Rs 11 lakh cr target for priority sector is achievable: Jaitley

26 February,New Delhi


Union Finance Minister Arun Jaitley said on Monday that the credit flow target of Rs11,00,000 crore for 2018-19 is achievable by the banking sector and would contribute to the momentum towards doubling of farmers’ income by 2022. Addressing National Bank for Agriculture And Rural Development (NABARD) Board at New Delhi, Mr Jaitley emphasised that the banking sector must invest in long term assets to improve the capital formation in agriculture sector. He further added that the investments in financial technology over the past few years have brought in efficiency, speed and transparency in the rural financial eco system.

He also reviewed the Funds announced in the Union Budgets and stressed the need for all the stakeholders to collaborate to improve farmers’ income. Rajeev Kumar, Secretary, Department of Financial Services, highlighted the necessity of financial inclusion and adoption of technologies to make use of the opportunities arising out of higher GDP growth. He requested the banking system to concentrate on geographical areas like North East, East and Central India where the formal credit can give a fillip to growth potential these areas offer. He also mentioned that his Department is actively engaged with other Ministries to create an enriching eco-system.

Harsh Kumar Bhanwala, Chairman, NABARD mentioned that NABARD has operationalised the funds announced in the previous Union Budget and specifically said that the Prime Ministers’ Grameen Awas Yojana is about to be supported through Rs 9000 crore shortly. The Rs 5000 crore Micro Irrigation Fund which will promote water conserving and productivity enhancing technologies will also be operationalised shortly. He emphasised the need for formation of robust Farmer Producers Organisations and committed to the FM that NABARD will form FPOs quickly.

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