD has provided a grant of Rs. 54 lakhs to the NGOs for the formation of 1800 SHGs and getting them Saving Linked with the banks. A grant of Rs. 3.71 lakh has also been provided to NGOs for getting the matured SHGs Credit Linked with the Banks.For increasing the people’s participation in Rural Development, 33 Farmers’ Clubs have been formed upto Oct 2009 during the current Financial Year taking the taking no. of Farmers’ Clubs to 723.Under Village Adoption Programme, NABARD has provided a grant of Rs. 46.45 lakhs for such Pilot Based Projects in 22 villages. Ten more villages are being added under this holistic project.He also called upon the Controlling Heads of Banks to adopt certain villages under Village Adoption Programme and assured that the NABARD will also provide the help as per the Scheme.Under Non-Farm Sector initiatives, 29 programmes were arranged for skill upgradation of NGOs under Rural Employment Development Programme (REDP).Dr. Yadav, further requested the Controlling Heads of Banks to promote the concept of Joint Liability Groups, Farmers’ Clubs and to convert the matured SHGs into Micro Financing Institutions and such concepts should be treated as a means of business expansion.He further expressed that the banks should promote the Non-Farm Sectors activities in the Rural Areas and endeavour for capacity building of rural masses so as to avoid their urban migration.Referring to the achievement of banks during the period under review, he observed that more efforts are required to improve the performance under Swarozgar Credit Card (SCC) Scheme & Debt Swap Scheme etc.

Before concluding Shri Yadav expressed that the banks are earning from the Society, and as such, should take the social responsibilities also. He further urged upon all the Controlling Heads of Banks to initiate all possible steps for implementation of BC/BF Model, formation of more & more JLGs to bring the Tenant Farmers, Share Croppers and Oral Lessees into Banking Fold, formation of more SHGs, Farmer Clubs and to promote Non-Farm Sector Activities to supplement the income of the Rural People.

After Shri Yadav concluded, Shri KB Singh initiated the discussions on


Agenda Items after obtaining the permission from the Chair. The brief of the deliberations and the decision taken is as follows:-

1. CONFIRMATION OF MINUTES OF 108th SLBC MEETING

The minutes of the 108th meeting of the State Level Bankers’ Committee, Haryana, held on 16.07.2009 were circulated to all members vide Convener Bank’s letter dated 28.07.2009. As no comments were received, the house confirmed the minutes.

2. STATUS OF IMPORTANT ISSUES FLAGGED IN 108 TH MEETING OF SLBC HELD ON 16.07.2009

While reviewing the action taken on the major Action Points of 108th Meeting, it was observed as under:-

Action Point Action TakenIncentive Scheme for quicker adoption of Electronic Benefit Transfer (EBT) for Govt. Welfare Schemes – It was resolved that the Sub-committee formed for finalizing the modalities of EBT, should submit the proposal for implementation in the State.

Several meetings of the Sub- Committee of select Bankers were convened by the Convener Bank and after obtaining a consensus about the modalities of the scheme, the same was placed before the state government for approval.

The scheme was examined by the Social Empowerment Department under the leadership of Madam Navraj Sandhu, IAS, FC & PS and in a special meeting convened by the above department on 12.08.2009, it was agreed that 2% of value of the Govt. Transaction plus Service Tax shall be paid by the Government to the concerned bank. The scheme was, therefore, approved for implementation on pilot basis in 5 districts of Haryana and after due discussions and obtaining the consent of the Banks, all the 5 districts were allotted to the Banks namely PNB (Rohtak), AXIS Bank Ltd. (Karnal), HDFC Bank Ltd. (Kurukshetra), Corporation


Bank (Panchkula) & SBI (Hissar).

The aforesaid approval was conveyed by the Government vide their letter no. SJE/P/2009/SPL.A.O (P) dated 19.08.2009 addressed to the controlling heads of respective banks, asking them to execute a MOU with the Government Department for implementation of the scheme on pilot basis. The Convener Bank was assigned the task of preparing a common MOU in coordination with the banks as mentioned above. Accordingly, a common MOU was prepared and got approved from the Social Justice & Empowerment Department, Haryana. Finally, the MOU was got executed by all the respective banks with the State Government.

We appreciate the proactive approach & support extended by the State Govt. through the Department of Social Justice & Empowerment, Haryana under the leadership of Madam Navraj Sandhu, IAS, FC & PS, Govt. of Haryana for finalization of the Scheme. The active cooperation & coordination amongst the banks in this regard is also appreciable.

It was observed that the CD Ratio of Distt. Gurgaon, Sonepat, Rohtak & Rewari is low and it was resolved that LDMs of these districts should formulate an action plan jointly with the DDMs of NABARD to improve the CD Ratio of these districts.

The Convener Bank took up the matter with the concerned LDMs vide letter dated 05.08.2009, requesting them to take necessary steps in this regard.

In response to our letter, LDM Sonepat has informed that most of the Industrial Units are availing credit facilities from bank branches situated in Delhi. He has also informed that many leading Real


Estate Developers are purchasing land by paying handsome amount of compensation to the farmers and such amount is being deposited in different banks. On account of these reasons, the CD Ratio of the district is low. The Chairman of the meeting, Shri Pydah enquired from other LDMs like Rohtak, Rewari & Gurgaon and those LDMs supplemented the views of LDM Sonepat and assured the Chairman that the position will improve further.

Education Loan Scheme for Female Students of Haryana – It was suggested to create massive awareness about 5% interest subsidy available to female students of Haryana on Education Loans being provided by the banks so that the deserving students may pursue their studies further.

The Convener Bank vide its letter dated 05.08.2009 took up the matter with the Managing Director, Haryana Women Development Corporation, Chandigarh and requesting therein to take necessary steps for popularizing the scheme so that the deserving female students are benefitted by the scheme. The Corporation has informed that they have inserted the Press Release in this regard on 04.08.2009 & 27.08.2009, informing the people about the scheme. The progress received from the above corporation has been incorporated in the Agenda papers for review by the house.

Setting up of RSETIs – It was resolved that Rural Development Department, Haryana may take necessary steps for allotment of land to the banks for this purpose as per GOI guidelines.

The matter was taken up with Rural Dev. Deptt., Haryana vide Convener Bank’s letter dated 20.08.2009 for the same. Another letter dated 29.10.2009 was also written with reference to the minutes of 1st meeting of National Level Steering Committee of RSETIs held on 16.09.2009 during which it was resolved that if the state like Haryana do not permit transferring of land free of cost to any agency, may charge a nominal


amount say 5-10% of reserve price and banks can pay and buy the land. The representative of the Rural Development Department apprised the house that the land lying in ITI’s was earlier proposed for RSETIs was already on lease due to which the same could not be finalized. Intervening the deliberations, Shri Roshan Lal, IAS, FC & PS, Agriculture & Chief Guest of the meeting suggested to provide the existing space available with ITI’s to banks on priority so that RSETIs may be established in all the districts.

Opening of at least one Specialized SSI/ SME Branch in each district – It was observed that only Sirsa district is left for opening of such branch by Canara Bank.

The matter was taken up with the Controlling Office of Canara Bank vide Convener Bank letter dated 10.08.2009 to inform the status of conversion of their Sirsa-II branch into Specialized SSI/SME branch. The representative of Canara Bank apprised that the decision from their Corporate Office is likely to be received within 10 days. The Chairman of the forum, Shri Pydah and the Convener (SLBC) Shri NC Jain desired that Canara Bank should convey the decision at the earliest as the position has not changed since the last SLBC meeting.

Identification of Areas for Skill Development- It was resolved that the State Government may conduct some studies in the State for identification of areas and activities for skill development where Banks may also consider to provide facilities to the eligible activities.

The Convener Bank vide its letter dated 11.08.2009 requested the Department of Institutional Finance & Credit Control, Haryana to take up the matter with the concerned department/s for conducting the study/ identifying the areas and activities for Skill Development. It has also been requested that the copies of such studies may be made available to SLBC/ Banks for further necessary action. Shri Anil Kumar, IAS, Director, IF & CC,


Haryana suggested that the Convener Bank may inform in detail about the nature of studies to be conducted by various Govt. Departments. Shri NC Jain, GM, PNB expressed that our concerned officer would be in touch with the Directorate of IF & CC, Haryana.

SPECIAL PACKAGE OF IBA ON MSE, HOUSING & AUTO SECTOR

It was apprised that as desired by Ministry of Finance, Govt. of India as well as Reserve Bank of India, a Special Meeting of SLBC & Special Monthly Meetings on MSE were organized to review the implementation of IBA Package as well as the progress achieved by the banks under the same. The progress made by the banks upto September 2009 was placed in the house, however, it was observed that since the progress has already been commented upon during the presentation of Key Note Address of the Chairman, no further deliberations were required. The house showed its satisfaction over the progress upto September 2009, however, Shri Nagesh Pydah, Chairman of the forum observed that the restructuring of MSME Accounts should be done with full authenticity while ensuring actual cash flows under such restructuring packages.

ACTION: BANKS

CREDIT DELIVERY TO MSME SECTOR – RECOMMENDATIONS OF DR. KC CHAKRABARTY COMMITTEE

It was informed that the matter pertaining to the recommendations of this Committee was taken up separately with the Department of Industries, Haryana and Director, IF & CC, Haryana vide Convener Bank letter dated 28.05.2009 for taking further suitable steps in respect of the recommendations related to the State Government as discussed during the Steering Committee Meeting last held on 17.09.2009 and the concerned State Govt. Departments were requested to initiate action and convey the progress to SLBC. The representative of Industry Department, Haryana apprised that the State Government was initiating the necessary actions towards implementation of the recommendations of the committee and further progress shall be conveyed soon.

ACTION: DEPTT. OF INDUSTRIES & REVENUE DEPTT. HARYANA

3. DEBT WAIVER AND DEBT RELIEF SCHEME 2008 – FRESH LENDING


The progress of fresh lending to the eligible farmers was reviewed and it was observed that Rs. 621.81 Crore were disbursed to 101500 farmers upto June 2009 by the Banks. Shri Pydah, Chairman of the Forum advised all the Controlling Heads of Banks to extend fresh lending to all the eligible beneficiaries of the Scheme. Shri Nagesh Pydah, chairman of the forum expressed that the ADWDR Scheme 2008 was implemented with an objective to give a fresh life to the farmers and not to clean the Balance Sheets of the Banks. He also observed that the coverage of 19% of the farmers are benefitted under the scheme and 34% of the amount of Waiver & Relief was not a good achievement and called upon all the Controlling Heads of Banks to improve the position. Shri Sandip Ghose, Regional Director, RBI also supplemented Shri Pydah and urged upon the banks to bring the farmers back into institutional financing & exhibit better performance in the next meeting.

The members were further apprised that the due date for deposit of share of the ‘Other Farmers’ has been extended by another six months i.e. from 30.06.2009 to 31.12.2009 as announced in the Budget proposals of 2009-10 & cut-off date for acceptance of grievances to 31.01.2010.

The member banks and the LDMs were requested to widely publicize the decision of the Government so as to extend the benefit of the Scheme to maximum no. of eligible farmers.

ACTION: ALL BANKS & LDMs

4. USE OF IT ENABLED BUSINESS CORRESPONDENT & BUSINESS FACILITATOR MODEL (BC/BF)

It was informed that the Reserve Bank of India vide its Circular No. DBOD: 58 dated 25.06.2006 had issued guidelines for implementation of BC/BF model by banks. Accordingly, the Convener Bank requested all controlling heads of banks to implement this model & submit the status of the same for review in the meeting of SLBC.

The progress achieved in this regard up to 30.06.2009 was placed and it was observed that these models have been implemented in the State of Haryana by Punjab National Bank, Union Bank of India, State Bank of India & AXIS Bank Ltd., ICICI Bank & Haryana Gramin Bank.

The Controlling Heads of all other Banks were also requested to implement the BC/BF Model to reach the last mile customer and also to submit the progress report to Convener Bank for review in the SLBC meeting.


ACTION: ALL BANKS

5. INCENTIVE SCHEME FOR QUICKER ADOPTION OF ELECTRONIC BENEFIT TRANSFER (EBT) FOR GOVERENMENT SCHEMES

The house was apprised that the EBT scheme as conveyed by RBI was examined by the banks & Social Empowerment Department under the leadership of Madam Navraj Sandhu, IAS, the then FC & PS and in a special meeting convened by the above department on 12.08.2009 and was approved for implementation on pilot basis in 5 districts by 5 banks on the basis of “One District One Bank” Approach. It was also decided that 2% of value of the transactions plus Service Tax shall be paid by the Government to the transacting bank. The district & bank-wise allocation was also informed to the members as under:-

Sr. No.

Name of the District

Name of the Bank to whom allotted

1. Rohtak Punjab National Bank2. Karnal AXIS Bank Ltd.3. Kurukshetra HDFC Bank Ltd.4. Panchkula Corporation Bank5 Hisar State Bank of India

All the Controlling Heads of Banks involved in the Scheme were requested to ensure to initiate prompt & suitable steps for implementation of the project so that the disbursement of social benefits commenced as soon as possible.

ACTION:MEMBER BANKS IN IDENTIFIED DISTRICTS

6. FINANCIAL LITERACY AND CREDIT COUNSELLING CENTRE (FLCC)

The progress in setting up of FLCCs was placed and it was observed that PNB had established such Centres at Yamunanagar & Rohtak whereas Syndicate Bank, Gurgaon Gramin Bank, Oriental Bank of Commerce, SBOP & SBI had also established such Centres in Mewat, Rewari, Karnal, Sonepat & Ambala Districts respectively.


The progress made by all such centers was also reviewed by the House and the same was found satisfactory.

All the Controlling Heads of concerned Banks & LDMs were requested to ensure that all the FLCCs function as per guidelines contained in Model Scheme formulated by RBI, the copy of which was circulated by the Convener Bank in the Agenda papers of 107th Meeting of SLBC Haryana held on 20.04.2009.

ACTION: BANKS & LDMs

7. BASIC STATISTICAL DATA

Shri KB Singh, Chief Manager, PNB, informed that the Chairman had already covered the highlights of Basic Banking Data in his keynote address, and therefore, no further discussions on this item were initiated.

7.3 EXPANSION OF BANKING NETWORK IN UNDER-BANKED AREAS

The Ministry of Finance, Government of India, Department of Financial Services, New Delhi vide letter no. F.No.15/3/2009-Dev dated 18.8.2009 addressed to the CMD’s of all SLBC Convener Banks, has informed that despite expansion of Banking Network in the country, there are still some areas that remain under-banked or un-banked. With a view to covering all the under-banked areas, SLBC has been advised to take appropriate steps so that no area remains under-banked/un-banked.

As per RBI Circular No.DBOD.BL.BC.20/22.01.001/2009-10 dated 01.07.2009, 5 districts are under- banked namely Fatehabad, Jhajjar, Jind, Kaithal & Mohindergarh (Narnaul) of Haryana: As per the information available from LDMs there is no un-banked block in the State. The position of bank branches vis-à-vis the population in those 5 districts was placed in the meeting as under:-

S. No.

Name of the Districts

Population as per 2001 Census

No. of bank branches

Per branch coverage of population


1. Fatehabad 806158 101 118552. Jhajjar 880072 105 115803. Jind 1189827 108 160794. Kaithal 946131 107 129615. Narnaul 812521 81 15047

Shri VK Gupta, Project Officer of the State Urban Development Society (Monitoring Agency for SJSRY) expressed that District: Mewat be also included in the list of under-banked districts. Shri S. Chudhuri, GM, RBI clarified that the identification of under-banked districts was made on the basis of 2001 census and he desired that Mewat may be treated as an under-banked district.

The House observed that more efforts were required to strengthen the banking network in two districts namely Jind & Narnaul. The house was further apprised about the steps taken by the Convener Bank as follows:-

I. The issue had been taken up with Lead District Managers of above districts for initiating steps for opening of branches in these districts so that the desired banking services were provided to the masses and 2 districts also come out of the list of under - banked areas at the earliest.

II. These LDMs have also been requested to constitute Special Sub Committees of DCC to ensure that the districts approach the National Average in terms of average population per bank branch and for the same a roadmap may be prepared and the progress achieved in this regard be sent to Convener Bank for incorporating in the agenda of SLBC.

ACTION: LDMS AND BANKS.

8. ACHIEVEMENT UNDER NATIONAL GOALS

It was observed that the banks had achieved all the National Goals except under DRI Advances. The performance of Banks under DRI Advances vis-à-vis Target were however, reviewed separately.

Shri Anil Kumar, IAS, Director, IF & CC, Haryana observed that banks have achieved the national goals during the year 2007-08 & 2008-09, which is


satisfactory but there was ample scope for registering the performance more than the national goals. This was supplemented by Shri Nagesh Pydah, Chairman of the forum and called upon all the banks to send the performance achievement without any data loss.

ACTION: ALL BANKS

ACHIEVEMENTS BY BANKS UNDER DRI ADVANCES

Reviewing the progress made by banks as per revised targets it was observed that against pro-rata target of 4970 cases upto June 2009, only 569 cases were disbursed during the review period, showing 11% achievement only. Shri Pydah, Chairman of the meeting advised the Controlling Heads of the Banks to identify the eligible beneficiaries for extending loans under the Scheme as per the revised norms and also to achieve the Annual Target of 2009-10 positively.

ACTION: ALL BANKS

OVERALL CD RATIO

The position of overall CD Ratio was placed before the house and it was observed that overall CD Ratio was 68% and the Chairman of the Forum as well as the Chief Guest expressed their satisfaction about the same. However, Shri Roshan Lal, IAS, FC & PS, Agriculture, Haryana pointed out that the CD Ratio of banks like IDBI (6%), Corporation Bank (29%), Andhra Bank (37%), Indian Bank (32%), OBC (32%), SBOT (27%) & Vijaya Bank (31%), AXIS Bank (34%) and IndusInd Bank (24%) was very low. Shri Nagesh Pydah, while intervening, expressed that the Corporation Bank was doing well under Financial Inclusion and should also do well by improving CD Ratio in Haryana.

ACTION: ALL CONCERNED BANKS

9. REVIEW OF CREDIT TO AGRICULTURE

PERFORMANCE UNDER ANNUAL CREDIT PLAN 2009 -10

The performance was reviewed and house was informed that for Agriculture & Allied activities under ACP 2009-10, the Commercial Banks and RRBs achieved 174% and 124% of the disbursement target during the q.e. June 09. The achievement in respect of Cooperative Banks was only 67%.

Similarly, the Commercial Banks surpassed overall targets by achieving - Minutes of 109th SLBC (Hry)

140%, RRBs – achieved 125% whereas the achievement of Cooperative Banks was 65% only.

All the Controlling Heads of Banks including Cooperative Banks & LDMs were requested to gear up the efforts right now to surpass the Annual Targets under ACP for the current year i.e. 2009 – 10.


9.1 REVIEW OF PRODUCTION CREDIT VIS-À-VIS INVESTMENT CREDIT

While reviewing the performance of Banks under production & investment credit vis-à-vis targets for the year 2009-10 it was observed that achievement under investment credit was 245% of Annual Targets. However, the achievement in respect of Cooperative Banks was only 56%. All the Banks & LDMs were requested to further improve the lending under investment credit so as to encourage capital formation under Agriculture Sector with the help of Farmers in stepping up their income on sustainable basis.


9.2 PROVISION OF KCC TO ALL ELIGIBLE & WILLING FARMERS

It was informed that the Financial Commissioner & Principal Secretary to Govt. of Haryana (Agriculture Department) vide its letter dated 01.07.2009 has forwarded a copy of letter dated 15.06.2009 of the Secretary, Department of Agriculture & Cooperation, Ministry of Agriculture, Govt. of India emphasizing the improvement in credit flow to Agriculture. It has been mentioned in the letter that the number of farmers financed by the banks is almost at the same level as in 2004 – 05.

It was further informed that the Ministry of Agriculture has suggested to cover all the eligible & willing farmers under KCC Scheme by launching a time bound campaign preferably by 30.09.2009. The NABARD has also been advised by the Ministry of Agriculture, Govt. of India, to work out a detailed Action Plan in this regard in consultation with the State Government.

The performance of the banks was reviewed and house was informed that number of KCC o/s as on 30.06.09 was more than no. of farmers in the State which was due to the fact that more then one KCC has been issued per farmer family depending upon the land ownership in the Revenue Record.


The House was satisfied with the performance of the banks during the review period.

ACTION: NABARD, AGRICULTURE DEPARTMENT HARYANA & SLBC

9.3 NATIONAL HORTICULTURE BOARD – LETTERS OF INTENT ISSUED

While reviewing the progress of Banks under Letters of Intent issued by NHB during FY 2009-10 upto June 09, it was observed that 08 LOIs were issued to various Banks out of which 05 cases were disbursed amounting to Rs. 22.10 Lacs. It was also observed that the subsidy was released to the tune of Rs. 08.09 Lacs.

All controlling heads of banks were requested to get disposed off all the pending cases at the earliest.

The LDMs were also requested to review the progress achieved in LOI cases of National Horticulture Board in each District Level Meeting.

ACTION: NATIONAL HORTICULTURE BOARD/ BANKS/LDMs

9.4 DEBT SWAP SCHEME

It was apprised that pursuant to the decision taken in Hon’ble Finance Minister’s meeting with Chief Executive Officers of Public Sector Banks and as advised by NABARD, the convener bank had allocated targets under Debt Swap Scheme to all controlling heads of Banks, which are 3% of the targets for agriculture credit under Annual Credit Plan 2009-10.

The progress achieved by the Banks during the q.e. June 09 was placed before the house and it was observed that pro-rata disbursement target to agriculture under ACP 2009-10 upto quarter ended June 09 was Rs.4599 crore and 3% of the same was Rs. 138 crore as target under debt swap. The achievement was Rs. 10.24 crore only being 9% of the target. Shri Roshan Lal, IAS, FC & PS (Agriculture), Govt. of Haryana desired that the lending under the scheme should be improved further to save the farmers from exploitation at the hands of the money lenders. By observing the low progress under Debt Swap Scheme, Shri Nagesh Pydah, Chairman of the forum enquired from the Controlling Heads of Banks about the problems faced by them in this respect. Shri RC Bhardwaj, AGM, SBI expressed that the record of such debts raised by farmers from the money lenders was not available. He suggested that a small group of SLBC may be formed to work on this aspect. Shri Nagesh Pydah, Chairman of the forum suggested that the banks should select 10 Blocks of a State for getting the farmers of such Blocks free from the grip of money lenders and be brought into Banking Forum. Shri Sandip Ghose, Regional Director, RBI further suggested that Minutes of 109th SLBC (Hry)

while identifying the Blocks, those Blocks may be identified first where FLCC and RSETI has been established, which would help in creating the awareness amongst the farmers about the benefits of the Debt Swap Scheme.

The Controlling Heads of Banks & all LDMs were requested for popularizing the Scheme and to achieve the target of 3% during the remaining period of the current fiscal 2009-10.

ACTION: CONVENER BANK, ALL BANKS & LDMs.

10. REVIEW OF PERFORMANCE UNDER GOVERNMENT SPONSORED SCHEMES

10.1 SWARAN JAYANTI GRAM SWAROZGAR YOJANA (SGSY)

While reviewing the performance, it was observed that the achievement under SGSY during q.e. June 09 was 12% (as against 10% during the corresponding period of the last year). It was, however, further apprised that as per latest feed-back received from Rural Development Department, the achievement was 36% upto 30.06.2009. Banks were requested to accelerate the pace of credit disbursement as the time at their disposal for achieving the allocated targets was short.

ACTION: ALL BANKS/LDMs.

10.2 SETTING UP OF RURAL SELF EMPLOYMENT TRAINING INSTITUTES (RSETIs)

It was apprised that during 12th meeting of Central Level Coordination Committee of SGSY held on 8th August, 2008, GOI reiterated the need for establishing such centres to assist beneficiaries of SGSY in capacity building & skill upgradation.

It was also informed that RSETIs have been established in all the 5 identified districts namely Mewat (Syndicate Bank), Yamunanagar, Jhajjar & Mohindergarh (all 3 by PNB) and Fatehabad by SBOP. However, all these centers are functioning from existing premises of banks or those provided by the District Administrations.

As desired by RBI, the performance of these centres was also obtained by the Convener Bank up to 30.06.2009 and the same was reviewed during the meeting. It was observed that 37 batches of training were organized in which training was imparted to 801 persons. The Rural Development Department,


Haryana was requested to refer the SGSY/BPL beneficiaries to these centers for training and to send the progress in this regard for review in SLBC meetings. Shri Roshan Lal, IAS, FC & PS (Agriculture), Haryana suggested that the Rural Development Department, Haryana may initiate suitable steps for allotment of land to the banks as per provisions of the Scheme so that RSETIs may be set up in the State of Haryana on permanent basis.

ACTION: RURAL DEVELOPMENT DEPARTMENT.

10.3 SELF HELP GROUPS

While reviewing the progress under Self Help Groups, it was observed that during the review period, the number of SHGs formed has increased from 28581 to 33149 and those credit linked have increased from 16751 to 20093 showing a growth of 16% & 20% respectively. The percentage of women SHGs was 71% as against 68% during the corresponding period last year. The progress was found satisfactory.

10.4 PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME (PMEGP)

The progress under the Scheme upto q.e. June 09 was placed in the meeting and it was observed that the achievement was 798 cases sanctioned against the Annual Target of 1193 cases, showing 67% achievement.

The cut-off date for disbursement under the scheme was 31.08.2009. The representative of Industries Department, Haryana apprised the house that no case of last year was pending. It was, however, desired by the chair that final position of achievement under the programme year 2008-09 be submitted by KVIC, showing the bank-wise & district-wise position of cases sponsored, sanctioned and disbursed for review in the next meeting. The uptodate position of the cases pertaining to the current financial year 2009-10 be also reviewed in the next meeting.

All the Controlling Heads of Banks were also requested to ensure timely submission of claims for margin money with the concerned nodal branches of banks.

ACTION: KVIC/BANKS

SETTLEMENT OF PMEGP PROJECTS OF 2008-09 DURING THE YEAR 2009-10


The house was informed that the KVIC Mumbai vide its Circular dated 22.09.2009 has informed that a sizable no. of claims are yet to settled for the project sanctioned on or prior to 31.03.2009 by the banks. Keeping in view the same, the Commission has decided that the implementing agencies are permitted to settle the unsettled projects of 2008 – 09 during the year 2009 – 10 along with the new projects sanctioned on or after 01.04.2009. It has further been conveyed by the Commission that the performance of both such cases would be included as achievements for 2009-10.

The representatives of all the Implementing Agencies, Banks & LDMs were requested to adhere to the aforesaid decision of the Commission.

The Controlling Heads of banks were also requested to pass on suitable instructions in this regard to their field functionaries for meticulous compliance.

ACTION: IMPLEMENTING AGENCIES/ LDMs/ BANKS

10.5 SWARAN JAYANTI SHAHARI ROZGAR YOJNA (SJSRY)

While reviewing the progress, it was observed that the achievement under the scheme during the review period was 25% for the programme year 2009.-10 as against achievement of 4% during the corresponding period of the last year. However, it was informed by the representative of State Urban Development Society, Haryana that as per latest data available with the Department, banks have sanctioned 1705 cases and disbursement has been made in 1328 of the sanctioned cases and the achievement was 50%.

Shri VK Gupta, Project Officer of SJSRY, Haryana apprised that the scheme has already been revised w.e.f. 01.04.2009 but the banks were not sanctioning the cases as per revised norms because the RBI had not revised the scheme. The representative of RBI clarified that the circular about the revised scheme has since been issued on 31.10.2009

All the Controlling Heads of Banks were requested to implement the revised guidelines and achieve the targets under the current financial year.


11. RECOVERY UNDER HACOMP ACT


The progress in settlement of RC cases filed under State Recovery Act was presented in the meeting and it was observed that out of 2996 cases involving an amount of Rs. 37.95 Crore outstanding as at March 2009, 440 Cases with an amount of Rs. 7.99 Crore were got settled during the quarter ended June 2009. As many as 270 RCs amounting to Rs.4.13 Crore were filed by the banks during the period under review. 2756 cases involving an amount of Rs. 34.08 Crore were pending as at June 2009, out of which 887 cases involving an amount of Rs. 4.72 crore were pending for more than 3 years.

LDMs were requested to follow-up effectively with Revenue Department for disposal of pending RCs at the earliest.

The Revenue Department was, also requested to help the banks in disposal of pending cases.

ACTION: ALL LDMs & REVENUE DEPARTMENT

12. ADVANCES UNDER EDUCATION LOAN SCHEMES

The progress during the q.e. June 09 was reviewed and it was observed that Education Loan in the State of Haryana registered an increase of Rs. 225 Crore from Rs. 430 Crore as at June 2008 to Rs. 655 Crore as at June 2009, thus showing a growth of 52%, which was treated as quite satisfactory.

Keeping in view the requirement of financial support to the meritorious students who wish to study further and also the importance of education being attached by Haryana Government, all banks were requested to improve the performance further under Education Loan scheme.

ACTION: ALL BANKS

12.1 EDUCATION LOAN TO FEMALE STUDENTS OF HARYANA

During the deliberations of previous meetings of SLBC, the Chairman of the Forum advised all the controlling heads of banks to extend Education Loan facility to the eligible female students as per the scheme of Women Development Corporation, Haryana under which State Govt. is providing 5% Interest Subsidy.

Accordingly, the progress under the scheme for the year ended June 2009


was obtained from banks & the same was placed in the meeting for review. It was observed that banks have disbursed 192 Education Loans to female students amounting to Rs. 7.25 Crore during q.e. June 09. The representative of Women Development Corporation requested all the Controlling Heads of Banks to lodge the claims for interest subsidy @ 5% on priority so that the Corporation may reimburse the same as per provisions of the scheme.

Since the State Government is initiating pro-active steps for providing adequate opportunities for female students of Haryana to pursue higher studies, Shri Nagesh Pydah, Chairman of the Forum called upon all the Banks to extend Education Loan under Special Scheme for Female Students and lodge the claim for 5% interest subsidy being provided by the State Government immediately. This will help the needy female students in pursuing higher studies. LDMs were also advised to popularize the scheme in their respective districts.

ACTION: BANKS AND LDMS13. SWAROZGAR CREDIT CARD SCHEME (SCC)

While reviewing the progress under Swarozgar Credit Card, it was observed that 2521 cards were issued during the quarter ended June 2009 i.e. 10% of the annual target of 25000 for 2009-10.

All the Controlling Heads of Banks were requested to improve the position during the remaining period of the current year i.e. 2009-10.

ACTION: BANKS

14. IMPLEMENTATION OF POLICY PACKAGE FOR SMALL & MEDIUM ENTERPRISES (SMEs)

14.1 DOUBLING OF CREDIT IN FIVE YEARS

It was observed that the banks in Haryana have already achieved the doubling of credit to SME Sector before the target date i.e. 31.03.2010, which was appreciated by the house.

The YOY Growth under Advances to SME Sector of Commercial Banks & RRBs was 26.9 % and since 31st March 2005 (Base Date) the annualized growth was 58.2 %, which was rated as quite Satisfactory.

14.2 CREDIT FLOW TO SME SECTOR

It was apprised that as per RBI guidelines the progress of credit flow to SME Minutes of 109th SLBC (Hry)

sector was to be reviewed on new format in terms of SME policy package. Accordingly the progress obtained from banks was reviewed during the meeting.

While reviewing, it was observed that out of total outstanding of Rs. 2918 crore under Micro Enterprises, the outstanding of Rs. 2039 crore was under Manufacturing Sector and Rs. 879 crore was under Service Sector.

Under Small Enterprises, the total outstanding was Rs. 6098 crore, out of which Rs.4459 crore was under Manufacturing Sector and Rs. 1639 crore was under Service Sector.

Total outstanding under Micro & Small Enterprises was to the tune of Rs. 9016 crore.

The total outstanding under Medium Enterprises was to the tune of Rs. 3949 crore, out of which, Rs.3713 crore was under Manufacturing Sector and Rs. 236 crore was under Service Sector.Total outstanding under Small & Medium Enterprises (SME) was Rs.12965 crore. The percentage of Micro Credit to MSE Sector was 32%.

The performance was rated as Satisfactory.

14.3 IMPLEMENTATION OF POLICY PACKAGE FOR SMEsFINANCING OF NEW UNITS

It was observed that 1364 Semi urban and urban branches of commercial banks and RRBs in Haryana provided finance to 2622 new SME units during the quarter ended June 2009. The average per SU/U branch was 1.92 units against the annual target of 5 units per annum.

Bankers were requested to improve upon the performance and ensure that annual target of 5 units was achieved during the remaining period of the current financial year.

ACTION: BANKS

14.4 (A) OPENING OF AT LEAST ONE SPECIALISED SSI/SME BRANCH IN EACH DISTRICT

It was informed that during various meetings of Empowered Committee on SME, RBI had been stressing upon the banks to open at least one Specialized SSI/ SME branch in each district or to convert the existing SSI branch into specialized SME branch. The progress in this regard has been reviewed in every SLBC meeting.

The position in this regard was placed in the meeting from where it was Minutes of 109th SLBC (Hry)

observed that only one district i.e. Sirsa is yet to have such specialized SME/ SSI branch. As this district was allocated to Canara Bank, representative of the Canara Bank apprised that the matter has already been taken up with their Corporate Office for conversion of Sirsa II branch into specialized SSI/SME branch. The Chairman of the forum desired that the final decision be informed by Canara Bank at the earliest.

ACTION: CANARA BANK

14.4 (B) PERFORMANCE OF SPECIALIZED SSI/SME BRANCHES

It was observed that Specialized SSI/SME Branches had sanctioned Rs. 319 crore in 783 cases during the quarter ended June 09 and disbursement was made in 603 cases amounting to Rs. 219 crore.

Total outstanding as at 30.06.2009 was Rs. 2908 crore as against the outstanding of Rs. 2153 crore as at 30.06.08 thereby recording an increase of 35%. The performance was considered as Satisfactory.

14.5 FLOW OF INSTITUTIONAL CREDIT TO IDENTIFIED SSI CLUSTERS

The progress under Flow of Institutional Credit to SSI Clusters was placed before the house and it was observed that the performance of Banks was quite satisfactory in giving credit to identified SSI cluster of Rice Milling in Kurukshetra district and in the remaining districts, it required acceleration.

ACTION: BANKS & LDMs OF KURUKSHETRA, GURGAON & KARNAL

DISTRICT

14.6 CREDIT GUARANTEE SCHEME OF CGTMSE

While reviewing the progress, it was observed that the coverage under the scheme during the review period was 592 cases as against coverage of 207 during the corresponding period of the last year thereby showing an increase of 186%. Performance of the banks was satisfactory. Controlling Heads of Banks were requested to cover all the eligible accounts under the scheme as per RBI guidelines.

ACTION: ALL BANKS

15. IMPLEMENTTION OF NAYAK COMMITTEE RECOMMENDATIONS WHILEASSESSING WORKING CAPITAL LIMITS


It was observed that 2228 loans amounting to Rs. 540 Crore were eligible under the scheme and the banks had covered 2047 accounts amounting to Rs. 517 crore under Nayak Committee norms thus registering 92% achievement during the q.e. June 09, which was rated as good.

16 & 17. ADVANCES TO MINORITY COMMUNITIES AND CREDIT FLOW IN IDENTIFIED DISTRICTS OF SIRSA, GURGAON & MEWAT

The progress made by Banks in credit flow to Minority Communities during the q.e. June 09 was placed for review and it was observed that the Banks had extended credit to 329041 beneficiaries of Minority Communities amounting to Rs. 2699 crore as at 30.06.2009. The YOY ( June 08 to June 09) growth of Advances to Minorities was 13%. The progress of banks under flow of credit to Minority Communities in general and in identified district of Sirsa (13% growth) and Distt. Gurgaon/ Mewat (8% growth) was treated as satisfactory.

The controlling heads of banks & LDMs of identified districts were requested to improve the performance further as the State Government has been stressing for upliftment of such people.


18. FINANCIAL ASSISTANCE TO WOMEN BENEFICIARIES

While reviewing the comparative position of Financial Assistance to women beneficiaries it was observed that overall Advances to Women beneficiaries witnessed an increase of Rs 459 Crore from Rs. 2197 Crore as at June, 2008 to Rs. 2656 Crore as at June, 2009, thus registering a growth of 21%.

It was also observed that percentage of loans to women beneficiaries to net bank credit was 5% which was within the RBI stipulations.

All the Banks were requested to encourage their branches for extending credit to Women SHGs and also to Female students under Special Education Loan Scheme of State Government as already emphasized by Shri Pydah, the Chairman of the meeting in his address.

ACTION: ALL BANKS

19. NATIONAL AGRICULTURE INSURANCE SCHEME (NAIS)


The position of coverage of farmers under the Scheme was placed in the meeting for review. Ms. Vandana Chawla, Administrative Officer of Agriculture Insurance Company (India) Ltd. (AICL) expressed her happiness about the good performance by the concerned banks. She also appreciated the Banks for increasing the coverage of farmers under NAIS.

While intervening, Shri Roshan Lal, IAS, FC & PS (Agriculture), Haryana enquired from the representative of AICL about the claims received from the eligible farmers and their settlement during the last year. Madam Chawla apprised that no claim was received under the Scheme. On asking about the problems being faced by field functionaries in implementation of NAIS, Shri RK Makkar, LDM Sirsa informed that the clause of Block as a whole to be declared as affected by the Natural Calamity need to be amended for improving the coverage further. Shri Roshan Lal apprised that the State Government is considering bringing the same to further lower level.

The Controlling Heads of Banks & LDMs were requested to ensure that guidelines of NAIS were followed by the branches in letter and spirit so as to save the farmers from the damages to crops due to unforeseen natural calamities.

ACTION: BANKS & LDMs

20.Budge Announcement 2009-10 – 1% interest Subvention on Housing Loans up to Rs. 10 lakh

House was informed that the Under Secretary, Department of Financial Services, Ministry of Finance, government of India vide letter F. No. 5/60/2009 – Dev dated 30th September 2009 addressed to The Deputy Governor, RBI, Mumbai & The CMD, National Housing Bank, New Delhi under copy to all SLBC Conveners of States has conveyed that in order to stimulate housing demand in the country specially in middle and lower income segment of population, the Finance Minister, during his budget proposal for 2009-10 had announced a scheme of 1% Interest Subvention on housing loans upto Rs. 10 lakh. An allocation of Rs. 1000 crore was also announced for the purpose.

In the light of the above said announcement, the Government had allocated an initial sum of Rs. 300 crore during the current financial year for implementing the scheme. The Reserve Bank of India & National Housing Bank have been designated as Nodal Agencies by the Government for implementing the scheme through Scheduled Commercial Banks and


Housing Finance Companies respectively. The guidelines framed for implementing the scheme were also circulated along with the agenda papers.

All Controlling Heads of the Banks were requested to give due publicity to the scheme so that eligible borrowers of home loans can avail maximum benefit of the said scheme.

After completion of the Agenda Items, the Senior Dignitaries sitting on the dais expressed their views further as under:-

Shri Nagesh Pydah, ED, PNB expressed that a missionary zeal is essential to achieve actual Financial Inclusion as suggested by Shri Sandip Ghose, Regional Director, RBI.

The banks should enroll more & more BCs/ BFs in terms of the liberty given by RBI for entrusting such jobs to various entities.

Shri Pydah further called upon the bankers’ present in the meeting to treat the concept of Financial Inclusion and engagement of BCs/BFs as an business opportunity and to reach at the doorstep of the people which remained unserved by the banking channels so far.

The chairman further suggested that an award should be conferred on the bank to achieve an excellent performance under Financial Inclusion.

Shri Roshan Lal, IAS, FC & PS (Agriculture), Haryana & the Chief Guest of the meeting suggested that the procedure for opening an account with the bank by the poor people should be made simpler as having an account with a bank adds to the status of a poor person. Shri Pydah apprised that the account opening procedure for zero balance accounts (No frills A/c) has already been made simpler for the lower income group.

Shri Sandip Ghose, Regional Director, RBI urged upon all the Controlling Heads of Banks to bring the problems in the 110th meeting of SLBC Haryana so that meaningful discussions may be held in the next meeting.

VOTE OF THANKS

While presenting a Vote of Thanks on behalf of all the members, Shri RC Khurana, Zonal Manager, Bank of India, expressed gratitude towards Shri Nagesh Pydah, Executive Director, Punjab National Bank-cum-Chairman of the meeting and Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana, Chief Guest of the Meeting, Shri Anil Kumar, IAS, Director (IF & CC), Haryana, Shri Sandip Ghose, Regional Director, RBI, New Delhi, Dr. BS Yadav, GM (OIC), NABARD


Shri Khurana also expressed his thanks to Shri NC Jain, Field General Manager, PNB & Convener of the Forum for organizing the 109th meeting of SLBC (Haryana) successfully. Shri Khurana also thanked all the officials from State Government, various Banks & the personnel from Media for their active participation in the meeting.

___________

ANNEXURE

Sr. No.

Name & Designation S/Shri/Madam Bank/DepartmentChairman

1 Shri Nagesh Pydah, Executive Director Punjab National Bank

Chief Guest

2 Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary (Agriculture), Haryana


List of

of 109th Meeting of SLBC (Hry) held on 24.11.2009.

State Government Senior Officials

3 Shri Anil Kumar, IAS, Director, IF & CC, Haryana.

Convener Bank

4 Shri NC Jain, General Manager, PNB and Convener SLBC Haryana.

Punjab National Bank

5 Shri KB Singh, Chief Manager, FGM Office, Chandigarh

6 Shri AS Bains, Senior Manager, FGM Office, Chandigarh.

RBI/Other Institutions

7 Shri Sandip Ghose, Regional Director Reserve Bank of India, New Delhi8 Shri S. Chaudhuri, General Manager

9 Dr. BP Srivastava, Asstt. General Manager

10 Dr. BS Yadav, General Manager NABARD11 Shri B. Naik, AGM12 Shri MC Dhiman, Asstt. General

ManagerSIDBI

State Government/Boards/Corporations

13 Sunil Chopra, Dy. Director Industries, Haryana

14 Pawan Kumar, Research Officer IF&CC, Haryana

15 Dr. VS Raparia, Addl. Director Agriculture

Agriculture Deptt.

16 Dr. RS Solanki, Joint Director(Stat.)

17 RC Sangwan, Chief Stamp Auditor Revenue Department

18 Arun Kumar, Research Officer Rural Development Deptt.

19 Vijay Gupta, Project Officer SUDA/ SJSRY

20 SK Singh, Asstt. Director National Horticulture Board


21 Mahender Singh, Sr. Research Officer HSCFDC

22 Vinod Kumari, Project Officer Mahila Vikas Nigam

23 Ms. Vandana Chawla, Admin. Officer National Agriculture Insurance Company of India Ltd.

Public Sector Banks

24 RC Bhardwaj, Asstt. General Manager SBI

25 SK Bharti, Chief Manager SBOP

26 VK Sharma, Chief Manager

Absent State Bank of Hyderabad

Absent State Bank of Indore

Absent State Bank of Bikaner & Jaipur

27 Ved Prakash, Asstt. Manager (Advances)

State Bank of Travancore

28 Surinder Singh, Asstt. General Manager Punjab & Sind Bank

29 SP Singh, Sr. Manager

30 Ravinder Singh, Dy. General Manager Oriental Bank of Commerce

31 SC Maheshwari, Chief Officer UCO Bank

32 Jatendra Chaudhry, Sr. Manager (Tech.) Union Bank of India

33 Kuldeep Gupta, Senior Manager United Bank of India

34 Sudip Bahsin, Dy. General Manager Allahabad Bank

35 Dr. JP Gupta, AFO

36 Ashwani Mittal, Asstt. General Manager Andhra Bank

37 NK Guad, Senior Manager

38 RK Thakral, Asstt. General Manager Bank of Baroda

39 Ramesh Chander Khurana, Zonal Manager

Bank of India


40 Subhash Kurup, Chief Manager Bank of Maharashtra

41 Capitan BJ Singh, Divisional Manager Canara Bank

42 Santosh Kumar Dass, Manager

43 PS Sobti, Chief Manager Central Bank of India

44 SB Alse, Asstt. General Manager Corporation Bank

Absent Dena Bank

45 Shamsher Singh, Asstt. General Manager

Indian Bank

46 SK Srivastava, Chief Manager Indian Overseas Bank

47 Nanda Sharma, Manager

48 RK Singla, Asstt. General Manager Syndicate Bank

49 Dr. RM Sharma, Senior Manager

50 RK Shetty, Chief Manager Vijaya Bank

51 PK Chhibber, Asstt. General Manager IDBI Bank

Private Sector Banks

52 Naresh Kumar, AVP AXIS Bank

53 Vishal Bansal, CRO Bank of Rajasthan

Absent Federal Bank

Absent HDFC Bank Ltd.

54 Rajendran Ramanathan, Regional Manager

ICICI Bank

55 Ms. Renu Koul, Executive J&K Bank Ltd.

56 Suraj V, A.B.M. Karnataka Bank

Regional Rural Banks

57 Prem Umraria, General Manager Gurgaon Gramin Bank, Gurgaon


58 RP Sharma, Senior Manager Haryana Gramin Bank

Co-operative Banks

59 Atma Ram, Dy. General Manager HARCO Bank

60 Sadaram, Addl. Secretary HSARDB

Lead District Managers

61 TR Khurana, LDM (Punjab National Bank)

Lead Bank Office, Ambala

62 TR Verma, LDM ( “ do “) Lead Bank Office, Panchkula

63 Man Mohan Sharma, LDM ( “ do “) Lead Bank Office, Yamunanagar

64 JM Sharma, LDM ( “ do “) Lead Bank Office, Bhiwani

65 P.S.Shilla, LDM ( “ do “) Lead Bank Office, Fatehabad

66 Variam Singh, LDM ( “ do “) Lead Bank Office, Hissar

67 Mukesh Goyal, LDM ( “ do “) Lead Bank Office, Jind

68 S.L.Nagpal, LDM ( “ do “) Lead Bank Office, Jhajjar

69 Ramyakuth, LDM ( “ do “) Lead Bank Office, Karnal

70 M.K.Sindhi, LDM ( “ do “) Lead Bank Office, Kaithal

71 Praveen Valia, LDM ( “ do “) Lead Bank Office, Kurukshetra

72 K.C.Pradhan, LDM ( “ do “) Lead Bank Office, Narnaul

73 B.K.Boora, LDM ( “ do “) Lead Bank Office, Panipat

74 N.P.S Yadav, LDM ( “ do “) Lead Bank Office, Rewari

75 N.K. Singla, LDM ( “ do “) Lead Bank Office, Rohtak

76 Mukul Prasad, LDM ( “ do “) Lead Bank Office, Sonepat

77 R .K. Makkar, LDM ( “ do “) Lead Bank Office, Sirsa

78 K.K. Diwan, LDM (Syndicate Bank) Lead Bank Office, Faridabad


79 Dr. ML Chawla, LDM (Syndicate Bank) Lead Bank Office, Gurgaon

Lead Bank Office, Mewat

80 NS Gill, LDM (Oriental Bank of Commerce)

Lead Bank Office, Palwal

`


OF 109TH MEETING OF SLBC HARYANA, HELD ON 24.11.09

The 109th Meeting of the State Level Bankers’ Committee, Haryana was held on 24.11.2009 at Hotel Mountview, Sector-10, Chandigarh to review the performance of banking system for the period ended June 2009. Shri Roshan Lal, IAS, Financial Commissioner & Principal Secretary, Agriculture, Govt. of Haryana was the Chief Guest and Shri Nagesh Pydah, Executive Director, Punjab National Bank presided over the meeting. Shri Anil Kumar, IAS, Director, IF & CC, Shri Sandip Ghose, Regional Director, RBI, New Delhi, Dr. B.S.Yadav, General Manager, NABARD (Haryana) Chandigarh, Shri S. Chaudhuri, GM, RBI, New Delhi and other officials from State Govt., various Banks & Media participated in the meeting. The list of participants is as per Annexure…….

Relevant Extract of the meeting relating to EBT.

INCENTIVE SCHEME FOR QUICKER ADOPTION OF ELECTRONIC BENEFIT TRANSFER (EBT) FOR GOVERENMENT SCHEMES

The house was apprised that the EBT scheme as conveyed by RBI was examined by the banks & Social Empowerment Department under the leadership of Madam Navraj Sandhu, IAS, the then FC & PS and in a special meeting convened by the above department on 12.08.2009 and was approved for implementation on pilot basis in 5 districts by 5 banks on the basis of “One District One Bank” Approach. It was also decided that 2% of value of the transactions plus Service Tax shall be paid by the Government to the transacting bank. The district & bank-wise allocation was also informed to the members as under:-

Sr. No.

Name of the District

Name of the Bank to whom allotted

1. Rohtak Punjab National Bank2. Karnal AXIS Bank Ltd.3. Kurukshetra HDFC Bank Ltd.4. Panchkula Corporation Bank


5 Hisar State Bank of India

All the Controlling Heads of Banks involved in the Scheme were requested to ensure to initiate prompt & suitable steps for implementation of the project so that the disbursement of social benefits commenced as soon as possible.

ACTION: MEMBER BANKS IN IDENTIFIED DISTRICTS

Extract of 108th Meeting of SLBC Haryana - EBT

INCENTIVE SCHEME FOR QUICKER ADOPTION OF ELECTRONIC BENEFIT TRANSFER (EBT) FOR GOVERENMENT SCHEMES

The House was informed that the Dy. Governor, Reserve Bank of India vide DO letter dated 25.02.2009 addressed to the Chief Secretary, Government of Haryana has conveyed the modalities of implementation of EBT for payment of social security schemes of the Government. It was further apprised that the State Government has shown its keen interest for implementation of the scheme and convened series of meetings on 16.04.2009, 24.06.2009, 01.07.2009 and 07.07.2009 for examining the various issues involved. Based on the discussions held in Special Meeting dated 07.07.2009, under the chairmanship of Shri Dharam Vir, IAS, Chief Secretary, a sub-committee of banks, namely RBI, PNB, SBI, Corporation Bank, AXIS Bank & HDFC Bank was constituted to workout the modalities for implementing EBT on pilot basis in the State.

A meeting of the Sub-Committee was convened on 09.07.2009 and modalities for implementing EBT were worked out and are likely to be placed before the State Government soon.

Intervening the deliberations, Madam Navraj Sandhu, IAS, FC & PS, Social Welfare & Empowerment Department, Haryana expressed that a large number of beneficiaries are to be served through the proposed EBT Scheme involving handsome amount. As such, she suggested that the banks may consider the proposal as a long time business prospective. She also called upon the banks to get together for implementing the scheme and to reduce the cost. Madam Sandhu further expressed that the State Government is also eager to implement the same and desired that a Sub-committee to come out with the modalities including the kind of technology be used & cost thereof.

ACTION: SUB-COMMITTEE.


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