121 st Meeting of State Level Bankers Committee (Punjab)

Transcription

1 121 st Meeting of State Level Bankers Committee (Punjab) The 121 th meeting of State Level Bankers Committee (Punjab) will be held on at 2.45 PM at Hotel Mount View, Sector 10, Chandigarh. Following issues shall be taken up for discussions in the meeting:- Item No.1 Confirmation of minutes of 120 th Meeting of State Level Bankers' Committee (Punjab) held on Last Meeting of SLBC 120 th Held On Minutes ed /Circulated On Comments Received NIL The House may confirm the circulated minutes. Item No. 2 Status report of issues flagged in the 120 th meeting of SLBC held on I Electronic Benefit Transfer (EBT) for Government Schemes. In the last meeting of SLBC, House approved following action points:- (i) The unbanked villages/gram Panchayats with population less than 2000 be allocated to different banks by LDMs on service area approach keeping Gram Panchayats as a unit. (ii) The lead bank of each district shall be the leader bank of that district under EBT as per one district one leader bank and many banks model accepted by Agenda papers of 121 st SLBC Meeting Page 1

2 (iii) (iv) (v) (vi) the State Govt. Initially the disbursement under EBT shall be taken up in 8 identified districts, namely Mohali, Amritsar, Tarn Taran (PNB), Sri. Muktsar Sahib, Sri Fatehgarh Sahib (SBOP), Ferozepur (OBC), Moga (P&SB) & Jalandhar(UCO) by and the remaining districts are to be covered by Initially four schemes of Social Security Deptt. namely Old Age Pension, Financial Assistance to Widow & Destitute Women, Financial Assistance to Dependent Children, Financial Assistance to Disabled Persons shall be taken up for implementation of EBT by the banks. Director, IF&B would be the coordinator from State Government side. District Social Security, Women & Child Development Officers, Punjab would provide the list of beneficiaries on requisite format to LDMs of respective district. A sub-committee of SLBC be constituted to work out the nitty gritty involved in smooth implementation of EBT scheme. Sub-Committee to SLBC on EBT under the chairmanship of Shri Satish Chandra, IAS, Principal Secretary, Finance, Government of Punjab was constituted. The Director, Social Security, Women & Child Development (Punjab), DIF&B and bankers with lead bank responsibilities are the other members of the committee. A meeting of the committee was held on Following points emerged out of discussions in the meeting:- The Principal Secretary enquired from Bankers about the progress in the matter of selection of common BC to which it was informed that process for selecting common BC for 4 states of north including Punjab has already been initiated by the Convener Bank, the coordinating bank. The common BC is likely to be decided by and BCAs would be recruited by selected BC thereafter. The State Govt. was requested that it would be appropriate if the EBT is rolled out through new common BC. The Government advised that the process of allocation of the villages/gram Panchayats with population less than 2000 be completed immediately wherever the same has not yet been Agenda papers of 121 st SLBC Meeting Page 2

3 done. The bankers proposed that the villages with population less than 2000 are yet to be covered under FIP/EBT, as such, EBT beneficiaries in these villages may withdraw their pension from their accounts opened earlier with their banks when pension was being disbursed through banks. However, the Government was of the view that the beneficiaries will have to cover long distances for this purpose as such it is not a viable proposition. DGM, RBI, mentioned that enrolment process of EBT beneficiaries should be continued with existing BCAs, instead of waiting for appointment of common BC to meet the time lines decided in the last SLBC meeting. It was informed by the Banks that the present BCs are not keen to expand their network in view of the process initiated for selection of common BC, as such enrolment process may be undertaken by new common BC only. The concerns of Banks in smooth implementation of EBT in the State of Punjab, may also be shared in the meeting of Deputy Commissioners, proposed to be held shortly. Director, SSW&CD wanted to know as to who will take responsibility in case Banks especially Private Sector Banks/State Cooperative Banks who may not come forward to implement EBT, on one reason or the other, in their areas allocated on Service Area Approach. The clarification would be sought by the State Govt. from RBI or Govt. of India regarding the roles & responsibilities of the leader bank. DFS, MOF, GoI desired that all TSPs should have a common Business Correspondent for a cluster of 3000 to 5000 villages. While underlying the need for having a common BC, it was mentioned that with every bank having its own BC, there are lot of inefficiencies. A common BC for a cluster of villages will result in economy of scales & efficiency. Accordingly, all States have been divided into 20 groups such that every cluster has got villages. A total of 20 clusters have been formed which are allocated to different banks for RFP purpose. A total of villages are proposed to be covered. The clusters have been divided among the public sector banks called the leader bank for issue of common RFP for short listing of BC for the cluster. Punjab National Bank has been allotted a cluster comprising of States of Punjab, Haryana, HP Agenda papers of 121 st SLBC Meeting Page 3

4 and J&K consisting of 4262 villages with population over 2000 and 532 villages with population of (Total 4794). An RFP was issued on 9th May 2012 for this cluster. A meeting of concerned banks was held on in Chandigarh & formed Technical Evaluation & Price Discovery Committee. Bids were received up to & were opened on the same day. Technical evaluation presentation was done on Reverse bid was fixed for In the meantime DFS suggested that performance bank guarantee of short listed bidder may be raised from Rs.2000/- per village to Rs.25000/- per village. Accordingly we postponed the reverse bid for the cluster. Corrigendum was issued for fresh bids & bids were received by Technical presentation of bidders was again done on The papers submitted by bidders are being vetted by the bankers Committee and the last meeting for the purpose was held on Bidders have been advised to give a confirmation regarding their preparedness for implementing the scope of work. The Commercial bids will be opened on after which date of reverse bid will be finalized. Process of price discovery is likely to be completed by & agreements will be signed by The Lead District Managers of the 8 Districts where the EBT is to be implemented in the first phase have allocated the unbanked villages with population less than 2000/EBT beneficiaries amongst the banks in their Districts. The letter dated (copy marked as Annexure-I) on Strategy and approach for EBT issued by DFS, MOF, GOI, provides inter alia, that transfer of benefits from one bank to account holder of any other bank under transfer of benefits would not necessitate adoption of One District, One Leader Bank and Many Banks Model. However, in case any State Government insists on such a model, the modalities provided in the circular dated August12, 2011 issued by the RBI would need to be followed. In such a case the decision on sharing the services charges among the banks would also need to be decided at the SLBC level. The Controlling Heads of the banks having Lead Bank responsibilities as well as the representative of Deptt. of Social Security, Women & Child Development & DIF&B may apprise the house of the latest position. Agenda papers of 121 st SLBC Meeting Page 4

5 House may discuss. 2.II Debt Swap Scheme Raising the Limit of loan under the Scheme In the 114 th meeting of SLBC the above issue was thoroughly discussed and the house approved the proposal of raising the limit under Debt Swap Scheme from Rs. 50,000/- to Rs. 1,00,000/-. At the same time controlling heads of banks were requested to have the same approved from their respective boards. Banks namely BOM, Dena Bank, SBBJ, United Bank of India, Vijaya Bank, Capital Local Area Bank, ICICI, Axis, IDBI have not informed the Convener Bank of having taken any decision by their banks on enhancement of limit. As decided in the 120 th meeting of SLBC, a communication was sent from Chairperson of SLBC to EDs of these banks to take a decision on enhancement of the limit. In the 2 nd Steering Committee to SLBC held on , the house showed concern over the banks who have not conveyed their decision on the issue of enhancing the limit under the above scheme. Representative of the banks where the limit has not been raised, are requested to apprise the house the latest status. House may discuss. 2.III Progress under Debt Swap Scheme At least 3% of disbursement of agriculture credit during the year is to be earmarked for giving loans under Debt Swap Scheme. Agenda papers of 121 st SLBC Meeting Page 5

6 The progress achieved up to June-2012 is as follows:- Target for Debt Swap (on the basis of 3% of Agriculture) Achievement Under Debt Swap up to June-12 (Amount ` in Lakh) %age Achievement (Bank wise progress is as per Annexure II) The House may review. 2.IV Allotment of Land for Establishment of RSETIs 16 RSETIs are operating in the State of Punjab for creating permanent infrastructure of RSETIs. Land has been allocated in 17 Districts for creating permanent infrastructure for RSETIs and possession has been taken in 9 Districts namely Amritsar, Bathinda, Barnala, Firozepur, Moga, Mohali, Muktsar, Ropar & Sangrur. The progress of RSETIs up to June 2012, is as under:- 434 training programmes of skill development were organized trainees participated trainees were financed by the banks to start their Enterprises and 3610 trainees set up their own enterprise through owned funds. Out of total trainees, 7549 were from SC/ST category, 1165 from OBC, 57 from minority and 2947 from other categories Women and 52 Handicapped persons were also provided training for self-employment. During the deliberation in meeting of the 2 nd Steering Committee to SLBC held on , Shri Anandi Lal, State Project Coordinator apprised the house that the case for allotment of land in Fatehgarh Sahib District is under the active consideration of State Government and the land will be allocated at any time. Regarding Mansa District, he apprised that the Agenda papers of 121 st SLBC Meeting Page 6

7 land has already been identified and the allotment will be made shortly. Representatives from the Department of Rural Development apprised the house that allotment of land in the remaining three districts i.e Jalandhar, Nawan Shahr and Ropar is under consideration of Panchayat Department and they would take up matter with the latter. As regards waiving the CLU charges, it was apprised by the of Dy. Director, IF&B (Pb), that the issue is under consideration of the State Govt. The SLBC should also take up on this score with the Department of the State government. Convener Bank took up the matter with Department of Rural Development and Panchayat vide its letter dated for waving the CLU/EDC charges for RSETIs in the State of Punjab. Performance of the 16 RSETIs functioning in the State up to June 2012 is given on (Annexure.III). The representative of IF&B/Rural Development Deptt. is requested to apprise the latest in the matter of allotment of land and waiving the CLU/EDC charges for RSETIs in the State of Punjab. House may discuss. Item No. 3 Status of Financial Inclusion Plan Item no. 3(i) Extension of Swabhiman Department of Financial Services, Ministry of Finance, Govt. of India vide their letter no F.No.3/5/2012-FI(C 52937) dated have advised that in terms of para 45 of Budget speech Swabhimaan was proposed to be extended to other habitations which have crossed population of 2000 as per Census 2011 as such, it has been decided at DFS level that all villages with population from 1600 to 2000 as per 2001 census be covered under Swabhimaan, the financial inclusion campaign, as these are likely to have crossed the population of 2000 by Convener Bank advised all the Lead District Managers for identification and allocation of villages as per the above guidelines. 807 villages identified by LDMs under the scheme have been allocated to different banks in the State. Bank wise list of allocated villages is as per Annexure-IV. Agenda papers of 121 st SLBC Meeting Page 7

8 Controlling heads of all the member banks are requested to submit the progress under Swabhimaan on the proforma as per Annexure-IV (a) by 3 rd of the succeeding month to the Convener Bank for onward submission to Ministry of Finance, Government of India. The House may discuss. Item no.3(ii) ROADMAP-PROVIDING OF BANKING SERVICES IN VILLAGES WITH POPULATION BELOW The Reserve Bank of India in terms of their Circular Letter No. RPCD.CO.LBS.BC.NO.86/ / dated have informed that as per paragraph 70 of the Monetary Policy Statement for , the State Level Bankers' Committees (SLBCs) are now mandated to prepare a roadmap covering all unbanked villages of population less than 2000 and notionally allot these villages to banks for providing banking services, in a time-bound manner. The notional allotment is only intended to ensure that all villages are provided with at least one banking outlet for providing banking services and does not deny or bar any other bank from operating in these areas based on the available business potential. Government of India has been emphasising on the need for transferring all state benefits including MGNREGA wages and various cash subsidies to beneficiaries by direct credit to their bank accounts. The implementation of Electronic Benefit Transfers (EBT) is expected to be more advantageous as the benefits would reach quickly in the hands of the beneficiaries without any leakages. It would also save the Government the administrative cost presently being incurred in cash disbursements of social benefits. However, the prerequisite for successful implementation of EBT is availability of door step banking services throughout the country as beneficiaries are spread across all the villages. Thus, in order to replace the present system of cash based disbursement with the direct credit to bank accounts of beneficiaries and its disbursement at their door step through ICT based BC model, the availability of Business Correspondent (BC) is necessary in all villages. In view of above, LDMs were requested by Convener Bank to constitute a Sub-Committee of the District Consultative Committees (DCCs) to draw up a roadmap for providing banking services in every village of their districts, having a population below 2000 (2001 census), in a time bound manner especially to start with EBT services. This Sub-Committee was required to identify such unbanked villages and allot them among Scheduled Commercial Agenda papers of 121 st SLBC Meeting Page 8

9 Banks (including Regional Rural Banks) operating in the district. The work of identification and allotment was to be done through mutual consultation, and as far as possible, through voluntary acceptance by banks. While preparing the roadmap for providing banking services in all unbanked villages of population less than 2000 through a combination of BC and branches, it was to be ensured that there is a brick and mortar branch to provide support to a cluster of BC units, i.e., about 8-10 BC units at a reasonable distance of 3-4 kilometres. Therefore, while allotting the unbanked villages, the Sub-Committee of DCC was to ensure optimal utilization of BC infrastructure already created by banks and accordingly consider the following:- Existing Brick and Mortar network of banks in the district. Distance of the village from the nearest bank branch and the ratio of low cost simple brick and mortar branches to BC outlets to be maintained by banks as suggested above. Geographical contiguity to the existing BC outlets. As far as possible, avoid allotment of a lone isolated village to any bank. Priority for BC location or bank branch to be given to villages having population greater than Continuous efforts should be made to increase the frequency of visits by BCs from a fortnightly basis to a more frequent basis. While Sub-Committees should be cognizant of above considerations at the time of allotment, any operational difficulties post allotment with respect to the stipulation of distance and low cost intermediate branch to BC ratio should be resolved forthwith by the Sub-Committee. In the initial stages, priority may be given to providing door step services to EBT beneficiaries through regular visits of BCs to the allocated villages, for making it a self sustaining business model, banks should over a period of time, ensure that all kinds of banking services viz. remittances, recurring deposit, entrepreneurial credit in the form of KCC and GCC, insurance (life and non-life) and other banking services are available to all the residents of the village through a mix of brick and mortar branch and BC network. The list of allocated villages to various banks along with finalized roadmap with detail to villages allocated to various banks was required to be submitted by LDMs to Convener bank by Convener bank has not received Agenda papers of 121 st SLBC Meeting Page 9

10 the desired information from any LDM inspite of reminder/ dated The information on roadmap and achievement should also be published on the respective district websites by respective LDMs All the Lead District Managers are requested to ensure to submit the information immediately. Item No.3 (iii) Opening of Bank Branches. Department of Financial Services, Ministry of Finance, Government of India vide its letter dated read with dated has informed that Banks are required to open a regular brick and mortar branch in habitation with population of 5000 and above in under banked districts and as many brick and mortar branches in habitation having population and above in other districts. These branches are to be set up by September There is no unbanked villages in the State with population = or > Only Mansa District has been identified as under banked in the State of Punjab by Reserve Bank of India and the following three unbanked villages with population >5000 have been identified by the concerned LDM:- Sr. No. Name of the Village Population Name of the Bank to whom village allocated. 1. Kishangarh Urf Sedha 5501 Sutlej Gramin Bank Singhwala 2. Aklia 7513 State Bank of India 3. Nangal Kalan 7031 Allahabad Bank The representative of each of these banks may apprise the house of the latest in this regard. House may discuss. Item No. 3 (iv) Opening of Ultra Small Branches. The Deptt. of Financial Services, Ministry of Finance, Govt. of India vide their communication dated have issued guidelines for opening of Ultra Small Branches in the areas where opening of regular brick & mortar branch was not viable, such Ultra Small Branches be established. Agenda papers of 121 st SLBC Meeting Page 10

11 These branch & mortar branches and Ultra Small Branches are to be opened latest by Sept A format devised by DFS incorporating progress of opening of Ultra Small Branches annexed as Annexure-V is required to be submitted to SLBC Secretariat by 2 nd of every month enabling it to consolidate and forward to DFS, Ministry of Finance by next day. Controlling heads of these banks are requested to apprise the house their plan for opening of branches in these allocated villages. Item No. 3 (v) Campaign to ensure that each family has at one account in the rural areas. As per Para 7 of the Master Circular on Strategy and Guidelines on Financial Inclusion Dated , Department of Financial Services, Ministry of Finance, Govt. of India has advised that each bank will launch a campaign to ensure that each family living in the service area of a branch having rural villages attached to it has an account with the branch. In cases where the family already has more than one account in the name of its member(s), they may be encouraged to combine these into a Joint Family Account. However, in case the family wishes to continue with the separate account(s), they should be allowed to maintain such account(s). There are no requirements of Government of India to open separate account for each benefit, hence, no account be opened of the family schemewise. Wherever the account holder has obtained an Aadhaar number, the same should also be obtained at the time of opening of account and included in the account details. During the campaign, people may be motivated to get their account opened in banks considering that banks are already on the Core Banking Solution and electronic transfer of subsidies to the account of the beneficiary and its withdrawal through the huge network of branches/atm/micro ATMs will be convenient. Agenda papers of 121 st SLBC Meeting Page 11

12 All the Controlling Heads of Member Banks are requested to instruct the branches under their control for taking action as desired by the Ministry of Finance. Item No. 3 (vi) Urban Financial Inclusion - Launch of campaign to ensure at least one bank Account for each family - Capturing of Biometrics while opening accounts. Department of Financial Services, Ministry of Finance, Govt. of India vide its letter dated has desired to launch a campaign to ensure one bank account per family in Urban Areas so as to provide banking services to entire population residing in Urban and Metro Centres (Urban Financial Inclusion). Convener Bank has advised the Banks/LDMs vide its dated for meticulous compliance of the instructions of the Ministry of Finance. Copy of the letter of the Ministry of Finance is Annexed as Annexure-VI. This is for information of the House. Item No. 3 (vii) Preparation of Implementation Plan for engagement and activation of Business Correspondents Agents (BCAs) and monitoring progress thereof. Department of Financial Services, Ministry of Finance, Govt. of India vide its letter dated 10 th July, 2012 has referred to the RFP floated by various Public Sector Banks on geographical cluster basis for Business Correspondents services for ensuring greater financial inclusion and to provide comprehensive financial services to the underprivileged, particularly in unbanked and under-banked areas. The Business Correspondents Agents will render services on behalf of the banks, on contract basis, through their outlets through use of Information and Communication Technology for various PSBs and RRBs. It has further been mentioned that the selection of Service Provider/Business Correspondent and the rates for all the 20 clusters is likely to be finalized by the respective lead banks by 31 st Agenda papers of 121 st SLBC Meeting Page 12

13 July, Banks have been advised to prepare an Implementation Plan to enable them to monitor the engagement and activation of BCAs as per Annexure P1-P3 and submit the same to the respective SLBC Convener of the State in the format at Annexure R1. District-Month wise Implementation Plan as explained above was to be prepared and furnished to the Convener SLBC by all the member banks by 30 th July 2012 in Annexure P1. Progress Reports as advised in the letter of Ministry, be prepared and sent to the Convener SLBC of the State starting from the month of July, Convener Bank requested controlling heads of all the banks vide its letter dated for submission of progress as desired by Ministry of Finance, but the same has not been received from any bank. Copy of the letter of Ministry of Finance is annexed as per Annexure-VII. for reference of the member banks. Agenda papers of 121 st SLBC Meeting Page 13 The House may disuss. Item No. 3 (viii) Web-based Desktop Video Conferencing. Department of Financial Services, Ministry of Finance, Govt. of India, vide their letter dated 17 th July,2012 have informed that they have arranged web-based Desktop Video conferencing facility through the National Informatics Centre (NIC). They have requested that in the first phase, the Desktop VC may be provided to Lead District managers in the bank. Detailed guidelines of Ministry of Finance are enclosed as per Annexure- VII (i). Controlling Heads of Lead District Managers are requested to take steps as desired by Department of Financial Services, Ministry of Finance. Item No. 3 (ix) Availability of Data Entry Module for GIS for Financial Inclusin through Web Site of DFS.

14 Financial Inclusion is one of the important contributors for inclusive growth of the economy. Realizing its importance, Department of Financial Services, Ministry of Finance Government of India has approached NIC for mapping these facilities and to identify the gaps. A web based application would enable access through a hyper link on website of Department of Financial Services ( Each LDM is required to enter the data in respect of both urban and rural location of his district. This set of information is mandatory and would be used for GIS purposes. All the LDMs have already confirmed that the data in respect of GIS pertaining to their district has already uploaded on the web site of MOF. Department of Financial Services, MOF, GOI vide their letter dated has desired that the data in the GIS module is regularly updated by the LDMs as new branches get opened, BCAs get engaged, ATMs get installed and Currency Chest / Clearing Houses get opened. The Lead District Managers are requested to ensure to implement the instructions of the Ministry of Finance. Item No. 4 Computerization and Linking up of Treasuries. Secretary to Govt. of India, MOF, Deptt. of Financial Services, New Delhi has desired that State Govt. Treasury Business should be made electronically controlled as the system is beneficial for the State Government, banks and the beneficiaries. The System is convenient and quick credit to all beneficiaries accounts, besides elimination of risk associated with human interference. During the course of discussion in the 2 nd meeting of Steering Committee, it was apprised by the representative of Treasury department (Punjab) that Integrated Management System has been introduced by the TCS for computerization of Treasuries in the State of Punjab but linking of banks with the Government Treasuries has not yet been finalized. The representative of Deptt. of Treasuries & Accounts / IF&B is requested to apprise the latest position. Agenda papers of 121 st SLBC Meeting Page 14

15 Item No.4 (i) Measures to popularize e-payments for bringing down the number of transactions through cheques. PSBs have a large number of transactions with their customers, it is imperative that Banks migrate totally to the electronic transactions for their transactions with customers. With their customers, PSBs have been advised by the Department of Financial Services, Ministry of Finance, Government of India to use only electronic transactions for the following. i. All payments to and from customers/staff; ii. iii. iv. All payments to vendors and suppliers; Disbursement of loans and payments towards instalments and investments; ECS advice instead of post dated cheques. PSBs were to ensure that w.e.f. 1st July 2012, no cheques were issued/ received by for any of the above transactions. This needs to be ensured at all levels and Zonal and Regional Offices must be assigned the direct responsibility. Banks need to undertake the audit of adoption of e-payment and action must be taken against the officers concerned in cases where the cheque based systems are found to be in use despite these instructions. The following strategy may be adopted in this regard: i. Banks must identify the branches accounting for highest share in business where a focussed attention to bring about reduction in number of transactions through customer education and proactivemeasures be taken. To begin with top 20% branches in terms of business volume may be identified and action plan to bring the number of cheque based transactions by at least 20% in be worked out. ii. As 90% of the cheque transactions are for value below Rs. 100,000 with a share of just 21% in value, as per the decision taken in the Conference of CMDs of Public Sector banks on , banks are Agenda papers of 121 st SLBC Meeting Page 15

16 advised to reduce the charges for NEFT transactions to zero for value up to Rs. 1 lakh. Any perceived loss of revenue on account of NEFT transactions in such cases would be more than made up by much higher savings on the cost of cheque or ATM transactions. Any shift from teller/cheque/atm transaction to electronic transaction will imply significant savings to the banks. iii. Banks must proactively encourage the customers to use electronic payment system. Banks need to provide for facilities for demonstration of electronic payments for the customers. Banks in particular need to focus attention on small and medium enterprises. The Department of Financial Services is simultaneously planning a major public awareness campaign on electronic payment. iv. Banks also need to proactively encourage their customers to adopt e-transactions in their dealings, viz., payment to suppliers, staff. This will reduce their requirement of issuing cheques. v. Banks would need to revisit their incentive schemes to include the migrant of transactions on electronic medium as one of the parameter for incentives to the Branch and Regional/Zonal level. The performance of the officers at the Branch/Zonal/Regional level should also be considered at the time of their performance appraisal. vi. As the RRBs have recently migrated to Core banking, and have joined the payment system, there is a need to educating the staff of RRBs on electronic payment and to also undertake a more intensive customer awareness campaign. vii. The Board of Directors of the banks must set the target for the shifting of transactions to electronic medium and also monitor the progress there under on at least a quarterly basis. In the light of the above, all PSBs and RRBs are requested to take further action. PSBs/RRBs are also requested to inform Department of Financial Services on the progress of electronic transactions and reduction in cheque based transactions on a monthly basis, as per attached proforma. The information may only be sent through at fi-dfs@nic.in and no hard copy should be sent to the Department. Agenda papers of 121 st SLBC Meeting Page 16

17 The controlling heads of the Banks to ensure that instructions as mentioned above are complied with. House may discuss. Item No. 5 Mapping of Clearing Houses in the Country. Department of Financial Services, Ministry of Finance, Govt. of India, has informed that, on the basis of information collected from all the SLBC Convenor banks, a total of 2,479 centres / towns / blocks / tehsils, etc., (administrative units below the district HQs) in 19 States/UTs have been identified, which have 3 or more banks' branches but do not have a Clearing House facility. In the State of Punjab 131 such Centres have been identified a list of the same is as per Annexure-VIII. Ministry of Finance has desired that Clearing House facilities are made available at these centres by The issue was also discussed in the 2 nd meeting of Steering Committee wherein controlling heads were requested to issue instructions to their branches in such stations to discuss the issue and decide as to which bank will manage clearing house. LDMs were also to coordinate in this exercise, so that clearing houses are established by Controlling Heads of all the member banks / LDMs are again requested to take necessary action in this regard so that Clearing House facilities are made available at these centres by House may discuss. Item No. 6 State Financial Service Plan. The Department of Financial Services, Ministry of finance, Govt. of India in terms of their letter dated have advised that in order to develop a comprehensive frame work for delivery of financial services and promote Financial Inclusion, it is necessary that comprehensive Financial Services Plan for the State is prepared. The objective of the exercise is to ensure Financial Inclusion by opening bank account for every household. Kisan Credit Card to every farmer, General Credit Card to other households and extensive coverage under micro- Agenda papers of 121 st SLBC Meeting Page 17

18 insurance and micro-pension scheme besides looking at the critical gap in infrastructure in terms of rural warehousing etc. A meeting for preparing State Financial Services Plan was convened by Convener Bank on wherein CGM, NABARD, Representatives from Life and non Life Insurance Companies participated. It was decided that names of nodal officers of Life/non Life Insurance Companies for each district be communicated to Convener Bank. Brief note on their schemes for LIG member be also sent to convener bank for circulation. LIC of India have sent a brief note on their schemes for LIG members and the same is at Annexure-IX. National Insurance Company has sent the list of nodal officers at district level. The representatives of non life corporation to inform further progress. Item No. 7 Computerization of Land Record. The Department of Financial Services, Ministry of Finance, Govt. of India through NABARD has desired that land record in the States be computerized. During the course of discussion in the 2 nd meeting of Steering Committee, the representative of Department of IF&B apprised the house that the work on computerization of land record is going. The representative of Deptt. of IF&B alongwith Deptt. of Revenue are requested to apprise the latest position in this regard. Item No. 8 Kisan Credit Card Revised Scheme. The report and the recommendations of the Working Group set up by the Department of Financial Services, Ministry of Finance, Government of India to review the Kisan Credit Card Scheme and to suggest changes to be made in the KCC Scheme to make it a Smart Card cum Debit Card have been accepted by the Government of India. Based on the recommendations accepted by the GoI, operational guidelines have been issued for adoption by the banks. The salient features of the guidelines include the following:- Agenda papers of 121 st SLBC Meeting Page 18

19 Assessment of crop loan component based on the scale of finance for the crop plus insurance premium x Extent of area cultivated + 10% of the limit towards post-harvest /household/consumption requirements + 20% of limit towards maintenance expenses of farm assets. Flexi KCC with simple assessment prescribed for marginal farmers. Validity of KCC for 5 years. For crop loans, no separate margin need to be insisted as the margin is in-built in scale of finance. No withdrawal in the account to remain outstanding for more than 12 months; no need to bring the debit balance in the account to zero at any point of time. Interest subvention /incentive for prompt repayment to be available as per the Government of India and / or State Government norms. No processing fee up to a limit of Rs lakh. One time documentation at the time of first availment and thereafter simple declaration(about crops raised/ proposed) by farmer. KCC cum SB account instead of farmers having two separate accounts. The credit balance in KCC cum SB account to be allowed to fetch interest at saving bank rate. Disbursement through various delivery channels, including ICT driven channels like ATM/PoS/ Mobile handsets. The Revised Kisan Credit Card Scheme and Illustrations on assessment of KCC limit has already been circulated among all the member banks by the Convener Bank vide letter dated Department of Financial Services, Ministry of Finance vide their letter no. F.No.3/27/20141-AC dated have advised to ensure that all new KCC accounts and those due for annual renewal this year are issued in accordance with the revised KCC Scheme. Convenor Bank has selected District Mohali and Fatehgarh Sahib where every eligible household/farmer was to be issued a KCC as per new scheme and both LDMs were advised of the same. During the deliberations in the 2 nd Steering Committee meeting to SLBC held on , all the member banks confirmed that their banks have Agenda papers of 121 st SLBC Meeting Page 19

20 issued circular for the revised KCC Scheme. It was resolved that all member banks will ensure that all new KCC accounts and those due for annual renewal are opened as per new KCC Scheme. DGM, NABARD, apprised the house in that meeting that during the field visits, it has been observed that some of the banks are fixing limits taking the scale of finance much higher than the one fixed by SLTC/DLTC. She advised all the banks to ensure that the limits are fixed as per scale of finance fixed by the State Level Technical Committee. Controlling heads of all the member banks are requested to ensure that all new KCC accounts and those due for annual renewal are opened as per instructions contained in letter of Department of Financial Services, Ministry of Finance, mentioned above. Item (a) No.8 Issuance of Weaver Credit Card & Implementation of Revival and Restructuring Package for Handloom Sector Convener Bank has taken up the matter with controlling heads of Banks to provide information on outstanding Weaver Cards as desired by NABARD. Convener Bank has not received any information from any Bank for number of outstanding Weaver Cards. Convener Bank has fixed targets for Amritsar, Taran Tarn, & Bathinda Districts. issuance of Weaver Cards in During the deliberations in the 2 nd Steering Committee meeting to SLBC held on , it was apprised that the revival package being available upto , all banks were requested to identify the eligible accounts and send the same to NABARD, the Nodal Agency. Joint Director, Industries, Punjab informed that District/State level committees for this purpose have been constituted. Controlling Heads of all the Banks are requested to issue Weaver Credit Card as per the Scheme of Weavers Credit Card launched by Ministry of Textiles. Agenda papers of 121 st SLBC Meeting Page 20

21 The representatives of Department of Industries is requested to apprise the house the latest status in this respect. Item No. 9 AADHAAR- Seeding of Aadhaar Number in the Bank Accounts. During the deliberation in the 2 nd Steering Committee meeting to SLBC held on , the representative of UIDAI, apprised the house that out of 50 priority Districts pan India, 3 namely Nawanshahr, Gurdaspur and Fatehgarh Sahib have been identified in Punjab where enrolment is 80% and above and banks should seed the bank accounts with Aadhaar number in these priority Districts. He further requested the bankers that all new accounts of EBT beneficiaries be opened by mentioning Aadhaar number. Further in respect of old account the anganwari workers will collect the Aadhaar number of EBT beneficiaries for seeding the same in the bank account. Some banks have still not created the Aadhaar field in their CBS system. It was resolved that all the banks should ensure that a field for seeding the Aadhaar number is created in the CBS system of the bank. House may discuss. Item No. 10 Agriculture Debt Waiver & Debt Relief Scheme Fresh Lending Progress up to June-12 as under:- The information as at June-12 in respect of Debt Waiver and Debt Relief is (Amount ` in Lakh) Agency Crystallization of Claims Under Waiver & Relief Fresh Loans Disbursed to beneficiaries of Waiver & Relief Accounts Amount Accounts Amount Public Sector Banks Agenda papers of 121 st SLBC Meeting Page 21

22 Private Sector Banks RRBs Cooperative Banks Total (Bank wise information is as per Annexure X) Observations Banks in Punjab have provided fresh credit to the extent of ` lakh which is 91.66% of total waiver & relief provided, covering accounts i.e.26.76% of farmers benefited under the scheme. The Public Sector Banks have provided fresh loans to the extent of ` lakh which is % of the amount of waiver & relief covering 28.72% of farmers benefited under the scheme. The Private Sector Banks covered 9 farmers of 1517 benefitted under the scheme and provided fresh credit of Rs.72.5 lacs. RRBs have provided fresh loans to the tune of 177% of the amount of waiver & relief to 46% of farmers covered under the scheme. The cooperative banks have given fresh loans to the extent of 36.58% of the amount of waiver & relief covering 24.82% of the farmers under the scheme. The Controlling Heads of Banks are requested to ensure that fresh loans are disbursed to all eligible farmers who have received the benefit of the Debt Waiver and Debt relief Scheme Agenda papers of 121 st SLBC Meeting Page 22

23 Item No. 11 Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) During the deliberation in the 120 th meeting of SLBC held on , the representative of PMIDC, Nodal agency for implementation of the scheme apprised the that Secretary Local Bodies has written a DO letter dated to all DDR and Commissioner NACs Nodal for sponsoring of cases under ISHUP, but they have not received any response so far. It was resolved that PMIDC should take up effectively for implementation of the scheme. The representative of PMIDC/IF&B may apprise the latest position in this regard. Item No. 12 Financial Literacy cum Credit Counseling Centre. The consolidated performance of the FLCCs up to June 2012 is given below:- Agenda papers of 121 st SLBC Meeting Page 23 (Amount ` in Lakh) Particulars Number of No. of persons Amount mobilized/ persons who who availed disbursed/ made enquiries services Invested During current Cumul ative During current Cumul ative During current Cumulat ive Quarter Quarter Quarter Deposit A/Cs Credit Related Education Loans

24 Debt Swap Industrial Loans Guidance on investments other than banking services Total (District wise progress is as per Annexure-XI) Observations During quarter ended June 2012, Financial Literacy cum Credit Counseling Centre have entertained enquiries from persons out of which 7378 persons have availed the services after getting counseling from the centers. Out of the above, 5237 persons made enquiries about Deposit Schemes of banks, 3400 enquiries were credit related, 1415 persons enquired about the Education Loan Scheme, 18 enquiries were made about the Debt Swap Scheme of Banks, 51 persons enquired about Industrial loans and as many as 179 enquires were made in respect of investments & other than banking services. Further individual centre wise analysis reveals that the functioning of the centres at Mansa, Bathinda & Patiala requires more publicity. Agenda papers of 121 st SLBC Meeting Page 24 The House may review the performance. Reserve Bank of India vide their Circular No. RPCD.FLC.No.12452/ / dated has conducted a study on the functioning of FLCs and has found certain limitations of the earlier circulated model scheme. In view of the same, and with the objective of scaling up Financial Literacy efforts manifold, it has been decided to modify the existing FLCC Scheme. While existing FLCCs would continue to

25 function with a renewed focus on financial literacy, the Lead Banks are to ensure setting up Financial Literacy Centre in their offices in a time bound manner. Detailed instructions are annexed as per Annexure-XI(b). Controlling heads of all the member banks and LDMs are requested to ensure to implement the instructions of RBI mentioned above. Item No. 13 Review of Performance of Banks (excluding Coop. Banks) in key areas relating to Deposits, Advances & Priority Sector Advances. The comparative position of key banking parameters is given below: (Amount ` in crore) Parameter As At Variation June 2010 June 2011 June 2012 June 2011/ June 2010 June 2012/ June 2011 Absolute %age Absolute %age Branches Agg. Dep Advances PS Adv Agri. Adv Adv. to Micro Enterprises Weaker Sector Adv DRI Adv (Bank-wise position as at June 2012 is given in Annexure xii) (Bank-wise position as at June 2012 is given in Annexure XII(i)-XII(ii) 13. I Branch Expansion 330 new branches of Commercial Banks were opened in the State during the period from 1 st July 2011 to 30 th June 2012, thus raising the network of branches from 3826 as at 1 st July 2011 to 4156 as at 30 th June Area wise analysis is summarized below:- Agenda papers of 121 st SLBC Meeting Page 25

26 Number of As At Variation June 2010 June 2011 June 2012 June 2011/ June 2010 Absolute June 2012/ June 2011 Absolute Rural Semi Urban Urban Total Observations During the review period, increase in number of branches in rural areas of Punjab was of the order of 130. This is followed by urban areas, which registered an increase of branches to the tune of 107. Whereas the increase of branch network in semi-urban areas was 93. This is for information of the House. 13.II Deposit Growth The aggregate deposits of the Banks in Punjab increased by ` crore, from ` crore as at June 2011 to ` crore as at June2012, thus posting a growth of 11.55% as against an increase of 14.29% during the corresponding period last year. (Amount ` in Crore) As At Variation Aggregate June June June Deposits June 2011 / June 2012 / June2010 June2011 Absolute %age Absolute %age Rural Semi Agenda papers of 121 st SLBC Meeting Page 26

27 Urban Urban Total Observations During the review period, the deposits in urban areas have increased by 10.55%,in semi urban areas have gone up by 12.42% and in rural areas the deposit growth is 12.02%. This is for information of the House. 13.III Credit Expansion Gross credit in the State increased by ` crore, from ` crore as at June-2011 to ` crore as at June 2012, thus exhibiting a growth of 18 % as against 21.98% during the same period last year. Area wise analysis is summarized below:- Agenda papers of 121 st SLBC Meeting Page 27 (Amount ` in Crore) Total As At Variation Advances June June June June 2011 / June 2012 / June 2010 June 2011 Absolute %age Absolute %age Rural Semi Urban Urban Total Observations During the review period, the growth in outstanding advances in urban areas was 23.78% whereas in semi urban & rural areas it was 9.65% & 13.42% respectively. This is for information of the House. 13.IV. Credit Deposit Ratio Implementation of the Recommendations of Expert Group on CD Ratio

28 As per the recommendations of an Expert Group constituted by GOI under the Chairmanship of Shri Y.S.P. Thorat, a Special Sub-Committee (SSC) of District Level Consultative Committee (DLCC) was to be constituted in districts with CD Ratio of less than 40%, for drawing up Monitorable Action Plans (MAPs) to increase the CD Ratio on a self set graduated basis. Concerned LDM of the district will be convener of SSC with DCO, DDM, NABARD, LDO, RBI and District Planning Officer as its members. CD Ratio of 4 districts i.e. Hoshiarpur, Jalandhar, Kapurthala and Nawanshahr as at September 2005 was below 40% and Special Sub Committees (SSCs) of District Level Consultative Committee (DLCC) were constituted in these districts. The details of Monitorable Action Plans of these SSCs are as under:- District Date of Meeting Monitorable Action Plan Jalandhar % by % by % by Kapurthala % by % by % by Nawanshahar % by % by % by Hoshiarpur % by % by % by The comparative position of Monitorable Action Plan and CD Ratio (net of NRI deposits) as at June 11 & June12 of these four districts is given below:- District CD Ratio (%) as at CD % Ratio CD % Ratio Growth June 12/ CD % Ratio CD % Ratio Growth June 12/ Agenda papers of 121 st SLBC Meeting Page 28

29 March 09/ March 10 as per MAP Jalandhar 60 (Mar.15) Kapurthala 60 (Mar.15) Nawanshahr 60 (Mar.15) Hoshiarpur 60 (Mar.12) (including NRI Deposits) as at June 11 (including NRI Deposits) as at June 12 June 11 (PPs) (Net of NRI Deposits) as at June 11 (Net of NRI Deposits) as at June 12 June 11 (PPs) Observations:- The CD Ratio (including NRI deposits) has increased in Kapurhtala, Nawanshahr & Hoshiarpur District and decreased in Jalandhar District. The CD ratio net of NRI deposits increased in Kapurthala & Hoshiarpur District whereas the same has declined in Jalandhar & Nawanshahr. CD ratio of Hoshiarpur district net of NRI deposits has increased to 61.76%. The house may discuss to delete it or not from MAP. The concerned LDMs are requested to continue to review the CD Ratio in the meetings of Special Sub Committee of DCC so as to reach the next target of CD ratio as envisaged under Monitorable Action Plan. The House may review the CD Ratio vis a vis MAP to improve CD Ratio of these identified districts. 13. IV. i. Overall CD Ratio The CD ratio of District Ropar is also hovering around 40% for quite some time. The LDM Ropar was requested by Convener Bank to make all out efforts to suitably enhance CD ratio of his district, otherwise the special sub committee to Agenda papers of 121 st SLBC Meeting Page 29