The Finance Minister, Nirmala Sitharaman, has expressed concern over the slow progress of computerization in regional rural banks, highlighting the government’s commitment to improving the banking system. The government has launched several initiatives to address these issues.
Farmer Loan Portal and Weather Information Network Data System (WINDS):
Sitharaman recently inaugurated the Farmer Loan Portal and the Weather Information Network Data System (WINDS) manual. However, she emphasized that there is still much work to be done in terms of digitalization, particularly in regional rural banks and cooperative banks.
Cooperative Banks and Digitalization: Sitharaman acknowledged that cooperative banks face varying degrees of financial health and prosperity. The Ministry of Cooperation, led by Home Minister Amit Shah, is actively working to enhance its capacity.
The finance minister stressed that the digitization of cooperative banks is a priority, but the computerization and digitalization of regional rural banks remain crucial.
Importance of Computerization:
Sitharaman emphasized that without computerization and digitalization, services like phone banking and Internet banking cannot effectively serve the banking sector.
Financial Services Department’s Role:
She noted that the Financial Services Department is increasingly promoting computerization, but there is still much work to be done.
Focus on Farmers:
The government is giving significant importance to the agricultural sector, especially in light of the COVID-19 pandemic. The Finance Minister stressed the importance of supporting farmers and agriculture.
Increased Income for Farmers:
Agriculture Minister Narendra Singh Tomar highlighted the government’s efforts to increase farmers’ income through various measures. The budget allocation for the agricultural sector has seen substantial growth since 2013-14.
Short-Term Crop Loans:
Tomar assured that there is no shortage of funds for short-term crop loans, with a target of Rs 20 lakh crore set for the current financial year. This includes a focus on animal husbandry, dairy, and fisheries.
Interest Subsidies:
The government is offering a two percent interest subsidy to farmers for short-term agricultural loans up to Rs three lakh, effectively reducing the interest rate to seven percent per annum.
Kisan Credit Card (KCC) Scheme:
Sitharaman urged banks to provide necessary data in the “Farmers Loan Portal” by December 31, 2023, to facilitate subsidized loans under the KCC scheme. The KCC campaign, aimed at reaching every household, is set to start on October 1.
In summary, the government is actively working to improve the banking system’s digital infrastructure, with a particular focus on regional rural and cooperative banks. These efforts are part of a broader strategy to support farmers and boost the agricultural sector’s growth.