New Delhi, August 07: The Centre is mulling to restart the practice of holding consultations with the representatives of banks along with Chief Ministers to discuss issues related to availability of credit for rural areas.
Finance Minister Pranab Mukherjee said he was planning to revive the practice of meeting representatives of banks along with chief ministers and finance ministers of states at least once a year to discuss related issues.
He expressed concern over credit-deposit ratio in some states which was not at par with the national level.
Mukherjee stated this while replying to supplementaries during the Question Hour in the Lok Sabha.
He said review of performance of regional rural banks was being done at regular intervals by the respective sponsor banks, National Bank of Agriculture and Rural Development and the Centre wherein losses of RRBs were also looked into.
Mukherjee noted that over the past few years credit flow from RRBs have increased steadily.
Several steps taken by the Centre, RBI and NABARD to strengthen the financial health of RRBs and to help them become more competitive and competent in supplying credit to rural masses, he said.
–Agencies