Punjab FM directs banks to go full throttle on disbursements of loans under schemes aimed at creating employment and boosting entrepreneurship

Chandigarh: Directing banks to go full throttle on disbursements of loans under various schemes aimed at creating employment and boosting entrepreneurship in the state, the Punjab Finance Minister Advocate Harpal Singh Cheema on Friday asked the Lead bank Punjab National Bank (PNB) and other banks in the State Level Bankers’ Committee (SLBC) to meet their targets of disbursement of Mudra and other loans for startups in Punjab by March 2024 by giving due emphasis on schemes aimed at empowering the SC/ST communities and women, startups by the youth, and Micro, Small & Medium Enterprises (MSMEs).

Punjab Finance Minister was chairing a meeting of Lead bank PNB and other banks along with Vikramjeet Singh Sahney, MP, Rajya Sabha and Member, Parliamentary Consultative Committee on Finance, here at Punjab Bhawan. The meeting was convened to ascertain the quantum of loans extended by these banks for self-employment and startup under various schemes like Pradhan Mantri Mudra Yojna (PMMY), Prime Minister Employment Generation Programme (PMEGP), and National Urban Livelihood Mission etc. where the nationalized banks are supposed to extend the loan of Rs 50,000 to 2 crores to the young entrepreneurs.

Cheema said that the Department of Industries and Commerce has written a Demi-official (DO) letter to banks to encourage the disbursement of loans to small projects up to 10 lacs to the ITI pass students. In one of the cases, the Banks have merely sanctioned 52 cases against 623 cases of ITI students sent to them, he added.

“I hope banks will improve their performance soon as the Chief Minister Bhagwant Singh Mann led Punjab government is willing to extend all of its support to them”, said Harpal Singh Cheema while adding that he will soon convene another meeting with them to review the performance.

Meanwhile, Vikramjit Singh Sahney asked the banks to disburse the loans under all three Shishu, Kishore and Tarun schemes of Pradhan Mantri Mudra Yojna (PMMY) and not just limit themselves to small loans only. He said that in his recent meeting with Union Finance Minister have assured that she will intervene if there are any shortcomings in extending these loans to the youth by the Banks. “The Punjab Government under the leadership of Chief Minister Bhagwant Singh Mann is doing its best to create job opportunities. We are skilling our youth, empowering our farmers and uplifting the weaker sections of the society. There are about 6300 branches of various banks in the state”, said Sahney while adding that even if each branch passes at least 5 loan cases each under various schemes it would help in brightening the future of more than 30,000 youth of the state.

Earlier, a PowerPoint presentation was made to discuss the current status of loans extended by the banks under PMMY, PMEGP, Stand-up India Scheme for financing SC/ST and/or Women Entrepreneurs, central sector scheme for ‘Financing Facility under Agriculture Infrastructure Fund’, PM Formalisation of Micro Food Processing Enterprises Scheme, National Urban Livelihood Mission, and PM Street Vendors Atma Nirbhar Nidhi scheme.

The meeting was attended by senior officials from the departments of Finance, Agriculture and Farmers Welfare, Horticulture, Industries and Commerce, Animal Husbandry and Local Government, and senior representatives of Punjab National Bank (PNB) and other banks in the State Level Bankers’ Committee.