The finance minister further stated that the banking sector must invest in long-term assets to improve the capital formation in the agriculture sector.
Union Finance Minister Arun Jaitley opined that the agriculture credit flow target of Rs.11 lakh crore for the Financial Year 2018-19 was achievable by the banking sector. Addressing the Board of National Bank for Agriculture and Rural Development (NABARD), Jaitley said the realisation of the target would significantly add to the momentum of doubling the farmers’ income by 2022. Jaitley also reviewed the funds announced in the earlier Union Budgets and stressed the need for all stakeholders to collaborate to improve the farmers’ income.
The finance minister further stated that the banking sector must invest in long-term assets to improve the capital formation in the agriculture sector. He also claimed that investments in financial technology over the past few years have brought in efficiency, speed, and transparency in the rural financial ecosystem. Meanwhile, Rajeev Kumar, Secretary, Department of Financial Services, who was also at the venue stressed on the necessity of financial inclusion and adoption of technologies to make use of the opportunities arising out of higher GDP growth.
Kumar further requested the banking system to concentrate on geographical areas like North East, East, and Central India, where the formal credit can give a fillip to the growth potential these areas offer.