MoS Finance Karad lauds performance of financial sector in J-K, urges banks to adopt digital ecosystem

Ganderbal (Jammu and Kashmir) [India], September 21 : Union Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad lauded the banks for their performance in higher credit delivery under various government-sponsored and self-employment schemes and urged them to exert more to enable ushering in of digital ecosystem as well as financial inclusion in Jammu and Kashmir.
Dr Karad made these remarks while chairing the 4th Meeting of the Jammu and Kashmir Union Territory Level Bankers' Committee (J-K UTLBC) held at Mini Secretariat in Ganderbal.
While hailing the UT as the crown of the country, MoS Finance stated that Jammu and Kashmir has a unique significance for the country and that the central government will always support the J-K government in its endeavours to improve the lives of its people.
Dr Karad expressed satisfaction over the amount of Non-performing Assets (NPAs) under MUDRA and other government-sponsored schemes in a predominantly retail economy like J-K, which he said was very low in comparison to other states and UTs across the country.
Stressing upon the bankers for 100 per cent coverage of villages under financial inclusion programmes of Finance Ministry and RBI, Dr Karad urged banks to make all-out efforts to cover all the unbanked villages.
Dr AK Mehta, Chief Secretary, informed that all government payments in UT of J-K are transacted digitally.
Mehta stated that the government is committed to provide gainful employment to one lakh youth in J-K through various schemes and urged the departments and banks to synergise their efforts to achieve the target.
While elaborating, he informed that 50,000 youth under the "Mission Youth" Programme shall be provided self-employment opportunities during the current financial year. Besides, steps are also afoot to create 20,000 jobs in the government.
He stated that the government has begun the process of creating employment opportunities both in the public and private sector to reduce the unemployment rate to 5 per cent.
Dr Mehta informed that banks for the most part maintained business continuity during the pandemic in the UT. Overall banks are doing well but need to improve greatly in certain schemes like Stand UP India, SC, ST and OBC.
While stating that he was following credit delivery under CGTSME closely, he informed that there was a huge potential to create employment by suitably tapping the insurance coverage under CGTMSE, the statements issued state,
"We have a robust financial inclusion mechanism in place, however the CD ratio of private banks is not encouraging and their performance in priority sector lending also leaves a lot to be desired, " Dr Mehta observed.
Earlier, while outlining the role of the financial sector in J-K during Covid-19 Pandemic, Chairman and MD J-K Bank, RK Chhibber said that banks in J-K responded proactively by providing uninterrupted banking services to the people of the Union Territory besides adhering to COVID- 19 SOPsChhibber said that the targets assigned by J&K Government under 'Back to Village' programme have been achieved by disbursing an amount of Rs.337 Crore in favour of 20,000 Beneficiaries.
It was informed that the banks operating in Jammu and Kashmir have extended a total credit of Rs 7,296.58 crore in favour of 3,29,370 beneficiaries registering an achievement of 16 per cent in financial terms and 22 per cent in physical terms during the first quarter of FY 2021-22; against the Annual Credit Plan of Rs.44,980.57 crore for 14,97,700 beneficiaries.
Against the target of Rs.780.53 Crore spread over 38,560 beneficiaries for FY 2021-22, banks operating in UT of J-K have disbursed Rs.239.29 Crore in favour of 11,023 beneficiaries during the period from April 1 to August 38 under four major Government Sponsored Schemes.
Under the KCC scheme, the Minister was informed that more than 9.50 lakh borrowers have been covered under the scheme in UT of J-K and the NPA under the scheme was as low as 4.14 per cent.