Mehbooba Mufti meets RBI Dy Guv, bats for priority sector lending

RBI Deputy Governor H R Khan on Monday called on Jammu and Kashmir Chief Minister Mehbooba Mufti to discuss credit flow and financial inclusion with the latter proposing all lending in the state be declared 'priority sector lending' to improve the economy.

Mehbooba highlighted the need for enhanced lending by PSU banks, keeping in view the very low credit-deposit ratio in the state, as compared to national standards.

She said declaring all lending in the state as 'priority sector lending' will encourage banks to lend more.

"Since most of the core sectors in the state are in revival mode, they need a stimulus package in terms of institutional finance and specialized lending," Mehbooba said.

Asking the banks to boost lending in horticulture sector, she underlined the need for advancing loans in a hassle-free manner to agri-entrepreneurs to enable them to improve returns, quality and production.

She also favoured extending housing loans to customers on a lower rate of interest in the state.

"J&K requires greater cooperation from banks in supporting prospective entrepreneurs under various flagship schemes of the central and state governments," she said.

Mehbooba also urged RBI to help in recruitment of local youth in branches of nationalised banks in the state, besides broadening the scope of their corporate social responsibility operations.

The Deputy Governor RBI assured her on the issues raised and an early positive consideration.