The role of the Public Sector banks operating in Tripura have once again came under scathing attack, with the minister of Industries and Commerce Pabitra Kar leading the strident attack. His complaint is banks are not lending properly and fairly under the Prime Minister's Rodger Yojana (PMRY) loans.

Kar claims that the overall performance of the public sector banks in the state, with
few exceptions, is poor. The credit advances are not commensurate with the deposit mobilization. He picked up PMRY to drive home his case. “The beneficiaries are
supposed to pay a nominal interest rate of five percent on bank loans under the PMRY scheme. But, our information is that the banks are charging an interest of upto 40 percent making mockery of the banking norms”, he fumed after a meeting with the officers of  the State Bank of India , United Commercial Bank and the United Bank of India .

"Some banks are asking the beneficiaries to sign a Registered Deed instead of Non- Judicial stamp papers. They are also insisting some times on securities   which are not applicable in terms of such small scale loans ", Kar pointed out.

Given this backdrop, most banks are unable to achieve their targets for advances under differential rate of interest in particular.

" During the year 2002-03 , the target under the PMRY scheme was  3000 but even after the expiry of the specified period, the number of beneficiaries stands only at 1276, half the target,"Kar said adding that the banks have failed to live up to expectations in all the four districts .

The number of beneficiaries in the West, Dhalai, North and South district stands at a dismal 626, 74,305 and 271. The targets in the four districts were 1440, 330,570 and 660 respectively.

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