Nagaland: Rs 112 crores disbursed through loans for SCs and STs under Bank Mitra scheme

Union Finance Minister, Nirmala Sitharaman stated that the Government has attempted to bring in every government schemes to be executed in such a way that all eligible citizens are covered, and in Nagaland, it is more significant because of the nature and terrain that the state is endowed with, and access is a challenge, the only way to overcome the challenge is the mobile connectivity. 

She stated that banks that deal with every essential financial requirement, need to keep themselves adept and up-to-date on technologies that enable mobile banking.

Additionally, a Banker’s Conclave/Credit Outreach Programme was held at the Capital Cultural Hall, Kohima on August 23, 2022. Finance Minister Nirmala Sitharaman graced the programme in the presence of the Governor of Nagaland, Prof. Jagdish Mukhi, Chief Minister of Nagaland Neiphiu Rio, and his colleagues, senior government officials, and bankers.

Sitharaman highlighted the important role played by Bank Mitras in a state like Nagaland where even block headquarters become difficult for villagers to reach and expressed her happiness that Bank Mitras is serving its purpose well in the State. She encouraged the banks to have a few more of them so there is greater access for the villagers.

She commended the State of Nagaland for performing well in schemes like Atal Pension Yojana, Micro Units Development & Refinance Agency (MUDRA), and Stand Up India schemes. Sharing about Start Up schemes, she stated that the PM wants young minds in rural areas to come up with innovative ideas which can be skilled up and which will need support, for which the banks were instructed through their branches to give one SC, one ST, and a woman similar assistance which is given to Start-Ups. 

She noted that the scheme is fairly well accomplished in Nagaland under which 523 accounts have been already given and 112 crores disbursed through loans for SCs and STs.

The Finance Minister while noting that with 70% of the state’s population in agriculture, and Kisan Credit Card (KCC) target for Nagaland being 2.3 lakh farmers, including animal husbandry and fishery, pointed out that Nagaland has reached a target of 70,000 only. She called for more inclusion of farmers in KCC and suggested for banks go the extra mile and include those who are involved in animal husbandry. She requested the government representatives to also help in identifying the eligible beneficiaries. 

Sitharaman set a target of outreach by the district that will commence by 1st September 2022 and conclude by 30th November 2022. All eligible beneficiaries will be able to avail the benefits from the credit schemes, for which she called upon the banks to reach out, and requested the Chief Minister of Nagaland to use the state machinery to identify eligible citizens for the schemes provided.

Nagaland Chief Minister, Neiphiu Rio said that through this credit outreach, the banks will be extending credit of Rs 223 crore under various schemes as well as retail loans to the people of Nagaland. He stated that a large proportion of the credit by banks, other than that extended under various Government schemes, has been for consumer goods or housing loans. While this is essential, it is also imperative to increase the credit flow to those who require it for running their enterprises. 

This is a critical area where banks have to put in more effort, and the State Government is ready to support them and address their concerns, he added.