State Chief Minister Neiphiu Rio on Saturday officially launched “No Frill Account” of the Nagaland State Cooperative Bank (NSCB) on the sidelines of the 23rd ASU conference here at Mezoma.
While urging upon the people to avail the facilities provided by the bank, Rio said that Nagas were not familiar with the concept of banking and usually have the habit of receiving mentality and not repayment of loans.
He revealed that the government was compelled to bail out the bank from financial crisis by offering Rs.25 crores as many of those who took loans failed to repay the loan amount.
He urged the public to avail banking loans, however cautioned the public on re-payment of loans in time, adding that the loan money should be used for multiplications.
He also uttered the proverbial phrase of “don’t eat the seed, but enjoy the fruit”.
In his address BK Thadani, Managing Director (MD) Nagaland State Cooperative Bank (NSCB) said the NSCB which was a state partner bank was committed to ensure banking facilities to the un-privilege and underprivileged section of the society who were deprived of banking services. With this aim in view, the MD said that NSCB has introduced mass Banking and Financial Inclusions for enabling the poorest of the poor, farmers, and unemployed youths to have excess to banking and affordable credit facilities.
Dwelling on the concept of “No Frill Account”, Thadani said that account could be opened with initial deposit of Rs.100 under relaxed saving deposit norms. He also said that the Account has been introduced to ensure that persons belonging to low income group do not face difficulties in opening the bank accounts for procedural hassle. He informed that the bank is contemplating to provide micro-credit to No Frill Account holders who are from the weaker sections of the populations and are in there need of credit in order to improve their economic status.
The MD also lauded the state chief minister for the kind enough to stand firm to protect the bank in the hour of crisis when the RBI had imposed embargo on the bank in view of the poor re-cycling of fund due to low level of recovery. He also recalled the comment of the chief minister made in a meeting of his council of ministers and senior bureaucrats that “the problem of the bank was the problem of the state government and will remain the problem of the government”. Thadani thanked Rajuselie Lhousa, former President ASU and existing member Board of Directors of NSCB who contributed for the bank’s participation in the meeting to enlighten the student community on the role played a by the bank for the development of the state.