New Delhi: Finance Minister Arun Jaitley today said the priority sector lending target of Rs 11 lakh crore is achievable next fiscal and it would help farmers double their income by 2022.
“The credit flow target of Rs 11,00,000 crore for 2018- 19 is achievable by the banking sector and would contribute to the momentum towards doubling of farmers’ income by 2022,” Jaitley said while addressing the board of Nabard here.
The finance minister stressed on the need for all stakeholders to collaborate to improve income of farmers and also reviewed the funds announced in the union budget, Nabard said in a statement.
The banking sector must invest in long term assets to improve the capital formation in agriculture sector, he said, adding investment in financial technology over the past few years has brought-in efficiency, speed and transparency in the rural financial eco system.
Financial Services Secretary Rajiv Kumar said financial inclusion and adoption of technologies are necessities to make use of the opportunities arising out of higher GDP growth.
Kumar stressed the banking sector to concentrate on geographies like North East, East and Central India where the formal credit can give a fillip to growth potential these areas offer.
The Department of Financial Services is actively engaged with other ministries to create an enriching eco-system, he added.
National Bank for Agriculture and Rural Development (Nabard) Chairman Harsh Kumar Bhanwala said that his office has operationalised the funds announced in the previous union budget.
The Pradhan Mantri Grameen Awas Yojana is about to be supported through Rs 9,000 crore shortly and Rs 5,000 crore Micro Irrigation Fund which will promote water conserving and productivity enhancing technologies will be operationalised shortly, Banwala said.
He emphasised the need for formation of robust farmer producers organisations and committed to the finance minister that Nabard will form Farmer Producer Organisations (FPOs) quickly.