JOIN US'Ease norms to get loans'
The State feels that the banks should not insist on surety to obtain the loan.
Chief Minister Yeddyurappa during his meeting with RBI Governor D Subbarao, on Thursday, said that if the banks insist surety for the loan, students belonging to poor, middle class families and those of backward sections could not avail of the benefit.
Banks should take steps so that more children could enjoy the benefit, he said.
The Chief Minister, speaking to press persons after meeting the governor, said that the governor’s response to the State’s demand was positive and he would discuss the issue with the officers.
Yeddyurappa said that small-scale industries were undergoing difficult situation due to the economic recession.
The RBI should reduce interest rates for micro and small industries from 13 per cent to 10 pc to bail them out of the crisis.
He said the credit deposit ratio in the State had come down by 5 per cent in the past two years. Similarly advances to agriculture sector and weaker sections have also seen a decline of around 2 per cent.
The State had appealed to the RBI to take measure to pump in more funds to agriculture sector.
The Chief Minister requested the RBI to allow NABARD offer more funds to the State cooperative credit institutions, which help in stepping up credit flow in the agriculture sector.
Appreciation
The CM said the RBI governor had appreciated the State’s efforts in maintaining the fiscal discipline despite the global economic recession.
Responding to allegations of Opposition parties that the State had no funds for development works, he said, “When the RBI governor himself has appreciated the State’s handling of finance, why should I bother about comments of the Opposition parties?”
The Chief Minister said his government would complete one year in office by the end of May.
He will come out with a detailed report on the government’s achievements which will include details on the State’s financial position.