Amaravati: CM YS Jagan Mohan Reddy asks banks to cut interest rates

Amaravati: Expressing displeasure over the meagre disbursal of loans from the banks, Chief Minister YS Jagan Mohan Reddy urged them to reduce the interest rates for maximum outreach.

The Chief Minister asked the bankers to extend help to implement welfare schemes by the state government. Addressing the 210 State Level Bankers (SLB) meeting here on Wednesday, the Chief Minister said that the banks should come to the aid of small-scale and medium industries and efforts should be made to revitalise accounts under the YSR Navodaya scheme.

Efforts will have to be made to utilise Pradhan Mantri Mudra Yojana, where only a small number of loans are being provided. In addition, he asked the bankers to cut down interest rates and benefit women and small scale entrepreneurs.

The Chief Minister stated that the government has proposals to provide zero-interest loans of about Rs 10,000 for micro-enterprises to boost their business activities. He also urged the banks to take up the digitalisation in all districts just like the one existing in Kadapa district.

Andhra Bank managing director, J Pakeerasamy, said that CBS (core banking services) were started in 567 villages across the state and also mapping was completed for setting up banks in 229 villages that don't have banking facilities in the radius of 5 km.

He further stated that by the end of December 2019, Rs 1,18,464 crore has been provided as loans to the primary sector as against the target of Rs 1,69,200 crore. Similarly, for SMEs, as against the target of Rs 36,000 crore, Rs 29,442 crore has been provided.