Chief Minister N. Chandrababu Naidu minced no words in expressing his displeasure over the functioning of the banks. “The bankers are not using data being provided by the State government online for issuing farm loans etc. Either it is non-cooperation or resistance,” he said at a State Level Bankers’ Committee (SLBC) meeting on Friday.
Usually the governments function in a traditional manner.
The State government, however, could achieve transparency and make best use of technologies. Using the technologies from fingerprint, facial recognition to internet of things (IOT), the government moved to real time governance. Whereas the banks remained where they were. The banks could not adopt such latest technologies.
The ultimate sufferers are consumers, he said, adding, “We are in an inspiring time. You can do wonders. The scams, like the one witnessed in the Punjab National Bank (PNB), the cash crunch since demonetisation, and the Union government’s Financial Resolution Deposit Insurance (FRDI) Bill have led to an erosion of trust in banking system. People are not ready to deposit their money in banks. Andhra Pradesh is registering an average growth rate of 11%. The banks’ credit-deposit ratio, however, grew at about 9%. Why is there a gap?” he asked.
The FRDI Bill would not be passed, but speculation was rife. The bankers were not playing their role properly to allay the fears of people.
They also should convey the people’s message to the Centre on the proposed FRDI Bill, the Chief Minister said.
Letter to Jaitley
Mr. Naidu wrote a letter to Union Finance Minister Arun Jaitley in May requesting his intervention in increasing the deposit insurance in commercial banks to Rs. 15 lakh from the existing Rs. 1 lakh.
In his letter, he said that the number could be further revised upwards by taking inflation and cost of living into consideration to mitigate the fears that people had on the security of their deposits, once the FRDI Bill was passed.
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