57 utlbc MINUTES


The 57th UTLBC meeting was held at Kavaratti on 29/10/2018 under the chairmanship of Hon’ble Administrator Shri.Farooq Khan IPS.

The meeting started at 4.30 PM with the welcome address of Shri. Ramamurthy Regional Manager, Syndicate Bank and convener of UTLBC. He extended hearty welcome to Hon’ble Administrator, Member of Parliament, top officials from Lakshadweep Administration, executives from RBI, NABARD, other Banks, people representatives and all other members and participants.

Shri. Ramamurthy the convener of UTLBC presented the agenda items and reviewed the action points pertaining to 56th UTLBC. As suggested by Hon’ble Administrator the House straight away started discussion on agenda points without any formal address by the dignitaries.

He also made review of the performance under ACP 2017-18 as on 31.03.2018 and ACP 2018-19 as on 30th September 2018. He also informed that the achievement under ACP 2017-18 as on 31.03.2018, with respect to the total credit is 121% and the performance under ACP for this financial year up to September is 44% against the allotted targets.

He was pleased to announce the activities of only FLC in the Island sponsored by Syndicate Bank and also mentioned the achievement under the Social Security Schemes such as PMSBY,PMJJBY and APY during the review period.

Discussion on Agenda items

Problems as Cash remittance

Convener UTLBC has requested to give relaxation in scanning of cash boxes as it leads to huge amount of loss to the bank. Hon’ble Administrator expressed their inability to compromise in security procedures as it is an essential security exercise to be carried out at embarkation point. He has also mentioned about the installation cost of scanning machine and yearly charges paid by the Administration for the purpose.

Hence with the consent of the house the matter in this regard may be treated as closed.

Emergency Ticket quota allocation in passenger ship

Bankers requested to the Administration that minimum two tickets shall be reserved for service personnel for attending various banking services related issues in all the islands.

Hon’ble Administrator informed the House that Administration is unable to allot any quota for the time being, since all the major departments are always demanding for the same. He instructed Lead Bank officer to work as Liaison officer with the Administration and approach Director Port at any time. In this regard Director Port suggested to bring such requirements to his notice and assured to consider the same positively.

Hence with the consent of the house the matter in this regard may be treated as closed.

Room and function of FLC

Bankers sought the latest status regarding the allotment of space to accommodate FLC in the new Panchayath building as discussed during 56th UTLBC. Hon’ble Administrator once again expressed his willingness to do the same and entrusted Director (WCD) to explore the possibilities to accommodate FLC at new Panchayath building. Hon’ble Member of Parliament mentioned that, FLC was functioning earlier at Panchayath building. It would be better to accommodate FLC there itself as it is the place which common people can easily access for various purpose. Regional Director RBI has briefed the duties of FLC to the house. (Action: District Administration)

Waiver of post mortem for PMSBY

House explored the possibilities to waive off postmortem in Lakshadweep for claiming PMSBY. The Regional Manager UIIC expressed their inability to waive off the same since accident can be proved only after the postmortem and natural death is not covered under the scheme. Hon’ble Administrator stated that in drowning cases if the legal hairs of the deceased, concerned police officer and Magistrate have satisfied the cause of death, postmortem can be waived off. RM of UIIC has consented to explore the possibilities to exempt postmortem in Lakshadweep in above such cases by considering socio religious and non availability of infrastructure in these tiny Islands. (Action: UIIC)

Aadhaar Seeding

Shri.Ramamurthy, convener of UTLBC informed the House that, in Lakshadweep we have already completed 86% of Aadhaar seeding in Bank account and due to latest Supreme Court Judgment further specific camps are put on hold. However, Banks are continuing the Aadhaar Seeding of customers in normal course. Hon’ble MP has suggested the house to do the needful to clear some long pending scholarship issues of the students in connected with Aadhaar seeding as early as possible.

CGM NABARD briefed about Aadhaar authentication to the House (Action All Banks)

Pending subsidy under SGSY

The 57th UTLBC once again discussed the pending subsidy under SGSY and in this regard Director Rural Development stated that, even after getting the details from Bank, the department is unable to verify the records as it is pending for last 7years. Director RD also mentioned that some customers have closed the accounts before lock-in-period and hence it has to be verified once again. Hon’ble Advisor to the Administrator also explained the matter to the House and advised to explore the possibilities to waive off the same as the amount involved is meager. Finally Hon’ble Administrator instructed the banks to direct local clients to approach Director RD and suggested the house, not to carry over this issue in the next meeting.

Hence with the consent of the house the matter in this regard may be treated as closed.

Implementation of NRLM

Director RD informed that first phase of implementation has been completed and the Dept has already been paid Revolving Fund to 138 groups. In the second phase dept has selected 3 Island Androth, Minicoy and Kalpeni and implementation process is going on. Other three Island Bitra, Chetlat and Kiltan will be taken up in third phase after successful implementation of the schemes in selected seven Islands. Hon’ble Advisor to the administrator sought the activities of the groups and Director RD explained the same to the house. (Action: Dept of RD)

PMEGP loans

Executive Officer of KVIB informed that out of 8 PMEGP applications 7 have been approved by Islandwise committee and the department has assured to submit the same before task force committee. Hon’ble MP and Advisor to Administrator suggested the house to avoid rejections of PMEGP proposal from Bank’s side even after the approval of task force committee. Hon’ble Advisor to Administrator proposed to constitute the board as early as possible. He also directed to ensure the recovery of loans without fail.

(Action: KVIB & Banks)

Connectivity issues in Island Branches

TDM BSNL informed that BSNL is ready to provide 2 mbps as per the prevailing rate fixed by the Ministry. Regional Manager Syndicate Bank assured to take up the matter as early as possible. (Action:Lead Bank).

Closure of SyndRSETI at Kavaratti

Shri.Ramamurthy, convener of UTLBC has informed the house that, in view of the scarcity of candidates for training and also looking at the high cost of construction of RSETI building, the Board of Trustees of Syndicate Rural Development Trust (SRDT) comprising of MD &CEO, Executive Directors and General Managers of the Bank has discussed the issue of closure of RSETI at Kavaratti and resolved to refer the same to the UTLBC for approval of decision in the matter.

Hon’ble Advisor to the Administrator opined that the scarcity of candidate is mainly due to non availability of sufficient space from banks side. As such he suggests availing a rental building to run the institute rather than closing. CGM NABARD has informed the house that they can provide up to three lakh financial assistance, to procure new infrastructure for the venture and also informed that they can be bear up to 50% of the cost of the trainings conducted by the RSETI.

Finally, Hon’ble Administrator suggested to continue RSETI at least for one more year by continuing the activities in rental building on experimental basis with innovative ideas to take further decision in the matter. (Action: Sponsoring Bank)

Lakshadweep Development Corporation Limited (LDCL) Deposits

The funds of LDCL are parked in various banks which have no presence in Lakshadweep. The Bankers request is that the funds shall be preferably parked in those banks which have presence in Lakshadweep. Regional Manager Syndicate Bank mentioned that all the Banks are operating in the Islands with service motive, though the Branches are posting heavy losses.

Regional Director RBI also suggested to the house to invite quotes from the banks which have operations in the Islands. Hon’ble UT administrator agreed to place deposits with Banks operating in Island and advised the Banks to match the rates offered by other Banks in Main Land.

Hon’ble Administrator instructed MD LDCL to inform the close quotes to the Banks which have presence in Lakshadweep. He also stated that new venture called LTDC and Smart City is going to start operations in Lakshadweep shortly and expected to get huge funds for the mission. He further assured that these funds will not go to the banks which do not have branches in the Island, if they get at least equal offer from the banks which are operating in Islands.

Government quarters to Banks Staff

Regional Manager Syndicate Bank requested to explores the possibilities of allotting Government quarters to the Bank employees in Islands.

Hon’ble Administrator expressed their inability to do the same. Since the demand of employees under Lakshadweep administration is much more than the number of quarters presently available in the Islands.

Hence with the consent of the house the matter in this regard may be treated as closed.

Empanelment of YES Bank

The Yes Bank, Kavaratti Branch has requested UTL administration for empanelment of YES bank with various Govt. organizations under Lakshadweep administration for providing Banking services.

Regional Director RBI explained the house about the restrictions to do the same since sufficient number of Government banks has already been present here in Lakshadweep.

Hence with the consent of the house the matter in this regard may be treated as closed.

Other matters

  • Hon’ble Administrator instructed SBI to explore the possibilities to open branches in other Islands also.
  • Hon’ble Administrator suggested the banks to sanction more Mudra loans to deserved customers without any delay.

The meeting concluded at 6.30 p.m after vote of thanks.


The entire group of islands is considered as one district for lead bank purposes. Syndicate Bank is the lead bank and convenor of the Union Territory of Lakshadweep Bankers’ Committee. Syndicate Bank has opened its first branch at Kavaratti in 1971 and is operating throughout the UTL with nine branches in nine major islands. State Bank of India opened its first branch in April 2005 at

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