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RBI call to banks: Increase credit flow to NE

By Staff reporter

GUWAHATI, Feb 7 � Worried over low Credit Deposit (CD) ratio in the North-east, RBI has asked banks to accelerate their credit flow, especially to agriculture and Micro, Small and Medium Enterprise (MSME) sectors in the region.

�We discussed the matter in the State-level Bankers� Committee (SLBC) meet held yesterday in which we agreed to enhance credit flow to agriculture and MSME sectors to shore up the CD ratio,� RBI Governor D Subbarao said while addressing a press conference here today. He further added that this region has to improve its existing infrastructure in order to attract investment. �Unless bigger industrial projects come to the State, the CD ratio cannot be taken up to the national level�, he said.

Though the CD ratio in the North-east has improved from 36 per cent to 46 per cent, yet it is far below the national average. The RBI Governor also appealed to banks to open more branches in the rural areas in the region.

�The progress of Financial Inclusion Programme is slow compared to the national average. So banks need to intensify their activities here,� the Governor said.

On deceleration of growth, Subbarao said that RBI will take into account decelerating growth and Finance Ministry�s fiscal consolidation efforts in the forthcoming Budget before formulating its monetary policy review next month.

Circulation of foreign currency: The Reserve Bank will probe into the alleged circulation of Bhutanese and Nepali currencies in some pockets of lower Assam and North Bengal. �Using foreign currency in Indian territory is illegal. I will ask Regional Directors to find out details in this regard�.

Replying to a query on fake currency, he said that RBI had already taken up a slew of measures to contain the problem.

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RBI call to banks: Increase credit flow to NE

GUWAHATI, Feb 7 � Worried over low Credit Deposit (CD) ratio in the North-east, RBI has asked banks to accelerate their credit flow, especially to agriculture and Micro, Small and Medium Enterprise (MSME) sectors in the region.

�We discussed the matter in the State-level Bankers� Committee (SLBC) meet held yesterday in which we agreed to enhance credit flow to agriculture and MSME sectors to shore up the CD ratio,� RBI Governor D Subbarao said while addressing a press conference here today. He further added that this region has to improve its existing infrastructure in order to attract investment. �Unless bigger industrial projects come to the State, the CD ratio cannot be taken up to the national level�, he said.

Though the CD ratio in the North-east has improved from 36 per cent to 46 per cent, yet it is far below the national average. The RBI Governor also appealed to banks to open more branches in the rural areas in the region.

�The progress of Financial Inclusion Programme is slow compared to the national average. So banks need to intensify their activities here,� the Governor said.

On deceleration of growth, Subbarao said that RBI will take into account decelerating growth and Finance Ministry�s fiscal consolidation efforts in the forthcoming Budget before formulating its monetary policy review next month.

Circulation of foreign currency: The Reserve Bank will probe into the alleged circulation of Bhutanese and Nepali currencies in some pockets of lower Assam and North Bengal. �Using foreign currency in Indian territory is illegal. I will ask Regional Directors to find out details in this regard�.

Replying to a query on fake currency, he said that RBI had already taken up a slew of measures to contain the problem.

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