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RBI bid to boost banking in NE

By Staff Reporter

GUWAHATI, March 19 � With a view to improving banking penetration in the North east, the Reserve Bank of India has asked the state governments and banks to identify unviable centres, where there is a need for either setting up full-fledged branches or those branches offering foreign exchange facilities, handling government business or meeting currency requirement.

Giving an account of the steps initiated by the RBI to ensure better banking in the region, Surekha Marandi, Regional Director, RBI mentioned that the Reserve Bank has offered to fund the one time capital cost and running cost for five years for these centres, provided the state government concerned is willing to make available the premises and put in place appropriate security arrangements.

She was speaking at a seminar on �Development strategies: issues and perspective for NER� organised to mark the platinum jubilee year celebrations 2009-10 of the RBI.

�The RBI has taken note of the fact that this region has been assessed to have the largest number of people outsides the banking fold, by the committee of financial inclusion headed by Dr C Rangarajan, our ex-Governor. Therefore, the RBI has undertaken special measures to provide banking facilities to these people,� she added.

Speaking as the guest of honour of the occasion, noted economist Dr Bibek Debroy mentioned that to achieve the goal of inclusive growth, it has to be ensured that the rural India is integrated with urban India. �Transport connectivity, power sector, water for drinking and irrigation purpose are some of the key areas that need attention in rural India,� he said.

�Similarly, unless we improve physical infrastructure like road transport and electricity in the Northeast, it would prevent the growth of the region at par with the rest of the country,� he added.

Referring to the special status given to the region, he said that the concept of special status would never let it integrate with rest of the country.

Governor of Meghalaya, RS Mooshahary, speaking as the chief guest of the occasion laid emphasis on improving the banking facilities in the Northeast.

�Though we all know that the banks are not charitable institutions, yet, a pro-active approach is required to take banking to rural areas, and provide facilities that are people worthy,� he mentioned.

Several eminent speakers including NEC member PP Srivastava and noted economist Dr Jayanta Madhav were present on the occasion.

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