2. In addition to the above issues, Shri Badal Chowdhury, Hon’ble Finance Minister of Tripura, gave his observations as under:

• RBI should ensure introduction of Clean Note Policy in Tripura to replace soiled and mutilated notes that are in circulation.


• Banks should open Note Exchange Counters in branches.


• Branches should be provided with double displaying note-counting machines.


• Banks are also to install forged note detecting machines so that customers / bank employees do not suffer loss.


• There should be easy access to Banking Ombudsman – It is to be ensured that the Pensioners are not harassed.


• People do not know the Banking Correspondents who should be replaced by Bank Employees. If branches are set up in these areas, banking services can be catered in 2 to 3 GPs.

Thereafter Dr Subbarao, Governor, RBI asked Shri Bhaskar Sen, CMD, UBI if it would be possible to raise the CD ratio of the State to 40% by the end of 31.3.2012. Shri Sen apprised the house that the outstanding credit of the State has improved from Rs 2491.03 crore as on 31.3.2010 to Rs 3136.82 crore as on 31.3.2011 at a growth rate of 26 % compared to 19% achieved during the corresponding period last year. CD ratio has also improved from 30% as on 31.3.2010 to 33% as on 31.3.2011. In the current year, target under ACP has been kept at Rs.1625.00 crore based on the PLP prepared by NABARD which is 33% higher over the previous years target. Considering the repayment factor, we may have to revise the target under ACP to a level that can achieve 40% CD Ratio at the end of the year. Shri Sen, However, expressed his hope that the banks will be able to achieve 40% CD Ratio by March 2012.

Shri A Krishna Kumar, Managing Director, SBI opined that as scope for large industrial advance is limited in the State, more focus on Agriculture advance could be of some help to increase CD ratio of the State.

Shri Prakash Bakshi, Executive Director, NABARD opined that credit flow to Agriculture sector should be increased as only 1/3rd area of the State is covered by organizational credit. Scale of finance can also be enhanced from the present level to boost up outstanding credit. For better flow of credit, JLGs may be formed so that the aggregated land holdings would be large enough to make finance viable for banks. He informed that NABARD extends support of Rs 2000/= per JLG.

Dr K C Chackraborty, Dy Governor, RBI observed that out of the 419 villages with population of over 2000, only 6 villages are identified to be covered under branch mode, which was too low to sustain BC operations in the State. More bank branches were needed in the State. The Governor advised the SLBC Convenor, in coordination with State Govt. Officials, commercial banks operating in the State and Reserve Bank of India, to draw up a plan to open 26 brick & mortar branches in the State before March 2012, in addition to the existing programmes. Tripura Gramin Bank (TGB) was also advised to revised its schedule for opening of the remaining three branches under the subvention scheme. TGB sought time up to December 2011 to open theses branches. However, as advised by CMD, UBI, TGB agreed to open these three branches by Sept. 2011. Dr. Chakraborty advised to open these branches directly in CBS mode with the support from the sponsoring bank. Ass regards the problem of Manpower in TGB, the sponsor bank agreed to provide all support, including staff, if necessary so as to complete opening of the three branches by September 2011. Alongwith brick & mortar branches, the BC model also need to be pushed in the State, as it may not be possible to have physical branches in all centres. Disbursement under KCC can also be made through the Business Correspondents.

Shri Kumar Alok, Commissioner & Secretary, RD & Panchayet Deptt., GOT informed the house that the Govt has entered into a MOU with TGB & TSCB for making payment under MGNREGA. through Business Correspondents. TGB has engaged 129 BCs and TSCBs has engaged 47 BCs(the issue of non- release of loan amount under SGSY/SHG as reiterated by Shri Alok Kumar has been mentioned in item 1. Viii earlier) . Shri Alok Kumar also alleged that Passbooks are not being issued to the SHGs; however, bankers present in the house presented a different view. The issue of withdrawal of Rs 1.32 lac from the subsidy account for SGSY in some branches of SBI without prior permission of the State Govt. was also discussed. Shri A Krishna Kumar, MD, SBI described the act as a mistake on the part of concerned Officials against whom the bank will initiate appropriate action. There is no reason to assume that the act was committed willfully with an ill motive to defalcate money or to derive any undue benefit.

Shri S K Panda, Chief Secretary, GOT informed the house that in the nineties a good number of branches were shifted from its original location on the ground of disturbed law and order situation, which has improved substantially. In some of these centers new branches have been opened but there are centers, which are still unbanked.

Dr Subba Rao requested the Regional Director to comment on the issue of quality of currency note. Ms Surekha Marandi, CGM, RBI, Guwahati, pointed out that there were some hurdles in smooth movement of treasure/lifting of soiled notes in the North Eastern Sates, particularly in arrangement of security when treasure has to move from one State to another. While the possibility of using special aircrafts of the Postal Department for this purpose is being explored, arrangement of adequate security to accompany the remittance will remain a requirement. The State Government assured to provide security for each remittances.

Dr Subba Rao stressed the need to enhance financial awareness levels to improve credit absorption capacity in the State and requested all the commercial banks to conduct financial literacy and awareness campaign across the State and cover atleast 40 villages (one village per block) during the year March 2012.

Shri S K Panda, Chief Secretary, Tripura. opined that there is a vibrant Panchayati Raj system in Tripura which can be of great help in organizing such programme.

Shri Manik Sarkar, Hon’ble Chief Minister of Tripura should take the initiative for conducting awareness and literacy drive and assured the house that the State Govt. will provide all necessary assistance that will be needed to organize such programme. He requested RBI to arrange financial literacy materials translated in to Bengali. Ms Marandi assured him that such literatures could be procured from RBI Kolkata and will be provided in the curriculum.

In respect to various other issues raised by the State Government representative, Dr. K. C. Chakraborty informed the house that the branches having cash transaction of rs.50.00 lac per day are required to necessarily have fake note detecting machines. As regards note counting machines (NCM), it was pointed out that the NCMs in use have a dual display, which is visible to the customers as well.

Governor, Dr Subba Rao summed up the proceedings as under:

• CD ratio of the State has to be improved to 40% by the end of March 2012.


• Annual Credit Plan of the State for the year 2011-12 has to be revised upwards to achieve the above CD Ratio. Expected recovery has to be factored into its preparation.


• 26 additional Brick & Mortar branches have to be opened in the State by March 2012 in addition to existing measures for the opening of such physical branches.


• Tripura Gramin Bank will revise its schedule for opening of the remaining 3 branches allotted to it under the subvention scheme so as to complete the same by September 2011.


• For clean note policy, the feasibility of airlifting soiled notes from Tripura has to be examined.


• SBI and UBI will coordinate financial literacy cum awareness drive in all blocks across the State.


• Financial literacy as part of school curriculum could be considered.

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