The Reserve Bank of India is aiming to set up branches in all the seven states of the north eastern region of the country. The idea behind this move is to bring about better banking operations as well as regulation in the region.
Speaking on the issue, governor of RBI, Mr. D Subbarao said that the branch at Guwahati is a fully operational branch. "The second branch that we have opened at Agartala will initially concentrate on rural planning, credit development and financial inclusion but gradually its mandate will be expanded and other important tasks will be entrusted with it," he added.
He said that inappropriate flow of credit is the biggest hindrance faced in the region and this would be the prime focus of the apex bank in order to make proper movement of credit across the states and thereby aid in growth of trade and commerce in the region.
"Low CD (credit-deposit) ratio in the region is an area of concern. In case of Tripura, the CD ratio is 33 per cent against the national average of 73.6 per cent on March 31. Our target is to ensure that CD ratio in Tripura rises to 40 per cent at the end of this current financial year," said Mr Subbarao.
"In Tripura, there are between 420 and 450 villages with 2,000 or more population and all of them will be brought under banking network in a phased manner. I have already asked nationalised banks operating here to set up 26 full-fledged branches by the end of the current financial year," said the RBI governor.