RBI governor Raghuram Rajan told Jammu and Kashmir chief minister that the central bank is taking initiatives to create a stronger financing structure in the state.
Rajan discussed with Mehbooba on Saturday the 12-point plan in this regard which goes beyond conventional banking.
At a luncheon meeting with Mehbooba, Rajan said the first priority will be to create linkages of finance by overcoming physical barriers which will help in integrating the state with the rest of the country and empowering young local entrepreneurs.
“We are taking measurable short-term initiatives. I think J-K is in a better position in making the state easy for financing, which can be a model for the rest of the country to emulate,” the RBI governor added.
Mufti said she expects the RBI to do more in exerting pressure on banks operating in the state so that small and medium enterprises have hassle-free access to loans.
“We seek better cooperation of banks in creating ample opportunities of employment for youth in the state,” Mufti said at the meeting where several issues related to banking operations in the state were discussed.
Asking premier financial institutions to broaden the scope of their business operations, Mufti said banks need to focus on priority sector lending in the state, particularly targeting tourism, handicraft, handloom, agriculture and allied segments, which have a huge potential to generate avenues of employment for youth in J-K.
Mufti said the state’s economy needs resuscitation as it has gone through very difficult times in the past few years.
“We need to achieve RBI benchmark of 60% CDR (Corporate Debt Restructuring) for which banking institutions have to scale up lending,” she said, asking RBI to help efforts to create job opportunities for the talented human resource in the state.