IBA panel to weigh tech's rural gains

Indian Banks' Association (IBA) has formed a small group to examine how the benefits of technological developments in the banking sector could be extended to rural India through use of Kisan Credit Cards and other applications.

In this regard the Association's managing committee, which reviewed the mini-budget measures pertaining to the banking sector today, observed that many rural branches were not computerised and as such the benefits of advancement in technology had not reached farmers and other rural customers.

Banks, according to the committee, have been asked to review their loan policy relating to agricultural lending to ensure that financing is linked to the viability of the project and not the value of collaterals.

Banks have been requested to ensure that the value of collaterals, if taken, are not disproportionate to the amount of loans.

Public sector banks have been asked to set up internal committees to monitor the progress of meeting the Kisan Credit Cards target to ensure that the cards are issued to all eligible farmers by March 31, 2004.

Member banks have been requested to associate with the National Bank for Agriculture and Rural Development and other agencies in promoting micro credit through self help goups in those states where it is yet to gather momentum.