News & Information From Northeast India

Tripura govt warns bankers to stop harassing entrepreneurs

Tripura Chief Minister Biplab Kumar Deb has warned the banks operating in the state to stop dilly-dallying tactics by seeking guarantor for sanctioning loans to unemployed entrepreneurs under the Prime Minister’s Mudra scheme.

While addressing 129th State Level Bankers’ Committee meeting, Deb said the administration came to know that most of the nationalized banks have not been directly refusing the entrepreneurs to provide loan, but in the name of procedure, including the endorsement of guarantor, most of the youth get frustrated and the blame has been shifted to the prime minister and the government.

The Pradhan Mantri Mudra Yojana (PMMY) was launched in April 2015 by Prime Minister Narendra Modi. The loans are given to non-corporate, non-farm small and micro enterprises. The loans are given by banks and non-banking financial companies as working capital and term loans for business enterprises in manufacturing, trading and services and for agriculture activities.

An expert committee of Reserve Bank of India (RBI) on micro, small and medium enterprises (MSMEs) has recommended doubling the cap on collateral-free loans to Rs 20 lakh from the current Rs 10 lakh. This will be extended to borrowers falling under the Mudra scheme, self-help groups, and MSMEs, which have not been followed properly in Tripura, the chief minister reminded the bankers.

Deb, however, urged the bankers to create employment opportunities by giving loan to the unemployed youths. He said that his government has been giving priority on agriculture, horticulture, animal resources, fisheries, rubber and small and medium industries.

“We expect the bankers should realize the government attitude and release the fund. Some bankers are harassing the unemployed youths during release of loan but I request all of you to help the loan seekers with soft attitude that will balance the ratio of deposit and credit in the state,” Deb said in the meeting.

He further stated that in current financial year the bankers fixed the targets Rs 1556 crore loan under Mudra scheme and sought support of the banks for improvement of credit deposit ratio as well to help the economic growth of the country.

The CM also asked the banks to open up branches in the rural areas as per their commitment.

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