AGENDA: 1 128th SLBC
CONFIRMATION OF THE MINUTES OF THE EARLIER MEETING
The minutes of the 127thState Level Bankers’ Committee Meeting convened on 16.09.2011 (already circulated vide SLBC letter dated 03.10.2011) may be confirmed.
AGENDA No: 2 128th SLBC
New Issues
1. Review of Banks’ Finance to Wind Mills:
Tamilnad Mercantile Bank Ltd. advised that the wind mills functioning in the State are facing crisis and the dues payable to the lending Banks are overdue due to the following reasons:
- Payment is not forthcoming from Tamil Nadu Electricity Board for more than 6 months for the power generated by the Wind Mills and supplied to the TNEB.
- Tamil Nadu Electricity Board is not evacuating the entire power generated by the Wind Mills which result in a revenue loss to the wind mill operators, despite the agreement to evacuate the entire power generated by them.
The loan accounts of the Wind Mill operators outstanding with the banks are turning overdue due to the above reasons. The State Government is requested to advise TNEB in this regard.
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2. Allottment of land to Rural Self Employment Training Institutes by State Government:
Lead Bank Office, Ooty reported that The Tahsildhar, Ooty demands a sum of Rs.4.70 crores from Canara Bank, the Lead Bank for the Nilgiris District for allotment of 0.76.40 ha of land for the construction of the building for the Canara Bank Rural Self Employment Training Institute, Ooty on outright sale basis. The Tahsildhar demands Rs.33.0 lakhs as lease amount per annum if the land is to be allotted on lease basis.
The guidelines issued by Ministry of Rural Development, Government of India on setting up of RSETIs all the districts in the country specifies that the land for the construction of the RSETI building is to be allotted by the State Government free of cost. On allotment of land by the State Government, Ministry of Finance, Government of India shall provide a grant assistance of Rs.1.00 crore for the construction of the building. The guidelines were already communicated to the Department of Rural Developments of all the States.
The State Government is requested to issue necessary guidelines to the District Collectors for allotment of land free of cost.
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3. Rise in the level of NPA under agricultural Advances & Government sponsored schemes:
State Bank of India reported that the level of NPA under agricultural advances & Government sponsored schemes is on the increase in the recent times. There is resistance from some of the village bodies and farmers’ associations to the bank’s efforts to recover the NPAs. Some are indulging in false propaganda that the dues will be written off.
The State Government is requested to extend support for recovery of NPA under Agriculture and other Government sponsored schemes to enable the banks to finance further to the needy section of the people without hesitation.
The forum is requested to deliberate on this issue and offer their valuable suggestions.
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4. Release of IInd installment of subsidy by Government of Tamil Nadu for the Common Effluent Treatment Plants:
Housing and Urban Development Corporation Ltd. advised that the IInd installment of subsidy in respect of Common Effluent Treatment Plants is yet to be released by Government of Tamil Nadu. The installment was due on November, 2010. Due to the delay in receipt of subsidy the accounts have become NPA.
The State Government is requested to make arrangements to immediate release of subsidy.
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5. Providing banking services in every village having population of over 2000
The details of revised list of villages (4452) having population over 2000 identified and allotted to various Banks by DCCs for extension of banking services are being placed in the current 128th SLBC Meeting.
As per the plan submitted by member banks, 2188 villages have to be covered in 2010-11 and 2264 villages in 2011-12.
As per the Monthly progress report submitted by Banks as per MOF format, 3730 villages have been covered as on 31.10.2011. The details are furnished in the annexure.
Member Banks are requested to ensure extension of banking services to villages as per plan submitted by them and ensure 100% achievement by December 2011 as decided earlier.
It is a matter of grave concern that following banks have not rolled out Financial Inclusion even in a single village till 31.10.2011.
Sl No. / Name of the Bank / No. of Villages allocated / No. of Villages where Banking outlet opened upto October 2011(As on 31.10.2011)
1 / Allahabad Bank / 8 / 0
2 / OBC / 2 / 0
3 / Punjab National Bank / 44 / 0
4 / State Bank of Mysore / 14 / 0
5 / SBT / 14 / 0
6 / Vijaya Bank / 9 / 0
7 / CSBL / 3 / 0
8 / Ing Vysya Bank Ltd. / 2 / 0
GRAND TOTAL / 96 / 0
PL REFER DATA SHEET NO.1New Issues128th SLBC
6. Providing banking services in every village having population of over 2000- Revised list of villages as on 01.11.2011
SLBC vide their letter dated 01.11.2010 advised the bank wise details of villages having population over 2000 identified and allotted to various banks for extension of banking services.
Subsequently, SLBC was informed by several banks that villages, where branches already exist, have been identified and allotted to them. Further, changes in allotment were also sought considering, service area and a particular bank having already opened many no-frill accounts in a village allotted to another bank. SLBC advised Lead District Managers to address these issues and revise the list of villages allotted to Member Banks if necessary.
On the basis of the revised list of villages received from Lead District Managers, the number of villages identified and allotted to various banks stands revised at 4452 as on 01/11/2011.
Revised Number of Villages allotted to various Banks in Tamil Nadu is furnished in the annexure. Names of individual villages allotted to every Bank has been sent separately to concerned Bank by Email in Excel format. The list can also be accessed by visiting our website
It has been decided that the list is finalized and frozen. No more revisions are possible henceforth.
Member Banks / DCC Convenors / LDMs are requested to ensure extension of banking services to the allotted villages as per Roadmap submitted by the respective Banks, latest by December 2011 as already agreed in 127th SLBC Meeting held on 16.09.2011.
PROVIDING BANKING SERVICES IN VILLAGE HAVING POPULATION OF OVER 2000BANKWISE ALLOCATION OF VILLAGES - 01.11.2011
S.No / Name of the Bank / No. of Villages allocated
1 / Allahabad Bank / 8
2 / Andhra Bank / 10
3 / Axis Bank / 2
4 / Bank of Baroda / 82
5 / Bank of India / 117
6 / Canara Bank / 494
7 / Catholic Syrian Bank Ltd. / 2
8 / Central Bank of India / 118
9 / City Union Bank Ltd. / 42
10 / Corporation Bank / 91
11 / Dhanalakshmi Bank Ltd. / 1
12 / HDFC Bank Ltd. / 1
13 / ICICI Bank / 64
14 / Indian Bank / 984
15 / Indian Overseas Bank / 833
16 / ING Vysya Bank Ltd. / 2
17 / Karur Vysya Bank Ltd. / 42
18 / Lakshmi Vilas Bank Ltd. / 49
19 / Oriental Bank of Commerce / 2
20 / Pallavan Grama Bank / 59
21 / Pandyan Grama Bank / 178
22 / Punjab National Bank / 45
23 / South Indian Bank Ltd. / 32
24 / State Bank of India / 918
25 / State Bank of Mysore / 7
26 / State Bank of Travancore / 6
27 / Syndicate Bank / 60
28 / Tamilnad Mercantile Bank / 34
29 / UCO Bank / 39
30 / Union Bank of India / 121
31 / Vijaya Bank / 9
Total No of Villages / 4452
PROVIDING BANKING SERVICES IN VILLAGE HAVING
POPULATION OF OVER 2000
DISTRICTWISE ALLOCATION OF VILLAGES - 01.11.2011
S.No / Name of the District / No. of Villages allocated
1 / Ariyalur / 125
2 / Coimbatore / 136
3 / Cuddalore / 219
4 / Dharmapuri / 101
5 / Dindigul / 189
6 / Erode / 104
7 / Kancheepuram / 176
8 / Kanyakumari / 39
9 / Karur / 75
10 / Krishnagiri / 157
11 / Madurai / 160
12 / Nagapattinam / 208
13 / Namakkal / 101
14 / Nilgiris / 30
15 / Perambalur / 34
16 / Pudukottai / 142
17 / Ramanathapuram / 73
18 / Salem / 203
19 / Sivaganga / 80
20 / Thanjavur / 217
21 / Theni / 41
22 / Thiruvannamalai / 270
23 / Tiruchirapalli / 158
24 / Tirunelveli / 191
25 / Tiruppur / 160
26 / Tiruvallur / 183
27 / Tiruvarur / 135
28 / Tuticorin / 122
29 / Vellore / 121
30 / Villupuram / 349
31 / Virudhunagar / 153
Total No of Villages / 4452
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7. District & State Financial Services Plan:
At present the district and State level Plans are being prepared for the banks, NABARD etc. Similarly, the public sector Insurance companies are also preparing their field level plans.
Now Ministry of Finance, Government of India has advised that, in order to develop a comprehensive frame work for delivery of financial services and, to promote Financial Inclusion, it is necessary that comprehensive Financial Services Plan for the entire district and State is also prepared.
It was also advised by Ministry of Finance, Government of India that,
1.The Lead District Manager, Officer in charge of NABARD and Nodal Officers of Public Sector Insurance Companies, both life and non life, would prepare a comprehensive District Financial Services Plan covering banking, rural development, insurance, etc. these officers would also meet once in a month to review the progress and resolve inter agency issues.
2. At the State Level, SLBC Convenor, NABARD in-charge for the State and State in-charge of Public Sector Insurance Companies, both life and non life, would prepare similar State Financial Services Plan. At the State level also, these officers would meet once every month to review the progress and resolve inter-agency issues.
The forum may deliberate on this further and offer valuable suggestions.
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8. One Panchayat / One BC / One Bank:
Ministry of Finance, Government of India issued guidelines regarding adoption of One Panchayat /One Business Correspondent / One Bank model to ensure the viability of the Business Correspondents appointed by Banks in the Financial Inclusion Villages allotted to them with a population of more than 2000.
SLBC advised all the Lead District Managers vide their letter dated 10.09.2011 to confirm that one panchayat is allotted to only one bank under Financial Inclusion and all the villages under each panchayat are covered by the same bank and also only one BC is appointed for all the villages in one panchayat irrespective of the population size.
SLBC also advised the LDMs to submit a fresh service area plan (village panchayat wise). Only a few districts submitted the information to SLBC. The LDMs and the Member Banks to which they are attached are advised to expedite submission of the information.
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9. Government of India’s Strategy and Guidelines on Financial Inclusion
Opening of Branches by Banks:
Ministry of Finance, Government of India vide their letter dated 21.10.2011addressed to the CMDs and CEOs of all PSBs, RRBs and Private Sector Banks, advised various Strategies and Guidelines on Financial Inclusion. They have advised the following under Branch expansion:
(i)In the under banked districts as listed by the RBI, the Banks shall within their service area, open a regular brick and mortar branch in larger habitations with population of 5000 and above by September 2012. Such branches could initially have lesser staff, say 2 persons, with ATM facilities. The staff strength could be increased as the business grows. Under the extant Policy of RBI on branch authorisation, prior approval of the RBI is NOT required to open branches in tier 3 to tier 6 areas. In fact, opening bank branches in the under banked districts of the under banked states would entitle the banks to seek branches in tier 1 towns under their Annual Branch Authorisation Plan. Such a branch would be assigned a service area by the DCC/SLBC covering one or more Gram Panchayats.
(ii) In other districts, the banks must try to open as many brick and mortar branches, in their service areas, in habitations having population of 10,000 and above by September 2012.
(iii) While planning for branch expansion, it may be seen that in the unbanked areas the branches are available within a radial distance of 5 km.
SLBC advised the member banks to submit the details of proposed branch expansion by them in State in the format given below. Member banks are advised to submit the data immediately to SLBC.
BRANCH EXPANSION PLAN
Name of the State: TAMIL NADU
Name of the Bank:
Sl. No. / Name of District / Name of Block / Place where Branch is proposed to be opened / Name of the BankNew Issues128th SLBC
10. Uploading of Service Area Plan on the District Websites:
It has been decided by the Ministry of Finance to upload the service area plans in the enclosed format on the respective District’s website maintained by NIC before 31.10.2011. SLBC vide their letter dated 28.10.2011 advised all Lead District Managers to prepare a detailed service area plan as per the format enclosed and arrange to upload the same in the respective District’s website on or before 30.10.2011 with the help of local NIC unit located in the District Collectorate.
It is observed that so far only very few Lead District Managers have uploaded the data in their respective district website. LDMs are advised to ensure uploading of the Service Area Plan in the websites of their respective districts immediately in the format given below.
ANNEXURE
Service Area Plan of District: ………………………State:…………………………
Name of Block
Place of Village of >2000 (2001 census population) / BR/BC/ATM / Name of the Bank / Name of Gram Panchayat / Name of revenue village / Population of revenue village(2001 census) / Post Office/sub post officeYes/No
1 / 2 / 3 / 4 / 5 / 6 / 7
Col.1: Name of each town and village in the block having population of 2000 or more (2001 census) be given
Col 2: Please indicate if there is a bank branch there or a bank branch is yet to be opened and give the date and year of the proposed opening. If there is an existing BC, then write BC and if it is proposed, then month and year of appointment be given.
ATM: If there is an existing off site ATM, the same may be indicated and if it is proposed to open one, month and year of installation be indicated.
Col 3: Name of the bank which has a branch or intend to set up a branch, who has appointed a BC or who intend to appoint a BC, who has an ATM or intend to set up an ATM be given.
Col 4: Each commercial bank will have one or more gram panchayat as a part of service area.
Each BC will also have one or more gram panchayat assigned to him so that the BC is aware of the area or operation and works for financial inclusion. The area of BC should be compact with adjoining gram panchayat should only be given.
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11. Requirement of Stamping of Jewel Loan agreements:
The Inspector General of Registration, Tamil Nadu advised that the stamp duty is payable on agreements relating to pawn or pledge of jewels made for securing repayment of money advanced or to be advanced by way of loan.
A copy of the letter dated 27.10.2011 received from Inspector General of Registration is given as an annexure for information.
PL REFER SCANNED IMAGE No.1
PL REFER SCANNED IMAGE No.2
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12. Setting up of Rural Self-Employment Training Institutes (RSETIs)
A) Ministry of Rural Development, Govt. of India issued guidelines envisaging infra structure funding assistance from GOI, allotment of land free of cost by respective State Government etc and advised Banks to set up RSETIs.
The details of allotment and progress made in setting up RSETIs by Lead Banks are furnished below:-
Sl.No / Name of the Bank / Districts Allotted / Assigned / Districts where RSETIs were set up / Pendingif any (Nos.)1 / Indian Overseas Bank / Karur, Nagapattinam, Perambalur, Pudukottai, Thanjavur, Tirunelveli, Tiruvarur, Kanyakumari,
Tiruchirapalli, Virudhunagar & Ramanathapuram,
No.of Districts allotted: 11 / Karur, Nagapattinam, Perambalur, Pudukottai, Thanjavur, Tirunelveli, Tiruvarur, Kanyakumari, Tiruchirapalli, Virudhunagar & Ramanathapuram,
No. of Districts where RSETIs set up: 11 / 0
2 / Indian Bank / Cuddalore, Kancheepuram, Krishnagiri, Namakkal, Salem, Thiruvannamalai, Tiruvallur, Vellore, VillupuramDharmapuri
No.of Districts allotted: 10 / Salem, Tiruvallur Vellore
No. of Districts where RSETIs set up: 3 / 7
3 / Canara Bank / Coimbatore, Dindigul, Erode,Madurai, Nilgiris, Sivaganga, TheniTiruppur
No.of Districts allotted: 8 / Dindigul, Theni, Erode Nilgris, Tiruppur & Sivaganga
No. of Districts where RSETIs set up: 6 / 2
Sl.No / Name of the Bank / Districts Allotted / Assigned / Districts where RSETIs were set up / Pendingif any (Nos.)
4 / State Bank of India / Ariyalur & Tuticorin
No.of Districts allotted: 2 / Ariyalur & Tuticorin
No. of Districts where RSETIs set up: 2 / 0
The position reported in the 127th SLBC Agenda remains without any improvement. Indian Bank, & Canara Bank are requested to expedite setting up of RSETIs in the pending districts.
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13. SETTING UP OF FINANCIAL LITERACY & CREDIT COUNSELLING CENTRES (FLCCC)
In order to provide free financial literacy /education and credit counselling, RBI had advised Banks to set up FLCCC. The High Level Committee set up by RBI had also reiterated the necessity to cover initiatives under financial literacy and credit counselling while broad basing the Lead Bank scheme. On the basis of the above recommendation, RBI advised Lead Banks to open a Financial Literacy and Credit Counselling Centre (FLCCC) in every district where they have lead responsibility.
The details of allotment and progress made in setting up FLCCCs by Lead Banks are furnished below:-
Sl.No / Name of Lead Bank / Districts Allotted for setting up FLCCCs / Districts where FLCCCs were set up / Pending if any(Nos.)
1 / Indian Overseas Bank / Kanyakumari, Tiruchirapalli, Karur, Virudhunagar, Tirunelveli, Sivaganga, Tiruvarur,
Pudukottai, Thanjavur Ramanathapuram, Nagapattinam Perambalur
No.of Districts allotted: 12 / Kanyakumari, Tiruchirapalli, Karur, Virudhunagar, Tirunelveli, Sivaganga, Tiruvarur,
Pudukottai, Thanjavur Ramanathapuram, Nagapattinam Perambalur
No. of Districts where FLCCCs set up: 12 / 0
2 / Indian Bank / Cuddalore, Dharmapuri, Kancheepuram, Krishnagiri, Namakkal, Salem, Thiruvannamalai, Tiruvallur, Vellore Villupuram
No.of Districts allotted: 10 / Dharmapuri
No. of Districts where FLCCCs set up: 1 / 9
Sl.No / Name of Lead Bank / Districts Allotted for setting up FLCCCs / Districts where FLCCCs were set up / Pending if any
(Nos.)
3 / Canara Bank / Coimbatore, Dindigul, Erode,Madurai, Nilgiris, TheniTiruppur
No.of Districts allotted: 7 / Madurai, Erode and Dindigul
No. of Districts where FLCCCs set up: 3 / 4
4 / State Bank of India / Ariyalur & Tuticorin
No. of Districts allotted: 2 / No. of Districts where FLCCCs set up: 0 / 2
In SLRM 2010 held on 14.12.2010, it was resolved that major part of FLCCC‘s should be set up by March 2011 and in any case 100% coverage should be achieved by June 2011. IOB has set up FLCCCs in all their Lead Districts in Tamil Nadu. The same was reiterated in 127th SLBC meeting also.
The following FLCCCs are also functioning in Tamil Nadu
Sl.No. / Name of FLCCC / Sponsoring Bank / Place / District1 / ABHAY / Bank of India / Chennai
2 / DISHA / ICICI Bank Ltd / Chennai
It is clarified that any Bank can set up FLCCC anywhere and clearance from the concerned Lead Bank is not a pre-requisite. However, SLBC should be kept informed of all FLCCC opened.