RBI sets up panel for strengthening rural credit

The panel headed by NABARD Chairman Prakash Bakshi will review existing credit structure and also explore ways to strengthen cooperative credit architecture in rural areas

Mumbai: The Reserve Bank of India (RBI) has constituted a committee to suggest ways to strengthen the rural cooperative credit structure in the country, reports PTI.
The panel headed by NABARD Chairman Prakash Bakshi will review the existing Short Term Cooperative Credit Structure (STCCS), focusing on structural constraints in rural credit delivery system.
It will also explore ways to strengthen the rural cooperative credit architecture.
The seven-member panel will make an in-depth analysis of the STCCS and examine various alternatives with a view to reducing the cost of credit, the RBI said in a release.
It will also look at the feasibility of setting up of a two-tier STCCS as against the existing three-tier structure.
STCCS target the credit requirement of the small and marginal farmers in the country.
"The Committee will submit its report within three months from the date of its first meeting," it said.
According to terms of reference, the committee will mainly assess the role played by state and district cooperative banks in fulfilling the requirement of agriculture credit.
It will identify cooperative banks that may not be sustainable in the long run even if some of them have met the diluted licensing criteria for the time being, the release said.
It will also suggest pro-active measures needed to be taken by cooperative banks, government, and the RBI, it added.


Pleas to banking ombudsman in Kerala rises 22%

Out of the 2,541 complaints, the banking ombudsman from Kerala examined and settled most of them, leaving a mere 5.7% remaining to be closed

Thiruvananthapuram: There has been a 22% increase in complaints received by the banking ombudsman in India's southern Kerala state this year, reports PTI.


A total of 2,541 complaints were received in the year ended on June 2012, compared to 2,077 in the year-ago period, according to FR Joseph, Banking Ombudsman of Kerala, Lakshadweep and Mahe.


Vast majority of complaints has been examined and settled, leaving a mere 5.7% remaining to be closed, Joseph told reporters.


In category wise, the largest number of complaints (27.5%) pertained to loans and advances including educational and housing loans. Complaints relating to credit, debit ATM cards accounted for 14.1%, he said.


The increase in receipt of complaints was recorded by all the districts in Kerala except Palakkad, Malappuram and Wayanad.


First pay credit card dues and then file complaint

According to the Banking Ombudsman for New Delhi, credit card users should pay their bills first and then lodge a complaint in case of a dispute with the card provider. If the bill is pending, then the customer always runs a risk of paying much more, if the judgement goes in favour of the card provider, said M Rajeshwar Rao, the Banking Ombudsman for New Delhi.Customers should read the terms and conditions carefully so that disputes can be avoided, he said.

During 2010-11, Banking Ombudsmen across the country received as many as 66,927 complaints. Of these, 16,871 complaints related to credit cards, including ATM and debit cards.


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