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Informist, Thursday, Aug 29, 2024

 

--NABARD chairman: Huge potential for credit growth in rural areas 
--CONTEXT: NABARD Chairman Shaji KV at Global Fintech Fest 
--NABARD head: Large banks must not be forced to lend to rural areas 
--NABARD Chairman Shaji: Need to digitise Kisan Credit Cards 

 

MUMBAI – With only a tenth of the depositors with rural regional banks taking loans, there is a huge potential for credit growth in rural areas, National Bank for Agriculture and Rural Development Chairman Shaji K.V. said today at the Global Fintech Fest. "With 300 mln deposit holders in rural regional banks out of which only around 30 mln have taken loans, the gap to cover there, is huge," Shaji said. 

Shaji also said that large commercial banks should not be forced to lend in rural areas because even the biggest banks are struggling to meet their priority sector lending obligations. "We have a strong condition that these large banks should not be forced to go to the rural areas, their strength should be used for large infrastructure developments and this area should be left to rural financial institutions," he said.

 
NABARD is open to partnering with financial technology companies specially if they provide solutions which reduce costs for the borrowers, Shaji said. "There will be a lot of opportunities for fintech players, if you have solutions like reducing the cost, we are open for partnerships," Shaji Said.  

 

The apex development bank is also working on pilot programmes with commercial banks for some product offerings in rural areas, Shaji said. He also emphasised the need for digitisation of the Kisan Credit Card for ease of access to farmers.  End

 

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

 

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