122nd meeting of slbc punjab old meetings/minutes of 122nd...treasuries with online system of banks...

Minutes 122nd SLBC Meeting of Punjab 1

122nd MEETING OF SLBC PUNJAB

The 122nd Meeting of the State Level Bankers’ Committee, Punjab was held on 09.11.2012 at Hotel Shivalikview, Sector-17, Chandigarh to review the

performance of banking system in the State of Punjab for the period ended September 2012. Shri Sarvjit Singh, IAS, Secretary (Revenue), Government of Punjab (GoP), was the Chief Guest. Shri Rakesh Sethi,

Executive Director, Punjab National Bank presided over the meeting. The list of participants is as per Annexure.

Shri Kamal Prasad, Field General Manager, PNB and Convener,

SLBC extended a warm & hearty welcome to Shri Sarvjit Singh, IAS, Secretary (Revenue), Govt. of Punjab, Shri Rakesh Sethi, Executive Director of Punjab

National Bank and Chairman of the meeting, Shri Rajat Sachar, Economic Advisor, Deptt. of Financial Services, MoF, GoI, New Delhi, Shri Dilip Kumar, IAS, Director (Institutional Finance & Banking), Government of Punjab, Shri Amar

Nath, General Manager, RBI, Chandigarh, Sh. D D Mishra, General Manager, NABARD (Punjab) Chandigarh, Senior Officers from State Government, Banks,

Financial Institutions, other Corporations and members from press & media. Shri Prasad apprised the house that during the meeting, the performance

of banks under key parameters in the State of Punjab for the period ended September-2012 would be reviewed besides other important issues listed in the agenda. He further mentioned that for the 7th time in a row meeting of SLBC

has been convened within 45 days from close of the concerned quarter for which the performance data was being reviewed.

Shri Rakesh Sethi, Executive Director, Punjab National Bank and

Chairman of the meeting after welcoming the dignatories on the dias and others

present in the meeting gave a brief account of the policy measures initiated by RBI during its 2nd quarter review of Monetary Policy 2012-13 on 31.10.2012 for stabilizing growth, containing risk of inflation and enhancing the liquidity cushion

available to the system. He also touched on the initiatives undertaken by Department of Financial Services, MoF, GoI on Financial Inclusion and facilitating

outreach of banking facilities to last mile customers.


Shri Sethi apprised that in the State of Punjab, investor friendly environment has helped in accelerating the growth rate as also improving both social and physical

infrastructure.

Shri Sethi further added that computerization of land records and providing on line facilities to banks for creation, modification and release of charge on agriculture land will facilitate the farmers for availing loans in a hassle free and

cost effective manner.

He also expressed satisfaction over the achievements of the banking system in the State of Punjab for the period ended September 2012.

Shri Rajat Sachar, Economic Advisor, DoFS, MoF, GoI in his address

appreciated the efforts being put in by the banks in providing banking services in the State of Punjab as out of total 54.09 lac households in the State 35.27 lac were already availing banking services as at the close of Census 2011. He

further said that during the period from 01.04.2011 to 30.09.2012 banks have opened more than 35.57 lacs accounts thus more households have been covered. Banks should match the accounts with voter list for identifying and link

with banking the left out families. He requested the banks to cover all the 807 villages allotted under Swabhimaan by 31.03.2013. He appreciated the banks

for having opened branches in the state as per para 5.3. He apprised the house of the concern of the Finance Minister on education loans and expected the banks to deliver on this area and also ensure that Grievances Redressal

Mechanism is in place.

Thereafter agenda for the meeting was taken for discussion and following Action points emerged:-

Item No.1 Confirmation of Minutes of 121st Meeting of State Level Bankers' Committee (Punjab) held on 09.08.2012.

The House confirmed the e-mailed/circulated minutes.


Item No.2.(i) Electronic Benefit Transfer (EBT) for Govt. Schemes.

It was apprised that for finalization of Common BC for the cluster consisting of

Punjab, Haryana, Himachal Pradesh and J&K, an offer letter dated 02.11.2012

containing terms and conditions has been sent to vendor, M/s Vakrangee

Finserve Ltd. for their acceptance. Further progress will be informed to Member

Banks.

Action: Convener Bank

Item no 2 (ii) Issuance of Weaver Credit Card (WCC).

No action point emerged during the discussions.

Item no 2 (iii) Debt Swap Scheme – Raising of limit of loan under the

Scheme from ` 50000/- to ` 100000/-.

The Controlling Heads of Banks where limit has not been raised should

keep on following with their corporate offices for raising the limit. A communication be again sent from SLBC to these banks for taking decision on enhancement of the limit.

Action: Convener SLBC / Concerned Banks

Item no 2 (iv) Progress under Debt Swap Scheme

The progress under the scheme was not found to be satisfactory. The

house desired that the banks should come forward and make advances liberally under the scheme. It was informed that in some banks while issuing the KCC, a

portion is given by them to borrowers for repayment of the existing debt from non institutional source. Thus, data may be reported correctly.

Action: Banks


Item No. 2 (v) Allotment of land for establishment of RSETIs

It was informed by the representative of the Department of Rural Development that a State Level Monitoring Committee on RSETIs has already

been constituted by Financial Commissioner (Rural Development) on 08.07.2009 as per guidelines of Govt. of India with members from banks. But no meeting was being convened by FC(RD) and Convener(SLBC). He was informed that in

order to broad base the State Steering Committee on RSETIs as per letter dated 21.05.2012 of MoRD, GoI, a sub committee to be co-chaired by FC (RD), GoP & Convener (SLBC) has been constituted with member from RBI, NABARD, DIFB,

Lead Banks in the State, State Project coordinator on RSETI.

Out of 17 RSETIs functioning in the State, 10 RSETIs are in ‘C’ & ‘D’

category for the reasons that there is no permanent Director and lack of infrastructure. He requested that efforts be made to upgrade these RSETIs to ‘A’ & ‘B’ category as reimbursement of funds for training in RSETIs is given by

MoRD, GoI directly to Banks.

It was apprised that 5 RSETIs have not started functioning in the State as

yet. A communication has been sent by LDMs to respective Deputy Commissioners of these districts to provide rent free accommodation for

establishment of RSETIs in these districts. LDMs were requested to follow up with respective DCs for this purpose.

Action: Convener Bank/LDMs.

Item no 2 (vi) Financial Literacy Centres

The progress was reviewed and no action points emerged.

Item no 3 (i) Provision of Banking Services in Villages with population below 2000- Roadmap.

The roadmap for covering 9590 such unbanked villages for providing banking services was placed before the House during the meeting and same was

approved with a stipulation that villages earmarked for coverage beyond March 2015 be also covered upto March 2015. Controlling Heads of concerned Banks were also requested to send State wise Disaggregated FIP of Banks from Head

office to Circle/Branch office to SLBC/RBI by 20th November 2012.


Action: Concerned Banks/SLBC

Item No. 3 (ii) Status of Financial Inclusion Plan – Extension of

Swabhimaan. The progress was reviewed and concerned banks were requested to

complete FIP under Swabhimaan by March 2013 positively.

Action: Concerned Banks

Item NO. 3 (iv) - Campaign to ensure that each family has atleast one account in rural area.

Item No.3 (v) - One family One Account in Urban Areas. Item No. 3(vi) - Opening of accounts of Migrant Labour / Hawkers etc.

The house desired that Bank wise allocation of wards in urban areas be done by

LDMs forthwith and list sent to SLBC Secretariat. The accounts already opened in allocated service areas in rural areas and wards in urban areas be mapped with voter list of the concerned areas and uncovered

house holds be covered immediately by opening one account of each family. Fortnightly progress be submitted by LDMs to Convener Bank.

Action : LDMs/Banks

Item No. 4 Computerization and Linking up of Treasuries.

It was informed by representative of Directorate, (IF&B), Govt. of Punjab

that the computerization of Treasuries and Sub Treasuries has been completed and linking up of treasuries with the banks will be started soon after receipt of

grant from Govt. of India. The House desired that inter face/integration of treasuries with online system of banks be started immediately.

Action: Treasuries Department/IF&B


Item No. 5 Measures to popularize e-payment for bringing down the number of transaction through cheques.

SBOH and private sector Banks except HDFC Bank, J&K Bank

Ltd., Axis Bank were advised to confirm in a fortnights time to SLBC Secretariat the position of their Banks on the above issue.

Item No.5(i) Measures to popularize e-payment by State

Government.

The house desired that the state Govt. to further popularize e-payment

system in the state.

Action : DIF&B(Pb)

Item No.5(ii) Availability of Data Entry Module for GIS for FI

through web site of DFS.

LDMs were advised to revisit GIS module, carry out

amendments/correction wherever warranted and upload the

correct position in GIS system within stipulated time under

intimation to Convener Bank.

Action : LDMs

Item No.6 Mapping of Clearing Houses in the State.

The Controlling Heads of such commercial Banks who having

emerged as president of clearing houses at identified centres to

immediately respond to the queries of RBI, RO, Chandigarh under

intimation to Convener Bank enabling them to take further action in

the matter.

Action: Concerned Banks


Item No.7 Computerization of Land Record.

House desired to expedite the process of computerization of land

record and also consider Karnataka Bhoomi Bank Model in this

regard.

Action: Deptt.of Revenue(Pb)

Item No. 7(i). Simplification of Procedure for Mortgage for raising loan.

It was apprised by Secretary(Revenue) that Mortgage is signed between Bank and Borrower and the entry of the same is made in the Land Record by

patwari. In the State approx. 1.5 lac transactions take place during a year. By simplifying the procedure the load of the Bank as well as of the Govt. will be

reduced, it will also be of great relief to the farmers. He invited suggestions from the house. Sh. I S Phogat, General Manager, Corporate office, Punjab National Bank apprised that simple mortgage is being created by the banks as

per the recommendations of Talwar Committee. The Mutation is to be recorded in the Revenue record.

Briefly, it has been envisaged that following procedure will be adopted, in case of

loan raised by Agriculturist secured by execution of document:

(a) There will be no registeration of document to be executed by any person for securing loan from a Bank ( Nationalized Bank, Co-operative Bank or

Private Sector Bank, Co-operative Society or Banking Institution) for the purpose notified by the Government and that :

(b) Such document, however will be produced by the loanee before Halqua Patwari, who will make entry about Banks charge in his Roznamcha

Waqiati & furnish the copy of same to the bank concerned. Such entry will give effect in the revenue record of the fact of loan sanctioned by Bank to loanee.

Shri V K Sood, Sr. Manager, Punjab National Bank submitted that in this

regard following points need to be addressed : The copy of revenue record incorporating bank’s charge must be sent to

registrar for entering the same in their record, so that ‘non-encumbrance certificate’ can be obtained after checking/verifying


records of office of registrar for the last 13 years. this will also ensure the veracity of title deeds as regards ownership rights/tenancy rights etc. of

an individual/chain of title. As per article 65, part–v of schedule of Limitation Act-1963, the prescribed

period of limitation is 12 years to enforce payment of money secured by mortgage. the same is required for such a charge created for raising loan from the bank.

Since the charge is to be created on the basis of declaration/application by the agriculturist, hence it is necessary to have a uniform /common declaration/application form to avoid any ambiguity.

During subsistence of loan, if the land is acquired by the government for public purposes, which is subject matter of Bank’s charge, it should be

made mandatory for halqua patwari to inform the bank about the same, so that bank may lodge it’s claim before land acquisition officer for making direct payment to bank for adjustment of outstanding loan amount.

There ought to be no direct payment to agriculturist to defeat the claim of bank.

A provision is also required to be incorporated for clearly and distinctly

recognizing the “ inter-se priority of charges of bank“ and also the priority of bank’s charge over the state govt. dues

The specific & fixed time schedule be laid down for recording the entry by patwaris in revenue record or registrar in his office record.

During the subsistence of loan raised by any HUF, the charge shall remain binding on all the coparceners.

A provision be also incorporated giving right to bank to acquire and dispose of the immoveable property or interest therein for realizing the dues and bar of civil court in such matter be removed.

A proper procedure be also laid down for effecting recovery through state machinery in such advances.

The house desired that the aforesaid points be addressed by the Revenue department and proposal for simplification of procedures for creating mortgage for raising loans be moved accordingly.

Action : Revenue Department, Govt. of Punjab.


Item No. 10. AADHAAR – Unique Identification Authority of India.

Madam Keshani Anand Arora, IAS, Deputy Director General (DDG), UIDAI

apprised the house that three districts in Punjab have been selected as pilot

districts for seeding of Aadhaar number. She further apprised that the project is

to be completed in a time bound manner as Govt. of India desires to disburse

subsidies on various items through Aadhaar enabled accounts so as to avoid

duplication and fraud in distribution of subsidy and other social security benefits.

DDG also desired concerned LDMs and District Security Officers/Nodal Officer,

Social Security, Women and Child Development, GoP to coordinate with each

other and have updates on pensioners.

LDM Nawan shahar apprised the house that though the enrolment has

been made upto 70-80% in his district, the number of persons who have

received the Aadhaar card is very low as hard copy is needed by the bankers to

feed the same in the system. The representative of UIDAI also informed the

house that they would supply the e-Aadhaar to the bankers for feeding Aadhaar

number in the accounts.

Madam Keshni Anand Arora desired that it should be ensured by the Nodal

Officer, UIDAI that the e-Aadhaar is provided to the concerned LDMs for seeding

the same in the system. The LDM will collect the progress in seeding of Aadhaar

number in the accounts and submit the same to UIDAI Regional Office,

Chandigarh under copy to SLBC.

Action : Deptt. of UIDAI / LDMs / Convener Bank

Item No. 11. Installation and Managed service of Cash Dispensers

(CDs).

The representative from Union Bank of India assured to provide update in the

matter by 16th November, 2012.

Action : Union Bank of India


Item No. 12. ATM Survey report – Need for betterment in

infrastructure.

Controlling heads of banks were requested to take up with their field

functionaries to resolve inter Bank ATM complaints within the stipulated period

as provided in RBI guidelines failing which a penalty of Rs.100/- per day would

be levied to defaulting bank.

Action : Banks

Item No. 13. Agriculture Debt Waiver and Debt Relief Scheme 2008 –

Fresh Lending as at 30.09.2012.

Bankers were requested to cover more farmers for financing under the scheme.

Action : Banks

Item No14 Review of Performance of Banks (Excluding Cooperative Banks) in Key Areas relating to Deposits, Advances & Priority Sector Advances.

Item No.14 (iv). CD Ratio of Districts under Monitorable Action Plan.

Progress was placed before the house. LDMs of these districts were advised to continue with their efforts to increase CD Ratios of their Districts.

Item No.14 (iv)(i) Overall Credit Deposit Ratio

Lead District Managers/Banks will take steps for improvement in the CD ratio of branches in rural and semi-urban areas.

Action: LDMs/Banks


Item No.14 (ix) – Targets under DRI.

The progress was found not up to the mark and it was resolved that banks should lend more funds under DRI.

Action : Banks/LDMs

Item No 15. Review of National Goals House applauded banks/LDMs for achieving all national goals.

Item No.16 & 16 (i) Education Loan Scheme- Establishment of proper

grievance redressal mechanism in the banks. Item No.16 (ii) Advances under Education Loan Scheme

Item No.16 (iii) Education Loan to Women Students

Item No.16 (iv) Collateral Free Education Loans & Position of NPA.

While reviewing YoY growth in Education Loan, the house desired that banks should lend enthusiastically to students pursuing higher education and grievance redressal mechanism is in place in their Banks.

Action: Convener Bank/Banks.

Item No.17 (i) Advances to Minority Communities.

Item No.17 (ii) Advances to Women Beneficiaries. Item No.17 (iii) Advances to SC Beneficiaries.

No action point emerged out of discussion on above points.

Review of Government Sponsored Schemes.

Item No.18 (i) Swaranjayanti Gram Swarojgar Yojna (SGSY)

In view of transition phase from SGSY to NRLM (Punjab), no targets were given by the State Government.


Item No.18 (iii) Swarn Jayanti Shahari Rozgar Yojana (SJSRY)

The progress was discussed. However, no action point emerged out of

discussion.

Item No.18 (iv) Micro financing–Self Help Groups.

It was desired by the house that more SHGs be credit linked.

Action: All banks.

Item No. 19 Annual Credit Plan 2012-13

19. (i) Progress under Annual Credit Plan 2012-13 up to September-12

19.(ii) Flow of Investment Credit under Agriculture

The house expressed satisfaction over the performance under ACP. No

action point emerged.

Item No.21 Farmers’ Club Programme.

Item No.22 National Horticulture Board & National Horticulture

Mission

No action point emerged out of discussion

Item No.23 Advances to Industrial Sector- Credit to Micro Small &

Medium Enterprises (MSMEs)

House showed its concern over non achievement of YoY growth over MSE

advances and share of Micro Enterprises to total MSE advances. Bankers/LDMs

were advised to boost lending under MSME Sector.

Action : Banks


Item 23 (i)(a) Financing of New Units

Item 23 (i)(b) Collateral Free Loans to MSEs

The house showed its concern over low percentage of collateral free loan accounts against mandatory collateral free lending. LDMs were advised to take up collateral free loans to MSEs as regular agenda in DCC/BLBC meetings. All

stake holders to give wide publicity to lending under above mentioned segment.

Action: Banks/LDMs.

Item No.23 (i)(c) Position of NPA in MSME accounts in Commercial

Banks. Item No.23 (i)(d) Review of growth in MSE accounts. Item No.23 (i)(e) Rehabilitation of MSE units identified as sick

Item No.23 (ii) Credit Guarantee Fund scheme for Micro & Small Enterprises

Progress was placed and no action point emerged during discussions.

Item No.24 (i)(a) Recovery under Priority Sector Advances. Item No.24 (i)(b) Recovery under Govt. Sponsored Programmes.

Item No.25 Recovery of Bank dues - Pending Recovery Certificates under State Recovery Act.

The Controlling Heads/LDMs were requested to use the mechanism of

BRICS for effecting recovery under the certificates filed under State recovery

Acts.

Action: Sponsoring Agencies/LDMs/ Revenue Deptt./ DIF

Item No.26 Delay in taking possession of assets under section 14 of

SARFAESI Act,2002.

The item was informatory in nature and no action point emerged.

Item no. 27 SLBC website-Standardization of information/data Item No. 27.1 Development of software _ Web based application for collection and consolidation of Data for SLBC meetings.


The member banks / LDMs were requested to push SLBC data

electronically to SLBC web portal enabling Convener Bank to down load data from the portal from next SLBC meeting onwards.

Action : Convener Bank/Banks/LDMs

Item No.28 Financing of Tenant Farmers/Oral Lessess and Share Croppers

The issue is under consideration with Revenue Department of State Government. The representative of Deptt. of Agriculture was advised to follow up

with the concerned department.

Action : Deptt. of Agriculture/DIF

Item No. 29 Housing Finance ( Direct Loans).

The issue was discussed and no action point emerged.

Item No.29 Any other issue with the permission of the Chair. Item No.31 to 38

All the above items were for information of the house and no discussion took

place.

Vote of Thanks The meeting ended with a vote of thanks to the Chair proposed by

Shri M.R.Jayesha, Deputy General Manager, State Bank of Patiala on behalf of all

members of SLBC.

122nd meeting of slbc punjab old meetings/minutes of 122nd...treasuries with online system of banks...

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