J&K banks should create domain for stronger biz activity: Raghuram Rajan

The Reserve Bank Governor Raghuram Rajan today asked banks in Jammu and Kashmir to create an environment for stronger business activity, especially following the devastating floods that damaged the economic pursuit of the people.

Concerted efforts are needed to enhance the Credit-Deposit Ratio (CDR) in the state, Rajan said during a meeting with representatives of various banks here.

In this regard, Rajan asked the RBI Regional Director D Sethy to take up the issue of low CDR with the banks.

The RBI Governor said it is extremely important that the financial sector succeeds in helping the business activity in Jammu and Kashmir.

He assured that RBI will certainly help in facilitating the process of spread of credit and financial services.

Rajan said there is an immense potential and scope for tourism in J&K and it requires a big push which is only possible with the support of the central government.

Earlier, Sethy, while welcoming the RBI Governor, said J&K needs more such visits of the top management of RBI.

Meanwhile, J&K Bank chairman Mushtaq Ahmed said the state has passed through very difficult and challenging times and banks will try their level best to meet genuine demands and aspirations of people.

He said people have suffered an immense loss due to floods and "we have to see whether we can entertain requests of debt and interest relief."

"In this regard, we would like to take up the issues with the state and the central government," Ahmed added.