RBI footprints in Sikkim

We will make all possible efforts to make Sikkim a model banking State in the country: Dy Gov

BIJOY GURUNG

GANGTOK, January 25: After Assam, Sikkim became the second State in the Northeastern region to have the footprints of Reserve Bank of India (RBI) after its sub-office was inaugurated here at Gangtok by RBI Deputy Governor Dr KC Chakrabarty.
The Gangtok RBI is the 27th location in the country where RBI has its offices and the jurisdiction of the sub-office extends to the entire State of Sikkim.

The Gangtok RBI office will have a rural planning and credit department including a ‘financial inclusion cell’ to coordinate with NARBARD and commercial banks to carry on the mission of financial inclusion through IT enabled services and banking correspondent model as also to promote financial literacy in Sikkim to facilitate faster financial inclusion. The sub-office follows the decision of RBI Governor Dr D Subbarao during the central board meeting here at Gangtok on October 1, last year.
Speaking on the inaugural function, the RBI Deputy Governor said that the RBI office at Gangtok could play a key role in the Chief Minister’s Financial Inclusion Scheme.
“We will make all possible efforts to make Sikkim a model banking State in the country”, said Chakrabarty while informing that financial inclusion and financial literacy would be the focus areas of the RBI Gangtok office.

With a figure of 6842 as population per branch in Sikkim as against the national average of 16129, the RBI Deputy Governor pointed out that the population in Sikkim is well scattered and there are people who may not have access to banks. We have to ensure that these people are brought under the financial inclusion, he said.

Asserting that RBI Gangtok must facilitate financial inclusion and make Sikkim an exemplary State, Chakrabarty directed all the banks in the State to prepare a 3 year working plan for financial inclusion in Sikkim. He also added that it is responsibility of the civic society and other stakeholders to make all poor persons in the country ‘credit worthy’.

Banks will give credit to people who deserve but what about those who don’t deserve?, questioned Chakrabarty while inaugurating the local office of RBI here in Gangtok.

It is the responsibility of the civic society and others to make such people credit worthy and make loans available, said the RBI Deputy Governor. It is not their fault that they are not credit worthy and we can help them with financial inclusion, he added.

Chakrabarty further said that the RBI Gangtok would be aiming to improve financial literacy in Sikkim and generate public awareness about fake currency in the border State of Sikkim. He also said having a RBI office in Gangtok itself would remove the difficulties attached with operating 700 kms away from Kolkata.

The Deputy Governor further admitted that opening of RBI sub-office would lead to the challenge of initiating similar ventures in other parts of the Northeast region. This aspect of branching to other parts of Northeast region will depend on the functioning of the Gangtok RBI sub-office, he said.

There are 24 commercial banks in Sikkim with 79 branches and 43 ATMs.

Earlier, FR Joseph, regional director, Kolkata (West Bengal and Sikkim) said that the RBI Gangtok sub-office was a landmark event.

The functions of RBI Gangtok would be to monitor the flow of credit to crucial sectors, financial inclusion, financial literacy and currency availability and awareness, said Joseph. We are giving greater thrust on creating awareness on fake currencies and we would be having stalls in the festivals and fairs organized by the State government to spread awareness of the fake currency menace, he said. We would also be making surprise visits to see the status of currency chests in the banks here, he added.

The objectives of rural planning and credit department of the RBI Gangtok would be to institutionalize rural credit and to enlarge its coverage, said the RBI regional director.

The RBI Gangtok team consists of Eugene E Karthak (general manger in-charge), Anil Kumar Yadav (assistant general manager), Tashi Ethenpa (manager) and JC Deka (assistant manager).

Speaking on the inaugural session, Sikkim Lok Sabha member PD Rai called the opening of RBI Gangtok as a historic occasion. Today there has been a major transformation in the financial system of Sikkim and

it has come at time where there are 24 banks here with Rs. 3000 crores of deposits and Rs. 1200 crores in advance, he said