FM Nirmala Sitharaman asks banks to undertake credit outreach programme in Nagaland

Finance Minister Nirmala Sitharaman has asked banks to undertake a three-month long loan outreach programme in all districts of Nagaland, a move that will boost credit flow by lenders during the festival season of Dussehra and Diwali in September and October.

After a banking conclave in Kohima, the finance minister also underlined the need for more bank branches in each district of Nagaland. She said this after a government survey on how many districts in India had adequate bank branches.

“Nagaland requires good exposure for investment. It needs the presence of enough bank branches in all districts,” she said at Dimapur on Wednesday after the conclusion of her three-day visit to the state.

Sithraman said while a lot of Corporate Social Responsibility (CSR) funds were flowing into the state, not enough investments were taking place.

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She asked the state-owned lenders to conduct perhaps the longest credit outreach programme in the Northeastern state that can apart from giving out personal loans, handhold various sectors in need of credit for investment.

The finance minister also asked bankers to pick up banking correspondents if necessary to complete the 90-day long credit outreach programme.

The credit outreach programme comes after banks held a similar drive in June in districts across the country as part of ‘Azadi Ka Amrit Mahotsav’.

She said the tax devolution to Nagaland has increased to over Rs 13,000 crore during the NDA government from nearly Rs 4,000 crore during the UPA government.

Tax devolution to Nagaland increased to Rs 13,782 crore in 2014-19 compared to Rs 3,844 crore in 2009-2014.

Grants and Aid from the Centre to Nagaland increased to Rs 29,483 crore compared to Rs 20,812 crore between 2009-14.