Finance ministers to meet bank state-run bank chiefs, CMs tomorrow

Efforts to step up financial inclusion, statewise credit flow to agri sector and progress of Centrally sponsored schemes are likely to top the agenda when chief ministers of Western states and PSU bank chiefs meet finance minister Pranab Mukherjee here tomorrow.

The FM will also discuss economic issues concerning the country and states, credit-deposit ratio, loans to the weaker sections and the implementation of direct tax code in the meeting. Besides bank heads, officials from Nabard, Sidbi, IIFCL and Exim Bank will also participate in the meeting.

Mukherjee will also discuss the issue of using the network of state-run banks for implementing the "aam admi bima yojana", which is a scheme for rural landless households, in which one member of the family is entitled to a Rs 30,000 life insurance cover. The states and the Centre equally share the Rs 200 premium.

This meeting is a significant departure from normal practice where such meetings are usually held in Delhi or in the major metropolitan cities. The meeting will also debate on the steps taken to achieve the budgeted target of Rs 3,75,000 crore bank credit to farmers this year, Rs 50,000 crore more than last year.

A roadmap to ensure that every village with a population of more than 2,000 has a bank branch or a business correspondent — an authorised agent who can carry out banking activities on behalf of a bank — would also be discussed. 

Early this month, Mukherjee had met CMs of Eastern states alongwith public sector bank chiefs in Patna to step up government's efforts to spread banking services across remote
districts of the country.