293 ATM booths in the State: DIF
Source: The Sangai Express / DIPR

Imphal, July 19 2016: The Directorate of Institutional Finance (DIF), one of the smallest Directorates, that functions under the Finance Department is playing a vital role in improving the functioning of financial institutes in the State, said Mercina R Panmei, Director, Directorate of Institutional Finance during a press conference held here today organized by DIPR at DIPR premises.

The Directorate has taken up construction of integrated infrastructures in 27 unbanked blocks under Tribal Area Inclusive Growth Project.

Some banks have already opened branches in six unbanked blocks of Thanlon, Lanva, Saitu Gamphajol, Tengnoupal, South Lamka and Island Blocks and remaining 21 unbanked blocks are yet to opened.

Under the initiative of this department, the number of bank branches and ATM booths in Manipur have increased manifold.

As on March, 2016, there are 26 banks with 178 branches and 293 ATMs in Manipur.

Some districts have low number of ATM booths which is due to poor connectivity and unavailability of internet facilities.

The Directorate has played an important role in taking decision to introduce Electronic Clearing Service (ECS) credit as the only mode of drawal of salary and personal entitlements for all employees.

In 2011 the department introduced e-payment in Manipur and hence all payments by the State Government have been made electronically to the accounts of beneficiaries.

Eleven bank branches were introduced to address the scheme of financial exclusion in NE Region .

The scheme deals with the cases where banks on their own do not find it commercially viable to open branches and RBI bears one time cost and recurring cost for five years while the State Government provides premises, security for the branch and rental accommodation for the staff.

The 11 bank branches are SBI at Somsai, UBI at Tamenglong, SBI at Tuibong, Churachandpur, Tadubi, Senapati, Noney, Tamenlong, Kamjong, Ukhrul, Vijaya Bank at Saikul, Senapati, Manipur Rural Bank at Tengnoupal, Chandel, Central Bank of India at Singhat, Churachandpur, SBI at Thanlon, Churachandpur and BSF Pearsonmun, Churachandpur.

In order to cater to banking and related needs of the people in the State, this Directorate played an important role in opening of Reserve Bank of India sub-office in Manipur during 2015-16.Functions of RBI in the State will include issuance of currency notes/coins, supervision of Urban Co-operative banks and non-banking companies, Rural Planning & Credit, Public Accounts/Deposit Accounts/Public Debt offices, etc.

Suitable land has been already allotted and the sub-office has started functioning at its temporary premises at Chingmeirong.

Poor recovery of loans, specially those given under Government sponsored schemes and default by borrowers act as a deterrent for granting fresh loans.

Under the initiative of this Directorate, the Manipur Public Demand Recovery Act, 2003 has been enacted for speedy recovery of loans in Manipur.

A State level Direct Benefit Transfer (DBT) Cell was set up to act as the focal point for implementation of DBT with regard to different schemes and it will primarily involve re-engineering of schemes for simpler flow of funds and information.

The scope of DBT will include both cash and in-kind benefits to individual beneficiaries.

It will ensure a simple and user friendly 'Government to People' interface at both the Central and State levels, and directly deliver entitlements to eligible individuals in a fair, transparent, efficient and reliable manner.

As the State Govt implements various welfare programmes, it is an opportune time to consider incorporating the DBT architecture as integral part of service delivery across various welfare and subsidy schemes.

The Directorate plays an important role in the development of banking facilities in the State � expansion of bank branches, monitoring of credit flows, annual credit plans, priority sector lending, implementation of credit-linked employment generation, poverty alleviation schemes, financial inclusion by ensuring opening of at least one basic savings account for each households in the State.

This Directorate acts as a main coordinator between State Government Departments and the financial institutions particularly banks in the State.

This Directorate also monitors the implementation of Pradhan Mantri Jan Dhan Yojana, a national mission on Financial Inclusion which was launched on 28th August, 2014 by the Prime Minister to cover all the households across the country.

It aims to provide universal access to banking facilities for all households, cover all households with at least one Basic Banking Accounts with RuPay Debit card having inbuilt accident insurance cover of Rs.1 lakh.

Three Social Security Schemes namely Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) were also launched.

To ensure smooth functioning of the State Level Bankers' Committee, a meeting is held on quarterly basis.

The meetings aim at finding solution to the various problems confronting the state.

The forum takes the lead in initiating, streamlining and accelerating the process of development in close co-ordination with various government departments, Reserve Bank of India, NABARD and other developmental agencies.

Non-bank financial institutions have a long history in India as they have existed along with the formal banking system.

Unlike their banking counterparts, this sector is much more diverse and complex.

Some of it are in the corporate sector, and some are unincorporated.

Some of the deposits raised by these companies are legal and some are illegal.

Different segments of the sector are regulated by different agencies and some of the activities still fall in no man's land.

The current situation has been exploited by some unscrupulous elements resulting in scams.

Thousands of low income households have been lured into these nefarious schemes by unscrupulous and fraudulent operators promising unviable and exorbitant returns.

Many households have lost their entire life savings because of such schemes going busted.

RBI had acknowledged that apart from the much needed legislative reforms, these instances can be substantially minimized by involving an institutional mechanism for cooperation among different regulators and law enforcement authorities.

Accordingly, a State Level Coordination Committee (SLCC) had been formed.

Dr AK Chourasia, Addl Secy Finance, Anna Arambam, Dy Secretary Finance and L Jogendra, Asstt Director too attended the press conference.

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