Reserve Bank of India (RBI) has urged Indian banks to evolve products, processes and have in place people with capacities to translate strategies into action in agriculture and the unorganized sector.
While delivering her speech at 61st Annual General Meeting of the Indian Bank?s Association in Mumbai, Usha Thorat, deputy governor, Reserve Bank of India said, ?In agriculture, the need of an hour is efficiency, supply chain management and technology for improving production and productivity, and strengthening the link to the markets for inputs and outputs. The National Development Council found several yield gaps across the states indicating a potential for yield increase by investment in agriculture. This would call for new strategies for better credit delivery and credit culture in the agriculture sector.?
Thorat said in the last ten years, it is found that occupations that have generated maximum jobs in India include IT, ITES, construction, retail trade, hotels, restaurants & tourism, health care, education, training and consulting. ?These are the sectors where start-up financing, bridge financing, working capital and investment financing are very important. Banks will have to channelize their creative forces jointly in meeting the financing challenges of these sectors. Credit guarantee schemes as well as the operationalization of credit information companies can provide a huge boost to these sectors. But, it will require the willing banks to upscale their efforts in financing small and medium enterprises in these areas,? she added.
Thorat said, ?The familiarity with multiple languages in India helps Indian bankers to adapt better to multi-cultural situations, making it easier for them to fit into the international systems smoothly. I believe one of the strengths of Indian bankers and Indian banking is its versatility in being able to undertake the most complex financial structures to simple products like gold loans and loans to the self help groups.?