Minutes of SLBC (U.P.) Meeting dated 22.03.2011

The Meeting of SLBC (U.P.) to review the performance of Banks as at the quarter ended December, 2010 was held on 22.03.2011 at the "Sir Sayajirao Gaekwad Hall", 4th Floor, "Baroda House", V-23, Vibhuti Khand, Gomti Nagar, Lucknow. The meeting was co-chaired by Shri M.D. Mallya, Chairman & Managing Director, Bank of Baroda, Mumbai & Shri Atul Kumar Gupta, IAS, Chief Secretary, Govt. of U.P., Lucknow. Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance; Shri Ashok Kumar, IAS, Principal Secretary, Dairy Development & KVIB; Shri Satyajeet Thakur, IAS, Principal Secretary, SSI & Export Promotion; Shri Sanjeev Kumar, IAS, Commissioner, Rural Development and Shri Shiv Singh Yadav, Director, Directorate of Institutional Finance, Government of U.P. represented the State Govt., Shri A. K. Mishra, Under Secretary, Ministry of Finance, GOI represented the Govt. of India. Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India; Shri P.S. Mohanan, General Manager, NABARD; Shri Abhay Kumar Singh, Chief General Manager, State Bank of India & Zonal Heads/Senior Executives / Senior Officers of Banks, Central / State Government Departments and other Financial Institutions also participated in the meeting. A list of the participants is enclosed as "ANNEXURE".

At the outset, Shri Subhash C Ahuja, General Manager, Bank of Baroda & Convenor, SLBC (U.P.) in his welcome address extended a warm welcome to Shri M.D. Mallya, Chairman & Managing Director, Bank of Baroda & Shri Atul Kumar Gupta, IAS, Chief Secretary, GoUP in particular and also to the Senior Bureaucrats, Central and State Govt. Functionaries and Executives of RBI, NABARD & other participants of the meeting and stated that :-

• The entire world is amazed at the economic growth of our country and ours is the second fastest growing economy in the world. However, almost 60% of our Rural population and nearly 40% of the total population of our country is still "excluded" and does not have any type of Bank account. Surprisingly, only 14% and 9.5% of our youths in Urban and Rural areas respectively are enjoying any Bank credit. As a consequence, a large number of "excluded" ones are unable to contribute to the economy of our country and their skill and labour remains secluded. Our country and the State both are geographically as well as population-wise very vast. However, it may not be viable for Banks to open physical branches at every place. Resultantly, the Banks have decided to provide IT enabled Banking services by March 2012 in all habitations with more than 2000 population as per RBI/Govt. of India guidelines.
• Under this voluminous programme of "Financial Inclusion", -14625- villages in the State have been identified with more than 2000 population and Banks would be providing Banking services in a few of these villages through Brick & Mortar branches and rest of the villages will be covered through Business Correspondents/Mobile Vans/Rural Kiosks latest by March 2012 to provide Banking Services at least on a weekly basis. Out of these -14625- villages, target of -2569- villages destined to be covered by the close of the current financial year has already been achieved.
• On 10.02.2011, Ministry of Finance, GOI in association with Indian Banks' Association (IBA) launched a programme namely "Swabhimaan" at Delhi. Today's meeting is dedicated to the cause of efforts made by Banks so far in the direction of "Financial Inclusion". He informed that a Booklet depicting all important facts about "Financial Inclusion" along with its up-to-date position in the State is going to be released on this occasion.
• As RSETIs are the new initiatives delivering to the cause of "Financial Inclusion", all Lead Banks are requested to prepare an action-plan for establishing a RSETI in each of their Lead District, which are still left out. Likewise, Financial Literacy & Credit Counselling Centres (FLCCs) are also to be established in all Lead Districts. Banks have to fulfill these obligations as per the guidelines issued by Reserve Bank of India & Govt. of India. As yet -43- RSETIs & 19 FLCCs have been established by different Banks in the State.

He also referred to some of the important developments that took place after the last SLBC Meeting as under :-

• On 04.02.11, a meeting was held by Ministry of Urban Development, Govt. of India at New Delhi to take stock of the progress achieved under "Interest Subsidy Scheme of Housing for Urban Poor (ISHUP)" wherein it transpired that the progress under the scheme in our State is very poor while it is otherwise in other States. "SUDA" has to play an important and key role in successful implementation of the scheme in our State.
• Under the ambitious scheme of State Govt. to double the income of farmers in the State, -5000- villages in the 1st phase have been covered and the application forms for issuance of a KCC to the hitherto uncovered farmers have been submitted to Bank's branches. The work in this regard has also been started in another -50000- villages identified in the State in 2nd phase so as to cover the remaining farmers by June 2011. A Govt. Order (GO) has also been issued on 14.01.2011 by the Chief Secretary, GoUP. Banks must ensure success of this scheme and a feedback at the ground level is of utmost importance for all stakeholders.
• Margin Money/Subsidy claims worth approximately Rs.116.00 Crs. of Banks under PMEGP are still pending which is affecting its progress adversely. This is also proving as a de- motivating factor for Banks and the entrepreneurs as well. State Nodal Deptt.- KVIC has been assuring since long that necessary demand has already been put to Govt. of India through their Central Office at Mumbai without any results so far. The concerned Govt. Authorities should use their good offices so that the issue is resolved and the interest of Banks and promoters is safeguarded.
• -62- branches of Banks including -6- of Bank of Baroda in Ghaziabad have been issued notices to shift these branches out of the residential areas. It is relevant to mention that Noida Local Area Board has allowed the Bank-branches to function in residential areas considering the comfort and convenience of Children, Women and Aged Persons and essential nature of Banking services. Concerned Govt. Authorities are requested to ensure issuance of effective and crystal-clear instructions and guidelines in this regard so that the problem is solved once for all and there is no repetition in future.
• Although comprehensive and clear-cut instructions were issued by the Chief Secretary, GoUP to District Magistrates in the State regarding their role and Executive Powers permitted under SARFAESI Act 2002, these need to be reiterated again with a special reference prescribing time-frame for each activity/step likely to be initiated by the Local Administration so that Banks do not suffer and their interest is suitably guarded.
• A fervent appeal was made to the Controllers of Banks to ensure submission of SLBC data for March 2011 onwards in digital form through e-mail so as to facilitate flawless and quick computation/compilation of data by SLBC and to convene its quarterly meetings in accordance with the calendar prescribed by Reserve Bank of India.

Towards the conclusion of his address, he complimented everybody for their cooperation, coordination and amity that have contributed largely to achieve better results for the SLBC Meetings.

In his key-note address, Shri M.D. Mallya, Chairman & Managing Director, Bank of Baroda expressed his thanks to Shri Atul Kumar Gupta, IAS, Chief Secretary, Govt. of U.P. in particular and other dignitaries who made it convenient to attend the meeting and stated that :-

• Financial year 2009-10 proved fair enough from the point of view of economic growth in the country. Our economy has limped back to normalcy and is poised for a firm and broad based recovery.
• Financial year 2010-11 was comparatively tougher because inflationary forces were active and were heading towards quite higher levels posing challenges for the masses and policy makers. Reserve Bank of India has taken effective steps accordingly to combat the inflationary forces and maintain the growth element. The most important & effective measures adopted for this purpose is to curb the money supply through hike in Repo & Reverse Repo rates etc. It is the endeavor of Reserve Bank of India and Govt. of India to bring down the inflation to 7 to 7.5% by March 2011.
• Bank credit has grown to the level of 2 to 2.5 times of GDP of the country.
• The level of Bank-credit to Agriculture Sector was envisaged last year at the level of `3,75,000 Crores. In the current fiscal, it has been raised to `4,75,000 Crore with a view to upscale the capital formation in Agriculture which has been showing a decreasing trend in the past.
• "Financial Inclusion" is at the top priority on the Agenda of the GOI. Almost, -73,000- habitations in the country having population in excess of 2000 are to be provided with basic "Banking facilities" through any of the approved models, latest by MARCH 2012. -14,625- of these villages belong to the State of Uttar Pradesh. Out of these total -14,625- villages, -2569- villages are to be provided with "Banking Facilities" by March, 2011 and the rest by March 2012. To create ground level awareness, a programme namely "SWABHIMAAN" has been launched by GOI to sensitize, educate and mobilize the target group to open Bank accounts for the cent percent success of "Financial Inclusion" programme. Banks should participate proactively to make a committed progress in this direction.
• All Banks should strive hard to actualise their targets cent percent under Annual Action Plan 2010-11 so that desired growth is possible at the end of the day.
• The growth of Banking business in U.P. is substantial and satisfactory Credit dispensation by Banks in the State is commensurate with this growth.
• As par the guidelines issued by Ministry of Rural Development, GOI, at least one RSETI is required to be established by Banks in each of their Lead District by March 12. Till date, -43- such institutes have been set up. Hopefully, the target will be actualized beyond doubt as stipulated.

Towards the conclusion of his address he wished the meeting all success and hoped that discussion and deliberations will be held in a fruitful and healthy atmosphere. Decisions taken here will go a long way in improving the quality of life of the general public.

Shri Atul Kumar Gupta, IAS, Chief Secretary, Govt. of U.P. in his address touched upon the following important aspects :-

• In the State of Uttar Pradesh, Banks have a long way to cover. U.P. is a vast and populous State with rough geographical and climatic conditions in certain pockets. 80% of the population lives in rural areas with low literacy and high poverty. Banks need to intensify their network with a sense of commitment and service.
• The CD Ratio of the State is substantially low in comparison to its All India Average. Ideally, it should have been 60%. Although, CD Ratio has improved to some extent over a period of time, it needs to be pushed further rapidly. The higher is the CDR, the higher is credit deployment to more and more credit-users.
• Although, our State lacks adequate infrastructure facilities as compared to other States, the State Govt. is determined to improve infrastructure facilities in the State to give a boost to the developmental activities here.
• Ours is an agrarian State and agriculture is the life line of majority of our population specially in rural areas. Crop-production is not all that circumferences Agriculture. There are number of other allied activities that form part of Agriculture and needs to be pushed further. State Govt. has decided "to double the income of the farmer in the State in next two years. With a view to improve the farm-productivity and Agricultural output thereby, State Govt. has established "Soil Testing Laboratories" in large numbers. These are functioning satisfactorily and are delivering qualitative results. Similarly, availability of quality Seeds, Fertilizer, Implements, etc. is being ensured and intensified further.
• "Seed Replacement Ratio" has improved considerably now but we are committed to push it further so that farm-productivity is up-scaled and the margin of profit for the farmer is improved.
• Agricultural Universities in the State are working tirelessly to improve the seed quality and develop hybrid seeds so that yield is higher and the resources of land, labour and capital are utilized to its optimum.
• Despite continuance of KCC scheme since long, good numbers of farmers in the State are yet to be included under this scheme. To overcome the situation, State Govt. has deployed the force of their field functionaries in different State Development Departments to identify and prepare a list of these so far deprived farmers and get their application forms properly filled in duly supported by all relevant documents. These applications would be lodged with the branches as per "Service Area Approach". Banks should pro-actively support this "Special Drive" of State Govt. so that all poor and needy farmers who were out of the ambit of KCC Scheme so far are benefited with this scheme.
• He also mentioned about introduction of a new Social Security Scheme namely "Mahamaya Garib Arthik Madad Yojana" so that benefits may be passed on to beneficiary directly in place of "Subsidy". The "BPL List - 2002" has been frozen and has become "defunct". The Planning Commission of India is reviewing it. State Govt. has also started the process of identifying people in the State who are 'stagnant' and have continued to live "Below Poverty Line". State Govt. intends to support these people with monthly financial assistance of `400/-.
• Referring to the "Business Correspondent" model being adopted by Banks to provide basic Banking facilities latest by March 2012 in habitations having population more than 2000 under the "Financial Inclusion Plan", he observed that it is a very useful model and is rightly proving as a key to the drive of financial inclusion.
• As far as power situation in the state is concerned, the Govt. is committed to step up power generation and is aiming to produce 10,000 MW of electricity by 2015 so that the State becomes self-reliant in this regard and there is no power-shortage in the State. He was optimistic about the State of UP which is poised for bringing sea changes in both rural and urban areas and the results would be visible in next 4-5 years.
• In his concluding remarks Shri Gupta stated that Banks do have to play a stellar role in the development of the State and her populace. State Govt. is fully prepared to extend every possible and necessary support to Banking fraternity.

Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India in his address to the august House highlighted the following points :-

• Although there is a marked positive change in the functioning of SLBC meetings, however, a lot more is to be done to further improve the same. He was of the view that Minutes of last SLBC Meeting should preferably be annexed with the Agenda-Notes for a quick and ready reference of the proceedings that took place in the last meeting.
• Under the first phase of "Financial Inclusion", it was to be ensured that all families in each District of the State do have access to Banking system either through a Deposit or Advance account. In our State the target has not been achieved in few Districts. He advised the Controllers of the Lead Banks of these Districts as also the concerned State Government Authorities to take a note of it and augur their resources so as to accomplish the task without further loss of time. This will pave way for attaining "Total Inclusion' in our State.
• Similarly, under "Smart Card Project", the progress in the State is not satisfactory. The progress of our Regional Rural Banks which have been conceived as the nucleus of our plans for "Rural Development", is also deficient in this regard. They should rise to the occasion and do justice with their existence.
• Regional Rural Bank, promoted by Union Bank of India in the State of U.P. namely Kashi Gomti Samyut Gramin Bank needs to be strengthened suitably. Concerned authorities of Union Bank of India should take note of it and do the needful so that the development of the concerned area is not adversely affected.
• "UID" project launched by Govt. of India for issuance of a "Unique Identification Number" to each citizen of our country has now been renamed as ADHAR. State Bank of India and other major Banks are now partner to this project. The Govt. of India is paying ` 50/- on issuance of each "UID" number.
• It has been reported that Corporate Business Correspondents appointed by Banks are not paying wages to their field functionaries in a transparent manner. It is proving hazardous to the process of "Financial Inclusion" and is arresting the progress at some places. Banks should take an appropriate action in such cases because success of Business Correspondent Model is essential for the successful implementation of gigantic task of "Financial Inclusion".
• On the issue of CD Ratio in the State, he was of the view that the Special Sub-Committees of DCC constituted in the Districts having CDR less than 40% should be activated and it should find ways and means to improve the CDR of the respective Districts. Shri Sahoo also advised for activating the Sub-Committee of SLBC on Credit Deposit Ratio under the Convenorship of Union Bank of India.
• As a matter of principle, every Lead Bank has to establish a RSETI by March 2012 in each of their Lead Districts. There are still a good number of Districts in the State where certain Lead Banks are lagging behind in this respect. For instance, Allahabad Bank has yet to start these institutes in 7 to 8 of their Lead Districts. Similarly, these institutes are yet to come up in Districts like Jhansi, Etawah, Pilibhit, Firozabad etc. The concerned Lead Banks should take all necessary steps to set up RSETIs fast in their left-over Lead Districts because it is aimed at serving an important social obligation. Similarly, FLCCs may prove quite instrumental in promoting credit culture, discipline and wisdom in the State.

Shri P.S. Mohanan, General Manager, NABARD referred to following salient points in his address :-

• Flow of credit by Banks to Priority Sector has increased sufficiently over the past couple of years in our State.
• The forum of State Level Bankers' Committee has been performing well and has always played a crucial role in expanding "Credit" to different sectors under the concept of "Priority Sector Lending".
• For the forthcoming financial year i.e. 2011-12, a total out-lay under Annual Credit Plan has been fixed at `65,440/- crores.
• Under Rural Infrastructure Development Fund (RIDF), State of Uttar Pradesh leads the list and the out flow is the highest in the country.
• Under the second phase of "Financial Inclusion" programme, all villages hitherto un-Banked and having population in excess of 2000 are to be provided with basic Banking facilities latest by March 2012. Number of these villages in UP is -14625-. It has been decided to cover -2569- such villages by March 2011 and the rest by the next March. The task is gigantic and we need to put our heart and soul into it so that the target is achieved in consonance with the Road Map drawn for the purpose.
• The State Govt. has rightly decided to double the income of farmers in next 2 years with the view to improve the quality of life of farmers in the State. This will also open the "flood gates" for a revolution in rural economy. To cover each desirous and deserving farmer under the KCC scheme will be of immense help to the poor and resource-starved farmer to make a timely financial assistance available to him in the hour of his need. There still exist a good number of farmers who are deprived of a KCC. Banks with the help of field functionaries of certain Development Departments of the State should harp upon this so far untapped potential.
• Financial literacy and awareness is essential to create an atmosphere for Financial Inclusion in the state. Financial Literacy promotes financial wisdom and skill which is a must to manage the financial affairs and inculcate the habit of thrift and savings. These promote a demand for Banking facilities and serve the purpose of Financial Inclusion. NABARD is promoting Financial Literacy through Plays and Puppet Shows that are being organized in villages out of our financial support. He also described the other initiatives of NABARD viz. Financial Inclusion Fund (FIF) and Financial Inclusion & Technology Fund (FITF) for ICT based solutions under Financial Inclusion.

Upon various observations made by the distinguished dignitaries in their address, Shri M.D. Mallya, Chairman & Managing Director, Bank of Baroda asserted that :-

• Various actionable points emerged during the deliberations/discussions in the SLBC Meetings should be included into "Action Taken Report" put up with the Agenda-Note in two segments separately, (i) which have been complied with, and (ii) which are yet to be complied with.
• The Sub-Committee of SLBC (U.P.) formed to monitor the progress in Districts in the State having CD Ratio below 40% level should also look into the potential available in the particular District. The Report and Remarks of the Sub-Committee of SLBC (U.P.) should also be suitably incorporated in Agenda-Note.
• Various branches of Commercial Banks in the State have been rolled out under "Core Banking Solution" (CBS). Regional Rural Banks in the State should also migrate all their branches quickly under CBS platform. Some of the Regional Rural Banks in the State have achieved the distinction and others should also follow it up soon.

Thereafter, Agenda-items were taken up through a Power Point Presentation.

Agenda No. 1: SLBC meeting dated 24.12.2010 - Confirmation of Minutes

Minutes of the last SLBC meeting held on 24.12.2010 were confirmed by the House.

Agenda No.2: Status-Report on Action Points of the last meeting

Action Point No. 1. A. : Exemption of 10% recovery charges in RC filed a/cs which have been "compromised" by Banks under "OTS".

Action Point No. 1.B.:Waiver of 10% recovery charges in a/cs where RCs issued earlier to their coverage under "ADW&DRS, 2008".

Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, Govt. of U.P informed that a letter was written to all the District Magistrates in the State but the desired information is not forthcoming. Alternatively, Banks may utilize the services of their Lead District Managers for crystallization of this figure.

He further clarified that for such policy decisions, a procedure has to be followed and the amount of sacrifice due to the particular decision is to be arrived at.

Shri Rakesh Krishna, Addl. Director, Directorate of Institutional Finance, GoUP wanted to know the amount involved in Accounts where RCs were issued earlier and what amount has been waived by Banks in these Accounts under ADW&DR Scheme 2008.

He further informed the House that a G.O. is already existent in the State on "10% Recovery Charges" recoverable in "RC Filed Accounts" that have been compromised by Banks under their "One Time Settlement" Scheme. However, none of the Banks present in the meeting were having any knowledge thereof.

Shri Subhash C Ahuja, General Manager, Bank of Baroda & Convenor, SLBC (UP) requested him to send a copy of the concerned G.O. to SLBC.

Action Point No.2a &b: Problem of payment of overdues of Banks in Govt. Guaranteed A/cs. & Non/Delayed payment of interest/principal against investment of Banks in bonds floated by Govt. undertakings, corporations & institutions & guaranteed by the State Govt.

Shri Rakesh Krishna, Additional Director. Directorate of Institutional Finance, GoUP stated that it has been emphasized for quite some time that the issue is not common for all Banks. Each case will be different from one Bank to the other. Resultantly, it is advisable that it may be dropped from the list of pending Action-Points of SLBC and each Bank may take-up individual issues separately with the respective Govt. entities.

During the discussion, various Banks informed that although compromise has been arrived at in certain cases, the terms of compromise are not being complied with by the respective Institutions. As such, the sole objective of the compromise exercise is defeated. Hence, Banks' request for continuance of this issue is logical and the State Govt. support is quite important and urgent.

Action Point No. 3: Pending Margin Money Claims under REGP Scheme of KVIC/KVIB pertaining to F.Y.2000-01 to 2004-05

Shri R.S. Pandey, State Director, KVIC informed the House that the matter is still pending with their Central Office, Mumbai. A demand for `12.00 Crores has already been made to the Ministry of MSME, Govt. of India. However, their reply is awaited. We would settle the issue once for all as soon as funds are released.

Action Point No. 4: Registration of Equitable Mortgage (Noting of Lien)

Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, GoUP apprized the House that the issue is forwarded to the Principal Secretary, Tax & Registration, GoUP for an early decision.

Action Point No. 5: Amendment regarding auction of Agriculture Land of defaulting borrowers and compulsion to leave 3.125 Acres of farm land.

Shri Shiv Singh Yadav, Director, Directorate of Institutional Finance, GoUP said that it was decided in a meeting chaired by the Agriculture Production Commissioner that a detailed proposal describing how "Agriculture Lending" in the State is suffering on this count may be submitted to the Govt. in order to help them to take a decision in the matter.

Action Point No. 6: IT enabled services by Banks

Shri Rakesh Krishna, Additional Director. Directorate of Institutional Finance, GoUP apprized that this issue relates to two State Govt. Departments namely Rural Development and Board of Revenue and they have to take a decision.

Shri Sanjeev Kumar, IAS, Commissioner, Rural Development stated that the issue has been referred to Ministry of Rural Development, GoI and a reply is still awaited.

Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, GoUP opined that we may wait for the reply from GoI.

Action Point No. 7: Financial Inclusion

It was informed that only -3- Districts in the State viz. Etawah (Central Bank of India), Varanasi (Union Bank of India) and Mainpuri (Bank of India) were left to be declared as Financially Included although the work is already completed. The issue has been vigorously followed up by SLBC and also from the level of Principal Secretary, Institutional Finance, GoUP. However, the issue was still unresolved. Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, GoUP apprized that certain issues have been raised by District Magistrates in these Districts. Concerned Lead Banks in these Districts have been approached to sort out the things and it was hoped that the matter would be settled soon.

Action Point No. 8: Coverage of all deserving and desirous farmer under KCC Scheme

Shri Ravi Prakash Arora, Special Secretary, Agriculture, GoUP informed the House that:

KCCs have already been issued in about 52% cases out of applications lodged by the field functionaries of Rural Developmental Department of the State with concerned Bank-branches under the special drive. in 5000 villages identified in 1st Phase. Banks should endeavour to issue KCCs to all eligible farmers at the earliest.

Another -50,000- villages in the State have been selected in 2nd Phase under this special drive and allotted to the field functionaries of certain State Departments such as Panchayati Raj, Rural Development, Agriculture and Cane, etc., so that all remaining and completed applications were lodged with the concerned Bank-branches complying with "Service Area Approach". Banks need to necessarily issue KCCs on merits by the end of June 2011 in all such cases. A Govt. Order (GO) has already been issued in this regard on 14.01.2011 to all concerned.

Bank of Baroda has relaxed/waived Service Charges being levied on Documentation, Inspection & Advocate Report etc. to facilitate farmers in the State. Other Banks to follow the same.

Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India, wanted these "Relaxations" to be linked with "Recovery of Bank Dues".

Shri Dinesh Sharma, Chairman, Baroda U.P. Grameen Bank, Raebareli stated that Advocate's Fee can not be waived by Banks because it has to be paid necessarily to Advocate without any choice.

Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India, stated that the State Govt. is providing good "incentives" for issue of a KCC and as such, Banks should come forward to saturate all eligible and aspiring farmers with KCCs without any reservation.

Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, GoUP apprised that substantial and apparent gaps are existent in "Scale of Finance" in different Districts in the State.

Mr. A.K. Singh, Director, Agriculture, GoUP informed that a letter has been written to all District Magistrates in the State in this regard and they have been advised to convene meetings of "Committees on Scale of Finance" in their respective Districts so that uniformity in "Scale of Finance" be maintained in all the Districts without any wide variation.

Action Point No. 9: Pending Margin Money claims under PMEGP Scheme for Financial Year 2009-10 & 2010-11.

Shri R.S. Pandey, State Director, KVIC informed that ` 22.00 Crores have been received and released to Nodal Branches of Banks also for settling the pending claims of Banks. A request has already been made to the Ministry of MSME through the Central Office level for release of remaining Margin Money and the same would be made available to the Banks upon its receipt.

Shri Abhay Kumar Singh, Chief General Manager, State Bank of India suggested that a Sub-Committee of SLBC be formed under the Convenorship of Directorate of Institutional Finance, GoUP so that various pending issues may be resolved and not allowed to carry over unnecessarily for years together.

Agenda No.3: Review of progress under Annual Credit Plan 2010-2011 as at Dec'2010

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

It was informed that the Potential Linked Plan (PLP) 2011-12 for `65440.99 Crores has been finalized on 8th December 2010 during the State Credit Seminar at Lucknow. The Annual Credit Plan 2011-12 in connection with the PLP Projections should be launched in all Lead Districts latest by 31st March 2011.

Agenda No.4: High Level Committee to review Lead Bank Scheme - Implementation of the recommendations

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No.5: Financial Inclusion

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India stated that a meeting of Controllers of Banks in the State was being held in RBI on 24th March 2011, wherein the latest position would also be reviewed.

Agenda No.6 Credit Deposit Ratio

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No.7 : Kisan Credit Card/Crop-Loan, Personal Accident Insurance Scheme (PAIS) & Rashtriya Krishi Bima Yojana (RKBY)

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Mr. A.K. Singh, Director, Agriculture, GoUP informed that the financial target under KCC scheme for the next financial year i.e. 2011-12 has been fixed at `34,000.00 Crs. KCC Scheme may prove as very important tool for the purpose of doubling the income of the farmers in the State in next 2 years. Banks should rise to the occasion to make the this ambitious drive of State Govt. a grand success.

Mr. V.K. Singh, Director (Statistics), Directorate of Agriculture, GoUP opined that the lists of beneficiaries under Rashtriya Krishi Bima Yojana (RKBY) should be displayed at prominent place in branches. The claim amount settled by Insurance Co. should be necessarily credited to the beneficiary's accounts within seven days of its receipt in the branch. The duration between settlement of claims by Agriculture Insurance Company of India and its credit in the account of beneficiary should not exceed a period of -14- days so that the farmers do not have to pay unwarranted and additional interest.

He was of the view that Banks generally obtain various personal details of the customers at the time of opening of their accounts. He requested Banks to provide Mobile Numbers of farmers to them so that they may prepare a data base of farmers at their end and they may be able to apprize farmers from next Kharif season onwards about the prevalent schemes of State Agriculture Department through SMS. He also requested Bankers to be very particular about "Insurance" Schemes and insure every farmer under these Schemes so that the interest of both farmers and Banks be safeguarded properly.

Shri Subhash C Ahuja, General Manager, Bank of Baroda & Convenor, SLBC (U.P.) also confirmed that many Banks including Bank of Baroda are already in practice of sending "SMS Alerts" to their customers. Other may also follow if they punch the necessary data accordingly.

Agenda No.8: Advances to Micro, Small & Medium Enterprises

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri H.K. Soni, Dy. General Manager, Reserve Bank of India, Regional Office, Lucknow stated that Banks should necessarily issue atleast one Card to each eligible & aspiring individual out of KCC, GCC & ACC.

Shri Babulal Verma, Asstt. Director, Ministry of MSME, MSME Development Institute, Kanpur requested to include information on Medium Enterprises in SLBC Data so that the position in this regard was also reflected suitably in each quarter.

Dr. Amarendra Sahoo, Regional Director, Reserve Bank of India, Lucknow requested the representative of Industries Deptt. to make available the relevant data to SLBC (U.P.) so that it is incorporated suitably in the SLBC data.

Agenda No.9 : Debt Swap Scheme & Joint Liability Group

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri Shiv Singh Yadav, Director, Directorate of Institutional Finance, GoUP was of the view that both these Schemes were good enough and possess ample social appeal too. Performance of certain Banks was less than satisfactory. They should raise their performance considerably.

Mr. Ravi Pratap Arora, Special Secretary, Agriculture, GoUP informed that almost -547- Self Help Groups have been formed by their Department. Banks may utilise these Self Help Groups for improving their performance under various schemes.

Agenda No.10 :Recovery - Under Priority Sector, RC Filed A/cs, Govt. Sponsored Schemes & NPA A/cs

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri Rakesh Krishna, Addl. Director, Directorate of Institutional Finance, GoUP stated that there exists a system of monthly meeting at the Deptt. of Revenue. Banks should make best use of it for improving their "Recoveries".

Shri V.K. Joel, General Manager, Punjab National Bank said that Banks should be duly supported by Govt. Authorities in "recovery" of their dues. Otherwise, poor recovery would prove as "detrimental" and "de-motivating" for the Banks.

Shri Nawal Kishore, Managing Director, Uttar Pradesh Sahkari Grameen Vikas Bank Ltd. said that :

• "To lend" is one of the primary functions of Banks. They also have it as their primary and regulatory obligation not to extend "financial assistance" at any cost to a defaulter.
• Out of the total Advances portfolio of their Bank, only 6% belong to the category of borrowers having exposure "more than Rs. 1,00,000/-" because most of their borrowers are "Marginal & Small" Farmers. It is indicative of the fact that maximum number of our borrowers enjoy credit limt less than Rs.1,00,000/-. Almost, more than half of these 'Small Borrowers' hardly possess farm lands above 3.125 acres. Resultantly, we are facing a lot of problems on the front of "Recoveries" due to the standing guidelines of the State Govt for not adopting "Coercive Measures" for recovery in loan accounts below Rs. 1,00,000/-.and also due to the compulsion of leaving minimum 3.125 acres of farm land with the defaulting borrower in case of auction of his agricultural land for recovery of Bank-dues.
• To keep our Loan Book in good health, we have no choice than to "renew" all old loan a/cs in default every time without any virtual recovery. Such a practice enables us to score on both fronts, i.e., "Recovery" and "Fresh Loans". This is a deceptive and injurious arrangement without a practical gain on either side. Figures so achieved suggest progressive trends while there are no realistic and practical "transactions" involving any true "recycling" of funds. Without an actual "recovery", figures are made to reflect "recovery" and a wrong image is reflected. Such a situation lead the borrower to fall prey to a "Private Money Lender" ultimately because he is rendered ineligible to a Bank-finance due to his being a permanent defaulter. Such a situation will lead to a few worthy credit users available to the Bank after some time.

Shri V.K. Joel, General Manager, Punjab National Bank commented that this is actually a true picture of the ground realities. Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, Govt. of U.P. opined that the figures of pending RCs are inclusive of both Rural & Urban areas and these need to be shown separately for each area. Shri Yogesh Kumar, IAS, Principal Secretary, Institutional Finance, Govt. of U.P further suggested that some concrete and bold steps should be initiated in some of the Districts on a "Pilot Basis" which should be subsequently replicated elsewhere also.

Agenda No.11: Financial Assistance to Minority Communities

Performance of Banks as at the quarter ended Dec'10, was put up before the House

Agenda No.12: Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

Performance of Banks as at the quarter ended Dec'10, was put up before the House. However, in absence of any representation from Nodal Agency - SUDA, the detailed discussions could not be held.

Agenda No. 13 : Golden Jubilee Rural Housing Scheme

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No.14: Review of progress under various Poverty Alleviation & Self Employment Generation Programmes

A. Swarnjayanti Gram Swarozgar Yojana (SGSY):

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

B. Swarna Jayanti Shahari Rozgar Yojna (SJSRY) :

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

C. Prime Minister's Employment Generation Programme (PMEGP)

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri Ashok Kumar, IAS, Principal Secretary Dairy Development & KVIB, apprized that the targets fixed for "Employment Generation" and "Investment" in the State under this Scheme could not be actualised due to shortage of Margin Money. Efforts are being made for getting the desired Margin Money from Govt. of India.

The process of physical verification of units financed under PMEGP during 2008-09 & 2009-10 is underway and "Giri Institute of Social Studies" Lucknow has been entrusted with the job. Identity Cards have also been issued by KVIC to their representatives. Banks are requested to cooperate with them so that the exercise of physical verification of the units promoted under PMEGP scheme may be completed soon and smoothly.

D. Saghan Mini Dairy Pariyojna

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri Ashok Kumar , IAS, Principal Secretary Dairy Development & KVIB said that the Banks need to improve their performance under this Scheme. Sufficient amount of "Subsidy" has already been released and parked with the Bank branches. Banks must speed up disbursement of loans and utilise the entire amount of the Subsidy.

E. Special Component Plan (SCP)

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri P.C. Singh, General Manager, UPSC Finance & Development Corporation, GoUP informed the House about the latest progress and said that almost -1,20,829- applications have been forwarded to various Banks-branches by the Department. Out of which -78122- applications have been sanctioned by Banks & Disbursement has also been affected in -44862- cases out of the sanctioned cases. Almost -33260- & -25763- cases are still pending for "Disbursement" & "Sanction" respectively. He requested Banks to dispose of all pending cases quickly.

F: Mukhya Mantri Gramodyog Rojgar Yojna

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

G. Margin Money Scheme for Backward Class.

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No.15: Swarojgar Credit Card

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No.16: Crime Against Banks

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri Atul Kumar, Senior Manager (Credit), U.P. Bhumi Sudhar Nigam Ltd., informed the House that -5500- Mahila Jal Upyog Samooh were formed in the very 1st year of the project. He complemented the Banks in having cooperated well for opening accounts of these Groups. He also requested for expeditious transfer of the funds of "Sodic Land Reclamation Project".

Agenda No. 17: LBR 2 & 3 Return

Due to non submission of data by various Banks, NABARD reported the NIL performance.

Agenda No. 18: Financing under new schemes of Govt. of India i.e. Agri-clinic/Agri- Business Centres, Rural Godowns & NHB Scheme

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Agenda No. 19: Crime Against Banks

It was noted with satisfaction that no new case have been reported.

Agenda No. 20: Education Loan

Performance of Banks as at the quarter ended Dec'10, was put up before the House.

Shri V.K. Joel, General Manager, Punjab National Bank observed that with the fast growth of Colleges for Technical/Management Education etc., the students in large number are passing out every year. Banks are generously extending Collateral Free Education Loans upto `4.00 lacs as per extant guidelines and the impetus of Govt. of India of late. It is, however, observed that job opportunities with good remunerations are squeezing and the students find it difficult to repay the Bank loans. The situation has adversely affected the Banks' recovery and therefore, there is a need for review of this Scheme.

Agenda No. Agenda No.21:

(A) Routing of State Govt. Social Security Benefits to Beneficiaries in Villages

The subject matter was put up before the House for deliberations and discussion.

(B) Bank Branches functioning in residential areas in Ghaziabad - Notice for shifting of the branches to Non-residential areas by Ghaziabad Development Authority (GDA).

Looking to the public convenience and interest attached to the issue, the House deliberated on the issue and it was desired that an appropriate decision is taken at the earliest so that the issue is settled once for all and there is not repetition in future.

(C) Study Report on verification of borrowers and end use of funds under Govt. Sponsored Schemes.

Contents of the "Executive Summary" of report submitted by National Institute of Rural Development (NIRD) on the efficacy of Govt. Sponsored Schemes were put up before the House.

(D) Centrally Sponsored Pilot Scheme "Pradhan Mantri Adarsha Gram Yojna (PMAGY) for integrated development of One Thousand Villages with more than 50% SC Population.

Detailed guidelines issued by GOI, Ministry of Social Justice and Empowerment & National Institute of Rural Development, Hyderabad on "Pradhan Mantri Adarsh Gram Yojna (PMAGY) which were sent to DIF, GoUP for suitable action at appropriate levels in State Govt. were put up before the House for deliberations/discussions.

(E) Capital Subsidy cum Refinance Scheme for installation of Solar Off -Grid (Photo - Voltaic and Thermal) and Decentralized applications under the Jawahar Lal Nehru National Solar Mission.

The guidelines pertaining to Capital Subsidy cum Refinance Scheme for installation of Solar Off -Grid (Photo - Voltaic and Thermal) and Decentralized Applications Under Jawahar Lal Nehru National Solar Mission (JNNSM) were put up before the House for discussions/ deliberations. Banks were also requested to proactively patronize this ambitious scheme for which NABARD has issued necessary guideline.

Towards the end of the meeting, Shri Dinesh Sharma, Chairman, Baroda U.P. Grameen Bank proposed a "Vote of Thanks" to the House.

Action - Points of SLBC Meeting Dt.22.03.2011

During the deliberations/discussions of SLBC meeting held on 22.03.2011, following action points emerged for implementation.

SN	Issue	Status	Latest Position	Required Action
1. (a)             (b)	Recovery Exemption of 10% recovery charges in RC filed a/cs that have been “compromised” by banks under “One Time Settlement Scheme”. Waiver of 10% recovery charges in accounts where RCs were issued earlier and covered under ADW&DRS, 2008 now.	Commissioner & Secretary, Board of Revenue, Govt. of U.P. had earlier recommended to State Govt. for favourable consideration in the matter. Matter is pending for more than 2 years.	(A) DIF has again informed vide their letter No. 12436/B/SLBC/ 10-11 Dated 21.02.2011 that in the meeting held on 09.03.2010 with Lead Banks, it was suggested to recover “10% Recovery Charges” on “Compromised Amounts” only in loan accounts settled by banks   under “OTS” Scheme. Matter stands referred to Principal Secretary, Revenue GoUP by the Principal Secretary, Institutional Finance, GoUP requesting for an early decision.	1(a) DIF is requested to arrange for issuance of G. O. in the matter without further loss of time. (Action: DIF, Govt. of U.P.)     1(b) DIF to pursue with State Govt. for an early decision in the matter as the issue was referred  to Secretary, Revenue, GoUP by DIF on 11.03.2010 and is still pending for decision.  (Action: DIF, Govt. of U.P.)
2. (a)         2. (b)	Overdue in Govt. Guaranteed A/cs Problem of payment of overdue of banks in Govt. Guaranteed A/cs. Non-payment/delayed payment  of interest/principal against the investment made by banks in bonds floated by Govt. undertakings, corporations & institutions & guaranteed by the State Govt.	Approximately, `545.48 crores of banks. (as on 31.12.2010 is locked-up in Govt. Guaranteed A/cs     Approximately, `59.04 crore of banks (as on 31.12.2010) is locked-up in Govt. Guaranteed Bonds/ Debentures/Other Securities.	DIF, has advised that concerned banks should take up each such case individually with the respective Govt. Corporation/Institutions to arrive at a mutually acceptable settlement.	State Govt. is required to arrange for a settlement in all such Govt. Guaranteed Accounts as well as Bonds/ Investments without further delay as the matter has been pending for past many years and even in the compromised accounts dues are not being paid by the concerned Corporations/Institutions as per terms of compromised.  (Action: Concerned Banks,  IDC, GoUP & Govt.Corporations/Institutions)
3.	Pending Margin Money Claims under REGP Scheme of KVIC/KVIB pertaining to the period 2000-01 to 2004-05	304 units verified.  63 found eligible for subsidy.  75 cases are eligible for subsidy. Notices issued to 136 units for completion of certain paper formalities.30 cases are sub-judice. Nearly, 600 cases have become time barred.	Despite repeated assurance by the State Director, KVIC, Lucknow for settlement of all subsidy claims latest by the end of July’2010, It has now been reported that a demand for funds has been put up with the Ministry of MSME, GoI against the pending subsidy claims in remaining        -324- cases and the same will be made available to Banks upon receipt of funds from Ministry of MSME, GoI. Further, it has also been informed that a demand for `467.83 lacs towards subsidy claims of 178 units of Brick Fields/Rice Mills of 24 districts of Eastern U. P. for the previous years found eligible, has also been made. As and when it is received, the subsidy claims will be settled. Despite all this, the status quo is maintained and the interest of the units financed by the Banks long back and their promotes is jeopardized.	As per a decision in the SLBC meeting dated 27.03.2008, a list of pending subsidy claims of banks pertaining to REGP Scheme of KVIC & KVIB for the period of 2000-01 to 2004-05 has been submitted to the State Director, KVIC. KVIC to speed up decision in the matter as the matter is pending since long and no further developments have taken as yet. (Action: KVIC)
4.	Registration of equitable mortgage (Noting of Lien)	In view of the focus on Retail Financing, registration of equitable mortgage in the form of noting of bank’s lien has assumed importance to provide comfort to financing institutions. No such facility is available in the State of U.P. However, State Govts. of M.P., Gujrat, Karnataka, Tamilnadu and Andhra Pradesh. have introduced such a system for the last several years.	DIF vide their letter No.12436/B/SLBC/10-11 dated 24.02.2011 has informed that Principal Secretary, Institutional Finance, GoUP has written to Principal Secretary (Tax & Registration), GoUP for an early decision in the matter.	DIF to pursue with the concerned deptt. of state govt. for introduction of such a procedure/system to safeguard the interest of the financing institutions and help check the menace of multiple financing through fake title deed of property as the matter is pending for more than 3 years.    (Action: DIF, Govt. of U.P.)
5.	Amendment regarding auction of agriculture land of defaulting borrowers of banks.	3.125 acres of agricultural land essentially to be left with the borrower whose agriculture land is being auctioned for recovery of bank dues. In SLBC meeting dated 01.07.08, Secretary & Commissioner, Board of Revenue, Govt. of U.P. had agreed for referring the matter for reducing minimum land holding requirement from currently 3.125 acre to 1.125 acre.	In the follow up meeting with the Lead Banks held on 09.03.2010 in compliance to the decision of the meeting held on 04.03.2010 under the Chairmanship of Chief Secretary, GoUP, Banks have agreed to permit farmers to cultivate one crop after issuance of RC if the limitation of leaving 3.125 acre of land with the farmer in case of auction of his farm land to realize bank dues, is reduced to the level of 1.125 acre. The proposal has been moved to the Secretary, Deptt. of Revenue, GoUP by DIF on 11.03.2010 for consideration with a reminder on 22.11.2010. DIF vide their letter No.12436/B/SLBC/10-11 dated 24.02.2011 has informed that Principal Secretary, Revenue, has been approached by the Principal Secretary, Institutional Finance, GoUP for an early resolution of this issue.	DIF to follow up with the State Govt. for an early decision in the matter as the issue is pending for more than 3 years.   (Action: DIF, GoUP)
6.	IT enabled services by banks	Banks should implement “Business Correspondent” Model fast in far flung rural areas to provide banking services. Some of the banks have introduced Business Correspondent Model in certain districts on a pilot basis.	After the 1st meeting of Task Force constituted under the Chairmanship of APC, GoUP held on 22.01.2010, no new developments have taken place. DIF vide their letter No.12436/B/SLBC/10-11 dated 24.02.2011 has informed that Principal Secretary, Institutional Finance, GoUP has written to Principal Secretary, Social Welfare, GoUP for an early suitable action.	The State Govt. to take a sympathetic view and arrange to compensate the huge cost being incurred by the Banks, by reimbursing 2% Transaction Fee as per Govt. of India/RBI scheme.  (Action : DIF)
7.	Financial Inclusion	Out of the total 71 Districts in the State, 68 Districts have been declared as “Financially Included” and rest of the 3 Districts are yet to achieve this goal.	The 3 Districts namely Mainpuri (Bank of India), Etawah (Central Bank of India) & Varanasi (Union Bank of India) are yet to achieve the goal of “Financial Inclusion”. DIF vide their letter No.12436/B/SLBC/10-11 dated 21.02.2011 has informed that Principal Secretary, Institutional Finance, GoUP has also written to District Magistrates of these 3 Districts for an early accomplishment of the task.	Concerned Lead Banks of these 3 Districts should make all out efforts to saturate their Lead District(s) under Financial Inclusion programme IMMEDIATELY so that our State may be declared as “Financially Included State”. DIF to extend necessary support to the Banks in early accomplishment of the task. (Action :  Concerned Lead Banks & DIF, Govt. of U.P )
8.	Coverage of all deserving and desirous farmer under KCC Scheme	As per a rough estimate, almost 31 lacs farmers in the State are still left out to be covered under KCC Scheme.	To extend necessary support to the farming community in the State to enable them to utilize the potential available for agricultural operation, every desirous and deserving farmer should necessarily be brought under KCC fold.   Special Secretary, Agriculture, GoUP informed that more than 3 lacs farmers have been identified in 5000 villages in 1st phase. More than 1.49 lacs applications have been lodged with bank branches. In 2nd phase another 50000 villages will be taken up to identify such farmers for which a time table has already been finalized. Banks must ensure processing of all these applications so as to achieve the set goals by June 30th 2011.	Directorate of Agriculture, GoUP is required to sponsor maximum no. of applications to banks duly complete in all respect. Banks should proactively participate in this special endeavour of State Government.  (Action : Directorate of Agriculture, GoUP, Banks)
9	Pending Margin Money claims of Banks under PMEGP Scheme of KVIC for F. Y. 2009-10	Certain Margin Money claims under PMEGP scheme of KVIC for the Financial Year 2009-10 in cases “Sanctioned & Disbursed” and “Sanctioned & Un-disbursed” by banks, are still pending for want of funds.	In -1540- cases disbursed by the Banks during 2009-10, the margin money claims amounting to `3225.12 lacs are yet to be settled by Nodal Agency – KVIC. Similarly, the MM in respect of cases being sanctioned and disbursed by the Banks during 2010-11 (against the set target of 8320 units with margin money requirement of `11648.06 lacs) is also not being made available to the Banks by KVIC. State Director, KVIC, Lucknow has requested the CEO, KVIC, Mumbai to release an amount of `12166.26 lacs towards these outstanding claims which is still awaited.	KVIC is requested to expedite release/payment of subsidy in all claims due to banks for Financial Year 2009-10 & 2010-11, so that the interest of the beneficiaries is safeguarded and the scheme proves its success as per norms. Also, banks may precede further to implement the scheme during next fiscal. (Action : KVIC)
10.	Issuance of Government Order (G.O.) on the Govt. provisions for exemption of 10% Recovery Charges in RC filed accounts which have been compromised by Banks under OTS.	Banks have been demanding for such Govt. guidelines since long.	During the SLBC Meeting it was informed by Additional Director, DIF that a Govt. Order (G.O.) is already existent in the State in this regard.	As none of the Banks are aware of such a G.O. in the State, DIF is requested to make it available to Banks for implementation of the guideline (Action : DIF, GoUP)
11.	Resolution of various issues of SLBC, pending for a long time.	A number of Issues/Action Points are pending for resolution at Govt./Bank level for the last several years. Despite regular follow – up by the Banks and discussion during quarterly SLBC Meetings, no concrete solution has been achieved.	During the discussion in SLBC Meeting dated 22.03.2011, it was suggested that a Sub-Committee of SLBC (UP) under Convenorship of DIF be formed to resolve various pending issues & the same be not allowed to continue for long.	DIF is required to Constitute & Convene Meeting of Sub-Committee and the recommendation thereof should be placed during the ensuing SLBC Meeting. (Action : DIF, GoUP)
12.	Boosting up Recovery under Recovery Certificate (RC) filed cases.	Poor Recovery under the Recovery Certificates (RCs) filed by the Banks with District Revenue Authorities is a matter of concern at all levels.	Bank branches file RCs with the District Revenue Authorities seeking help in Recovery of their Bad Debts under the provision of U.P. Agriculture Credit Act, 1973 & UP Public Money Recovery Act, 1972. As many as -913829- RCs amounting to `2263.61 Crores are pending with the State Government as at December 2010. During the SLBC Meeting, Principal Secretary, (Institutional Finance) suggested for initiating concrete and bold steps in some of the Districts on “Pilot Basis” for demonstrative effect and replicating the same in other places subsequently.	Necessary instructions to some of the selected District Revenue Authorities in this regard from the State Headquarter should be reiterated and the outcome be placed in ensuing SLBC Meetings. (Action : Board of Revenue, GoUP & DIF)
13.	Physical Verification of Units financed under PMEGP during 2008-09 & 2009-10 by Nodal Agency – KVIC.	As per guidelines of this GOI scheme, physical verification of all the units financed by the Banks has to be carried out. The Nodal Agency – KVIC has been entrusted this task.	The State Director, KVIC has informed that “Giri Institute of Social Studies, Lucknow” has been entrusted this job of physical verification of all units financed by the Banks for fiscal 2008-09 & 2009-10 under PMEGP. He requested Banks to extend due cooperation to the concerned agency in accomplishment of the task smoothly.	The progress in this regard should be submitted for review in the ensuing SLBC Meetings by the Nodal Agency - KVIC. (Action : State Director, KVIC).

Meeting of SLBC (U.P.) held on 22.03.2011