Finance Minister Arun Jaitley on Monday expressed confidence that the banking sector will be able to achieve the agriculture credit flow target of ₹11 lakh crore for 2018-19.
This will add to the momentum in doubling farmers’ income by 2022, Jaitley said while addressing the NABARD board here on Monday.
He also reviewed the funds announced in the Union Budget 2018-19 and stressed the need for all stakeholders to collaborate to improve farmers’ income. Further, he emphasised that the banking sector must invest in long-term assets to improve capital formation in the farm sector.
Jaitley also said that investments in financial technology over the past few years have brought in efficiency, speed and transparency in the rural financial ecosystem.
Rajeev Kumar, Secretary, Department of Financial Services, stressed the need for financial inclusion and adoption of technologies to make use of the opportunities arising out of higher GDP growth.
He urged the banking system to concentrate on geographies such as the North-East, East and Central India, where formal credit can give a fillip to growth.
Kumar also said his department is actively engaged with other ministries to create an enriching ecosystem.
Harsh Kumar Bhanwala, Chairman, NABARD, said that the organisation has operationalised the funds announced in the previous Union Budget. The Prime Minister’s Grameen Awas Yojana is about to be supported through ₹9,000 crore shortly, he added.
The ₹5000-crore Micro Irrigation Fund, which will promote water conserving and productivity enhancing technologies, will also be operationalised shortly, he said. Bhanwala emphasised the need for the formation of robust Farmer Producers Organisations.