"Though there has been significant reforms in banking services at the macro level, there is a need of reforms and transparency at the micro level to cater to the banking needs of the rural people," Kumar told the bankers at the State Level Bankers' Committee meeting here.
There was no transparency in the banking services in the rural areas in an era of the information and communication technology as most of the branches were not computerized nor have facilities for direct transfer of money from outside, Kumar said.
The banks also required to change their mindset about perceived incapability of the borrowers from poor economic background to return their loan and urged the lenders to provide loans for farming, education and socio-economic activities of the self-help groups.
It was noticed that the banks were charging interest on the subsidy component of the loan taken by the SHGs to run welfare programmes for the people, Kumar said and asked them not to do it.
It was also been observed that the banks are not inclined to provide loans to the Lac bangle manufacturers and asked the bankers to change their attitude.
Stating that small borrowers have to run from pillar to post to get loans from the banks, he said that the banks should implement a citizens charters to provide their service in a time-bound manner. MORE
