Minutes of the 141 st Meeting of SLBC Held on

Transcription

1 Minutes of the 141 st Meeting of SLBC Held on st meeting of SLBC, Tamil Nadu was held at Chennai on 23 rd March List of participants is furnished in Annexure. Welcome Address:- Shri. Atul Agarwal, Executive Director, Indian Overseas Bank welcomed the participants to the 141 st meeting of SLBC, Tamil Nadu. He has highlighted the various special SLBC meetings and sub committee meetings organised by SLBC after the 140 th meeting. He also briefed the forum about the special SLBC meetings on MSE held at Thoothukudi, Dindigul, and Trichy, attended by both bankers and Industry Association representatives at the initiative of Reserve Bank of India, wherein interaction took place between Bankers and representatives of various industry associations regarding problems faced by SME units. ED, Indian Overseas Bank, also briefed the forum about the two special meetings organised by SLBC at Chennai and Madurai on implementation of DBTL (PAHAL) wherein bankers and Oil Marketing Company officials and Lead District Managers have participated and discussed the modalities of implementation of DBTL in the State. ED, Indian Overseas Bank, thanked all the District Collectors for having extended their fullest support to bankers & LDMs in implementation of PMJDY in the State and also for having issued saturation certificates for completion of the coverage of households. He also appealed to all the bankers to issue RuPay Cards in all the accounts opened under PMJDY and also to initiate necessary steps to activate them. He also appealed to the bankers to follow the guidelines on overdraft facility and extend the eligible amount of overdraft not exceeding Rs.5000/- to the PMJDY account holders with due diligence. 1

2 Inaugural Address:- In his inaugural address, Shri.R.Koteeswaran, Managing Director and Chief Executive officer of Indian Overseas Bank and Chairman of SLBC, Tamil Nadu, welcomed the participants and informed the forum that performance up to the third quarter (April-December, 2014) was to be reviewed in the 141 st meeting of SLBC. Chairman, SLBC congratulated all the bankers for having recorded excellent performance under Pradhan Mantri Jan-Dhan Yojana and advised that all accounts should be provided with a RuPay card. Chairman, SLBC was happy that the State has achieved 104% of the Annual Credit Plan up to the third quarter of He appreciated the bankers for this achievement and listed the performance highlights of banks in Tamil Nadu during April December CD ratio of the State continues to be above 100 percent. The present level is %. 2. Deposits have increased (year on year) by 7.65 percent. 3. Credit increased (year on year) by 8.66 percent. 4. Priority Credit stands at percent. 5. Agricultural Advance stands at percent. 6. Advances to Weaker section stands at percent. Chairman, SLBC appreciated the bankers on the achievement under various parameters under Annual Credit Plan and listed the achievements under ACP for the quarter ended December, He informed the forum that banks have achieved 104% of the proportionate target under ACP. He further informed that achievement under Farm Sector was 107%, 97% under MSE, 89%, 94% and 105% under Education, Housing and Others respectively. 2

3 1. Agriculture Chairman, SLBC informed the forum that the State has achieved 107% of the proportionate target under Annual Credit Plan upto December 2014 under Agriculture for the year He also advised the bankers to improve investment credit, which alone provides sustainable income to the farmer s household even during dry seasons. He also requested Agriculture, Horticulture, Animal Husbandry & Fisheries Departments of Government of Tamil Nadu to guide the bankers in identifying newer profitable investment projects, suitable to their area and guide the farmers to take up such projects. Chairman, SLBC also informed the forum that RBI has recently issued instructions to all banks to revisit their claims under interest subvention for agricultural loans. The time frame given to Public Sector Banks is up to May 2015 and up to April 2015 for Private sector banks. 2. Financial Inclusion :- Chairman, SLBC appreciated the performance of the banks under Pradhan Mantri Jan-Dhan Yojana scheme. He advised the member banks to issue RUPAY cards to all the PMJDY account holders without delay, to enable them to get the benefits thereon. Chairman, SLBC advised the member banks to cover all the 9943 urban wards allocated to them by engaging Business Correspondents. He informed the forum that IBA has recently launched a programme on Capacity Building of Business Correspondents through which 2.50 lakh BCs in the country would be trained as per the training module developed by IIBF. 3. Educational Loans:- Chairman, SLBC informed the forum that banks in the state have achieved percent by amount and percent by no of accounts as of December 3

4 2014 against the target set by Government of India. He also informed that rising level of NPAs under Educational loan is causing concern. Chairman SLBC acknowledged the support extended to SLBC by RBI, Government of India, Government of Tamil Nadu & NABARD in implementation of various developmental schemes in the state. Keynote Address:- Shri.K.Shanmugam, I.A.S., Principal Secretary (Finance) Government of Tamil Nadu observed the following in his keynote address:- 1. Over a period of time Financial Inclusion has transformed into a well organised, ongoing scheme. Under the recently launched Pradhan Mantri Jan- Dhan Yojana the people are not only provided with bank accounts but are also provided with add on facilities like overdraft, insurance etc. 2. Tamil Nadu has been doing very well under the scheme and banks can always take the help of District Collectors to cover any uncovered households/ pensioners/weaker sections etc. 3. It is heartening to note that Banks in Tamil Nadu have excelled in Crop Loan disbursements. However more focus should be given to investment Credit under Agriculture. 4. The State Government is giving stress on the supply chain management, particularly under horticultural crops. 5. The farmers would be benefited if facilities like linkages, produce collection/ processing centres, grading yard, marketing facilities and cold storages are provided instead of mere sanction of crop loans. 6. State Government is in the process of formulating some schemes in coordination with NABARD especially for horticultural crops. In the coming year, the schemes will be implemented in some select districts of the state. 7. The Banks also should take some pro active measures and formulate such schemes with the help of consultants if necessary to help the farmers. 4

5 8. Animal Husbandry is also a promising area which helps the farmers to earn regular income. Schemes like Mini Dairy, Poultry in non traditional areas, fisheries (both inland and marine) will definitely throw lot of promises for the farming community. 9. Unlike the earlier Financial Inclusion initiatives, the present scheme offers comprehensive package of bank account, life insurance, accident insurance, overdraft facility etc., which is a unique feature. Special Address: Shri. Anandrao Vishnu Patil, I.A.S., Director, Department of Financial Services, Ministry of Finance, Government of India in his special address observed the following:- 1. The bankers in Tamil Nadu have achieved various milestones with the help of Government of Tamil Nadu. 2. Very good progress has been made under Pradhan Mantri Jan Dhan Yojana. However the accounts should be made active and the facilities like overdraft should be made available to the eligible people. 3. SLBC should take up Financial Literacy Campaign in a big way in the State during the coming year. The 57 lakh customers who have opened accounts under PMJDY should be given adequate financial literacy to enable them to make use of add-on facilities of the scheme. 4. The FLC campaign should be done on a mission mode to reach the people in a way that an account holder gets at least one session. The SLBC should plan the campaign with member banks. 5. There appears to be some delay in distribution of RuPay cards in case of some banks. All banks should gear up to complete issue of RuPay cards to all the account holders and the cards issued are to be activated without fail. 6. The insurance claims are to be properly attended to and the customers are to be helped in this regard. 7. The performance of banks in Tamil Nadu is very much appreciable when compared to many other states. CD ratio is well over 100%. Priority Sector 5

6 Advances, Agricultural Advances, Advances to weaker sections are all above the national norms. 8. The AADHAAR seeding in the state is only 28 %. This is to be improved considerably. 9. Nearly weavers credit card applications are pending, majority of them with 4 lead banks. The pending applications are to be attended to immediately. 10. Applications pending with banks under NRLM, TAHDCO are also to be attended immediately. 11. Performance of Allahabad Bank, Bank of Baroda, Bank of Maharashtra and State Bank of India under educational loans is not up to the mark. 12. Performance of Punjab National Bank, Oriental Bank of Commerce and Dena Bank under MSE sector is not up to the mark 13. Government of India, RBI and all banks jointly convened the Gyan Sangam in January Special Address:- Dr. J.Sadakadulla, Regional Director, Reserve Bank of India in his special address observed the following:- 1. The monetary policy was released immediately after the budget and the policy rates have been reduced further and stands at 7.5 % 2. On 20 th of February, 2015, an agreement was signed between RBI and Government of India to formalise the agreement for inflation targeting. This will come to effect immediately. The inflation rate has to be brought down to 6 % by January To mark the celebration of 80 th year of Reserve Bank of India, a meeting is convened on Financial Inclusion on 2 nd April, 2015 at Mumbai to be chaired by the Hon ble Prime Minister. 4. The State is in a very good position in respect of CD ratio, Credit disbursement under Annual Credit Plan, Agriculture etc. 5. The State has more than 9000 bank branches and has sizeable number of Business Correspondents engaged by the Banks in the State. There should 6

7 be a fixed point of contact between the BCs of few villages and the base branch. 6. In the budget, lot of announcements have been made in support of Small and Medium Enterprises. A bank called Mudra was announced which will provide refinance and bills facilities for SMEs for quick realisation of their funds. 7. The NPA level is going up in the SHG portfolio. When compared to the previous meetings, the level has gone up further. CGM, NABARD is requested to go into the details of this issue. A sample study has already been conducted by SLBC and the findings are not encouraging. Our state should not face the same problem faced by other states like Andhra Pradesh. 8. Recently Karur Vysya Bank and TamilNad Mercantile Bank have taken the responsibility of currency management in Karur and Thoothukudi districts respectively. This will fulfil the requirements of the traders and others in the district. Similarly the BCs may be given the responsibility of distribution of currency and coins for the easy reach of the public. 9. The BC model should be carried beyond the pilot and experimental stage as there is no restriction on the roles played by them on behalf of the bank. It is purely between the BCs and the banks to decide as to what they should do. This will enhance the income earned by the BCs which will stabilise them. Special Address:- Shri K.Venkateswara Rao, Chief General Manager, NA BARD, Chennai in his special address observed the following:- 1. It is heartening to note that the banks have achieved 104 % of the ACP target. 2. The State focus paper for the year was launched on It indicates a growth rate of about 15 % in the overall plan, and about 20 % in the term lending plan when compared to last year. 3. The emphasis is on the term lending plan as Government of India instructed that % of the agricultural loans should go to investment credit. 7

8 4. Keeping in view of the above requirement NABARD, Regional Office Chennai has prepared certain area development schemes under Animal Husbandry, Horticulture and others. The scheme details which have been circulated among the banks already should be further circulated upto branch level so that the desired results can be achieved. 5. In the present budget, the long term refinance credit fund has been enhanced from Rs Crores to Rs Crores, so that more refinance would be available for RRBs and also for the State Co-operative Banks. 6. As per the guidelines of the Reserve Bank of India, the controlling offices of the banks should approve the branch credit plans by the month of February so that it can find a place in the District Credit Plan. However in some of the districts, the plans approved by the controlling offices have not reached the branches so far. 7. An announcement has been made in the budget regarding Farmers Producer Companies. A fund has been created in NABARD with an outlay of Rs.2000 Crores for this purpose. In Tamil Nadu, 90 Farmer s Producer Companies are to be promoted during this year as per the target. NABARD has received so far 120 proposals from the various FPO promoting organisations for various crops. 8. The member banks are requested to ensure that the credit requirements of these Farmer s Producer Companies are taken care. 9. Tamil Nadu has been allotted with a target of about Joint Liability Groups. NABARD has conducted several district level workshops for promoting JLGs, with an aim to fulfil the credit requirements of Tenant farmers, Share croppers etc. Action Taken Report for the 140 th meeting of SLBC:- 1. Financing Joint Liability Groups :- Convenor SLBC advised the forum that only 17 banks have so far sent the progress report to SLBC. He advised the remaining banks to send the progress report to SLBC immediately. Action: Banks 8

9 2. Pending Loan applications under NEEDS / UYEGP/NRLM /TAHDCO / Tamil Nadu Government s Scheme for Poultry Development (SPD ):- Convenor SLBC requested the member banks to dispose of the pending applications immediately on merits. Action: Banks 3. Weavers Credit Card Scheme :- Convenor SLBC informed the forum that Director Handloom & Textiles, Govt. of Tamil Nadu has advised all circle Deputy Directors/ Asst. directors of Handloom & Textiles to follow the various suggestion given by the banks/ldms during 140 th SLBC. DGM, SLBC informed the forum that Director of Handlooms & Textiles convened a meeting on wherein the Government was requested to percolate the issues to their field level officials. He requested the member banks to process all the pending applications under WCC scheme immediately. Action: Banks 4. Provision of Security Guards at all ATMs:- Convenor, SLBC, informed the forum that SLBC has convened a subcommittee meeting on to discuss the above issue and the members have opined that the banks may install electronic surveillance facility for all ATMs instead of providing security guards at ATMs. Further, he informed that SLBC requested Reserve Bank of India, Chennai to convene a meeting of Bankers/Government and high level police officials to make a presentation about electronic surveillance in ATMs and to take a decision on the matter. Regional Director, RBI informed the forum that they are examining the request. 9

10 5. Rising trend of NPA in SHG finance:- Convenor, SLBC advised the forum that Lead District Managers of 8 districts have conducted a study and the detailed report is placed as a separate agenda point. Agenda No.1 The forum confirmed the minutes of the 140 th meeting of the State Level Banker s Committee held on New Issues:- Agenda No.2 Pradhan Mantri Jan-Dhan Yojana (PMJDY) - National Mission on Financial Inclusion The Convenor SLBC advised the forum that all District Collectors in Tamil Nadu except Karur have certified 100% coverage of households in their districts. He congratulated the member banks/lead District Managers/District Administration of the districts for this achievement. Convenor, SLBC also informed the forum that as per the information available in the website of PMJDY as on , banks have opened lacs accounts under PMJDY and the percentage of RuPay Cards issued in the State of Tamil Nadu is 91.15%. Convenor, SLBC appreciated the achievement and advised the member banks to concentrate on activation of the RuPay Cards. Further, he informed the forum that the percentage of Aadhaar seeding is very low and he has requested the member banks to speed up the linking of AADHAAR number into the accounts opened under PMJDY. Convenor, SLBC requested the member banks and Lead District Managers to cooperate with the district administration in opening of PMJDY accounts to the 10

11 unorganised workers at the camps proposed to be held by the Government for registration of unorganised workers. Agenda No.3 Action: Member Banks/LDMs Pradhan Mantri Jan Dhan Yojana- Over Draft up to Rs.5000/ in PMJDY accounts:- Convenor, SLBC informed the forum that Ministry of Finance, GoI has come out with the overdraft scheme up to Rs. 5000/- for PMJDY accounts. Further, he informed that Indian Banks Association has issued the detailed guidelines of the scheme. He also informed the forum that Reserve Bank of India has advised that overdrafts extended by Banks up to Rs. 5000/- in PMJDY accounts will be eligible for classification under Priority Sector ( Others Category ) and also as weaker section, provided the borrower s household annual income does not exceed Rs /- for rural areas and Rs /- for non rural areas. He requested the member banks to issue necessary instructions to all their branches in the State to implement the scheme effectively as per the guidelines of IBA. Convenor, SLBC has also informed the forum that Ministry of Finance has clarified that the Aadhaar number is must for granting overdraft under this scheme. Others may be accommodated in the regular TOD scheme of the bank on merits. Further, he informed that NPCI have the platform and it will avoid the duplication of overdraft using the Aadhaar number. He requested the member banks to obtain Aadhaar number from the beneficiary and ensure that the banks through their CBS report overdraft details properly to NPCI. Action: Member Banks 11

12 Agenda No.4 IBA s Capacity Building of Bank Mitras /Business Correspondents & Business Facilitators (BM/BC/BFs):- Convenor, SLBC informed the forum that Indian Banks Association (IBA) decided to conduct a capacity building training programme for all the 2.5 lakh Business Correspondents / Bank Mitras / Business facilitators who are providing banking facilities in the country, through a training module developed by Indian Institute of Banking and Finance(IIBF). Further, he informed that Business Correspondents in Tamil Nadu are doing very well and their understanding about banking services is also good. He also informed the forum that SLBC, Tamil Nadu is the first in the country in conducting the first phase of the training i.e Trainers Training programme on to for all Directors of RSETIs and counsellors of FLCCCs through faculty support from IIBF. SLBC, Tamil Nadu has taken up with IBA for some clarifications regarding BC training and examinations. On receipt of reply from IBA, the RSETIs will be advised to conduct training programme to the Business Correspondents/Bank Mitras / BFs in their district and the trained BCs should pass an Online Examination conducted by IIBF. Convenor, SLBC requested the member banks to provide the details of their Business Correspondents functioning in a district to the respective Lead District Managers who in turn will provide the details to the RSETI. He also requested the Lead Banks to advise their RSETIs to be in preparedness to conduct the training programmes to BCs. Action: Member Banks 12

13 Agenda No. 5:- Regrouping/redistribution of Sub Service Areas in Tamil Nadu:- Convenor, SLBC informed the forum that Mission office, PMJDY advised all the Banks and SLBCs that villages are to be mapped according to the service area of each bank to have at least one fixed point banking service outlet catering to 1000 to 1500 households. He requested the member banks to regroup/ redistribute their existing SSAs in to new SSAs as per the directives of Ministry of Finance and ensure that each SSA is covered by a Business Correspondent and if BCs are not available, banks should immediately appoint the Business Correspondents and advise the details to SLBC as per the format. General Manager, Indian Bank has informed the forum that they have regrouped the existing SSAs into new SSAs based on the household. DGM, SBI informed the forum that they are already in the process of grouping of SSAs as per households and it will be advised to SLBC shortly. Director, DFS, MoF advised the forum that the mapping of the SSAs with Business Correspondents is very important as the GIS mapping of the BC locations is likely to be done in the due course. He advised the member banks to do their exercise in this regard immediately and ensure that the no SSA is left out without Business Correspondent. He also advised the member banks to submit the details within 7 days to SLBC. Action: Banks Agenda No. 6 IBA-Child & Youth Finance International [CYFI] Collaboration for transforming school students into Economic Citizens School Bank Champs Project Convenor, SLBC informed the forum that Indian Banks Association has advised the banks that each bank branch should adopt a school nearby to their branch for Financial Education Programme for school children, for minors aged 10 and above in collaboration with CYFI and other NGOs involved in financial education. Further, he 13

14 informed that after mapping, the school teachers and branch officials will be trained in implementation of this project. He also informed the forum that the project has been rescheduled by IBA as Banks will be busy in their year-end activities and that schools will be busy with exams and will have subsequent vacation. He requested the member banks to be in readiness by adopting a school by each bank branch and to implement the project, as soon as IBA advises the revised schedule of the programme. Action: Banks Agenda No. 7 Direct Benefit Transfer LPG (DBTL) PAHAL:- Convenor, SLBC informed the forum that 85.39% of beneficiaries in the state have enrolled under DBTL either Aadhaar based or bank account based. He appreciated the member banks and OMCs for this achievement. Further, he informed the forum that a report has been published in a leading news paper that nearly 10% of the LPG connections may be ineligible gas connections. He also informed the forum that if this is true then, the state may come near achieving 100%. The representative from OMC informed the forum that in few cases banks are not cooperating in opening of accounts under PMJDY for the beneficiary of DBTL. Convenor, SLBC requested the OMCs to provide the Bank-wise/Branch- wise list of pending Form 1s and details of the beneficiaries to SLBC to address the issue. The representative from OMC has assured to provide the list to SLBC. Action: Banks/ OMCs 14

15 Agenda No. 8 Agriculture-Extension of Interest Subvention scheme to Negotiable Warehousing Receipt (NWR) System:- CGM, NABARD informed the forum that interest subvention is available to small and marginal farmers having Kisan Credit Card for a further period up to six months, post-harvest on the same rate as available to crop loan, against Negotiable Warehousing Receipt. Further, he informed that under Negotiable Warehousing Receipt, NABARD has sanctioned the separate line of credit of Rs.22 crores to TNSC Bank. He requested the member banks to take note of the above and advise their branches to claim interest subvention for the eligible accounts. Action: Banks Agenda No. 9 Request for reduction in the interest rate by nationalized banks for cultivation of Orange under National Horticulture Board Scheme:- Convenor, SLBC requested the member banks instruct their branches in Dindigul and Theni districts to dispose of all the pending applications relates to Orange cultivation immediately. He also advised the Lead District Managers of Dindigul and Theni to advise the bank branches in the districts to avoid delay in processing of the loan applications relating to Orange cultivation. Action: Banks/ LDMs of Dindigul and Theni Agenda No. 10 Dispensing with No due Certificate for lending by banks Convenor, SLBC informed the forum that Reserve Bank of India advised the banks to dispense with obtaining No Due Certificate from the individual borrowers 15

16 (including SHGs & JLGs) in rural and semi urban areas for all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved unless the Government Sponsored Scheme itself provides for obtention of No Due Certificate. He also informed the forum that RBI have also suggested that an alternative framework of due diligence to be used by the banks. He requested the member banks to strictly adhere to the above instructions of RBI and do not put the borrower to inconvenience by demanding No due certificate. Action: Banks Agenda No. 11 RBI Governor s Sideline meeting during Chennai Board meeting-special SLBC- July 10, Action Points Convenor, SLBC informed the forum that during RBI Governor s visit on the following action points have emerged. MGNREGA- Payment of commission to Banks Implementation of CBS in Urban Coop. Banks Digitization of land records State Govt. payments through E-Kuber Village-wise enumeration of farmers Business Correspondent - Viability model Conversion of KCC card into ATM enabled KCC Crop Insurance Scheme for all notified crops State Govt. State Govt. State Govt. State Govt. State Govt. - Banks - Banks Action Banks 16

17 General Manager, RBI informed the forum that RBI has already taken up with the State Government Department concerned on the above issues. He requested the State Government Departments to send their action taken report to SLBC at the earliest. He also advised SLBC to follow up with the State Government for the action taken. Action: State Govt. /Banks/ SLBC Agenda No. 12 Tamil Nadu State Rural Livelihood Mission-Appointment of Community bank coordinators by PLFs for loan facilitation and recovery Representative from TNCDW informed the forum that this is a new scheme announced by Hon ble Chief Minister for appointment of 2000 Community Bank Cocoordinators from the Panchayat Level Federations (PLF) at the cluster level. Further, he informed that NRLM also envisages for placement of Bank Mitra at field level. He informed that there will be 4 bank mitras in each cluster and they are called as Community Bank Coordinators. Each bank mitra has been assigned with a specific job i.e one Bank Mitra for Financial Literacy, he /she can also be engaged by FLCCCs in the district for providing financial literacy activities, other Bank Mitras for Loan Recovery, Loan facilitation and Insurance. He also informed the forum that TNCDW/TNSRLM has done a value addition to the Bank Mitras by providing training to them through IIBF and also be giving certificate. He requested the member banks to engage the services of the Community Bank Coordinators for SHG loan facilitation and SHG loan recovery. The forum has approved the engagement of Community Bank Coordinators. Action: Banks 17

18 Agenda No. 13 National Rural Livelihood Mission-Introduction of common application form for opening of accounts of SHGs and common Loan Documentation The representative from TNCDW informed the forum that Ministry of Rural Development, Government of India has evolved a common application form for opening of accounts of Self Help Groups and a common loan application and Loan documentation for the loans extended to the SHGs. He requested the forum to approve the same and requested the banks to adopt the common applications/ documents. The forum has approved the common forms developed by MoRD in consultation with IBA. Agenda No. 14 Study on rising trend of NPA in SHG finance Convenor, SLBC informed the forum that 8 districts have been identified (Theni, Madurai, Tirunelveli, Kancheepuram, Vellore, Salem, Thanjavur & Ariyalur) in the state for conducting the study on the rising trend of NPA in SHG finance and the details of findings and suggestions are placed. He requested the member banks take note of the same while lending to SHGs. The representative from TNCDW informed that under NRLM the registration of SHGs is compulsory and they have already registered 1.75 lacs SHGs in the state and they found that roughly 9000 to groups are disintegrated. He requested that major NGOs who are having 3.50 lacs SHGs under their control as per NABARD report should be advised to register the SHGs under NRLM as all SHGs are eligible for interest subvention. He requested that registration should be made compulsory for all SHGs irrespective of the promoting agencies. 18

19 Convenor, SLBC informed the forum that co-bankers are responsible for breaking of the groups. He requested those banks not to lend to the SHGs who have already NPA with other banks. He appealed once again to those banks not to repeat this type of lending and also cautioned the banks that if this continues, SLBC will initiate necessary action. CGM, NABARD advised that the details of all members of SHGs up to 20 members should be incorporated with other details such as identity address, bank accounts AADHAAR number also linked, so that there will not be a duplication of membership can be avoided. Representative from TNCDW informed the forum that in the national portal nrlm.gov.nic.in the details of SHGs are available, the bankers in the district level they can see the details of SHGs including that of the members of SHGs. Action : Banks Agenda No. 15 Taking possession of securities under SARFAESI Act, 2002 through the District Magistrates (District Collectors) Representative from Punjab National Bank informed the forum that they are facing the difficulty in the district level taking possession of the securities charged to the Bank under SARFAESI Act, 2002 for recovery of Non Performing Assets. Further, he requested the State Govt. to instruct the District Collectors for speedy disposal of the applications filed by the banks before them under SARFAESI Act, He also informed the forum that during the normal recovery visit, the bank officials are facing resistance /threatening from the borrower. He requested the State Govt. to help the banks for recovery. Action: State Govt. 19

20 Agenda No. 16 Request for separate Registry to monitor Vehicle Loans Convenor, SLBC informed the forum that Canara Bank has made the request that a system in the lines of CERSAI for registering lien/lifting of lien on vehicle loans by banks/nbfcs is required in the web portal of State Transport Authority due to various reasons. He advised the forum that as there is no representative from Transport Department, SLBC will take up with them in this regard. Agenda No. 17 Letter from a beneficiary of Educational Loan Action: SLBC. Convenor, SLBC informed the forum that Prime Minister s Office has forwarded the letter of an Army Official suggesting certain measures for recovery and monitoring of Educational Loans. The letter was placed as an agenda for the information of the member banks and requested that suggestions may be communicated to SLBC for further action. Agenda No. 18 Action:Banks Implementation of Cash dole Scheme to Sri Lankan Tamil refugees Representative from Department of Rehabilitation, Govt. of Tamil Nadu has informed the forum that Indian Overseas Bank has already started the implementation of the Cash dole Scheme to Sri Lankan Tamil refugees through biometric based smart cards in 44 refugee camps in various parts of the state. Further, he informed the forum that the Dept. has mapped the remaining 65 camps with the respective Service Area Banks/FI villages where banking service is provided through BCs. He requested he banks to implement the scheme in their allotted camps. 20

21 The forum has approved the scheme. Convenor, SLBC informed the members about the process of the implementation in detail. Further, he informed that the SLBC will convene a joint meeting of the banks who are mapped with the refugee camps with Dept. of Rehabilitation, Govt. of Tamil Nadu to proceed further. Action: Banks/SLBC Agenda No. 19 Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act 1961 as amended Mortgage of lands held by the Public Trust and Companies which are covered under the Act Convenor, SLBC informed the forum that Principal Secretary / Commissioner of Land Reforms, Govt. of Tamil Nadu had convened a meeting with major 4 banks and discussed the implication about the mortgage of the land purchased by the Public Trust for educational and hospital purpose, and the land purchased by the Companies in excess of the ceiling limit for industrial purpose are attracted under section 37-B and 37-A of the Tamil Nadu Land Reforms (Fixation and Ceiling on Land) Act, 1961, as amended respectively. Convenor, SLBC informed the forum that this act will affect the banks if the mortgage of the property is not properly obtained. He advised the forum that the suggestions received from the four major banks would be sent to the Commissioner of Land Reforms for their consideration. Action : Department of Land Reforms Agenda No. 20 Central Government Scheme Solar Pumpsets and Agri Clinics and Agri Business Centres (ACABC) CGM, NABARD informed the forum that NABARD has conducted a workshop on solar pumpsets and ACABC in which many banks and MNRE approved agencies have 21

22 participated. Further, he informed the forum that the target of 2400 solar pumpsets for Tamil Nadu very high and the progress of the scheme is slow. He also informed the forum that the feedback given by the banks is that the State Govt. is providing free electricity and the scheme is only for replacement of Diesel engine. The feasibility of the project is in question, if water level goes below 150 feet. Director, Agriculture Department, Govt. of Tamil Nadu informed the forum that under the scheme 2162 work orders have been given and 1121 installation have been made and 225 works are going on. Further, he informed the reason for slow progress is that only few suppliers are available. He also informed the forum that the target will be achieved within 2 to 3 months. Director, Agriculture informed the forum that 40% subsidy is provided each by Central Govt. and State Govt with 20% farmer s contribution. Representative from Karur Vysya Bank informed the forum that they have given loans for 20 solar pumpset loan in the state and requested NABARD to provide advance subsidy. CGM, NABARD replied that advance subsidy is available and advise KVB to submit the proposal to NABARD. Agenda No. 21 Review of banking Developments in Tamil Nadu in key parameters as of December 2014: - The forum noted that year on year incremental deposits & credit growth as of December, 2014 was 7.65 % and 8.65 % respectively over December The CD Ratio has increased from % as of December 2013 to % as of December The share of Priority sectors advances and agricultural advances was & % as against the national norm of 40% 18% respectively. The forum also noted that the growth of MSE, Education, Housing, Weaker section advances over December 2013 is %, 4.62 %, 4.39 % and % respectively. 22

23 General Manager, RBI informed the forum that that there is a variation in number of bank branches, Deposit and advances between the data reported by the banks to RBI and the data submitted by the banks to SLBC. He advised the member banks to verify the data on number of branches, deposits and advances for the state of Tamil Nadu reported by them as of December 2014 and send the correct data to SLBC to avoid wrong reporting. Action: Banks Agenda No. 22 Review of performance under Annual Credit Plan ( April to September 2014 ) The forum took on record that the banks in Tamil Nadu have achieved 107 % under Farm Sector, 93 % under Non- Farm sector, and 103 % under Other Priority Sector. Agenda No. 23 Review of performance under Annual Credit Plan (Apr to December 2014 ) The forum took on record, the achievements from April 2014 to December 2014 under ACP The banks in Tamil Nadu have achieved 107% under agriculture, 97 % under MSE, 89 % under Education, 94 % under housing, 105 % under Other Priority Sector and 109 % under Non Priority Sector against the proportionate target. Agenda No. 24 Micro & Small Enterprises ( MSE ) sector The Convenor, SLBC informed the forum that a sum of Rs Crores and Rs Crores was disbursed from April December 2014 to Micro & Small Enterprises respectively. Convenor, SLBC informed the forum that the percentage of achievement under MSE sector is very low in State Bank India. He requested 23

24 State Bank of India to verify their statement and confirm correctness of data to SLBC. Convenor, SLBC also requested Canara Bank to verify their statement and confirm correctness of data to SLBC. General Manager, RBI informed the forum that the low level of achievement of SBI under MSME was noted during the Empowered Committee Meeting convened by RBI and it was observed that the figures were very low. Further, he informed the forum that the Regional Director, RBI has already advised State Bank of India to examine their data and present correct data in the next empowered committee meeting. He also informed the forum that RBI has taken initiative for capacity building for DGM /GM of banks, who heads the SME department in their Tamil Nadu Regional Offices / Zonal Offices on 10 th April, He requested all the controllers of the banks to depute only the GM/DGM who heads the MSME Department for the meeting. Convenor, SLBC advised the member banks to speed up credit flow to Micro sector to achieve 60 % of the total MSE as per the national norms. Action: Banks/SBI/Canara Bank Agenda No. 25 Prime Minister s Employment Generation Programme (PMEGP) The Deputy Director, KVIC appreciated and congratulated the banks for achieving the target of He also requested the banks to disburse the pending margin money of Rs crores immediately in about 120 projects for finalization of disbursement of margin money. Action : Banks 24

25 Agenda No. 26 Performance under New Enterpreneur Cum-Enterprise Development Scheme (NEEDS) & Unemployed Youth Employment Generation Programme (UYEGP) Additional Director, Department of Industries & Commerce informed the forum that in the major 5 banks viz., SBI 50, Indian Bank 57, Union Bank of India 13, Indian Overseas Bank 56, and Canara Bank 41 applications are still pending under NEEDS scheme. He requested banks to process the pending applications and to issue provisional sanction before March The Additional Director also requested the Bankers to clear all the pending applications of UYEGP immediately. Convenor, SLBC advised the banks to dispose of all the pending applications immediately. Action: Banks Agenda no.27 Rural Self Employment Training Institutes:- Convenor, SLBC informed the forum that the 31 RSETIs in Tamil Nadu have conducted 566 training programmes during April 2014 to December 2014, wherein persons were trained of which 7235 persons secured employment and 1315 persons have availed credit from banks. Agenda No.28 Financial Literacy & Credit Counselling Centres (FLCCC) Convenor, SLBC informed the forum that 38 FLCCCs have undertaken 549 Financial Literacy Camps during the quarter ended December He had requested the banks to instruct their rural branches to conduct financial literacy camps once a 25

26 month and to submit consolidated quarterly progress report to SLBC in the prescribed format. Action: Banks Agenda No.29 Financial Inclusion & Green Initiatives ICT based financial inclusion GM, RBI informed the forum that there is a reduction in the number of General credit Cards during the past 3 quarters. Convenor, SLBC replied that there may be reduction of loan by way of recovery. He advised the member banks to verify their data and to confirm the correctness of the data for December 2014 and also send the data of ICT based Financial Inclusion every month before 10 th without fail. Action: Banks Agenda No. 30 Performance under Educational Loans for the year as of December 2014: The Convenor, SLBC informed the forum that banks have reached the educational loan outstanding of Rs Crores as against the targeted level of Rs Crores as of December, Convenor, SLBC advised the banks to achieve their allotted target before March Action: Banks Agenda No. 31 Details of Educational Loan disbursement from April 2014 to December 2014 ( ) The forum noted that loans to the tune of Rs crores have been granted during April 2014 to December 2014 by the banks of which loans for Engineering/Medical courses account for amounting to Rs Cr,

27 loans for study abroad amounting to Rs Cr and loans to others, to the tune of Rs Cr. Agenda No.32 Bank finance under Housing Scheme:- The forum noted that banks in Tamil Nadu have disbursed Rs Crores to the housing sector (loans upto Rs lakhs) from April 2014 to December Convenor, SLBC advised member banks to submit data to SLBC in time. Action: Banks Agenda No.33 Golden Jubilee Rural Housing Finance Scheme (GJRHFS) The forum noted that banks in Tamil Nadu have disbursed 240 loans amounting to Rs lacs during the quarter ended December 2014 under the above scheme. Agenda No. 34 Credit Flow to Women:- The forum noted that as on the share of credit flow to women in the State constituted % of total Bank credit against the national norm of 5 % Agenda No. 35 Credit flow to Minority Communities:- The forum noted that the achievement was to the tune of Rs Crores for the quarter ended December 2014, under credit flow to Minority Communities. Convenor, SLBC informed the forum that 5 out of 27 Public Sector banks have reached the Government of India s target level of 15 %. He advised the remaining 22 banks to improve their performance by March Action : Banks 27

28 Agenda No. 36 Kisan Credit Card Scheme ( KCC) :- Convenor, SLBC informed the forum that banks in Tamil Nadu have issued Kisan Credit Cards to the tune of Rs Crores. The total number of ATM enabled Kisan Credit Cards issued is He requested the member banks to speed up issuance of ATM enabled KCC for the all the loans. The representative from, Agricultural Insurance Company informed the forum that some of the districts are over-covered under crop insurance and some of the districts are under covered. Further, he informed that this leads to a problem for AIC for settling the claims. He requested SLBC to do something for curtaining this issue. Convenor, SLBC advised the AIC officials to discuss with SLBC secretariat with relevant details and resolve the issues. He also advised the member banks to ensure 100% coverage of all crop loans extended to notified crops in the notified areas. Action: Banks/ AIC Agenda No. 37 Self Help Groups ( SHG / NRLM) :- Representative from TNCDW informed the forum that Tamil Nadu has achieved a disbursement level of Rs Crores for the year as on against the yearly target of Rs Crores. Further, he appreciated the efforts taken by the banks for achieving the target, on behalf of Secretary, Dept. of Rural Development and Panchayat Raj. He also appreciated Indian Bank for providing high level credit linkage to SHGs in many districts. He requested other banks to provide good support for achieving the target. Action: Banks 28

29 Agenda No. 38 TAHDCO Scheme:- Convenor, SLBC informed the forum that Managing Director, TAHDCO has written a letter to SLBC appreciating all the banks for initiating steps to dispose the pending applications under TAHDCO scheme. He appreciated the Managing Director, TAHDCO for the good ground work done in providing bankwise/branchwise/applicant wise/ agewise details of pending applications which enabled the banks to show very good progress under the scheme. Managing Director, TAHDCO appreciated the banks on behalf of Govt. of Tamil Nadu, Secretary and Minister for the wonderful support rendered. Further, she informed the forum that during July,2014, applications were pending. After the special bankers meeting convened by TAHDCO it has been reduced to a meager 2573 applications. She informed the forum that updating the Utilization Certificate is the immediate requirement. Further, MD, TAHDCO informed that about 25% of the loans have become NPA and TAHDCO needs to step in to curtail this trend. She requested the banks to draw a schedule of exclusive 5 days in a month and send the same to the district TAHDCO officials for organizing recovery camps. MD, TAHDCO requested the banks to provide support to TAHDCO and also requested the banks to look into the issue of demanding collateral security for TAHDCO loans. General Manager, RBI informed the forum that they are receiving lot of complaints for rejection of loan under TAHDCO scheme. The main reasons for rejection are 1) insufficient experience of the applicant 2) Applicant already possesses assets. He added that in case of certain activities the persons with experience may have some materials with them while applying for the loan. This should not be a hindrance for him to avail loan under TAHDCO scheme. 29

30 Managing Director, TAHDCO requested RBI to send details of those applications to TAHDCO for further action. Action: Banks Agenda No. 39 Tamil Nadu Government s Scheme for Poultry Development :- Director, Animal Husbandry informed the forum that 435 applications are still pending with the banks for disbursement and 1482 applications are pending with the banks for processing and sanction. Further, he informed that the details of the pending applications bank-wise/branch-wise /beneficiary-wise have been provided to the banks. He requested the member banks to clear all the pending applications immediately. He also requested the member banks to forward the claim to NABARD under Poultry Venture Capital scheme as and when the loans are disbursed. CGM, NABARD informed the forum that NABARD cannot consider time barred claim as per Govt. of India guidelines. He also informed that the subsidy for Poultry Venture capital Scheme is yet to be received from the Govt. of India. Director, Animal Husbandry informed the forum that the Poultry Venture capital Scheme continues. Action: Banks/ NABARD Agenda No. 40 National Urban Livelihood Mission (NULM) The Representative from Municipal Administration informed the forum that NULM scheme launched by Govt. of India is replacing the SJSRY scheme and he also informed that in Tamil Nadu this scheme is implemented in 40 towns having population of 1 lac. Further, he informed the forum that NULM carries interest subsidy instead of capital subsidy. He also informed that they have advised the 30

31 details of scheme to their municipalities and forwarded applications 2829 applications under individual scheme and 792 applications for groups. He also informed that as of now banks have sanctioned for individual loan for 48 applications with the quantum of Rs.1.45 crores and subsidy of 36 lacs andhave sanctioned 9 loans with the quantum of Rs.38 lacs and subsidy of Rs. 10 lacs for group loans. Further, he informed that the delay in implementation of the scheme is due to the new structure and concept of the scheme and he also informed that the scheme has now started picking up. Agenda No. 41 Weavers Credit Card Scheme (WCC) The Asst. Director, Handloom & Textiles informed the forum that so far banks have sanctioned Weavers Credit Card out target of cards allotted for the state. He also informed that applications are pending with the banks and requested the banks to clear all the pending applications before March Action : Banks Agenda No. 42 Review of NPA Accounts in Priority Sector Lending December 2014 :- Convenor, SLBC informed the forum that NPA percentage under various categories as of December 2014 is more under all categories except Agricultural loan when compared to the previous quarter. Agenda No. 43 Success Story :- Convenor, SLBC appreciated KVIC, Chennai sharing the success stories with SLBC. 1. Best PMEGP Unit in India Sri Ganapathy Chirpa Kalaikudam Financed by Indian Overseas Bank- Mahabalipuram branch 2. Readymade Garments Unit- Financed by Bank of Baroda 31

32 The Convenor, SLBC also appreciated IOB RSETI Thanjavur for sharing the success stories with SLBC. He requested the member banks to share their success stories with SLBC. TABLE AGENDA 1. Representation from Tirunelveli Sea shore Fishermen Cooperative Society The member banks have expressed their inability to consider interest free loans for the purchase of Fibre boat, outboard engine, fishing nets and other accessories as they do not have power to give interest free loans for any purpose including staff loans. 2. Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) The Representative from Municipal Administration informed the forum that Govt. of India has given the additional fund of 50% to the state for the best performance in the scheme. Further, he informed that this fund has been given to town Panchayats for utilization under SJSRY scheme. He also informed that Govt. of India has advised that the fund available to SJSRY scheme can be utilize as capital subsidy under scheme. The representative from Town Panchayats requested the member banks to clear all the pending applications immediately. Action : Banks 3. Loans to SC / ST beneficiaries under various Government Sponsored Schemes: Convenor, SLBC informed the forum that Tamil Nadu state office of National Commission for Scheduled Castes called SLBC and reviewed the position of loans to SC/ST beneficiaries under various Government Sponsored Schemes and has given various directions to SLBC. He requested the respective Government Departments who are sponsoring the applications under various schemes should ensure that the statutory percentage of applications of the SC/ST beneficiaries to be sponsored in every lot sent to the banks. He also requested the member banks to ensure 32

33 minimum 40% of loans should be given to SC/ST beneficiaries under DRI scheme and also requested the banks to submit the details to SLBC. Further, he requested the member banks to dispose of all the pending applications related to SC/ST beneficiaries within prescribed time frame. Action: Banks / Government Departments Convenor, SLBC informed the forum that Commissioner, Labour Dept. advised that the disbursement of welfare measures for unorganized workers is proposed to be routed through bank accounts. The meeting ended with a vote of thanks by Shri.R.Manimaran, General Manager, Indian Bank. 33

34 STATE LEVEL BANKERS COMMITTEE, TAMIL NADU CONVENOR: INDIAN OVERSEAS BANK Action Taken Report for the action points of 141 st SLBC meeting S. No Action Point 1 Pending applications under NEEDS and UYEGP It was informed by Additional Director, DIC that more than 250 & 7000 applications are pending with the banks under the NEEDS and UYEGP scheme respectively. The member banks are requested to dispose of the pending applications immediately on merits and send the report to SLBC. 2 Tamil Nadu Government s Poultry development Scheme Director, Animal Husbandry and Dairying, Government of Tamil Nadu informed the forum that more than 650 applications are pending with the banks for the purpose of establishment of broiler poultry units in the non traditional poultry districts of Tamil Nadu. The details of bank-wise/ branch-wise pending applications have already been advised by SLBC vide dated The member banks are Action taken SLBC advised Member banks to dispose of the pending applications at the earliest. Banks have sanctioned 861 loans under NEEDS scheme and 5293 loans under UYEGP during SLBC advised Member banks to dispose of the pending applications at the earliest. At present only 192 applications are pending as per the latest reports received from Department of Animal Husbandry. 34

35 requested to dispose of the pending applications immediately on merits send action taken report to SLBC. 3 Pending loan applications under various schemes of TAHDCO Managing Director, TAHDCO informed that banks are yet to disburse 1295 applications where subsidy has been claimed applications are pending with the banks under various schemes of TAHDCO. The details of bank-wise/ branch-wise pending applications have already been advised by SLBC vide dated The member banks are requested to dispose of all pending applications on merits immediately and send the report to SLBC. SLBC has forwarded the list of pending applications to all the member banks with a request to dispose them early. Banks in Tamil Nadu have sanctioned loans to the tune of Rs crores. At present applications are pending with banks. 4 Weavers Credit Cards: Department of Handloom & Textiles informed the forum that banks are yet to dispose of more than applications under the scheme. The member banks are requested to dispose of all pending applications on merits immediately and send ATR to SLBC. SLBC advised Member banks to dispose of the pending applications at the earliest. Banks in Tamil Nadu have sanctioned loans to the tune of Rs crores during

36 5 Coverage of Crop Insurance Scheme Representative from AIC requested the banks to cover all the loans extended to notified crops under the crop insurance scheme. Member banks are advised to cover all the eligible notified crop loans including the Jewel loan given for the purpose of raising crops under crop insurance. 6 Credit Flow to Micro and Small Enterprises (MSE) It was observed in the meeting that credit flow to MSE by State Bank of India & Canara bank is comparatively low. SBI & Canara Bank are requested to verify the data reported by them as of December 2014 and confirm correctness to SLBC. SLBC had advised all the commercial Banks in the State to instruct their branches to cover all the loans extended to the notified crops in notified areas under crop insurance without fail. It was also advised that the performance of the Commercial Banks is not satisfactory under crop insurance when compared to Cooperative Banks. Canara Bank reported Rs crores as of March, 2015 when compared to Rs crores reported during December,2014. State Bank of India reported Rs crores as of March 2015 when compared to Rs crores reported during December,

37 AGENDA NO: nd SLBC CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING The minutes of the 141 st State Level Bankers Committee Meeting convened on (already circulated vide SLBC letter dated ) may be confirmed. NEW ISSUES AGENDA NO: nd SLBC Roll out of Pradhan Mantri Mudra Yojana (PMMY) The Micro Units Development and Refinance Agency Ltd (MUDRA) was launched by Hon ble Prime Minister of India on April 8,2015 to extend refinance to Banks, NBFCs, MFIs etc who are lending to Smaller of the Micro enterprises engaged in manufacturing, trading and service sector. The refinance is available for the loans up to Rs.10 lacs per unit disbursed after 8 th April,2015 from MUDRA. The Pradhan Mantri MUDRA Yojana was also launched on the same day to fund the unfunded by bringing such enterprises to the formal financial system and extending affordable credit to them. It has also been decided that the loans to be given to this segment for income generation will be known as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY) which also include the overdraft amount of Rs.5000 sanctioned under PMJDY. Ministry of Finance, Government of India/MUDRA advised banks to lend more aggressively under the scheme and report the progress to SLBC/MUDRA and DFS. A Copy of letter dated on the subject received from MUDRA is enclosed for ready reference of the member banks. The member banks are requested to submit quarterly progress report before 10 th of the succeeding month without fail. 37

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47 AGENDA NO: nd SLBC Launching of Pradhan Mantri Suraksha Bima Yojana, Prdhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana Subsequent to the launch of the Pradhan Mantri Jan Dhan Yojana on to provide banking facility to every household in the country, Government of India in line with the Budget announcement launched the following three social security schemes namely, 1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 2. Pradhan Mantri Suraksha Bima Yojana (PMSBY) 3. Atal Pension Yojana (APY) The above schemes were formally launched by Hon ble Prime Minister on at a National Level function in Kolkata. SLBC, Tamil Nadu organized a State Level launch function at Chennai on in which Dr.K.Rosaiah, His Excellency, the Governor of Tamil Nadu, Shri. Radha Mohan Singh, Hon ble Union Minister for Agriculture and Shri.Natham.R.Viswanathan, Hon ble Minister for Electricity, Prohibition and Excise, Government of Tamil Nadu have participated. Banks in Tamil Nadu have enrolled lac customers as on under the above three schemes. The salient features of the three schemes are given as annexure for the ready reference of the members. The details of the schemes, enrollment forms and claim forms have been uploaded in the website of SLBC, Tamil Nadu for the benefit of the public and member banks. The SLBC Call Centre with toll free number has also been sensitized to answer the queries of the public relating to the above schemes. 47

48 ANNEXURE A.PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) The scheme will be a one year cover Term Life Insurance Scheme, renewable from year to year, offering life insurance cover for death due to any reason. Eligibility for subscribing the scheme All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Benefits under the scheme and premium payable Rs.2 lakhs is payable on a subscriber s death due to any reason. The premium payable is Rs.330/- per annum per subscriber. The premium will be deducted from the account holder s savings bank account through auto debit facility in one instalment, as per the option to be given on enrolment. Members may also give one-time mandate for auto-debit every year till the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year. Enrolment period and modality Initially on launch for the cover period from 1 st June 2015 to 31 st May 2016 subscribers are expected to enroll and give their auto-debit option by 31 st May 2015, extendable up to 31 st August Enrolment subsequent to this date will be possible prospectively on payment of full annual payment and submission of a selfcertificate of good health. Subscribers who wish to continue beyond the first year will be expected to give their consent for auto-debit before each successive May 31 st for successive years. Delayed renewal subsequent to this date will be possible on payment of full annual premium and submission of a self-certificate of good health. 48

49 Administration of the scheme The scheme would be offered / administered through LIC and other Life Insurance companies in collaboration with participating Banks. B.PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) The scheme will be a one year cover Personal Accident Insurance Scheme, renewable from year to year, offering protection against death or disability due to accident. Eligibility for subscribing the scheme All savings bank account holders in the age of 18 to 70 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Benefits under the scheme and premium payable Table of Benefits Sum Insured a. Death Rs. 2 Lakh b. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot c. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot Rs. 2 Lakh Rs. 1 Lakh Premium payable is Rs.12/- per annum per member. The premium will be deducted from the account holder s savings bank account through auto debit facility in one instalment, as per the option to be given on enrolment. Members may also give one-time mandate for auto-debit every year till 49

50 the scheme is in force, subject to re-calibration that may be deemed necessary on review of experience of the scheme from year to year. Enrolment period and modality Initially on launch for the cover period from 1 st June 2015 to 31 st May 2016 subscribers are expected to enroll and give their auto-debit option by 31 st May 2015, extendable up to 31 st August Enrolment subsequent to this date may be possible prospectively on payment of full annual payment, subject to conditions that may be laid down. Subscribers who wish to continue beyond the first year will be expected to give their consent for auto-debit before each successive May 31 st for successive years. Delayed renewal subsequent to this date may be possible on payment of full annual premium, subject to conditions that may be laid down. Administration of the Scheme The scheme would be offered / administered through the Public Sector General Insurance Companies (PSGICs) and other General Insurance companies in collaboration with participating Banks. C.Atal Pension Yojana (APY) Atal Pension Yojana (APY), a pension scheme for citizens of India is focussed on the unorganised sector workers. Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers. Eligibility for subscribing the scheme Any Citizen of India can join APY scheme. The following are the eligibility criteria, i The age of the subscriber should be between years. ii He / She should have a savings bank account/ open a savings bank account. iii The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration. 50

51 Government co-contribution of 50% of the investment or Rs.1000/ per annum whichever is lower is available for 5 years, i.e., from to for the subscribers who join the scheme during the period from 1 st June, 2015 to 31 st December, 2015 and who are not covered by any Statutory Social Security Schemes and are not income tax payers. Benefits under the scheme Guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers. Subscriber Contribution Amount Age Entry of Monthly pension of Rs Monthly pension Rs2000 of Monthly pension of Rs3000 Monthly pension of Rs4000 Monthly pension of Rs All the contributions are to be remitted monthly through auto-debit facility from savings bank account of the subscriber. 51

52 AGENDA NO: nd SLBC Pradhan Mantri Jan Dhan Yojana National Mission on Financial Inclusion - Implementation and progress All the District Collectors in Tamil Nadu have certified 100% coverage of households in their district. SLBC Tamil Nadu appreciates the efforts of the District Administration/ Member Banks/ Lead District Managers of the 32 districts for this achievement. Banks in Tamil Nadu have opened lacs accounts under PMJDY as on The district wise details of PMJDY accounts opened is enclosed for ready reference. Out of lacs account opened, lacs (33.32%) accounts are seeded with AADHAR number. Government of Tamil Nadu has opened 460 AADHAR enrollment centres all over the State due to which the AADHAR coverage in the State is increasing. Member banks are requested to speed up the linking of AADHAAR number into the accounts opened under PMJDY and also other accounts. 52

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54 AGENDA NO: nd SLBC Priority Sector lending-revised Classification by Reserve Bank of India Reserve Bank of India based on the recommendations of the Internal Working Group (IWG) set up in July 2014 to revisit the existing priority sector lending guidelines, issued revised guidelines vide their circular FIDD.CO.Plan.BC.54/ / dated in supersession of guidelines mentioned in the Master Circular dated July 1, 2014 on Priority Sector Lending Targets and Classification. The salient features of the revised guidelines are as under:- (i) Categories of the priority sector: Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector, in addition to the existing categories. (ii) Agriculture: The distinction between direct and indirect agriculture is dispensed with. New sub categories are: 1.Farm Credit 2.Agri Infrastructure 3. Ancillary activities (iii) Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within agriculture, to be achieved in a phased manner i.e., 7 percent by March 2016 and 8 percent by March (iv)micro Enterprises: A target of 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises, to be achieved in a phased manner i.e. 7 percent by March 2016 and 7.5 percent by March (v) There is no change in the target of 10 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, for Weaker Sections. (vi) Target for Foreign Banks: Foreign Banks with 20 branches and above already have priority sector targets and sub-targets for Agriculture and Weaker Sections, which are to be achieved by March 31, 2018 as per the action plans submitted by them and approved by RBI. The sub-targets for Small and Marginal Farmers and 54

55 Micro Enterprises would be made applicable post 2018 after a review in Foreign banks with less than 20 branches will move to Total Priority Sector Target of 40 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, on par with other banks by , and the subtargets for these banks, if to be made applicable post 2020, would be decided in due course. (vii) Bank loans to food and agro processing units will form part of Agriculture. (viii) Export credit: Export credit up to 32 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, will be eligible as part of priority sector for foreign banks with less than 20 branches. For other banks, the incremental export credit over corresponding date of the preceding year will be reckoned up to 2 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. (ix) The loan limits for housing loans and MFI loans qualifying under priority sector have been revised. (x) The priority sector non-achievement will be assessed on quarterly average basis at the end of the respective year from onwards, instead of annual basis as at present. The revised guidelines are operational with effect from the date of RBI circular ( ). The priority sector loans sanctioned under the guidelines issued prior to this date will continue to be classified under priority sector till repayment/maturity/renewal. 55

56 AGENDA NO: nd SLBC Dairy Entrepreneur Development Scheme (DEDS)- continuation of the scheme for the financial year NABARD, Chennai vide their letter dated advised that the captioned scheme has been extended by Government of India for They have also advised that the member banks should submit SC Category claims only as budget allocated for General/ST category would be sufficient enough to clear only the pending claims at NABARD level. The financing banks have also been advised by NABARD to forward their subsidy claims through their controlling offices within 2 months of disbursement of first installment of the bank loan. A copy of NABARD s letter dated is enclosed for ready reference of member banks. 56

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58 AGENDA NO: nd SLBC Swarojgar Credit Card (SCC) Scheme-Target for NABARD Regional Office, Chennai has advised that a target of SCCs has been fixed for the State of Tamil Nadu. The Bank wise Annual Target for under Swarojgar Credit Card (SCC) is enclosed in the annexure for ready reference of the member banks. The member banks are requested to allocate the targets to all their implementing branches and the targets fixed bank wise/ district wise is to be advised to SLBC for the purpose of review in the next meeting of SLBC. The formats for submission of quarterly progress report are also provided in the annexure (II A and II B). Member banks are requested to submit the quarterly progress reports regularly to NABARD, Regional Office, Chennai before the 10 th of the month following the quarter for which the progress reports relate to. 58

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62 AGENDA NO: nd SLBC Solar Pumpsets Target for Ministry of New and Renewable Energy, Govt. of India has launched a new scheme to support solar pumping units for irrigation purpose per year w.e.f For the above scheme subsidy at 40% of the approved indicative unit cost will be eligible from Government of India and 40% from the State Government. Govt. of India has fixed target of 2400 solar pumpsets for Tamil Nadu. NABARD, Chennai vide their letter dated 2 nd June, 2015 advised that Shri.Tarun Kapoor, Joint Secretary, Ministry of New and Renewable Energy, Government of India held a review meeting on at Bangalore wherein it was decided that each rural bank branch in the State should provide loan at least to one borrower under the scheme. NABARD advised SLBC to allocate target for the member banks based on the above criteria. The target assigned for the member banks is enclosed as annexure. The member banks are requested to advise their rural branches in the State to actively participate in the implementation of the scheme and to reach the targets. A copy of NABARD s letter dated is enclosed for ready reference. 62

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64 AGENDA NO: nd SLBC Credit Enhancement Guarantee Scheme for Schedule Castes Under the captioned scheme, IFCI Ltd, a Govt of India undertaking shall provide guarantee to public sector banks for providing financial assistance to SC entrepreneurs, covering guarantee ranging from Rs. 15 lacs to Rs. 5 Crore. Member banks are requested to actively participate in this GOI initiative to promote entrepreneurship among SC community. A copy of the letter dated , received from IFCI Ltd, advising the launch of the captioned scheme is enclosed for ready reference. The scheme highlights received from IFCI Ltd is also enclosed for your ready reference. The complete scheme guidelines have already been circulated to all member banks by SLBC vide dated as an attachment. All the member banks are requested to advise the salient features of the scheme to all their branches in the state and advise them to participate in the scheme actively. 64

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69 AGENDA NO: nd SLBC Request to notify all banking centres in the State under clause (f) section 58 of the Transfer of Property Act, During the 130 th meeting of SLBC held on , Chairman, SLBC, Tamil Nadu thanked the Government for notifying all the Municipal Corporations, Municipalities and Town Panchayats in Tamil Nadu under clause (f), section 58 of the Transfer of property Act, 1882, and requested the State Government to notify all banked centres in the State as the Government notification(g.o.ms.no.192 dated ) covers only Municipal Corporations, Municipalities and Town Panchayats, whereas nowadays the bank branches are being opened in remote rural villages also. The Government vide their letter dated advised that according to the provisions of Section 58(f) of transfer of Property Act,1882 the Government is empowered to notify the towns only and expressed their inability to notify all the banked centres as requested by SLBC. A copy of the letter dated is enclosed for ready reference of the member banks. 69

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72 AGENDA NO: nd SLBC REVIEW ON BANKING DEVELOPMENTS IN TAMILNADU IN KEY PARAMETERS AS OF MARCH 2015 KEY PARAMETERS (Amount in Crores) Parameters March 2014 March 2015 Variation & % Growth over March 2014 No. of Branches Deposits % Advances % CD Ratio % Investments (122.97) Credit + Investment to Deposit Ratio % Priority Sector Advances % % of Priority Sector Advances to Total Advances 45.54% 43.99% Agricultural Advances % % of Agricultural Advances to Total Advances Micro & Small Enterprises (MSE) 20.18% 19.93% % Of which Micro enterprises % Micro Credit (862.90) Education % Housing % Advances to Weaker Sections % % of Weaker Section Advances to Total Advances 13.02% 12.87% DRI Advances (10.47) % of DRI Advances to Total Advances 0.02% 0.01% 72

73 BRANCH NETWORK As at the end of March 2015, the total number of Bank Branches in Tamil Nadu increased to 9496 from 8841 in March Group wise spread of Bank branches in Tamil Nadu as of March 2014 and March 2015 is given below: Name of the Group Mar 2014 Mar 2015 Variation State Bank Group Nationalised Banks Other Public Sector Banks Private Sector Banks RRBs Foreign Banks TOTAL DEPOSIT GROWTH Deposits of the Banks in Tamil Nadu have increased from Rs crores as of March 2014 to Rs crores as of March 2015, registering an increase of Rs crores. The year on year incremental deposit growth is 7.05%. CREDIT EXPANSION The total advances increased from Rs crores as of March 2014 to Rs crores as of March 2015, an increase of Rs crores. The incremental growth is 7.33%. CD RATIO The Credit Deposit Ratio of the Banks in Tamil Nadu slightly increased from % as of March 2014 to % as of March

74 PRIORITY SECTOR ADVANCES The percentage of priority sector advances is 43.99% as of March 2015 as against the national norm of 40% and registered a marginal decrease from 45.54% as of March AGRICULTURAL ADVANCES The aggregate of agricultural advances extended by Banks in Tamil Nadu have increased from Rs crores as of March 2014 to Rs crores as of March 2015, thus registering an increase of Rs crores in absolute terms and 12.07% in percentage terms. The percentage of Agricultural sector advances to total advances is 19.93% as of March 2015 as against the national norm of 18% as against the achievement of 20.18% during the corresponding period of last year (March 2014). MICRO & SMALL ENTERPRISES (MSE) The advances to Micro & Small Enterprises sector (MSE) during the period under review have witnessed an increase of Rs crores, from Rs crores as at March 2014 to Rs crores as at March The incremental growth is 10.75%. EDUCATION LOAN Educational Loans have increased from Rs crores in March 2014 to Rs crores as of March The increase of Rs crores under Educational Loans represents a growth rate of 5.79%. 74

75 HOUSING LOAN The outstanding under Housing Loans has increased from Rs crores as of March 2014 to Rs crores in March The increase of Rs crores under housing loan represents a growth rate of 3.66%. ADVANCES TO WEAKER SECTIONS The advances to Weaker Sections increased from Rs crores as of March 2014 to Rs crores as at the end of March 2015, registering a growth rate of 12.17%. At this level, advances to Weaker Sections constitute 12.87% of the total credit against the national norm of 10%. DRI ADVANCES The outstanding advances under DRI have decreased from Rs crores as of March 2014 to Rs crores as of March PERFORMANCE OF COMMERCIAL BANKS UNDER THE STIPULATED NATIONAL NORMS ARE AS UNDER: (Amount in Crores) Particulars Priority Sector Advances to Total Advances Agricultural Advances to Total Advances Weaker Section Advances to Total Advances National Norms for March 2015 target Achievement for March 2015 % Amount % Amount 40.00% % % % % %

76 The share of Priority Sector advances stands at 43.99% as against the National Norm of 40%. The percentage of Priority Sector Advances to total Advances has shown a marginal decrease from % as at the end of March 2014 to 43.99% as at the end of March The percentage of Agri Advances to total advances has shown marginal decrease from 20.18% as at the end of March 2014 to 19.93% in March It is pertinent to note that the targets fixed for for Agriculture, weaker sections & priority sector have been achieved during the financial year CREDIT + DEPOSIT RATIO CD Ratio as of March 2015 is as follows: (a) Banks excluding Co-operative Banks : % (b) Including Co-operative Banks : % Target for the year ended March 2016 Particulars National Norms in Percentage Target for March 2016 (Amt. in Crores) Priority sector Advances 40% Agricultural Advances 18% Weaker Section Advances 10%

77 DISTRICTWISE PERFORMANCE OF COMMERCIAL BANKS IN TAMILNADU A comparative analysis of the performance of the Commercial Banks in Tamil Nadu indicates the following: a) Ariyalur district has the highest CD ratio at % followed by Dharmapuri district (200.11%) Theni district (198.20%). b) All the districts in the state except Kancheepuram district have achieved the desired CD ratio of 60% or more. Agricultural advances to total advances is below 18% norm in Coimbatore district which is 12.71%. 77

78 REVIEW OF OPERATIONS OF CO-OPERATIVE BANKS IN TAMILNADU AS AT THE END OF MARCH 2015 As at the end of March 2015, there are 830 branches of Co-operative Banks (both, District Central Co-operative Banks and State Agricultural and Rural Development Banks) in Tamil Nadu. The details are furnished for the information of the members. Classification of Branches March 2015 Rural 266 Semi-Urban 217 Urban 188 Metro 159 TOTAL 830 (Amt. in Crores) Particulars March 2014 March 2015 Deposits Advances Investments CD Ratio % % Credit + Investment to Deposit Ratio % % (Amount in Crores) S.No. Particulars March 2014 March Agricultural Advances Of which, Direct Advances Micro & Small Enterprises Education Housing Micro Finance & Others TOTAL PRIORITY SECTOR ADVANCES

79 ADVANCES UNDER SPECIAL PROGRAMMES / SCHEMES / SECTORS (Amount in crores) Particulars March 2014 March 2015 Total Advances to Weaker Sections Of which, Advances under SC/ST NPA POSITION IN PRIORITY SECTOR ADVANCES March 2015 (Amount in crores) Sector As of March 2015 NPA Amount % of NPA As of December 2014 NPA Amount % of NPA i) NPA in Housing loans % % ii) NPA in Education Loans % % iii) NPA in Agriculture Loans % % iv) NPA in Loans to MSE % % v) NPA in Loans to Micro Credit % % vi) NPA in over all Priority Sector Lending % % 79

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83 AGENDA NO: nd SLBC REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN : (APRIL 2014 TO DECEMBER 2014) The tentative achievement under Annual Credit Plan as of December 2014 was placed in the 141 st SLBC Meeting held on Now, the final Annual Credit Plan achievement for the half for the period from April 2014 to December 2014 for the State of Tamil Nadu is placed below for the information of the forum. (Amount in Crores) Sector Credit Allocation Credit Disbursed % of achievement April 2014 to December 2014 Farm Sector Non Farm Sector OPS Total The details of progress made under ACP for the period from April 2014 to December 2014 District-wise/bank-wise/activity-wise are furnished in the annexure for information. 83

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88 AGENDA NO: nd SLBC REVIEW OF PERFORMANCE UNDER ANNUAL CREDIT PLAN APRIL 2014 TO MARCH 2015 As per quick information report obtained from the Lead District Managers, banks in Tamil Nadu disbursed credit (both priority and non priority) of Rs crore against proportionate plan allocations of Rs crore representing 106% achievement under ACP for the year The consolidated sector-wise achievement is given below. (Number of accounts in actual and Amt. in Thousands) Sr No Sub-Sector Target for the year Achievement for the year % of achievement Number Amount Number Amount Priority Agriculture & allied - 1 Direct No. (%) Amt. (%) Agriculture & allied - Indirect Agriculture & allied - Sub Total= MSE Education Housing Others Priority Total Non Priority 8 Heavy Industries Medium Industries Education Housing Others Non Priority Total Grand Total (Priority 15 + Non Priority)

89 Sector wise performance: A. Farm Sector (Agriculture and Allied Activities- Direct & Indirect) The performance under Farm Sector is satisfactory with 107% for the year districts have achieved 100% or more under Farm Sector. B. MSE Sector Industries Performance of Banks in Tamil Nadu under MSE Sector works out to 98% for the year districts have achieved 100% or more under MSE Sector. C. Other Priority Sector (Education, Housing & Others) Performance of Banks in Tamil Nadu under education, housing & others works out to 98%, 98% & 108% for the year The details of 1. Districtwise / Sector-wise disbursement (LBS MIS II) and 2. district-wise /Sector-wise achievement against the target (LBS MIS III) under ACP are enclosed as annexure. 89

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94 AGENDA NO: nd SLBC ANNUAL CREDIT PLAN The consolidated Annual Credit Plan for the financial year , based on the District level ACP prepared by LDMs, for the State of Tamil Nadu is placed below for the approval of the forum (reported in LBS MIS I format prescribed by RBI). The credit plan for the year envisages a total credit flow of Rs crores under PRIORITY and NON PRIORITY sectors. The sector-wise details are given below: Sr. No Sector Sub-Sector 1 (Number in actual/ amt. in thousands) Yearly Targets under ACP Number Amount Agriculture & allied - Direct Agriculture & allied - Indirect Agriculture & allied 3 Sub Total = Priority MSE Education Housing Others Total - Priority Heavy Industries Medium Industries Non- Education Priority Housing Others Total - Non Priority Grand Total =

95 Banks in Tamil Nadu have projected an outlay of Rs crores under agriculture sector (an increase of 16.17% over target) which is Rs crores higher than the target of Rs 74,940 crores fixed by NABARD for based on the budgetary allocation. Active involvement of all the Banks in Tamil Nadu is sought for the successful implementation of the Annual credit plan Various Departments and agencies of the Government are also requested to extend support in filling up the infrastructure gaps, if any. The District-wise / Sector-wise and Bank-wise / Sector-wise plan for are enclosed as annexure 95

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99 AGENDA NO: nd SLBC MICRO & SMALL ENTERPRISES (MSE) SECTOR Credit flow to MSE Sector from April 2014 to March 2015 is furnished in the Annexure. Credit flow to Micro and Small Enterprises amount to Rs crores & Rs crores respectively. The MSE disbursement made from April 2014 to March 2015 is Rs crores. The share of advance to Micro Enterprises to total MSE up to March 2015 is 52.91%. Member Banks should speed up the flow of credit to Micro Enterprises so that the 60% norm could be achieved. The share of Micro Enterprises in credit flow to MSE is furnished in the annexure (Bank-wise). 99

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101 AGENDA NO: nd SLBC Prime Minister s Employment Generation Programme (PMEGP) KVIC, Chennai vide their letter dated has advised the target for & achievement as on under PMEGP Loan Scheme, as given below:- Name of the Agency Revised Target Projects Margin Money (Rs in Lacs) Achievement Emp Projects Margin Money KVIC KVIB DIC Total KVIC have furnished the share of SC/ST/ Women on performance of PMEGP Scheme for the year as on The details are given below. Share of SC Emp (Rs in Lacs) Year Projects Margin Money Project Cost Bank Loan as on Share of ST (Rs in Lacs) Year Projects Margin Money Project Cost Bank Loan as on Share of Women (Rs in Lacs) Year Projects Margin Money Project Cost Bank Loan as on Bank-wise progress report is enclosed as annexure. 101

102 PMEGP Target for The State Office of Khadi & Village Industries Commission vide their letter dated advised the target under Prime Minister s Employment Generation Programme (PMEGP) The bank wise and district wise & category-wise targets are enclosed as annexure. The member banks are requested to advise all their implementing branches to coordinate with KVIC/DIC/KVIB and to process the applications in time. The Lead District Managers are advised to place the district wise targets in the ensuing DCC meetings and follow up with member banks for speedy disposal of applications. 102

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108 AGENDA NO: nd SLBC Performance under New entrepreneur-cum-enterprise Development Scheme (NEEDS) & Unemployed Youth Employment Generation Programme (UYEGP) and Target for Performance NEEDS The performance of NEEDS of Govt. of Tamil Nadu Bank-wise / District-wise / Category-wise during the financial year as on is furnished in the annexure. UYEGP The performance of Unemployed Youth Employment Generation Programme (UYEGP) of Govt. of Tamil Nadu bank-wise/ Category-wise for the financial year as on is furnished in the annexure. Target for NEEDS Dept. of Industries and Commerce vide their letter dated advised the target of 1000 projects with the subsidy target of Rs crores under NEEDS for The district wise target is enclosed as annexure. UYEGP Dept. of Industries and Commerce vide their letter dated advised the target of 5000 projects with the subsidy target of Rs crores under UYEGP for The district wise target is enclosed as annexure. The member banks are requested to advise all their implementing branches to coordinate with DIC and to process the applications in time. The Lead District Managers are advised to place the district wise targets in the ensuing DCC meetings and follow up with member banks for speedy disposal of applications. 108

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118 AGENDA NO: nd SLBC Setting up of Rural Self-Employment Training Institutes (RSETIs) All the Four Banks having Lead District responsibilities have opened RSETIs in the lead districts allotted to them (Total 30 RSETIs). In addition, IOB has opened a RSETI at Kothagiri in Nilgiris District to impart skill training to Tribal People of the Nilgiris District. Performance of the RSETIs during April 2014 to March 2015: Total No. of RSETI No of training programme conducted No of persons trained SC/ ST Of which Minority OBC Others No of persons secured employment /self employment No. of trained persons Credit Linked The Monitoring Cell of National Academy of RUDSETIs had advised certain parameters to all the RSETIs for grading them. The RSETIs should comply with the requirements to get A/AA grade. 118

119 AGENDA NO: nd SLBC Financial Literacy & Credit Counselling Centres (FLCCC) Four Lead banks namely IOB, Indian Bank, Canara Bank & State Bank of India have established the FLCCCs and are providing the Financial Literacy and Credit Counseling to the public in their lead districts (31 districts). Apart from the above FLCCCs, Indian Bank, Bank of India, ICICI Bank have one each at Chennai, Pandyan Grama Bank has established 4 FLCCCs at Tirunelveli, Ramnad, Virudhunagar & Thoothukudi and IOB has opened one additional FLCCC at Kothagiri, Nilgiris District exclusively for the tribal population. FLCCC Progress Report for the quarter ended March 2015 (January 2015 to March 2015) Name of the Bank No of FLCCC No. of Literacy camps undertaken during the quarter as per RBI guidelines using standardized financial literacy material of RBI No. of person participated in literacy camps during the quarter Out of persons participated, no. of persons already having bank account at the time of attending the camp Out of persons participated, no. of persons opened bank account after attending the camp IOB IB CB SBI BOI ICICI PGB TOTAL All the member banks are advised to instruct their rural branches/flcccs in the state to conduct the outdoor Financial Literacy Camps with focus on financially excluded people at least once a month as per RBI notifications dated , & and submit the quarterly progress report in the revised format within 20 days after the end of each quarter to LDMs / SLBC to review the same in DCC/ SLBC meetings and also to report to RBI. The requisite no. of Financial Literacy materials viz. Posters, guides and diaries have already been supplied to all bank by SLBC. 119

120 AGENDA NO nd SLBC Financial Inclusion & Green Initiatives ICT Based Financial Inclusion As advised by RBI the statistical data (in a prescribed format) on ICT based Financial Inclusion from member Banks in Tamil Nadu is collected by SLBC and submitted to RBI. All member Banks are requested to furnish the data before 5 th of every succeeding month to SLBC, as the consolidated statement has to be submitted to RBI before 7 th. The progress made by the Member Banks under Financial Inclusion as of March 2015 is furnished in the Annexure. 120

121 ICT Based Financial Inclusion Statistical Data POSITION AS ON Sl.No. Particulars 1 Number of Villages covered under ICT based FI At the beginning of the month ( ) Number Amt. O/s. (Rs.in Lacs) At the end of the month ( ) Number Amt. O/s. (Rs.in Lacs) 2a Number of Nofrills accounts b Overdrafts in no- frills 3 accounts GCCs KCCs BCs/BFs FLCCs Smart Cards issued 8 Smart card transactions number volume

122 AGENDA NO nd SLBC Performance on Educational loans for the year as of March 2015 The total educational loan outstanding target for Tamil Nadu is Rs crores with a physical target of accounts for the year assigned by Ministry of Finance, Govt. of India. Banks have reached the educational loan outstanding of Rs crores as of March 2015 against the yearend target of Rs crores and No. of accounts as of March 2015 is against yearend target of accounts. The percentage of achievement in loan amount and number of accounts is 92.41% and 93.13% respectively. Bank-wise performance under Educational Loans as of March 2015 is enclosed as annexure. Member Banks are requested to send their provisional data on educational loans in the following format on 5 th of the month of every succeeding quarter and also submit the final data before 20 th of the month of every succeeding quarter to enable SLBC to send the progress report to Ministry of Finance. Name of the State : Tamil Nadu Progress report for the Month of Name of the Bank No. of Accounts Educational loan O/S Amount Outstanding (Rs in crore) 122

123 Performance on Educational loans as of March 2015 Annexure Sl. No Name of the Bank Public Sector Banks Target for No.of A/Cs Amount O/S ( Crores) Outstanding as on No.of A/Cs Amount O/S ( Crores) 1 Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Bharatiya Mahila Bank Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank State Bank of B & J State Bank of Hyderabad State Bank of India State Bank of Mysore State Bank of Patiala State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank IDBI Sub Total (A)

124 Sl. No B Name of the Bank Private Sector Bank Target for No.of A/Cs Amount O/S (Crores) Outstanding as on No.of A/Cs Amount O/S (Crores) 1 Axis Bank Ltd Catholic Syrian Bank Ltd City Union Bank Ltd Dhanalakshmi Bank Ltd Federal Bank Ltd HDFC Bank Ltd ICICI Bank Ltd Indus Ind Bank Ltd ING Vysya Bank Jammu & Kashmir Bank Ltd Karnataka Bank Ltd Karur Vysya Bank Ltd Kotak Mahindra Bank Ltd Lakshmi Vilas Bank Ltd South Indian Bank Ltd Tamilnad Mercantile Bk Ltd Yes Bank Ratnakar Bank Ltd Sub Total (B) C Regional Rural Banks 1 Pandiyan Grama Bank Pallavan Grama Bank Sub Total ( C ) D Cooperative Banks Sub Total (D) GRAND TOTAL(A+B+C+D)

125 AGENDA No: nd SLBC Details of Educational Loans disbursement from April 2014 to March 2015 ( ) A) The details of educational loans granted by member banks are furnished in the annexure 1. As per the reports received, loans to the tune of Rs crores have been granted during April 2014 to March 2015 of which loans for Engineering/Medical courses account for amounting to Rs Cr, 3110 loans for study abroad amounting to Rs Cr and loans to Others, to the tune of Rs Cr. Out of Educational loans granted to the tune of Rs crores, loans amounting to Rs Cr, 5102 loans amounting to Rs Cr and loans to the tune of Rs Cr were granted to SC/ST, Minority and Women respectively. B) As per the details received from the Member Banks, the status of loan applications received / sanctioned / rejected / pending are as under. Bank-wise data is enclosed in annexure 2. (Amount in Crores) Loan Loan Loan Applications Education Loans Applications Applications Received Sanctioned Rejected Pending No. Amount No. Amount No. Amount No. Amount Member Banks are requested to expedite disposal of pending loan applications. 125

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128 AGENDA NO: nd SLBC Bank Finance under Housing Scheme (under Priority Sector) As per the feed- back received from member banks, disbursement to the tune of Rs crores has been made to the housing sector from April 2014 to March The Bank wise disbursement details from April 2014 to March 2015 is furnished in the Annexure. Break-up of the portfolio on the basis of loan size is as follows:- (Amount in Lakhs) Disbursement made from April 2014 to March 2015 Particulars No. Amount Limit Upto Rs.5 Lacs Limit above Rs.5 lacs - upto Rs.10 Lacs Limit above Rs.10 Lacs - upto Rs.15 Lacs Limit above Lacs Rs.15 Lacs - upto Rs Total

129 Bank Finance under Housing Scheme Direct Housing Finance from April 2014 to March 2015 (Amt. in lacs) Sl. No. Name of the Bank Disbursement made from Apr'14 to Mar'15 No. Amount 1 Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Bharathiya Mahila Bank Ltd Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank IDBI Bank Ltd Axis Bank Ltd Catholic Syrian Bank City Union Bank Ltd Dhanalakshmi Bank Ltd Federal Bank Ltd

130 (Amt. in lacs) Sl. No. Name of the Bank Disbursement made from Apr'14 to Mar'15 No. Amount 27 HDFC Bank Ltd ICICI Bank Ltd Indus Ind Bank Ltd Ing Vysya Bank Ltd Jammu & Kashmir Bank Ltd Karnataka Bank Ltd., Karur Vysya Bank Ltd Kotak Mahindra Ltd Lakshmi Vilas Bank Ltd South Indian Bank Ltd Tamilnadu Mercantile Bank Yes Bank Pandyan Grama Bank Pallavan Grama Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Mysore * State Bank of Patiala State Bank of Travancore Ratnakar Bank TN State Apex COOP Bank Ltd GRAND TOTAL

131 AGENDA NO: nd SLBC Golden Jubilee Rural Housing Finance Scheme (GJRHFS) As per the feedback received from the member banks, 1360 loans amounting to Rs lacs have been disbursed under Golden Jubilee Rural Housing Finance Scheme during the quarter March 2015 as shown below: Particulars Total Loans disbursed during the Quarter Scheduled Castes Scheduled Tribes Others (Amount in Lacs) Total No. Amt. No. Amt. No. Amt. No. Amt Member Banks are requested to furnish the details of housing loans under Golden Jubilee Rural Housing Finance Scheme on quarterly basis to SLBC. 131

132 AGENDA NO: nd SLBC CREDIT FLOW TO WOMEN Government of India and Reserve Bank of India have advised banks to strengthen the credit flow to women and to ensure that their share in Bank Credit is increased to the desired level of 5% or more. The details of performance of the Banks in Tamil Nadu under credit flow to women entrepreneurs as of March 2015 are furnished below: (Amount in Crores) S.No PROGRAMME Disbursement made from April 2014 to March 2015 Outstanding position as of March 2015 Accounts Amount Accounts Amount 1 AGRICULTURE MSE HOUSING EDUCATION OTHERS TOTAL At the level of Rs crores, advances to women constitute 12.20% of total Bank credit as against the national norm of 5%. 132

133 AGENDA NO: nd SLBC CREDIT FLOW TO MINORITY COMMUNITIES As per the feedback received from the member banks, Loans amounting to Rs crores were disbursed to Minority Communities during the quarter ended March 2015 as shown below:- (Amount in Crores) Sl. No. Name of the Community Disbursement during the quarter ended March 2015 All Banks Public Sector Banks Account Amount Account Amount 1 Muslim Christian Sikh Zorastrian Neo Buddist Jains Total Total outstanding advances to Minority Communities by all banks stood at Rs crores as of March Details are furnished below. Sl. No. Name of the Community (Amount in Crores) Outstanding Position as of March 2015 All Banks Public Sector Banks Account Amount Account Amount 1 Muslim Christian Sikh Zorastrian Neo Buddist Jains Total

134 The bank wise outstanding position on specified minority communities as of March 2015 is enclosed as an annexure (Public Sector Banks). Ministry of Finance, Govt. of India has advised that the share of credit flow to minority communities of Public Sector Banks (PSB) should be 15% of the Priority Sector Advances. Public Sector Banks are advised to ensure that their outstanding under Minority Sector Lending should be at 15% level minimum as per the directives of Ministry of Finance. 134

135 OUTSTANDING ADVANCES TO SPECIFIED MINORITY COMMUNITIES BY PUBLIC SECTOR BANKS MARCH 2015 S.NO NAME OF THE BANK PRIORITY SECTOR ADVANCES AS ON (Rs. in Crores) O/s. of advances to Minority Communities % of Minority Communities to PSA 1 STATE BANK OF BIKANER & JAIPUR STATE BANK OF HYDERABAD STATE BANK OF INDIA STATE BANK OF MYSORE STATE BANK OF PATIALA STATE BANK OF TRAVANCORE ALLAHABAD BANK ANDHRA BANK BANK OF BARODA BANK OF INDIA BANK OF MAHARASHTRA BHARATHIYA MAHILA BANK LTD CANARA BANK CENTRAL BANK OF INDIA CORPORATION BANK DENA BANK IDBI BANK LTD INDIAN BANK INDIAN OVERSEAS BANK ORIENTAL BANK OF COMMERCE PUNJAB & SIND BANK PUNJAB NATIONAL BANK SYNDICATE BANK UCO BANK UNION BANK OF INDIA UNITED BANK OF INDIA VIJAYA BANK TOTAL PUBLIC SECTOR BANKS

136 AGENDA NO: nd SLBC KISAN CREDIT CARD SCHEME (KCC) Reserve Bank of India has advised that investment credit requirements of farmers viz. allied and non farm activities may also be covered under the Scheme. All KCC Holders have to be covered under Personal Accident Insurance Scheme (PAIS). Reserve Bank of India has issued guidelines on the revised Kisan Credit Card Scheme to all the Banks vide their letter dated As per the progress report submitted by Member Banks, from April 2014 to March 2015, Banks in Tamil Nadu have issued Kisan Credit Cards to the tune of Rs crores. The total number of ATM enabled KCC cards issued is The details are furnished in the annexure. Progress in issuance of ATM enabled revised Kisan Credit Card is very slow. All member banks are requested to issue ATM enabled Kisan Credit Card and furnish the progress report on monthly basis to SLBC. CROP INSURANCE All member banks are requested to instruct their branches in the State to ensure 100% coverage of all crop loans extended to notified crops in the notified areas. 136

137 137

138 AGENDA NO: nd SLBC SELF HELP GROUPS (SHGs) /NRLM As per the data provided by TNCDW, credit disbursement to SHGs by banks amount to Rs Crores for the year against the yearly ( ) target of Rs crores. The percentage of achievement is 103%. The District-wise/ Bank-wise performance to Self Help Groups for the year are furnished in the annexure. SHGs/ NRLM Target for TNCDW has advised the target of Rs crores for SHGs credit linkage for the year The district wise target is enclosed as annexure. The Lead District Managers are requested to allot the bank-wise targets to all the Banks in their Districts in consultation with PO Mahalir Thittam and review the progress in DCC/DLRC meetings. The member banks are requested to advise all their branches to process the applications in time. 138

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143 AGENDA NO: nd SLBC TAHDCO scheme Banks in Tamil Nadu have sanctioned 10,655 loans to the tune of Rs Crores under TAHDCO scheme for the year , & The Bank-wise details of loan sanctioned are enclosed as annexure. Managing Director, TAHDCO has advised that applications are pending with the banks for getting claim forms as on for the year , , and The copy of the MD s letter along with enclosures are provided for ready reference of the member banks. The member banks are requested to instruct their branches to dispose pending applications immediately. 143

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154 AGENDA NO: nd SLBC Tamil Nadu Government s Scheme for Poultry Development Dept. of Animal Husbandry advised bank-wise / district-wise number of pending applications for the year , & under the Scheme for Poultry Development. The details are furnished in the annexure. The member banks are requested to instruct their branches to dispose all the pending applications immediately. Continuation of the scheme Government of Tamil Nadu has issued G.O.(Ms)No.107 dated advising the continuation of the captioned scheme during the year with 25% subsidy to the poultry farmers of 8 districts for establishment of Broiler units and 18 district for establishment of Native Chicken units. Copies of the G.O. and scheme guidelines along with the targets for the implementing districts have already been sent to the member banks vide dated

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156 AGENDA NO: nd SLBC National Urban Livelihood Mission (NULM) The scheme of National Urban Livelihood Mission (NULM) is being implemented in 40 towns having population more than 1 lakh and all head quarter towns in the state. Director, Municipal Administration, Chennai vide their letter dated advised the progress under NULM scheme for the year (as on ) as given below; Particulars Target No. of applications forwarded to the banks No. of applications sanctioned by the banks No. of applications disbursed by the banks Project cost sanctioned by the bank (Rs. in Crores) NULM SEP NULM Group TOTAL Member banks are requested to participate actively in the implementation of the scheme. 156

157 AGENDA NO: nd SLBC Weavers Credit Card Scheme (WCC) Dept. of Handloom and Textiles, Govt. of Tamil Nadu has advised that Banks have disbursed Weavers Credit Card Loan out of the target of cards during the year The percentage of achievement is 68%. The Bank-wise progress report for the year is enclosed as annexure. Target for Dept. of Handloom and Textiles, Govt. of Tamil Nadu has advised a target of Weavers Credit Card for the year The District/Circle wise target is enclosed as annexure. The Lead District Managers are requested to allot the bank-wise targets to the Banks in their Districts in consultation with Deputy Director/ Asst. Director, Dept. of Handlooms & Textiles, and review the progress in DCC/DLRC meetings. The member banks are requested to advise their branches to ascertain their targets from Dept. of Handlooms & Textiles / LDMs and to process the WCC loan applications in time. 157

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161 AGENDA No: nd SLBC REVIEW OF NPA ACCOUNTS IN PRIORITY SECTOR LENDING MARCH 2015 The position of NPA under categories of Priority Sector Advances as of March 2015 is furnished below. NPA POSITION S No. Particulars NPA Amount Mar 2015 Dec 2014 (Amount in Crores) % of NPA Mar 2015 Dec NPA in Housing loans % 2.39% 2 NPA in Education loans % 9.75% 3 NPA in Agriculture Loans % 3.47% 4 NPA in Loans to MSE % 5.67% 5 NPA in Micro Credit % 11.50% 6 NPA in over all Priority Sector Lending % 4.59% It is observed that NPA position in education, Agri, MSE and microcredit loans have shown increase as of March 2015 over December DCCs are also requested to review NPA position every quarter and arrange recovery drives with the help of District Administration for Government sponsored schemes. 161

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164 AGENDA NO: nd SLBC SUCCESS STORY One of the recommendations of the High Level Committee on Lead Bank Scheme is Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated. The Success Stories received CANARA BANK, RSETI, Erode and IOB RSETI, Karur are enclosed as annexure. 164

165 SUCCESS STORY NO.1 RSETI, ERODE (Canara Bank) Name of the Trained candidate: S.Saraswathi Address : 10 Nadupalayam, Chithode, Erode Dist. Batch Name: Dress Designing for Women Smt. S.Saraswathi lives in Chithode. She studied up to 12th standard. Her husband is working in an Export Company. She is blessed with two children who are studying in schools. Before she came to the training, she was selling sarees in retail price. But she didn t get enough income through her saree business and her husband s income was also not sufficient to run the family. So she decided to learn tailoring in order to generate more income. She heard about CBRSETI through her friend and immediately applied for the Dress designing course and attended a 21 days course. During the training, she has learnt designing of various costumes such as Chudi, Blouse, School Uniform, Nighties and Petty coat. Moreover through the training, she has learnt how to become a Successful Entrepreneur and how to get more income through Customer satisfaction. She also acquired skills relating to judge the marketing trend, basic accounts to price her products etc. After completing the training she has mobilized a capital of Rs, 50000/- (own fund Rs /- and Rs loan from District Central Cooperative Bank) and started a Tailoring shop. Now she is a pride owner of a Tailoring shop and is providing employment to two persons in her shop. She is earning a monthly income of Rs. 7000/- per month after meeting all her expenditures. She expressed her thanks to CBRSETI, ERODE which has helped herto change her economic condition. 165

166 SUCCESS STORY NO.2-RSETI, ERODE (Canara Bank) Name of the Trained candidate: K.Lavanya Address : 245, Goundar Street, Bhavani, Erode Batch Name: Beauty Parlour Management Smt. K.Lavanya is living in Bhavani. She has studied upto 12 th Standard. Her husband is working in TNSTC. She is blessed with two children who are studying in schools. Before she came to the training, she was a homemaker. Her ambition is to become an Entrepreneur by taking up some self employment. She came to know about the Beauty parlour management course conducted by CBRSETI, Erode through a daily news paper. She immediately applied for the course and attended 30 days training. She liked the course module taught by CBRSETI and has thoroughly learnt the art of Beauty parlour viz., Facial, Threading, Mehandi, Henna for Hair, Hair Cutting, Oil massage, bridal Make up etc., She has also enriched the knowledge of Entrepreneurial Competencies from the EDP classes. She has informed that through the training she attended, her life style has been completely changed. She has started a Beauty Parlour at Bhavani, with an Investment Rs /- (own fund Rs /- and loan from Canara Bank Rs /-). Now she is earning a monthly income of Rs /- after meeting all the expenses. She has expressed her thanks to CBRSETI, for making her to stand on her own legs without the assistance of her husband. 166

167 SUCCESS STORY NO.3 - RSETI, KARUR (IOB) Dress designing for women Pallapatti town Panchayat in Karur dist. is predominantly occupied by Minority Muslim people. Around 5,000 households of Muslims are there in this town. All the ladies of their community have never taken up any job or self employment. IOB, RSETI, Karur has identified the potential available in that area and has decided to conduct a training on dress designing for women, who have little knowledge in tailoring. In the above attempt, 25 young ladies were selected and a training on Dress Designing for Women was given to the trainees for 21 days. On successful completion of the training, a loan of Rs.1 lac for each trainee was sanctioned by various banks for starting the tailoring unit. The trainees have started a Tailoring unit under the name and style M/S RUMANA GARMENTS in a common place, which was inaugurated by our Dist. Collector, Karur Dist. The trainees are making the garments such as jobla, Shirts for men, chudidars etc., and selling their produce at Puthanatham market, which is a very big readyware market for gents shirts and jobla. They are sourcing the work order from various parts of the states and are earning a regular income of around RS. 10,000/- per trainee per month after repaying the loan installment of Rs.5,000/- per month per trainee. IOB RSETI, Karur has helped 25 women entrepreneurs to emerge as independent and economically self reliant from a minority community area. 167