RBI Deputy Governor reviews J&K banking sector, calls for stronger credit delivery

SRINAGAR, September 18: Reserve Bank of India Deputy Governor Rohit Jain on Friday reviewed the banking and credit landscape of Jammu & Kashmir and called on banks to improve credit delivery, expand outreach to underserved sections and accelerate adoption of the Unified Lending Interface (ULI).

Jain convened a meeting with the zonal heads of major banks operating in the Union Territory of Jammu & Kashmir, where he highlighted the role of banks in supporting economic activity and strengthening financial inclusion.

He stressed the need for banks to maintain adequate banking infrastructure, improve credit delivery and ensure greater outreach of banking services to priority sectors, particularly underserved sections of the population.

The RBI Deputy Governor also called for coordinated efforts by banks to meet the evolving credit requirements of Jammu & Kashmir and urged them to remain responsive to customer needs, with particular emphasis on customer service and grievance redressal.

Jain further stressed the need for greater digitalisation of banking services while flagging growing concerns over digital frauds.

On credit delivery, he emphasised the need for banks to increase loan processing through the Unified Lending Interface (ULI), highlighting its potential to transform credit delivery in a manner comparable to the transformation brought about by the Unified Payments Interface (UPI) in digital payments.

The Regional Director, RBI, Jammu, presented an overview of Jammu & Kashmir’s financial landscape and its economic potential across agriculture, micro, small and medium enterprises, tourism, handicrafts and services.

Zonal heads of major banks subsequently presented updates on the banking network, credit-deposit ratio, credit flow and Priority Sector Lending in the Union Territory.

The presentations also covered the progress of banks in onboarding onto ULI, re-KYC coverage and settlement of unclaimed deposits, besides special initiatives undertaken by individual banks for Jammu & Kashmir.