Financial inclusion necessary for banking growth: FM

NEW DELHI: Finance Minister Pranab Mukherjee on Wednesday called upon banks to promote financial inclusion for sustaining high growth of the banking sector. “Financial inclusion is an important policy of the government not as an important instrument of socio-economic development but if you want to sustain a high growth rate and to address this chronic problem of poverty, deprivation and disparity,” Mukherjee said at Central Bank of India centenary celebration.

He said banks have been advised to issue Kisan Credit Cards to all eligible farmers. “I have requested the state governments to take up this task on a campaign basis,” he said. As on May 31, 2011, the banking system have issued 10.42 crore KCCs. During 2011-12 (April to May 2011), 4.09 lakh KCCs were issued by Commercial Banks, cooperative Banks and Regional Rural Banks with a loan amount of Rs 2,616 crore.

For the current financial year, the target for agriculture credit flow has been fixed at Rs 4,75,000 crore against which the banking system has already extended credit of Rs 2,23,380 crore as on September 30, 2011. Kisan Credit Cards are the prime vehicle for the flow of agricultural credit. As on May 31, 2011, the banking system have issued 10.42 crore KCCs.