Karnataka
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M'lore: Banks Partners in Nation's Economic Development - Dr Kothai
- Tue, Feb 26 2008 09:15:06 AM
Daijiworld Media Network – Mangalore (NR)
Mangalore, Feb 26: A workshop-cum-training on “Innovations in banking” was organized by Corporation Bank Chair in bank management at the Mangalore University premises, Mangalagangotri here on Monday, Feb 25., which was inaugurated by Dr. Krishna Kothai, director of the Centre for Rural Studies, Manipal University (MAHE).
A growth of at least 4% in agriculture is a must, in-order to reach the magic figure of 9% growth rate. Unfortunately as of now the agriculture growth rate is just 2%, informed Krishna Kothai in his key-note address to the gathering. Further, he opined that innovative products and schemes of banks should be such as to contribute to rural development.
Particularly with regard to contribution of the banking sector to the economy Dr. Kothai said that banking sector in the State has witnessed many positive changes after nationalisation of commercial banks. These included the emergence of regional rural banks and application of Information Technology tools in banks. Banks have now become partners in economic development of the country, he informed.
However despite these changes, Karnataka is one of the states which has experienced the highest number of farmers’ suicides in the country. A lot of introspection is required by banks, to find out if their products were indeed farmer-friendly and they must take proper steps towards "credit deployment," he urged. But the sole reason for farmer suicides is not just the mounting bank loans. There are many loose ends like the lack of linkage between APMC and farmers, lack of proper crop planning and also the effects of globalization, Dr Kothai avered.
Mangalore University Registrar Dr K. Sundar Naik, who presided over the event in his speech declared that the concept and scope of banking is still evolving. While e-banking has improved efficiency, it poses challenges as well. IT Act, came into force from October 17, 2000 which gave legal recognition to electronic transactions and electronic commerce. “The regulatory framework over banks has been extended to e-banking also,” informed Naik.
The apex bank RBI has taken interest in developing technology including electronic fund transfer and the like. Thus, according to him the Indian banking industry is in the midst of an IT revolution and technological infrastructure has become indispensable for banks, he pointed out.
G.V. Joshi, co-ordinator of the Chair, welcomed the gathering.