Kumar sought effective RBI initiative to improve the CD ratio during a meeting with Rajan at his residence.
The Bihar Chief Minister told the visiting RBI Governor people of the state have a habit of depositing major shares of their savings in banks due to which the cash volume of banks have increased, an official statement said here.
But the banks are not disbursing loans in this proportion, he told Rajan.
Rajan headed a sub-committee set up by Finance Minister P Chidambaram, which redefined criteria for declaration of backwardness of states. The report had put Bihar in the category of least developed states.
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On basis of that report, Kumar had intensified his demand for special status. He has already announced the issue would top JD(U) agendas in the 2014 elections.
Kumar stressed on the encouragement of banks for industries based on agriculture and food processing and told Rajan that the state government has made a provision to provide 35 per cent assistance for setting industries in the state, the statement said.
The RBI Governor also stressed on big investments in the energy sector to spur economic development of the state, the statement said.
The Chief Minister narrated the success story of the government's 'cycle scheme' to Rajan who evinced interest in the project and praised Kumar for "innovative" thinking resulting in qualitative improvement in primary, secondary and higher education, it said.
They also discussed on different aspects of agriculture roadmap 2012-17 formulated for Bihar to boost the farm sector and allied fields, the statement read.
RBI regional director for Bihar and Jharkhand M K Verma and state Finance Commissioner (resources) Sanjeev Hans were present during the meeting.
The RBI Governor also attended a closed door discussion with state government officials on social and economic development in Bihar, the statement added.