`No collateral security for State schemes'

ADILABAD, MARCH 24. The State Bank of Hyderabad (SBH) Assistant General Manager (AGM), Hyderabad, N. Satyanarayana, on Thursday clarified that no collateral security was to be demanded by banks for loans under Government schemes like the PMRY. Similarly, for agriculture term loans, no collateral security was required for loans up to Rs.50,000 as per the guidelines of the Reserve Bank of India (RBI).

The AGM was responding to an appeal made by the Adilabad district Collector J. Sudha Rani, to bankers not to insist on collateral security from youths whom the Government was trying to rope in for gainful employment under different schemes. She said because of securities being demanded the youth were unable to take advantage of the schemes.

Mr. Satyanarayana categorically told the bankers that no prospective borrower be rejected at the branch level. As per the RBI guidelines, the prospective borrower could be rejected by the branch only after the concurrence of higher authorities. He appealed to the higher bank authorities to hold periodical meetings with the branch staff to take stock of the situation

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