Reduce Big Currency Notes, Encourage Digital Payments, CM Tells Bankers

Vijayawada: Chief Minister Nara Chandrababu Naidu has called upon bankers to cooperate with the beneficiaries of subsidised loans, welfare schemes and developmental initiatives. He was speaking at the 227th state-level bankers’ committee meeting at the AP Secretariat in Velagapudi, Amaravati, on Tuesday.

The SLBC released a loan plan of Rs 5.40 lakh crore for the year 2024-25. Ministers Payyavula Keshav and K. Atchannaidu were present along with state bankers and finance ministry officials.

Naidu advised bankers to reduce the dependence on, or circulation of, big currency notes of Rs 500 and Rs 200, and promote digital transactions. This would help check corruption. “Our aim should be 100 per cent digital transactions so that every movement of money could be tracked and corruption controlled,” he said.

The CM also said banks should give a boost to agriculture in AP. It should be easy for tenant farmers to get loans easily. Banks and the government should work together for this purpose.

A loan plan with Rs 5,40,000 crore was released, showing allocations of Rs 3,75,000 crore to priority sectors and Rs 1,65,000 crore to other sectors and targeting a release of Rs 2,64,000 crore in loans to the agriculture sector.

A loan plan of Rs 32,600 crore has been made for the dairy, poultry, and fisheries sectors as well as for agricultural mechanisation and for basic facilities in the agriculture sector.

For the financial year 2023-24, a sum of Rs 3,23,000 crore had been earmarked towards loans to the priority sector. The target has now been increased to Rs 3,75,000 crore.

It was stated in the meeting that a Rs 2,31,000 crore loan target was set for the agriculture sector last year and 90 per cent of this was achieved. A target of Rs 69,000 crore has been set for 2023-24 for the MSME sector, which contributes to job and employment generation.

A target of Rs 87,000 crore was set for this year alone. Also, loans of Rs 11,500 crore for house construction and Rs 8,000 crore for the non-conventional energy sector will be released in AP this year.

The Chief Minister said the government and banks should work together to achieve better results in several key areas. A committee will be formed with ministers, bankers and experts for this purpose. This committee works to prepare and implement plans on five priority topics.

“Banks should focus on giving incentives to the wealth creation sectors. The AP government is one of the top three states in digital transactions. Banks should encourage digital payments, which will reduce corruption and increase productivity,” the CM said.

Naidu said the government would bring a new P4 policy in poverty eradication for which the sub-committee should prepare proposals on the steps to be taken by the government to eradicate poverty. The sub-committee should study steps to be taken for skill development and discuss the need for banks' encouragement for the sectors that create wealth and increase GSDP.

He said another committee will be formed with ministers, bankers and experts so that quick decisions and better results can be achieved.

Agriculture Minister Kinjarapu Atchannaidu said banks should encourage horticulture and aquaculture by giving loans. Finance minister Payyavula Keshav said the government is working hard to make life easy for the people and they need the cooperation of the banks. SLBC convener CVN Bhaskar Rao was among those who participated in the meeting.

( Source : Deccan Chronicle )
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