RBI heightens financial developments in North-East India

May 26, 2011: The Central Board of Directors of the Reserve Bank of India recently met in Agartala to review the key economic, monetary and financial developments in the country.

The meeting was chaired by Dr. D. Subbarao, Governor, Reserve Bank of India who said that the Reserve Bank was sensitive to all the three issues and was taking appropriate steps to bring improvement in all the three areas.

“It has already decided to open its offices in all the North-Eastern States and opening of an office in Agartala is a step in that direction,” he said.

He further stated that the Reserve Bank was also making efforts to enhance credit flow to the North-Eastern States. In the past few years, for instance, the Reserve Bank of India had announced a subvention scheme for opening branches in the North-East. Of the five branches which were agreed to be opened in Tripura, two branches were already opened and three more had been approved and would be opened as soon as security issues were resolved.

The Governor added that for faster development of the region, it was equally important to increase its credit absorptive capacity. For this purpose, it was equally necessary to introduce bankable schemes and open financial literacy and credit counselling centres in the region.

He explained that educating the population about banking facilities would also help generate demand for bank services and products. He urged the State Government to include finance in school curriculum to enhance financial literacy in the state. He also stated that the Reserve Bank had developed material for this purpose which it would willingly share with the State government.

The Central Board meeting was attended by the RBI governor along with senior officials and deputy governors of the Reserve Bank. The Central Board of the RBI meets at least once every quarter.