Context:

• Lieutenant Governor of Jammu and Kashmir reviewed the progress towards financial inclusion by banks in Jammu and Kashmir.
• The Lieutenant Governor reiterated the vision of the UT Government for extending the banking and financial services to the doorsteps of the people of Jammu and Kashmir.

Key Points:

• Efforts are being made to enable far-flung areas of rural interiors to become fully connected with financial sector.
• To broaden the social base of development, the UT administration is enhancing people’s access to financial products, promotion of ‘One District One Product’, institutional credit to women, youth, SMEs, handicrafts, horticulture and various other priority sectors for effective contribution to growth processes of the UT.
• The Lieutenant General claims that Jammu and Kashmir has become one of the preferred destinations for Industrial investment, Tourism, Film industry and real estate sector.
• The government is therefore committed to ensure adequate and timely availability of credit to industrial and different productive sectors of the economy to finance growth.
• In the last two years, various reforms have been executed to provide opportunities to scheduled commercial banks to expand operations in Jammu and Kashmir. The administration is also working to make the credit lending system more sensitive to the needs of women & youth entrepreneurs, farmers and artisans.
• There is a need for additional banking outlets in rural areas to bring excluded households into the fold of institutional credit and financial services in a structured and sustainable manner.
• The enabling ecosystem will also bridge the gap between government schemes and people living in geographically difficult terrain.
• The Lt Governor asked the concerned officers to explore all possibilities for extending financial handholding to the eligible beneficiaries through various government schemes and interventions.
• The Deputy Governor Reserve Bank of India also highlighted the importance of increasing the presence of banks for greater financial inclusion.
• He informed that the implementation of Government Sponsored Schemes is monitored through the UT level Bankers’ Committee at periodic intervals.
• Discussions were also held regarding creation of banking infrastructure, streamlining the working of District cooperatives and other banking cooperative societies, effective utilization of funds under NABARD schemes, concerns of the Industries & Commerce sector, availability of banking services, Micro Finance Institutions and NBFCs, and other important issues.