NABARD and SBI sign MoU with NGOs

Aims for financing of JLGs in West Bengal
Report by: 
4 Jan 2018

NABARD and SBI jointly signed a Memorandum of Understanding (MoU) on 2nd January 2018 with five selected NGOs of the State for promotion of 2500 Join Liability Groups in Purulia, Paschim Medinipur, Purba Medinipur, Burdwan and North 24 Parganas districts of West Bengal.
The MOU signing event was held in the Conference Hall of West Bengal Regional Office of NABARD. Apart from Partha Pratim Sengupta, CGM, SBI, LHO and A.K. Raybarman, CGM, NABARD West Bengal Regional Office, the event was graced by S C Murmu, RD, Reserve Bank of India, Senior Officials of SBI and NABARD as also the CEOs and other office bearers of the five NGOs.
On this occasion, Mr Chintala addressed the house and informed that 24.5 lakh JLGs have been credit linked by the banks in the country of which 7.02 lakh JLG were financed during 2016-17. He also emphasized that the public sector banks like State Bank of India need to play a major role in future.
Mr Raybarman highlighted the plight of tenant farmers/oral lessees and share croppers in many parts of the state due to the denial of access to institutional credit, disaster relief, and other support services due to the lack of title to land. A pilot project was initiated by NABARD in 2004-05 in 8 States with the support of 13 RRBs to address the problems of actual tillers of land by introducing the concept of financing them in JLG mode. Encouraged by the results the scheme was later mainstreamed for the banking system in the year 2006-07. However, the product needs further nurturing and NABARD has been partnering with various JLG- Promoting Institutions (JLGPIs) to facilitate the promotion of quality JLGs which can then be supported by different financial Institutions.