State Focus Paper projects Rs 2,106 crore credit potential for Nagaland

February 26, 2025 7 Views No Comment

Morung Express News
Kohima | February 26

Nagaland has been assessed with a credit potential of Rs 2,106.34 crore for the year 2025-26 under Priority Sector activities, as outlined by the Reserve Bank of India (RBI). This projection was revealed through the State Focus Paper (SFP) during the State Credit Seminar 2025-26, organized by the National Bank for Agriculture and Rural Development (NABARD) at Hotel Vivor.

The SFP, which was formally launched by Agriculture Advisor Mhathung Yanthan, provides a comprehensive assessment of the state’s credit potential for Priority Sector activities, which include agriculture, rural development, and infrastructure projects. P Bulte, General Manager/OIC of NABARD, noted in his foreword that the projections outlined in the paper will help guide financial institutions in channeling credit effectively. He emphasized that these projections are crucial for improving credit flow at the ground level and promoting agriculture-related term lending.

This year, NABARD has also worked to digitalize the Potential Linked Credit Plans, aiming for greater efficiency in credit projections. The digital version of the SFP features a standardized structure, comprehensive coverage, and data indices. Bulte also pointed out that banks should focus on extending credit to Farmers Producer Organizations (FPOs), particularly those promoted under the central scheme for the formation of 10,000 FPOs.

He further stressed the importance of supporting Primary Agricultural Credit Societies (PACS), including those identified for computerization under the central project for PACS modernization. Bulte also highlighted the need to fast-track the saturation of Kisan Credit Cards (KCCs), with a particular emphasis on animal husbandry and fisheries.

“There is also a need to fast-track saturation of Kisan Credit Cards (KCCs) with special focus on Animal Husbandry and Fishery. The State needs to focus on agriculture including expanding irrigation facilities, horticulture facilities, horticulture and food processing which can revolutionise its economy,” he underscored.

‘Financial inclusion remains a challenge’
In his inaugural address, Agriculture Advisor Mhathung Yanthan praised the state’s achievement of exceeding the Ground Level Credit (GLC) target for the Priority Sector in the previous financial year. However, he acknowledged that financial inclusion remains a significant challenge in Nagaland. He urged the State Level Bankers’ Committee (SLBC) to take proactive measures to establish brick-and-mortar bank branches in the remaining 22 unbanked Rural Development (RD) blocks in the state.

Yanthan specifically mentioned that Wokha district still faces banking service gaps, with unbanked blocks in Chukitong, Wozhuro, and Champang. He also pointed out the lack of a bank in the Sanis ADC headquarters and called on the SLBC to consider assigning a different bank to establish services in Sanis. “Banking access is not just a service; it is a necessity for financial inclusion and economic empowerment in the region,” he remarked.

The seminar also included a presentation on the State Focus Paper 2025-26 by Bijayshree Parida, Assistant General Manager of NABARD, and an address by H Lalhlimpuia, Coordinator of the State Level Bankers’ Committee (SLBC) Nagaland. Additionally, representatives from YouthNet and the Community Educational Centre Society (CECS) shared their experiences, contributing to the broader discussion on improving credit and financial inclusion. Vote of thanks was delivered by Chitebuni Kricho, Assistant General Manager, NABARD.