The issue of bank loans in rural India have long been a subject matter of deep discussions and there is a general feeling that it is only a fortunate few who actually receives the benefit. Timely sanctioning of loans is also an area of dissatisfaction and the same was also echoed by the officials who attended the Lead Bank district level consultative meeting a few days back. It’s a genuine demand since banks have a huge role in addressing the entrepreneurial dreams of the state’s people.

Although the nation has witnessed remarkable flourish of banking sector after nationalization of banks, there can be no denial of the fact that there still exist a  wide gap between demand and supply of credit if the entire economy is observed with a bird’s-eye view. And to mitigate this growing problem, a unique model was formulated by RBI way back in 1969, known by the name of Lead Bank Scheme or LBS in short, to reduce imbalance among different regions and sectors existing in the economy. Lead Bank is the consortium leader and pace setter in providing integrated banking and credit facilities and initiates streamlining and accelerating the process of financial development of the allotted district. In simple terms, it acts as a propeller of financial inclusion, by invoking support of other financial institutions in contact with government and quasi government agencies.

And if ‘financial exclusion’ is a global phenomenon when each and every country is attempting to include its hitherto excluded poor and marginalized

people on development path, it has got far reaching significance as far as Arunachal and Northeast is concerned. In spite of deep and rapid banking penetration in most parts of the nation, here in this part, it is still a long way to go. And if viewed conversely, financial exclusion is also a major reason for poverty, unemployment, vulnerability – all present in good measures in the state. But there is no dearth of entrepreneurial dreams and talents here with ample gifts of nature ready to be tried as basic raw materials. Orchids, cane, bamboo, medicinal plants are the firsts that come in mind and have a steady pan-Indian market.

A small amount of loan can explore the vast hidden entrepreneurial potentials of the people of the state and effectively contribute to their economic and commercial pursuits. LBS, which has proved quite effective in many parts of the nations must receive an extra emphasis in the state and should be viewed more as a social and economic upliftment activity than as a mere financial exercise.

It’s a time tested tool of financial inclusion and must be revamped and sharpened for the sake of the entrepreneurial Arunachalee.

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Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

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