Imphal, the 9th March, 2018 (DIPR): The Directorate of Institutional Finance (DIF) is one of the smallest Directorates under the Finance Department is playing key role in the Banking Development of the State, said Md. Ismat Khan, Under Secretary, Institutional Finance, Finance Department, Government of Manipur during the ongoing Press Conference series of DIPR at its office premises of Moirangkhom Imphal.
The Directorate is also responsible for establishing an effective co-ordination between the State Government and the financial sectors particularly Banks and Financial Institutions, the under secretary added. Under the initiative of the Directorate, the Manipur Public Demand Recovery Act, 2003 has been enacted for speedy recovery of loans in the State. Because, poor recovery of loans, especially those under Government sponsored schemes and default by borrowers act is a deterrent for granting fresh loans. The Directorate has took vital role in preparation of necessary ground work for preparation of the report which includes suggestion for expanding the banking outreach, simplification of system and procedures for opening bank accounts, land collateral substitutes, currency management, funds transfer and payment facilities and revised human resources incentives in the State.
Moreover, the Directorate took up the decision to introduce ECS credit as the only mode of drawls of salary and personal entitlements for all employees under DDOs linked to Treasuries/ Sub Treasuries located in Manipur in phase wise manners. RBI Dispensation Scheme for opening of bank Branches in North Eastern Region was introduced to address Financial exclusion in NE Region and the Scheme dealt with the cases where banks on their own do not find commercially viable to open branches and under the RBI Dispensation Scheme, RBI bear the one time cost and recurring cost for five years while the State Government provided Premises, Security and rental accommodation of the staff. 11 bank branches have already opened mostly in hill districts.
Accordingly to its advice of Financial Services, Ministry of Finance, Government of India, the State Government introduced e-payment in the State in the year 2011. Thus, all the payments are made electronically to the accounts of the beneficiaries. Under the initiative of Institutional Finance, the number of bank branches and ATM booths has increased in many folds too, Md. Ismat Khan informed.
Shri L. Jogendra Assistant Director, Institutional Finance, Finance Department also attended in today’s Press Conference.