minutes of 108th meeting of j&k slbc held on june 26, 2018

Serving to Empower

Convenor SLBC (J&K)

1 108th meeting of J&K SLBC

Minutes of 108th meeting of J&K SLBC held on June 26, 2018

The 108th meeting of J&K State Level Bankers’ Committee to review performance of banks and financial institutions operating in J&K State as at the end of FY 2017-18 was held on June 26, 2018 at SKICC, Srinagar. The meeting was presided over by Mr. B. V. R. Subrahmanyam (IAS), Chief Secretary, J&K and proceedings were steered by Mr. Parvez Ahmed, Chairman & CEO, J&K Bank (Convenor, J&K SLBC). Top functionaries of the State Government and regulators who attended the meeting include Mr. Navin Kumar Chowdhary (IAS)- Principal Secretary Finance, Mr. R. K. Bhagat (IAS)- Commissioner/ Secretary, Animal Husbandry, Mr. Ashok Kumar Mattu, General Manager, Reserve Bank of India, Mr. A. K. Dogra, Deputy Secretary, DFS, MoF, Govt. of India, Senior functionaries of State Government, Banks, Reserve Bank of India, NABARD, Heads of Government Departments and Developmental Agencies and representatives of various Insurance Companies operating in the State. List of participants is enclosed as Annexure-A. At the outset Mr. R. K. Chhiber, Executive President (LBD/SLBC), J&K Bank welcomed all the participants of the meeting and thereafter requested Chairman & CEO, J&K Bank (Convenor, J&K SLBC) to deliver the keynote address. Mr. Parvez Ahmed, Chairman & CEO, J&K Bank (Convenor, J&K SLBC) in his Key Note Address extended a warm welcome to Shri B. V. R. Subrahmanyam, Chief Secretary to his maiden meeting of the J&K State Level Bankers’ Committee after assuming charge as Chief Secretary of J&K State and stated that his vast administrative experience and the key positions he has held at the Prime Minister’s Office and the World Bank, gives us the reason to be optimistic for coming times in terms of his guidance, support and directions for resolution of the issues. He also placed on record the valuable contributions of the Ex-Chief Secretary, J&K Government (Mr. B. B. Vyas) to the State Level Bankers’ Committee for practical resolution of some of the outstanding issues. Mr. Parvez Ahmed outlined some of the crucial issues on the Agenda of the meeting, including the Revamp of the Lead Bank Scheme by RBI, which inter-alia envisages a focused role of this apex forum with the primary objective to discuss the policy issues besides looking to strengthen the district and block level fora to monitor grass-root level performance of banks. He also briefed the house about the major contributions of banks during the financial year 2017-18 and assured the house on behalf of the whole banking fraternity of all possible support and cooperation for implementing the programmes/ schemes aimed at entrepreneurial developments, employment generation and poverty alleviation in the State. Simultaneously he solicited intervention of the State Government in expeditious digitization of land records for ensuring smooth credit flow to the Housing and Education Sectors, by facilitating implementation of the SARFAESI Act for improving the credit culture in the State. Chief Secretary, J&K Government, Mr. B.V.R. Subrahmanyam expressed his happiness to be present in this 108th meeting of J&K State Level Bankers’ Committee.

Serving to Empower

Convenor SLBC (J&K)


He expressed his displeasure on the absence of the senior-level functionaries of the State Government from this SLBC meeting, which he said was indicative of how serious the government machinery in the State has been. He directed that:

• His displeasure be conveyed by the Principal Secretary Finance to all those Secretaries who skipped this meeting.

(Action: Finance Department, J&K Govt.)

• Secretaries of the Government Departments should ensure to attend the meetings themselves and not send their representatives to the meetings presided over by the Chief Secretary.

(Action: Secretaries of all Government Departments)

Regarding the format of Agenda, the Chief Secretary directed that besides incorporating more granular data in the Agenda, the Convenor Bank shall henceforth prepare a Power Point Presentation briefly detailing the agenda items and highlighting the issues for discussion.

(Action: Convenor Bank/SLBC Secretariat)

Thereafter agenda of the meeting was taken up for deliberations as under: Confirmation of minutes of the 107th meeting of J&K SLBC held on 21st Feb., 2018: As no comments/ amendments from any member were received, the minutes of the 107th meeting of J&K SLBC held on 21st February, 2018 were deemed as confirmed by the house. Rolled over actionable points of earlier SLBC meetings (Follow-up of outstanding issues):

(i) Digitization of land records in J&K State: Additional Secretary Revenue Department, J&K Government informed the house that the first phase of the digitization programme was scheduled to be completed by February, 2018, but that has been delayed and shall need almost one year more.

Keeping in view its significance for the banking sector as well as for the general public, Revenue Department was advised to expedite the process.

(Action: Revenue Department, J&K Govt.) (ii) Setting up of Farmers’ Training Centre (FTCs) in J&K State: Principal Secretary Finance, J&K Govt. informed that the Farmers’ Training Centre (FTC) for Jammu region was supposed to be set up by Punjab National Bank in Kathua District for which the State Government had identified land at Billawar and PNB was required to have the site inspection of that land. He advised PNB to inform the latest status in the matter.

DGM, PNB informed that the site was visited by the bank and the land identified by the state Government at Billawar was not found suitable for setting up of the FTC for mainly two reasons, i.e. the approach road to the said land was not found appropriate for the bank and secondly, within the said identified land a piece of 10 kanals has already been allotted by the Government to some other party. He informed that PNB has requested the DC Kathua to provide some other suitable land to the bank for the purpose. Chief Secretary expressed his displeasure that the issue initially raised in the 91st meeting of J&K SLBC was yet to be decided even when the SLBC is conducting its 108th meeting, which indicated lack of seriousness on the part of the stakeholders. Maintaining that the road was

Serving to Empower

Convenor SLBC (J&K)


not an issue, the Chief Secretary advised Punjab National Bank to analyze the options as to whether it would be easier to make the road than searching for some other piece of land. He advised that the analysis should be got done through the concerned Revenue Authorities and it should be ensured that within a month the construction work should begin on a new road. Alternatively issue should be pursued for getting a new land allotted for the purpose immediately.

Regarding allotment of land to J&K Bank and State Bank of India for setting up the FTCs in Kashmir region and Ladakh region respectively, Chief Secretary directed that if the Revenue department has any problems in allotting land for the FTCs in Kashmir and Ladakh, these should be escalated to office of the Principal Secretary Finance immediately and in case the Revenue department does not allot land, the issue should be flagged to Chief Secretary’s office. He advised that whichever bank has the responsibility should ensure to start construction work for FTC as soon as the land is allotted.

(Action: Principal Secretary Finance/ Commissioner/Secretary (Revenue)/ J&K Bank/ SBI/ PNB)

Agenda Item No.108.01 Revamp of Lead Bank Scheme–Action Points for SLBC Convenor Banks/ Lead Banks:

House was informed that Reserve Bank of India has recently issued a Circular bearing No. RBI/2017-2018/155 dated April 6, 2018 containing recommendations of the Committee of Executive Directors constituted to study the efficacy of the Lead Bank Scheme and suggest measures for improvement. On the basis of their feedback Reserve bank of India has advised various action points to be implemented by the SLBC Convenor Banks. The said action points were deliberated in the meeting and following decisions were taken for implementation: Action Point No.1,2 & 3: • A Steering Sub-Committee comprising representatives of the following organizations was

constituted with immediate effect: 1) Convenor, J&K SLBC; 2) Finance Department, J&K Government; 3) Reserve Bank of India; 4) NABARD; 5) J&K Bank; 6) State Bank of India; 7) Punjab National Bank;

• Henceforth, the said Steering Sub-Committee shall deliberate on the agenda proposals from different stakeholders and finalize a compact agenda for the SLBC meetings.

• It was decided that other issue-specific Sub-Committees shall be constituted by J&K SLBC as and when needed.

(Action: Convenor Bank, J&K SLBC) Action Point No. 4

• All member banks shall ensure that the corporate business targets for their branches, blocks and districts are aligned with the Annual Credit Plans (ACPs) under Lead Bank Scheme to ensure better implementation. Controlling Offices of banks

Serving to Empower

Convenor SLBC (J&K)


should synchronize their internal business plans with the ACP under Lead Bank Scheme.

(Action: All member banks) Action Point No. 5

• House approved that J&K Bank shall be responsible for developing a standardized system on the J&K SLBC website to enable uploading and downloading of the performance data of banks pertaining to blocks, districts, and the State.

• The Chief Secretary directed that from September, 2018 onwards the performance data of banks should come to the Convenor Bank in the online mode through the J&K SLBC website designed, developed and hosted by J&K Bank.

(All member banks)

• Convenor, SLBC will take all necessary measures in consultation with all other stakeholders including Reserve Bank of India, wherever required, to ensure that the relevant data is directly downloadable from the CBS and MIS of the banks, in order to keep manual intervention at a minimal level, as envisaged in the RBI Circular under reference,

(Action: Convenor Bank/ Reserve Bank of India) Action Point No. 6

• Banks were advised to issue instructions to their Branch Managers to attend BLBC meetings.

• All Lead District Managers to ensure participation of the Branch Managers in BLBC meetings.

(Action: All member banks/ All Lead District Managers)

Action Point No. 7

• RSETIs to design specific programmes keeping in view the skill mapping and the potential of the region for necessary skill training and skill upgradation of the rural youth in the district.

(Action: J&K Bank/ State Bank of India) • All Lead District Managers to ensure that activities of RSETIs are monitored in the

DCC/DLRC meetings regularly. (Action: All Lead District Managers)

Agenda Item No.108.02 Bank-wise/ Sector-wise/ Region-wise achievements in lending to Priority Sector/ Non-Priority Sector under Annual Credit Plan 2017-18 – position as on 31st March, 2018:

House placed on record that during the FY 2017-18 banks have extended a total credit of Rs.23,592.91 Crore in favour of 7,33,025 beneficiaries both under priority as well as non-priority sectors of economy, thereby achieving 82% of the ACP targets in financial terms and 76% in physical terms. This includes Rs.12,817.84 Crore disbursed under Priority Sector achieving 64% of the target and Rs.10,775.07 Crore disbursed under Non-Priority Sector achieving 121% of the Target. House noted with concern that the performance of banks, particularly the private sector banks, with regard to their lending to the Priority Sector was quite dismal. Deputy

Serving to Empower

Convenor SLBC (J&K)


Commissioner, Srinagar pointed out that the position of loans to Housing Sector continues to be very dismal. He informed the house that whatever lending is done in the district, that is being mostly done by the J&K Bank whereas the contribution of the Private Sector Banks has remained abysmally low, which has already been brought to the notice of SLBC during the last few meetings. The Chief Secretary held detailed discussions with various Lead District Managers including LDMs of District Srinagar, District Budgam, District Samba regarding the potential for credit deployment available in their respective districts and the achievement of targets under the District Credit Plans. Expressing his displeasure with the performance of banks in the entire Jammu Region where the performance is hovering around 40 – 50%, the Chief Secretary pointed out that achievement of just 42% of the ACP target in priority Sector by Samba District is totally unacceptable.

• DC Samba was advised to review the position, analyze the reasons for this low performance and suggest corrective measures.

(Action: Deputy Commissioners of Jammu Division)

• Chief Secretary advised the Principal Secretary Finance to take a meeting with the Convenor, J&K SLBC and Heads of the Banks and do a micro-analysis district-wise to indicate which district is lagging behind in which sector and ascertain the reasons thereof, which should be reported to the House in the next meeting for deliberation.

(Action: Principal Secretary Finance/J&K SLBC) Item No: 108.03 to 108.05 CREDIT DISBURSEMENT UNDER GOVERNMENT SPONSORED SCHEMES

(i) Scheme-wise/ Bank-wise and Region-wise performance of Banks under major Government Sponsored Schemes as on March 31, 2018;

(ii) Performance under Handicrafts/ Handloom Schemes; and (iii) Dairy Entrepreneurship Development Scheme (DEDS):

House noted that under four major Government Sponsored Schemes, viz. NRLM, NULM, PMEGP and SC/ST/OBC, banks have disbursed a total amount of Rs.329.65 Crore in favour of 13,797 beneficiaries against the target of Rs.539.40 Crore favouring 21,951 beneficiaries, thereby achieving 61% of target in financial terms and 63% in physical terms. As regards the performance of individual schemes it was noted that under NRLM banks have achieved 158% of the financial target, under PMEGP the achievement has been to the extent of 91% of the financial target. However, the achievement of banks under NULM and SC/ST/OBC was to the extent of 19% and 42% of the financial target respectively, which was considered to be quite dismal. Chief Secretary noted with concern that under PMEGP Scheme HDFC Bank, which is having 73 branches operating in the State, was assigned a target of 83 cases against which only 3 cases were sponsored to the bank, but the bank has not sanctioned even a single case. It was observed that cases are not being sponsored in a systematic manner, which is evident from the fact that some of the banks are being sponsored bulk of cases but some of them are sponsored very few or no cases at all.

Serving to Empower

Convenor SLBC (J&K)


The Chief Secretary desired that the Departmental Secretaries should own up their programmes and in case a Scheme does not work, the concerned Departmental Secretary should be responsible for that.

Taking note that these cases are being sponsored to banks through the District Level Task Force Committee (DLTFC) headed by the concerned Deputy Commissioners, the Chief Secretary directed that:

• Concerned Departmental Secretaries in respect of all these Government Sponsored Schemes will hold meetings of all the stakeholders including, if necessary, a representative from the J&K Bank Convenor SLBC, to analyze district-wise position of cases sponsored to various banks viz-a-viz targets and the performance of banks there-against. It also needs to be analyzed whether the DLTFCs headed by the concerned Deputy Commissioners are doing their job systematically, so as to ensure that good quality cases are sponsored to banks. They will submit the reports to Principal Secretary Finance suggesting measures for improving the position.

(Action: Secretary, Rural Dev.Deptt./SRLM, HUDD./ Ind. & Comm. Deptt./ Social Welfare Deptt./ Animal Husbandry Deptt.)

Agenda Item No: 108.06 Credit at a glance - (Overview of Credit Scenario in J&K State as on March 31, 2018: Chairman, J&K Bank (Convenor SLBC) informed the house that total advances of all banks operating in the State as on 31st March 2018 stood at Rs.51,914.29 Crore against Rs.44,305.66 Crore as at the corresponding period of previous year thereby recording YoY credit growth of 17.17% while as the total deposits in the State as on 31st March 2018 stood at Rs.1,09,976.56 Crore against the deposits of Rs.99,264.61 Crore as at the corresponding period of the previous year thereby indicating YoY deposit growth of around 10.79%. As a result of this the C. D. Ratio of the State has improved from 44.63% as on 31st March 2017 to 47.20% as on 31st March 2018, which is encouraging. However, keeping in view that Reserve Bank of India had prescribed a Credit Deposit Ratio of 60% for the State to be achieved as on 31st March, 2018, all the banks were advised to put in strenuous efforts to enhance flow of credit in the State, so as to ensure that CD Ratio of the State is substantially improved.

(Action: All member banks) Agenda Item No: 108.07 100% coverage of farmers in J&K state under KCC Scheme: The Cumulative Progress achieved by banks in having provided KCCs to 10,76,368 farm operating families in J&K State was taken on record. It was observed that there was a pendency of some 49000 KCC cases previously reported by the Directorate of Agriculture, Jammu, out of which some 14000 cases were reportedly pending with banks and the rest of the 34000 cases were reported to be pending with the Revenue Department, J&K Govt.

However, as per report of the Convenor Bank most of the banks operating in Jammu Division have informed that no cases for issuance of KCCs are pending with their branches in Jammu Division of the State.

Chief Secretary observed that the KCC cases for revenue clearance are forwarded by the Agriculture Department to Revenue Authorities. He stated that in case the cases forwarded to the banks for issuance of the KCCs are not complete in all respects, these are bound to be rejected at the bank branch.

Serving to Empower

Convenor SLBC (J&K)


• Deputy Commissioners of all the districts were advised to take a review of the issue and ensure that complete cases are forwarded by Agriculture Department to the banks for issuance/ sanction of the KCCs, then there is no reason of these cases being rejected by the banks. He advised that this issue should not come in the 110th SLBC meeting.

(Action: All Deputy Commissioners/ Agriculture Deptt., Jammu/ Convenor, J&K SLBC)

Agenda Item No: 108.08 SHG-Bank Linkage Programme (excluding SGHs under NRLM & NULM) – Progress as on 31.03.2018

Progress achieved by banks in J&K State during the FY 2017-18 was taken on record. Agenda Item No: 108.09 Finance to Joint Liability Groups (JLGs) of “Boomi-heen Kissan”:

The progress achieved by banks was taken on record. It was observed that against the target of 4,336 prescribed for the banks in the state, the banks have been able to form only 1,091 JLGs out of whom 994 JLGs were credit-linked involving an amount of Rs.16.02 Crore, which was not at all satisfactory. On being enquired by the Chief Secretary about the departments/agencies operating this JLG Scheme and fixing the targets for implementation by banks in the State, the House was informed that JLG Scheme was a scheme formulated by NABARD who initially also used to fix the targets. However, in terms of the decision taken in the 105th meeting of J&K SLBC the targets for the banks under this scheme are now being fixed by the Lead District Managers on the basis of the network of rural branches. DGM, NABARD informed the house that JLG Scheme has been introduced by NABARD and they have been extending all help to the banks in identification of these cases in the State.

• After a brief deliberation the Chief Secretary advised that Secretary Agriculture will hold a meeting to discuss the performance of banks under JLG Scheme.

(Action: Commissioner/Secretary, Agriculture Prod.) Agenda Item No: 108.10 Flow of Credit under Credit Guarantee Fund Scheme for MSMEs (Cumulative Progress as on 31.03.2018) - Policy Changes brought about by CGTSME in the Scheme: Performance of banks with regard to disbursement of credit to MSMEs covered under Credit Guarantee Fund Scheme was taken on record. House observed that the position was not satisfactory. Considering that the scheme was aimed at protecting the people, the Chief Secretary advised that this scheme needs to be promoted in the State and people need to be made aware about the benefits of the Scheme.

• He advised the Principal Secretary Finance to hold a meeting on this issue at his level and try to give a push to this Scheme.

(Action: Principal Secretary Finance) It was noted that the CGTMSE, Mumbai has brought the following major policy changes in the Scheme vide Communication No. CGTMSE Ref. No. SLBC1/2018 dated April 16, 2018, which

Serving to Empower

Convenor SLBC (J&K)


stand already disseminated by Convenor Bank to all banks operating in the State for implementation.

• All member banks were advised to take note of the said changes in the CGTMSE Scheme for implementation and sensitize their operative levels accordingly.

(Action: All member banks)

Agenda Item No: 108.11 Roadmap for coverage of 104 identified villages having population over 5000 without a branch of Scheduled Commercial Banks: Chairman, J&K Bank (Convenor, J&K SLBC) informed the house that against the target of covering 104 identified villages having population more than 5000 without any branch of scheduled commercial banks, the concerned participating banks have been able to cover only 18 villages, so far, which include 9 villages covered by J&K Bank against their individual target of 48 villages, 6 villages covered by SBI against their target of 15 villages and 3 villages covered by UCO Bank against their target of covering 5 villages. Pursuant to the interactions with the representatives of various banks, the Chief Secretary observed that the banks to whom these villages have been allocated should be fully aware of the locations and the backgrounds of the villages allocated to them. He advised all the participants to come prepared to the meeting with the agenda papers fully gone through. In reply to a query of the Chief Secretary, the representative of PNB informed that Punjab National Bank is not presently permitted to open any more branches. Mr. A. K. Mattu, General Manager, Reserve Bank of India informed the house that Reserve Bank of India has already given a relaxation to banks in this regard by issuing guidelines to the effect that these villages may not be covered necessarily by opening brick & mortar braches, but the banks could cover these villages by opening CBS-enabled banking outlet with certain improvements, i.e. these banking outlet should be working for minimum 5 days a week and 4 hours a day. He informed that a Circular containing these guidelines has since been issued by Reserve Bank of India for implementation by the banks.

• Chief Secretary directed the Convenor Bank, J&K SLBC to disseminate the relative RBI guidelines once again for information and guidance of banks. He, however, stressed upon the banks to ensure that substantial progress is made in coverage of these identified villages when the issue is reviewed in the next SLBC meeting scheduled to take place in August, 2018.

(Action: Convenor Bank, J&K SLBC / All participating banks)

Agenda Item No: 108.12 Implementation of Electronic Benefit Transfer (EBT) Scheme in J&K:

The Principal Secretary Finance informed the house that although all the districts of the State have already been brought under the purview of EBT Scheme in J&K State for one scheme, i.e. Indira Gandhi National Old Age Pension Scheme (IGNOAPS), yet there was urgent need of 100% EBT to be implemented in the State for all the State-sponsored Schemes as well as all the welfare programmes, so that all the benefits are transferred to the beneficiaries electronically through their bank accounts without any manual intervention. He stressed that

Serving to Empower

Convenor SLBC (J&K)


since J&K Bank stands already selected as the Leader Bank in the State for the purpose, onus lies on them to pursue for 100% EBT in the State. The Chief Secretary, J&K Government observed that implementation of EBT is good for the banks and if appropriate measures are taken there is no reason that 100% EBT compliance will not happen in J&K State.

• It was decided that Principal Secretary Finance shall soon hold a meeting with the concerned stakeholders including the major Government Departments and the implementing banks and workout necessary measures to give it a push. In case there are any individual issues, those should to be sorted out forthwith.

(Action: Principal Secretary Finance)

Agenda Item No: 108.13 I) Progress achieved in issuance of Aadhaar Cards in J&K State & seeding of Aadhaar

and Mobile numbers into the Bank Accounts/ Setting up of Aadhaar Centres in Bank Branches:

House expressed satisfaction that almost 100% of Aadhaar generation for the people above 18 years has already taken place in J&K State and the percentage of Aadhaar generation for the entire population has been to the extent of 79.97%. The representative of UIDAI read out a message from DDG, UIDAI (Ms. Bhawna Garg), wherein she had congratulated the Chief Secretary on his assuming the charge in the State and also congratulated J&K SLBC for the support and cooperation it extended in setting up the Aadhaar Enrolment & Updation Centres in the State. The DDG, UIDAI also felicitated J&K Bank for its role in operationalizing Aadhaar Enrolment Centres across more than 80 branches in the State out of the target of 100 branches, which immensely helped the residents of the State in availing Aadhaar services.

However, commenting on the functioning of Aadhaar Enrolment of updation Centres set up by various banks in the State, Chief Secretary expressed concern that the performance was not as per the desired level. He pointed out that performance of some of the major banks like State Bank of India and Punjab National Bank was extremely poor. He also stated that among the Private Sector Banks the J&K Bank being the major stakeholder with over 77 lakh individual savings banks accounts in the State also needs to improve the process of Aadhaar seeding in the State.

• Chief Secretary advised all the participating banks, particularly the major players, i.e. J&K Bank and State Bank of India to initiate all necessary measures to improve their performance and ensure that the job of covering 100% of the population for Aadhaar is successfully accomplished in the State

(Action: All participating banks)

Agenda Item No: 108.14 Implementation of Digidhan Mission in J&K State:

House noted that against the target of achieving 23 Crore transactions fixed for the J&K State, banks in J&K State have together achieved a total of 5.08 Crore digital transactions upto the end of March, 2018, which was not considered satisfactory.

Serving to Empower

Convenor SLBC (J&K)


Mr. Sushil Kumar, Vice President (IT), J&K Bank informed that these targets have been fixed by the Ministry of Electronics & Information Technology, Government of India. He informed the house that the banks has enhanced the performance from 24% to 45%. He, however, pointed out that there are issues of internet connectivity being faced by the bank, which need to be looked into.

• Chief Secretary, J&K Government directed the Secretary, Information Technology, J&K Government to immediately hold a meeting of all the stakeholders on the issue to analyze the problems associated with the issue and workout suitable solutions, so that target fixed by the Government of India is achieved.

(Action: Secretary, Information Technology)

• Chief Secretary advised that the people associated with formulation of the Agenda for the SLBC meetings should ensure that the issues and problems that need to be addressed are properly highlighted in the agenda, so that the house can focus on the same and initiate appropriate measures to solve those problems.

(Action: Convenor Bank, J&K SLBC)

Agenda Item No: 108.15 Branch Expansion Plan (BEP) of banks in J&K State: House noted that although there was an aggregate Branch Expansion Plan of opening 412 branches in the State during the FY 2017-18, but only the J&K Bank has opened 31 branches in the State against their individual BEP of 384. House expressed concern that all other banks have failed to open any branches in the State during the year.

General Manager, Reserve Bank of India clarified that RBI does not fix any targets for the banks for opening their branches, as the policy of branch opening has been liberalized. He, however, clarified that as per RBI guidelines whatever new bank branches are opened by banks, 25% thereof should mandatorily to be opened in the tier 5 and tier 6 Centres.

• Chief Secretary advised that Finance Department, J&K Government shall write a letter to the Secretary, Department of Financial Services, Government of India and the Governor, Reserve Bank of India to increase the presence of bank branches of Public Sector Bank in J&K State to the extent possible.

(Action: Finance Deptt., J&K Govt.)

• Chief Secretary advised that presence of branches in the State should be enhanced in such a way that the ratio of the presence of public sector banks and other banks gets substantially increased.

(Action: All Member Banks)

Representative of the J&K State Cooperative Bank brought to the notice of the house that their bank is presently confined to only 5 districts of the State though RBI has permitted the bank to have their branches in all the districts of the State. Seeking permission to open the branches in all the district headquarters to increase their footprint in the State, General Manager, J&K State Cooperative Bank stated that they have already written to the Registrar Cooperative Societies, J&K Government as well as to NABARD in this regard.

• Chief Secretary advised the J&K State Cooperative Bank to flag the issue to office of the Chief Secretary.

(Action: J&K State Cooperative Bank)

Serving to Empower

Convenor SLBC (J&K)


Agenda Item No: 108.16 Financial Literacy initiatives by FLCs & Rural Branches of banks in J&K State:

The House expressed satisfaction that there are 31 FLCs operating in all the districts of the State which have been set up by 6 major banks in the State, viz. J&K Bank, State Bank of India, Punjab National Bank, J&K Grameen Bank, Ellaquai Dehati Bank and J&K State Co-operative Bank, who are imparting financial education to the masses and providing credit counselling to the people by organizing camps at various locations in terms of the guidelines issued by Reserve Bank of India from time to time. Their performance in having conducted 361 Special Camps and 538 target-group-specific camps in the State during the FY 2017-18 was taken on record.

House also noted that 920 rural branches of various banks operating in the State have conducted 2385 camps against the target of 2,760 camps. Agenda Item No: 108.17 (i) Performance of Rural Self Employment Training Institutes (RSETIs) in J&K State; (ii) Issues relating to State Government viz-a-viz RSETIs (a) Allotment of land by the State

Government; and (b) Pending reimbursement of dues to RSETIs since 2013-14 against programmes conducted.:

Performance of the RSETIs operating in 21 districts of the State towards skill development and handholding of the youth of the State was taken on record.

• State Bank of India was advised to expedite the process of setting up the RSETI in District Kargil, which so far continues to be deprived of the facilities.

(Action: State Bank of India)

• Rural Development Department, J&K Govt. was advised to expedite the process of transferring land to all those RSETIs in respect of which land stands already allocated by Revenue Department and sort out other issues related to the RSETIs.

(Action: Rural Dev. Department, J&K Govt.)

Agenda Item No: 108.18 Performance review of LDMs/ DLRCs/ DCCs (i) Conduct of DCCs and DLRCs, (ii) Districts-wise Credit Deposit Ratio; It was noted that DLRC and DCC meetings are being conducted in all the districts of the State regularly, as per the Calendar of meetings drawn in every district as per the directions of Reserve Bank of India.

However, House expressed concern that there has be no improvement in the status of ten districts which are having very low or subdued Credit Deposit Ratio, i.e. District Jammu, Udhampur, Reasi, Kathua, Doda, Ramban, Kishtwar, Poonch, Rajouri and Leh.

• Concerned Lead District Managers were advised to initiate necessary measures in terms of RBI guidelines to ensure that the position of Credit Deposit Ratio in these district is substantially improved.

(Action: All concerned Lead District Managers)

Serving to Empower

Convenor SLBC (J&K)


Agenda Item No: 108.19 Implementation of Credit-linked Subsidy Scheme (CLSS) under Pradhan Mantri Awaas Yojana (PMAY) in J&K State:

Chief Secretary expressed grave concern that performance of banks under this scheme has remained extremely dismal with an achievement of just 620 cases against the huge target of 18648 cases. He stated that the PMAY being a wonderful Scheme having substantial subsidy component available for the beneficiaries, needs to be promoted in the State.

Responding to the query of Chief Secretary regarding the State Nodal Agency for the Scheme, the Managing Director, J&K Housing Board informed the house that National Housing Board is the Nodal Agency for the Scheme in J&K State whereas HUDCO and National Housing Bank (NHB) are the Central Nodal Agencies for the Scheme. He informed that cases are being sponsored to banks in the State through the J&K Housing Board, who is also responsible for looking into the problems and issues, if any faced by the implementing institutions. After a brief discussion, Chief Secretary directed as under:

• Principal Secretary, Housing & Urban Development, J&K Govt. shall take a meeting of bankers and other stakeholders to review the scheme at his level, analyze the problems and flag all the issues responsible for a very low performance of the Scheme in J&K State, so that the same are resolved.

(Action: Principal Secretary, HUDD, J&K Govt.) Agenda Item No: 108.20 Pradhan Mantri MUDRA (PMMY) Yojana:

Progress achieved by banks under MUDRA Scheme as at the end of FY 2017-18 was placed on record.

Mr. A. K. Dogra, Dy. Secretary, Department of Financial Services, MoF, GoI (Nodal Officer of J&K Govt. for J&K SLBC) pointed out that achievement under the category ‘Shishu’ accounts for only 26% whereas the Scheme guidelines require that 60% of the total lending under PMMY should go to the Shishu category, which needs to be looked into. The Chief Secretary, J&K Government observed that performance under the PMMY in the State has not been so worse, though the share of credit to Shishu category has been comparatively lower than the Kishore and Tarun categories, which he said could vary from place to place.

• All banks operating in the State were advised to improve the position. (Action: All member banks)

Agenda Item No: 108.21 Implementation of Prime Minister’s Fasal Bima Yojana (PMFBY) in J&K State: House noted that the Scheme was at present under implementation in only the ten districts of Jammu Division of the State, whereas the State Government is yet to implement the same in Kashmir Division.

Director, Agriculture (Kashmir) informed that though the Government of India had issued instructions for implementation of the Weather-based Insurance Scheme for Kashmir, but owing to Insurance Companies having opted out of this scheme, the same could not so far be implemented.

Serving to Empower

Convenor SLBC (J&K)


• Chief Secretary advised that the Commissioner/ Secretary, Agriculture Production shall review the issue and put up a note to his (Chief Secretary’s) office as soon as possible regarding progress under the Scheme and the constraints faced by the Government in its implementation in remaining districts of the State, particularly with respect to the coverage of horticulture crops under the Scheme.

(Action: Commissioner/ Secretary, Agriculture Prod.)

Agenda Item No: 108.22 (i) Progress under Pradhan Mantri Jan Dhan Yojana (PMJDY): (ii) Progress regarding Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan

Mantri Suraksha Bima Yojana (PMSBY); (iii) Progress under Atal Pension Yojana (APY) and (iv) Gram Swaraj Abhiyaan:

The consolidated progress of banks under PMJDY, PMJJBY, PMSBI, APY and GSA as on 31.03.2018 was taken on record. Agenda Item No: 108.23

Stand-up India Programme launched by Hon’ble Prime Minister: House noted that under the Stand-up India programme against the target of 3,498 cases set for the State, 1,749 branches of the Scheduled Commercial Banks operating in the J&K State have disbursed an amount of Rs.51.37 Crore in favour of 332 beneficiaries, which includes 154 cases of women and 178 cases of SC/ST, which was not considered satisfactory.

• All the banks were advised to improve the position under the Scheme. (Action: All member banks)

Agenda Item No. 108.24 Status of Business Correspondents / Bank Mitras in J&K State:

The position was taken on record. Agenda Item No. 108.25 Implementation of SARFAESI Act-2000 in J&K State – status of DM Applications:

House noted that out of 165 applications made by the bank seeking magisterial assistance in four districts of Srinagar, Pulwama, Shopian and Anantnag for invoking SARFAESI Act, only 16 applications have so far been disposed of, while most of such applications remain pending disposal with the concerned District Magistrates for long. Taking into consideration the constraints faced by the banks, the Chief Secretary advised that:

• Principal Secretary Finance, J&K Government will write a letter to all the Deputy Commissioners of the State, so that bank’s requests for magisterial assistance are accorded due priority.

(Action: Principal Secretary Finance, J&K Govt.)

Agenda Item No. 108.26 Poor Network Connectivity – an impediment to banking operations of the J&K State:

Mr. Navin Kumar Chowdhary, Principal Secretary Finance, J&K Govt. informed the house that there are some problems being faced by banks in some areas of the state, particularly the

Serving to Empower

Convenor SLBC (J&K)


Ladakh division on account of network connectivity, which is coming in the way of delivery of banking services in such areas.

• Chief Secretary, J&K Government advised that a Committee comprising of Principal Secretary Finance, Secretary (IT), Convenor, J&K SLBC and the General Managers of BSNL (Jammu as well Kashmir) will sit together and analyze which of the bank branches are facing problems on account of network connectivity and the reasons thereof. The Committee will submit the report alongwith the list of such bank branches/ areas to office of the Chief Secretary as soon as possible, so that the same are taken up with the Secretary, Telecom, Govt. of India for redressal.

(Action: Principal Secretary Finance/ Secretary (IT)/ Convenor, J&K SLBC, GM, BSNL)

Agenda Item No. 108.27 (i) Annual Credit Plan for the financial year 2018-19 for J&K State: House placed on record that the Annual Credit Plan for J&K State for the Financial Year 2018-19 envisaging a total credit disbursement target of Rs.31,697.61 Crore spread over 10,68,686 beneficiaries, both under Priority Sector and Non-priority sector, which was approved by the Sub-Committee constituted during the last (107th) meeting of J&K SLBC, has been launched in the State w.e.f. 1st of April, 2018 and the Bank-wise and District-wise targets have already been conveyed to all the member banks, Lead District Managers and all other stakeholders for implementation.

• All member banks were directed to draw the business plans for their respective operative levels in sync with the said Annual Credit Plan and ensure that the targets allocated under the ACP 2018-19 are achieved.

(Action: All member banks)

(ii) Allocation of targets for various Govt. Sponsored Schemes: House expressed concern that targets in respect of most of the Government Sponsored Schemes are being delayed. It was noted that except for NRLM and Handlooms Schemes the targets NULM, PMEGP and Weaver’s MUDRA Scheme were conveyed to the Convenor bank after lapse of the entire first quarter of the CFY (2018-19), whereas the targets in respect of Handicrafts/ACC Scheme, Credit Linked Subsidy Scheme (CLSS) and Joint Liability Group (JLG) Scheme are still awaited.

• Concerned Sponsoring Agencies were advised to forward the targets for CFY without any further delay, so that the same are disseminated to banks operating in the State for implementation.

(Action: Concerned Sponsoring Agencies/ Departments) Other issues deliberated in the meeting: Chairman, Ellaquai Dehati Bank, one of the Regional Rural Banks operating in the state, pointed out that as per the prevailing rules recruitments for the RRB are being made through an All India Recruitment Test conducted by IBPS, but the bank has been experiencing a very low turnout and a very high attrition rate, as a result their bank has been struggling on account of manpower issues. He informed the house that the issue of making local recruitment has been already taken with the Department of Financial Services, Ministry of Finance, Government of India, but there has been no headway in the matter. He requested for intervention of the State Government in the matter, so that the manpower constraints being faced by the RRB are resolved.

Serving to Empower

Convenor SLBC (J&K)


The house noted that the similar issue relating to J&K Grameen Bank was raised in the house during the last SLBC meeting seeking recommendations of the State Government for permitting the local recruitment in the RRBs operating in the State.

• Chief Secretary, J&K Government advised that the Principal Secretary Finance and the Convenor, J&K Bank should sit and examine the possibility of enhancing local recruitment in RRBs in whatever way possible and suggest the measures to be taken by State Govt. in this regard. Appreciating that increase of local recruitment is already under his consideration as the process helps both the institutions to operate and the youth to take employment opportunities, Chief Secretary assured to consider the issue.

(Action: Principal Secretary Finance/ Convenor, J&K SLBC) Before concluding the meeting, the Chief Secretary stated that SLBC is an important forum which is the fulcrum of development for the State. Development happens partly through government efforts, private enterprise and initiative of entrepreneurs who drive the economy with underwriting by the banks. The SLBC therefore is a forum where administration meets financial institutions to jointly brainstorm for the developmental agenda of the government. He urged the bankers led by the Convenor Bank to use the government system to drive the banking activities and put in strenuous efforts to improve the credit flow to the productive sectors in the State. He assured the financial institutions that all the government officials are at their disposal and are their team players and stressed upon all the members to move ahead in tandem, so that within the next three to six months there is some synergy in the implementation of the developmental activities in the State. (Assistant Vice President) Lead Bank/ J&K SLBC

Serving to Empower

Convenor SLBC (J&K)


Annexure-A

List of Participants in 108th meeting of J&K SLBC held on 26.06.2018 at Srinagar

S. No. Name of Participant … Designation Organization / Department

Chief Guest 1) B. V. R. Subrahmanyam … Chief Secretary Jammu & Kashmir

Convenor, J&K SLBC 2) Parvez Ahmed … Chairman & CEO J&K Bank J&K Government 3) Navin Kumar Choudhary … Principal Secretary, Finance 4) Anil Kumar Gupta … Jt. Financial Commissioner Revenue Deptt. 5) R.K. Bhagat … Commissioner/Secretary, Animal & Sheep Husbandry 6) Asif Hamid Khan … Secretary, Social Welfare 7) Amarjeet Singh … Add. Secretary, Revenue Deptt. 8) Dr. Owais Ahmed … Add. Secretary Finance Deptt. 9) Rakesh Kumar … Add. Secretary Rural Dev. Deptt. 10) Abdul Majid Bhat … Secretary, Law 11) A. K. Gandotra … Director General (Plg) Planning Dev. Deptt. 12) Shiv Kumar Gupta … Add. Secretary, IT Department 13) Peerzada Hafizollah … Registrar Cooperatives J&K 14) Mir Tariq Ali … Director General Sericulture 15) Altaf Aejaz Andrabi … Director Agriculture Deptt.(K) 16) Rubina Kousar … Director Handloom 17) Dr. M. Y. Chapoo … Director Animal Husbandry Deptt.(K) 18) Bilal Ahmad Bhat … Director Industries & Commerce (K) 19) R.L. Bhagat … Joint Director Agriculture (J) 20) Dr. Ravi Shankar Sharma … Director Industries & Commerce (J) 21) Manzoor A. Qadiri … Director Horticulture 22) Abdul Majid Bhat … Director Finance Social Welfare Deptt. 23) Dr. M. I. Parray … Director J&K EDI 24) Mohammad Nazir Sheikh … Director Rural Dev. Deptt. (K) 25) Mohd Mumtaz Ali … Director Rural Dev. Deptt. (J) 26) Ghulam Rasool Mir … Director Employment 27) Dr. Mushtaq Ahmad … Director Handicrafts Deptt. 28) Dr. H. Verma … Executive Director HUDCO 29) Ravinder Tickoo … Manager HUDCO 30) Rashid Ahmad Qadri … Secretary/CEO KVIB 31) Riyaz Ahmad Bhat … District Coordinator KVIC 32) Jasvinder Singh Dua … MD SIDCO 33) Jahan Ara … APO UDAK 34) N. A. Bhat … General Manager J&K State Financial Corpn. 35) Arshad Majid Bhat … Divisional Manager (K) J&K SC/ST/OBC Corpn. 36) Dr. Manmohan Singh … Managing Director J&K Housing Board 37) Bakshi Javid Hamayun … Mission Director JK SRLM 38) Madan Gupta … State Project Manager JK SRLM 39) Dr. Naheed Soz … Managing Director J&K Women’s Dev. Corp. 40) Mohammad Mohsin Kachroo … State Mission Manager (DAY-NULM)

Divisional Commissioners 41) Dr. Abdul Salam Mir … Add. Commissioner (Div. Com. K)

Serving to Empower

Convenor SLBC (J&K)


Deputy Commissioners 42) Syed Abid Rashid Shah … Deputy Commissioner District Srinagar Govt. Of India 43) A. K. Dogra … Dy. Secretary Govt. Of India Reserve Bank of India 44) A. K. Mattoo … General Manager, Reserve Bank of India 45) Archit Shukla … Manager Reserve Bank of India 46) Anil Reshi … Manager/LDO Reserve Bank of India NABARD 47) Vinita Singh … Dy. General Manager NABARD 48) B. B. Mohanty … Manager NABARD UIDAI 49) Shoaib Khan … State Resource Person UIDAI 50) Owais Qarnain … Application Analyst UIDAI J&K Bank (Convenor Bank) 51) R. K. Chhiber … Executive President LBD/SLBC/HR 52) A. R. Sheigan … President A&AP 53) Rakesh Gandotra … President (SLBC/LBD) 54) Dr. Ashraf Ali … President (Law) 55) Vinay Sawhney … Vice President (A&AP) 56) Syed Shafat Hussain … Vice President (A&AP) 57) Sushil Kumar Gupta … Vice President (T&ISD) 58) Manzoor Hussain Bhat … Zonal Head (Kashmir Central-I) 59) Karanjit Singh … Zonal Head (Kashmir Central-II) 60) Tasaduq Ahmad Dar … Zonal Head (Kashmir South- I ) 61) Imtiyaz Ahmad Hussaini … Zonal Head (Kashmir South-II) 62) Fayaz Ahmad Siddiqui … Zonal Head (Kashmir North) 63) Ms. Quansar Jabeen … Asst. Vice President (SLBC/LBD) 64) Khursheed Muzzaffar … Asstt. Vice President (T&ISD) 65) Tariq Ali … Asstt. Vice President Data Centre 66) Shakeel Ahmad Bhat … Ex. Manager/Incharge Financial Inclusion Deptt. Public Sector Banks 67) Subhash Joinwal … General Manager State Bank of India 68) Abhay Pandey … Dy. General Manager State Bank of India 69) S. K. Rana … Circle Head Punjab National Bank 70) Sandeep Vig … Regional Manager State Bank of India 71) S. K. Negi … Chief Manager (LBD) State Bank of India 72) Ashok Kumar … Chief Manager Central Bank of India 73) Ishtiyaq Ali Bhat … Branch Head Allahabad Bank 74) Z. A. Pampori … Chief Manager UCO Bank 75) Rakesh Kumar … Chief Manager Canara Bank 76) Mohammad Asad … Branch Head Punjab & Sind Bank 77) Ather Ali Noori … Nodal Officer Union Bank of India 78) Aamir Jalali … Manager IDBI Bank 79) I. S. Nalwa … Branch Manager Bank of India

Serving to Empower

Convenor SLBC (J&K)


80) Kirti Kumar Khale … AGM Oriental Bank of Comm. 81) Zubair Ahmad Bhat … Branch Manager Oriental Bank of Comm. 82) Amit K. Digra … Sr. Manager Bank of Baroda Private Sector Banks 83) Iftikhar Ahmad … Vice President HDFC Bank 84) Aatif Andrabi … Regional Head ICICI Bank 85) Malik Saiyidain … Chief Manager ICICI Bank Regional Rural Banks 86) Janak Raj … Chairman J&K Grameen Bank 87) Parvinder Bharti … Chairman Ellaquai Dehati Bank 88) Pawan Gupta … Sr. Manager J&K Grameen Bank 89) Gh. Mohi-ud-din Baba … General Manager Ellaquai Dehati Bank Cooperative Banks 90) M. Latief … MD/ CEO J&K State Coop. Bank 91) Mohd Mushtaq … CEO Jammu Central Coop.Bank 92) Vinod Kumar Sharma … Manager Inspection & Vig. Jammu Central Coop.Bank 93) Muzfar Sultan … CEO/ MD Anantnag Cent. Coop.Bank 94) A. M. Manknoo … Managing Director Baramulla Cent. Coop.Bank 95) Arshad Hussain … Distt. Coordinater J&K SCARD Bank Insurance Companies 96) G. A. Mir … Manager Life Insurance Corporation 97) Mohd Shafi Bhat … Sr. Branch Manager New India Insurance 98) Sharad Kumar … Manager Reliance General Ins. Co. 99) Azhar Mirza … Area Manager ICICI Lombard GIC Ltd.

Lead District Managers 100) Mir Zahoor Ahmad … LDM Srinagar J&K Bank

Note: As per instructions from office of the Chief Secretary, representative of Divisional Commissioner Kashmir and the Deputy Commissioner Srinagar joined the meeting in person, whereas Divisional Commissioner, Jammu and the Deputy Commissioners of all other districts of the State joined the SLBC meeting through Video Conference. Accordingly, Lead District Manager, Srinagar participated in the SLBC meeting in person, whereas Lead District Managers of all other districts joined the SLBC meeting through Video Conference while remaining present in the district teams of their respective Deputy Commissioners.

****** *** *

minutes of 108th meeting of j&k slbc held on june 26, 2018

Documents