Meghalaya govt mulls land documents for financial inclusion

The Meghalaya government is considering issuing land possession certificates to help land owners avail loans from banks.

Last Updated: Jun 17, 2010, 13:04 PM IST

Shillong: To ensure financial inclusion
and better credit flow, the Meghalaya government is
considering issuing land possession certificates to help land
owners avail loans from banks.

Chief Minister Mukul Sangma said Land Possession
Certificates (LPCs) will be issued to the land owners which
will help local entrepreneurs to use it as mortgage for
loans.

"At present, in absence of land pattas, the local
entrepreneurs despite owning land cannot prove the ownership
which is a key to avail loans," Sangma told reporters last
night.

Speaking about the recent meeting of leaders of
eastern states with Union Finance Minister Pranab Mukherjee in
Patna, Sangma said it had dwelt on the need to involve more
people in competitive banking and financial inclusion.

The meeting stressed the need for bringing more areas
under the banking network, an area where the North East fared
poorly. he said.

"The percentage of population in Meghalaya who are
within financial inclusion is not even in two digits.

Non-indebted households in Meghalaya come to around 95.9 per
cent. The state also has one of the lowest Credit-Deposit
ratios," Sangma said.

Therefore, he said, it has become necessary to ensure
that banks were forthcoming in ensuring better credit flow
which could be linked with sustainable generation of
employment.

Observing that 49 per cent of the population in
Meghalaya was in the BPL category, the chief minister said the
banks should reach out to this section to enable them avail
the benefits of the Center’s flagship programmes since many of
them were linked to possession of bank accounts.

"We have asked banks to cooperate with the district
administrations and to ascertain the reasons for the low CD
ratio in the state," Sangma said.

PTI