New Delhi [India], November 6 : The Department of Financial Services (DFS) which functions under the Finance Ministry reviewed the progress of credit disbursement to agri-allied activities such as animal husbandry, dairying and fisheries with Public Sector Banks (PSBs), NABARD and State/UT Level Bankers' Committee, the ministry said on Wednesday.
During the review meeting, M. Nagaraju, Secretary, (DFS) urged PSBs to take all necessary steps to ensure that respective targets are met during the current financial year, and stressed the State Governments to facilitate banks in improving the flow of credit to these sectors.
For context, the government fixes agriculture credit disbursement targets for the banking sector to ensure the availability of agriculture credit at a reduced interest rate to farmers.
DFS Secretary underscored the importance of the allied sector in driving agricultural growth and its employment potential in rural areas and highlighted the trend of regional disparity in credit disbursement in allied activities.
Nagaraju directed banks to conduct regional-level assessments and meetings to ensure disbursement of credit in all areas as all regions have huge potential in allied activities. DFS Secretary also directed NABARD to coordinate with state line departments and LDMs in the identification of fish farmers and providing them with benefits of the KCC (Kisan Credit Card) scheme.
Nagaraju underlined the Government of India's focus on seamless access to affordable credit to allied sectors and urged all stakeholders to take all necessary steps to increase credit flow to the sector.
DFS has been focusing on the sector through various initiatives and reforms. It is building the foundation laid by earlier initiatives like the EASE Reform agenda focusing on risk assessment, NPA management, financial inclusion, customer service, digital transformation, and more.
DFS's strategic intervention has played a crucial role in the significant role in the sector. In the agriculture sector, the DFS has facilitated the robust disbursement of credit, with the Agricultural Credit increasing from Rs. 8.45 lakh crore in FY 2014-15 to Rs. 21.55 lakh crore in FY 2022-23, as per the official figures. The Kisan Credit Card (KCC) scheme has played a pivotal role in providing timely and hassle-free credit to farmers.
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