News & Events



The 56th UTLBC Meeting was held at Kavaratti on 29.01.2018 under the Chairmanship of Honorable Administrator Sri. Farooq Khan, IPS
The meeting started at 4.30 p.m. with the welcome address of Sri. S. Rajapandi Regional Manager, Syndicate Bank and Convener of UTLBC.
The Regional Manager appealed to all the members of UTLBC, Govt. departments, People representatives to work together for achieving the Annual Credit Plan, and help each and every citizen of Island for further developments. He mentioned that all the Govt. sponsored programs, financial inclusion activities are implemented at right spirit and the benefit should go to each and every deserved person of  the Island.
Sri. Mohan Reddy, General Manager, Syndicate Bank delivered the key note address. 
Sri.Mohan Reddy addressed that connectivity issues are prevailing in the island,which require digital push. He stated that Banks are committed to lend and  NABARD will launch Potential Linked Plan in the meeting.He stressed that island level camps are to be conducted for maximum lending to happen in Banks. He requested Lakshadweep Administration to provide linkages for lending in the islands.
Sri. S M N Swamy, Regional Director, RBI, addressed the House.
Shri S.M.N.Swamy, Regional Director, Reserve Bank of India in his address, briefed the forum, inter alia, about the regulatory guidelines issued by RBI for the benefit of senior citizens and differently abled persons and steps taken by RBI regarding rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions. He noted that even though Cyclone Ockhi had not been declared as a natural calamity by the Government, there was a crucial role to be played by banks on humanitarian grounds in extending timely relief and rehabilitation facilities to the persons adversely affected by the event.
The problems of cash remittance from mainland Kochi to various islands of Lakshadweep were discussed and RBI was requested to consider reimbursing the loading and unloading charges to the bank branches in connection with cash remittance. RD has stated that Issue Department had sought break-up of expenses from Syndicate bank related to cash remittanceand on submission of the same by the bank, the matter would be taken up with CO
 Sri. Farooq Khan, IPS, Hon’ble Administrator, UT of Lakshadweep. 
Hon’ble Administrator suggested that pro-active measures from Banks is the need of the hour and suggested that lending is to be increased. He observed that  all the schemes including Mudra loans are bare minimum in Lakshadweep. Since Low CD ratio is a cause of concern in Lakshadweep, he suggested that NABARD to take a lead on the ground to improve the situation and that all Banks to reach out to people by taking pro-active role. He emphasized that the assurances and guarantee given by our Honorable Prime Minister to the people for Nation building is to be met by all means. He exhorted the bank to go for VSAT installation to increase connectivity without depending on BSNL. The need for proactive participation of banks in lending and other social security schemes was stressed.
Sri. Vivek Pandey, I.A.S, Hon’ble Advisor to the  Administrator.
Sri.Vivek Pandey,I.AS,Hon’ble Advisor to the Administrator mentioned that the dependency on Government jobs by general public is to be reduced by creating  other job opportunities for the people. He mentioned that further development in tourism sector in Lakshadweep will happen in due course which in turn increases the need for loans in the islands. He further suggested that, under Lakshadweep conditions, coconut, fisheries, Tourism are the areas to improve lending. He stated that in order to improve the low CD ratio, the Banks have to play  more pro-active role.To create awareness of the Bank schemes to the people, he suggested that, the Banks have to prepare materials in Vernacular language and supply the same to the people. He also mentioned that Panchayats will be playing a crucial role for identification of beneficiaries and for finding newer avenues. Hence the inclusion and active participation of panchayat be ensured by the bankers in identifying the beneficiaries. Information in vernacular language be displayed in all the bank branches and panchayat offices. 
Smt.  K S M Lakshmi, General Manager, NABARD.
Smt.K S M Lakshmi,General Manager,NABARD mentioned that potential in Lakshadweep has been explored for crop loans, food processing loans etc. for finalizing  the unit cost.She further stated that, for fisheries and Animal Husbandry the unit cost has been finalized and for Horticultural plantation it will be  finalized soon. She also mentioned that Fisheries and coconut processing Farmer’s producer’s organization has been newly promoted in Kavaratti and Minicoy islands and the potential for the forthcoming FY has been assessed at Rs. 30 crore.
The Hon’ble Administrator informed that a futuristic plan is to be put in place and value addition of coconut and fisheries are to be improved. He suggested a minimum of Rs. 100 crore projections to be put in place. He further suggested NABARD to have a discussion with the stakeholders for improving lending and for fixing ACP and PLP for 2018-19 plan finalisation
Deliberations on increasing lending in UT of Lakshadweep:-
  Hon’ble Administrator expressed concern that in UT for tourism projects, cost will be approximately Rs. 4-5 crore for taking any project and problem will be bringing in the margin money by the promoters. He suggested that Government is ready to give subsidy for promoting the same. 
Sri. Mohan Reddy, General Manager, Syndicate Bank mentioned that leads are to be directed to Banks for lending. As regards to title of the land and  other mortgage formalities the legal clearance need to be obtained keeping in view the special provision of UT of Lakshadweep as the laws applicable in the mainland may not be applicable here.
Hon’ble Advisor to the Administrator mentioned that small scale ventures for people to be explored and promoted for increasing the lending. 
Hon’ble Administrator mentioned that the stakeholders to identify the core areas and start working on the actionable points. He suggested that a model to be developed for Kavaratti for replicating the same in other islands. He mentioned that Prime Minister’s Social Security Schemes to be implemented in all the islands and awareness to be created in this regard with a Helpdesk put in place. 
Hon’ble Administrator further suggested that a single window system for getting permission from Tourism Sector for getting the necessary clearances to be put in place. The Administrator suggested to identify the targets under Fisheries, Tourism and value addition of Coconut based products                
(Action: UT L Administration,NABARD and Banks).
Discussions on agenda items:
1. Problems on cash remittance: 
  The House suggested that SyndicateBank to provide the details to RBI in this regard. Hon’ble Administrator mentioned that the matter shall be taken up with CISF. He further suggested that certificate from RBI and seal bearing boxes can be permitted. Instruction can be given to CISF since there are employees of UT of Lakshadweep to sort out the issue. 
(Action: Lead Bank and Administration)
2. Tickets for service Engineers:
 Bankers requested the Administration that tickets for service Engineers to be given on Top Priority. Hon’ble Administrator mentioned that the necessary instruction shall be given to the concerned Department for availability of tickets for the service Engineers
.(Action: Administration)
3.Functioning of FLCC: 
The House was informed that a new Financial literacy Counsellor has been appointed and the House suggested that both FLCC and Panchayat to work together for implementing the schemes across the islands. Hon’ble Administrator instructed FLCC helpdesk to be formed in vernacular language.
Sri. Mohan Reddy, General Manager, SyndicateBank requested the Hon’ble Administrator for allot a room in the Panchayat Building for the functioning of FLCC. Hon’ ble Administrator mentioned that Panchayat building is a public building and hence rent has to be paid for availing the room. 
Hon’ble Administrator expressed that the functioning of the FLCC should be improved substantially. He advised that the FLCC counselior to visit other islands too.
(Action: Lead Bank and FLCC)
3. Waiver of Post- Mortem for PMSBY and PMJJBY to fishermen :
 The Hon’ble Administrator stated that Sub- Divisional Magistrate has the powers to waive off the post-mortem and also expressed that doing post-mortem in Lakshadweep is costly. He also mentioned that representatives of the Insurance companies to be called in the subsequent meeting for taking a decision. 
(Action: Administration and Lead Bank)
4. Aadhar seeding and Aadhar Authentication:-
 Hon’ble Administrator expressed that Aadhar seeding and Aadhar Authentication status to be improved. The Advisor to the  Administrator stated that Aadhar seeding and Aadhar authentication status are to be improved by the Banks in the islands and special camps to be conducted for the same.
(Action: Lead Bank)
5. Pending subsidy under SGSY:
The concerned officer stated that the scheme has been discontinued and hence the subsidy was not provided to the banks so far. Hon’ble Administrator mentioned that if the amount is low, then the Administation will give the subsidy. The status of the pending subsidy shall be provided to the concerned department by the Lead Bank.SGSY subsidy amounting to Rs. 9.90 lakh under 99 cases pertaining to Kavaratti, Androth, Kadamath and Kiltan branches of Syndicate Bank is pending for disbursal by the Government Department.
(Action: Lead Bank and the Department of Rural Development)
6. Implementation of NRLM:
 It was informed that the implementation process is progressing and the training has already started by the resource persons. The scheme has been implemented in four village Dweep Panchayats Agatti, Ameni, Kadmat and Kavaratti, similar to Kudumbasree groups, under the monitoring of Rural development Department, around 170 neighbourhood groups under the name 
“Dweepashree” are formed.  Other six VDPs will be taken up in the second phase after successful implementation of the scheme in the selected four islands with the help of trained Community Resource persons. The Department share the details to banks for credit linkage.
(Action: Department of Rural Development and Banks)
7. PMEGP Loans: 
It was informed by the departments that around 8 applications have been received and has been sent for SDO approval. The Hon’ble Administrator stated that the recovery in the PMEGP loans to be ensured both by the Banks and the KVIC. He directed that the list under pendency of KVIC applications and the outstanding list under PMEGP to be sent to his office.
(Action: The Secretary, Rural Development Department)
8. RSETI issues:
General Manager of Syndicate Bank; Sri. Mohan Reddy mentioned that the land allotted by the Administration for RSETI building is 10 cents. In that area the prescribed building of 8000sqft cannot be constructed. Moreover numbers of trainees are very few in the island. Hence a proposal for construction of building with a reduced area of 4000sqft is submitted for the approval of MoRD. In this context only after getting the permission from MoRD, further procedure for construction can be initiated. Hon’ble Administrator mentioned that it has to be followed up and the status shall be informed.
(Action: Rseti Director)
9. Functioning of Co-op society:-
Hon’ble Advisor to the Administrator expressed that audit of Co-op society should be conducted timely at regular intervals as per laid down procedures and statutory requirements. All the facilities be provided to service cooperative societies to discharge their duties effectively. (Action: RCS)
10. Network connectivity :-
While addressing the network connectivity issues in the islands, the Hon’ble Administrator mentioned that all the Institutions can join together to address the connectivity issues and that the concerned BSNL official to be called for the next meeting. He further opined that a separate VSAT to be installed in all the islands by the respective institutions functioning in Lakshadweep.
(Action: Lead Bank)
The meeting concluded at 7.00 pm. 
Minutes of Special Sub-Committee

  Minutes of Special Sub-Committee meeting for low CD ratio held on January 29, 2018

  The Special Sub-Committee (SSC) meeting of Union Territory of Lakshadweep to monitor and improve the CD ratio was held at Secretariat Conference Hall, Kavaratti on January 29, 2018 at 3.45 pm. The meeting was chaired by Shri Vivek Pandey IAS, Honorable Advisor to the Administrator in presence of Smt. Uma Sankar, General Manager, Reserve Bank of India, Thiruvananthapuram 
1. Shri Vivek Pandey IAS, Honorable Advisor to the Administrator opined that more awareness camps should be held across all Village Dweep Panchayats, to create awareness on banking products and various government schemes. He also instructed all bankers to explore the avenues of lending like tourism, fisheries, etc., with the help of concerned departments which could ensure a better CD ratio in the Union Territory of Lakshadweep.He questioned Yes Bank for not lending loans till date. He further suggested that Banks to be people friendly with simplified procedures. He also instructed the banks to give Mudra loans in good numbers (Action: All banks)
2. Smt. Uma Sankar, GM, RBI, quoted the guidelines contained in RBI Master Circular on Lead Bank Scheme issued vide FIDD.CO.LBS.BC.No.1/02.01.001/2017-18 dated July 3, 2017 -
“Special Sub- Committee (SSCs) of DCC should be set up in the districts having CD ratio less than 40, in order to monitor the CD ratio and to draw up monitorable Action Plans (MAPs) to increase the CD ratio. As regards the districts with CD ratio less than 20, these are generally located in hilly, desert, inaccessible terrains and / or those dependent solely on the primary sector and/ or characterized by a breakdown of the law and order machinery. In such areas, conventional methods are not likely to work unless the banking system and the State Government come together in an especially meaningful way. While the framework for implementation for raising the CD ratio in these districts will be the same as in the case of districts with CD ratio below 40 (i.e. setting up of SSC etc.), the focus of attention and the level of efforts should be of a much higher scale. For this, all such districts should first be placed in a special category. Thereafter, the responsibility for increasing their CD ratio should be taken by banks and State Governments and the districts should be "adopted" by the District Administration and the lead bank jointly. While banks would be responsible for credit disbursement, the State Government would be required to give an upfront commitment regarding its responsibilities for creation of identified rural infrastructure together with support in creating an enabling environment for banks to lend and to recover their dues. Progress in the special category districts will be monitored at the district level and reported to the corporate offices of the concerned banks. CMDs of banks would give special attention to the CD ratio in such districts.”
She also added that the Credit Deposit (CD) ratio of the Union Territory for the quarter ended September 2017 was reported as 24%, which was calculated by excluding Government deposits. She informed the forum that all deposits including Government deposits were required to be included under the head “Deposits” for the calculation of CD ratio. The inclusion of all deposits would bring the CD ratio down to 8% which was in fact the correct CD ratio of the UT. Considering the very low CD ratio of the UT, banks would have to initiate necessary steps and focus lending to certain sectors like tourism, fisheries, etc., to bring the CD ratio to an appreciable level. The Government was also requested to play a facilitating role to improve the ratio, as envisaged in the RBI circular. (Action: All banks and Government)
3. Shri.Mohan Reddy ,General Manager,PSCD,Syndicate Bank has requested Administration to suggest measures to improve avenues and the concerned departments to give input for lending. He further explained the  reasons for low CD ratio  in Lakshadweep is mainly because of low credit absorption capacity due to  locational disadvantages with lack of infrastructure and the main economic activities are limited to single crop based agriculture and fishing. He also explained that non availability of marketing facilities prevents farmers to utilize coconut and its by products and moreover scope for large advances seems to be very low since these islands does not have any industries, factories and other major business outlets.
4. Shri. S Rajapandi, Regional Manager, Syndicate Bank, mentioned that Banking in Lakshadweep is service motivated for the upliftment of downtrodden and the needy. He also opined that Government schemes and programmes have to be implemented in right spirit and strength. He further assured that, banks will continue the efforts in all possible ways and also requested the wholehearted support of the administration   to improve the CD ratio in Lakshadweep.
Finally the house had suggested the followings to improve the CD ratio in Lakshadweep.
i.       Promote schemes which encourage coconut cultivation/coconut by-products and Proper exploitation of fisheries wealth can give immense growth to Islands and more Agricultural credit can be deployed in this area. 
ii.        The growth of tourism is vital to the overall growth and development of the territory. Tourism has vast potential to provide employment and income directly and indirectly. Increased level of activity in tourism needs more investment to create infrastructure which obviously Banks can help. 
iii.       Increased level of financial literacy can create more savings habits, channelizing the resources in more investment avenues, proper awareness about credit facilities and overall economic development. 
 The meeting concluded at 4.30 pm
List of participants of Special Sub-Committee meeting for low CD ratio held on January 29, 2018
1.Shri.Vivek Pandey, Hon’ble Advisor to the Administrator
2.Smt.Uma Sankar,General Manager,RBI
3.Shri.Mohan Reddy,General Manager,Syndicate Bank
4.Smt.K S M Laksmi,General Manager,NABARD
5.Shri.S.Rajapandi,Regional Manager,Syndicate Bank
6.Shri.Gopu G,Deputy General Manager,SBI
7.Shri.Joseph C, Assistant General Manager,RBI
8.Shri.N V Baskaran, Assistant General Manager, NABARD
9.Dr.M P Anwer,Director Fisheries and Animal Husbandry
10.Shri.Harjeet Singh Choudhary,Director,Planning and Statistics
11.Shri.Kapil Choudhary,Director, Agriculture and RD
12.Shri.Azhak Navas C,Accounts officer,Seceretariat
13.Shri.E Karunanithi,Senior Manager,Syndicate Bank
14.Shri.K M Sheik Farook,Senior Branch Manager,Syndicate Bank,Kavaratti
15.Shri.Harlin Francis Chiramel, Manager, LDO  RBI
16.Shri.Shamir Nawas K K,Lead Bank Manager,Syndicate Bank 
17.Shri.Binu Chandrashekhar,Branch Manager,SBI
18.Shri.Uday Shankar R,Branach Manager,Uco Bank
19.Shri.Mohammed Ziyad,Manager,Yes Bank
Loan Schems & Deposit Schems ( Mahal )
Loan Schemes and Deposit Schemes
performance under Financial Inclusion and business development in UT of Lakshadweep.

performance under Financial Inclusion and business development in UT of Lakshadweep.

 Syndicate Bank ( Lead Bank)  have printed book lets in Malayalam about various deposit and loan schemes of the Bank and Government Sponsored loan schemes. Copies of the book let were made available to all Government departments,  Peoples Activities undertaken to improve credit at U T of Lakshadweep

 Representatives and to all 12500 households in Lakshadweep

 Syndicate Bank Kavaratti branch and Department of Women and Child Welfare jointly organized a Workshop for SHGs on 25.02.2010.  Two office bearers each from 24 groups participated the Workshop.  

 The Sensitization Programme for People’s Representatives and Govt. officials about the various schemes of banks organized at Kalpeni, Kavaratti and Minicoy Islands from 26-04-2010 to 14-05-2010 associating NABARD and other banks. On 28.04.2010 SHG awareness programme was conducted at Andrott. For properly guiding the groups, syndicate Bank organized three more awareness programs at Kavaratti during 1st week of May 2010.

 Lakshadweep Social Welfare Board, Department of Women and Child Welfare and Syndicate Bank branches of Kiltan, Amini, Kadmath and Chetlat jointly organized a three day camp for SHGs in April 2010 covering 500 participants.  Office bearers of 25 SHGs attended the programme.

 Syndicate Bank has deputed a Specialist Officer from main land Sri.M.G.Sudeep, Branch Manager of  Trikkur Branch  to Andrott and Kavaratti branches for assisting the branches for development of Micro Finance. As per records 81 SHGs were there in Andrott Island. Four awareness camps were conducted from 26.04.2010 to 06.05.2010 for sensitizing the groups. Thirty one SHGs came forward for bank linkage.  The sanction letters for these Groups were distributed on 1 st May 2010 by Janab A.Jalaludeen Koya, President cum Chief councillor, District Panchayat, Lakshadweep.  The meeting was attended by more than 500 members of SHGs in their traditional dresses.

 Syndicate Bank, Minicoy organized SHG Awareness programme in association with Social Welfare Board on 15.05.2010. Board Officials and Bank Officials took classes.   Accounting procedures were described in Mahl language and necessary registers for SHGs were translated into ‘Mahl’ and given to members

  Syndicate Bank Amini organized SHG awareness programme which was presided by Sri P.P.M. Ashraf, Chief Manager, Syndicate Bank, Regional Office, Ernakulam.   Office bearers of 9 SHGs attended the meeting.



Marketing of their produces was the main issue faced by the SHGs in the Islands. For addressing this problem Andrott Vanitha Co-operative Society was formed by bringing all the 31 SHGs into a Federation with the help of Director Women And Child Welfare. Janab A.Jalaludeen Koya, President cum Chief Councilor,District Panchayat,  Lakshadweep inaugurated the Society. 




On 25.05.2010, seven SHGs were linked and the sanction letters were issued by   Smt Bhamathi, Addtl Secretary Ministry of Home ,( Lakshadweep) in the presence of Hon. Administrator, UT Of Lakshadweep and Smt.Suma Varma RD, RBI Thiruvananthapuram and various other dignitaries.




SHG Awareness and credit camp was conducted on 17.07.2010 at Kavaratti in which more than 150  participants took part. Janab A Jalaluddin Koya ,  President cum Chief Councillor,  District Panchayat Lakshadweep  presided over  the function. Six SHGs were credit linked amounting to Rs 120000/and  loan sanction letters issued to 13 beneficiaries under SGSY amounting to Rs710000/ Various dignitaries of Departments participated.


performance under Financial Inclusion Latest Activities undertaken in U T of Lakshadweep-1

1)    Branch visit by  Regional Head





     The undersigned alongwith Mr Mathew Thomas, CRM visited 4 Islands viz. Agatti, Kavaratti, Amini, and Kadmat during the period from 12.10.2010 to 15.10.2010 and met the Branch Managers and Govt. officials. We have advised the Branch Managers to canvass SKCC, SB and RD accounts of those who are not having any bank account. Local Administration has promised to extend their support in canvassing no frill accounts and GCC.







2)    Deputation of Micro finance expert from BASIX, Hyderabad



As per the instructions from our CMD, Mr George V Mathew, a Micro Finance expert from M/s BASIX Hyderabad  visited  Islands  during the period 08.11.2010 to 14.11.2010. He visited  Kavaratti , Amini,  Kadmat islands and conducted training programmes both for Branch Heads of all banks and SHG members regarding different aspects of Micro Finance and suggested suitable models for Lakshadweep.



performance under Financial Inclusion Latest Activities undertaken in U T of Lakshadweep.- 2

1)    Deputation of specialist, Mr M G Sudeep Branch Manager Trikkur (from Mainland)



      Mr M G Sudeep Branch Manager Trikkur was  deputed for the third time to Lakshadweep  Islands viz. Amini, Kadmat and Agatti from 13.11.2010 to 01.12.2010  for assisting the branches in the formation and linkage of SHGs.





i) At Amini, 2 SHG Awareness programmes were conducted on 14.11.2010 and 19.11.2010 and a credit camp on 19.11.2010, which was attended, by Chairperson, Village Dweep Panchayat and SDO. Out of 22 active SHGs, 11 SHGs were linked during this period and another 5 SHGs are expected to linked immediately. 





ii) At Kadmat Island, 4 SHG awareness programmes were conducted  during the period from 20.11.2010 to 25.11.2010 and a credit camp on 25.11.2010. Out of 32 active groups, 10 SHGs were linked and another 6 SHGs are expected to be linked within short time.





iii) At Agatti Island, 4 SHG Awareness programmes were conducted during the period from 26.11.2010 to 01.12.2010 and a credit camp on 01.12.2010  Out of 22 active SHGs , 11 SHGs are linked and another 5 SHGs are expected to be linked immediately.



2)    EDP Training



As per the request from KVIB Kavaratti to conduct EDP training to the beneficiaries of PMEGP, we deputed one of our faculties of Training Centre Ernakulam , Mr Harikumar to Kavaratti for 3 days from 23.11.2010 for conducting the EDP programme.







performance under Financial Inclusion Latest Activities undertaken in U T of Lakshadweep.- 3

1)    Deputation of marketing team for Financial Inclusion



Two Officers and one clerk was deputed from Mainland to assist the branches at Lakshadweep in Financial Inclusion  by  bringing more household under banking fold . Although there was no unbanked village in Lakshadweep having population  more than 2000, Special team was intended to canvass more accounts under GCC, SKCC, No frill accounts and other products. Our marketing team  commenced  work on  27.10.2010  starting from  Kavaratti.


i)              They were able to canvass 71 GCC, 4 SKCC , 21 No Frill accounts, 4 S.B. , 1VCC accounts and   PBS loans at Kavaratti.


ii)             At Amini Island, the team could canvass 65 GCC, 5 SKCC, 251 No Frill accounts, 18 S.B., 1CA.


iii)            At Kadmat, they have canvassed 47 GCC, 21 SKCC, 213 No Frill accounts, 2 S.B. accounts., 7 SME loans and 7 PBS loans. Disbursements have been effected in many of the above loans and remaining will be disbursed within short time.


iv)           At Kiltan, 11 GCC. 157 No Frill accounts, 10 S.B., 1 CA and  3 PBS were canvassed



UTLBC meet at Kavaratti on 27.01.2010
The 41st Meeting of Union Territory Level Bankers’ Committee of Lakshadweep Islands was convened on 27.01.2010 in the Chamber of Hon’ble Administrator of Lakshadweep, Govt. Secretariat, Kavaratti. At the outset, Sri S. Ramachandran, Asst. General Manager, welcomed the Hon’ble Administrator Sri J.K. Dadoo IAS, Vice President cum Councilor of District Panchayat Dr. P.P. Muthukoy, Sri.Marnya Ete IAS, Managing Director, LDCL, Sri S. Ramaswamy Regional Director of RBI, Kerala and UTL, Sri K.C. Shashidhar, CGM, NABARD, Sri Srihari Bhat, GM, Syndicate Bank, Sri R.K. Moria DGM, RBI and other Senior officials of banks and Heads of various line Departments.
Initiating the discussions, the Hon. Administrator indicated that unlike the mainland, the UTL are very different and the conventional method of development may not work in the islands. The islanders are still not confident of handling big-ticket investments and projects and the need is for expanding the micro credit activities and capacity building.

Thereafter the Action taken report of the previous meeting held on 08.7.2009 was taken up for discussion. Amongst other things Administrator directed that priority should be given for the following issues and the same should be completed within the time lines agreed :-
Ø To create more awareness amongst the Islanders about the various credit products and other services from banks Hon’ble Administrator advised Lead Bank to take immediate steps to print 12000 copies of the booklet of bank schemes and supply the same to all the families in the Islands through its branches/ government department, before 31st March 2010.
Ø To sensitize the elected representatives and Govt. officials about the various schemes of banks, the Hon’ble Administrator directed the concerned to organize separate workshops for sensitizing elected representatives and representatives of various line Departments in each Island before March 2010
Ø To organize SHG awareness programme in all the Islands involving Director, Women and Child welfare before 31st March2010 to sensitize all the 363 SHGs, working in the islands.
Ø The Hon’ ble   Administrator indicated that an Integrated Coconut value addition Project is working well in Kadamat island. The product range includes Coconut Shell products, Coir, Coir Mats, copra, desiccated coconut powder, virgin coconut oil etc. and directed Industries Dept. to replicate the same in all other islands in association with NABARD / banks
Ø Director Fisheries should organize more training programmes in all islands to improve the capacity and credit absorption of fishermen. Hon’ble Administrator directed that such programmes should be organized in all Islands and once every month.
Ø It was decided in the last meeting that SHG training /handholding will have to be done at 3 levels, however there is no progress in this regard except for Minicoy. Hon’ble Administrator directed that Director, Women & Child Welfare to complete the training process of the first level before 31 March 2010.
Ø Animal Husbandry Department jointly with NABARD had organized awareness programmes at Kavaratti and Agatti for creating awareness about the schemes relating to Centrally Sponsored subsidy schemes like Rural Godowns, Agri Marketing Infra structure ventures, setting up of feed plants etc Hon’ble Administrator directed the Director Animal Husbandry to organize similar programmes in all the other islands.
Ø On the issue of setting up of RSETI, Hon’ble Administrator informed that there is some confusion over handing over of 1st floor of Agatti Museum for setting up of RSETI. Alternatively, Hon’ble Administrator suggested that Barkath Bhavan may be considered for the same and directed Syndicate Bank, RBI and NABARD officials to visit the same and find out whether the same is suitable for setting up of RSETI.
Ø Hon’ble  Administrator directed the Department of Cooperation and SBI to sort out issues relating to the appointment of Business Correspondent.
The Hon’ble Administrator said that the CD ratio is very low in Lakshadweep and therefore banks must educate the public of various schemes and try to generate more number of credit proposals. He wanted that the CD Ratio should reach at least 25 percent in the coming financial year. 
Thereafter the agenda items were taken up for discussion
The review of progress under implementation of Annual credit Plan (ACP) various schemes was taken up for discussion. The achievement under ACP 2009-10 as at 31 December 2009 was only 34% under PSA and only 28% under agriculture. The Hon’ble Administrator was not very satisfied with the performance and told the forum that the banks will have to improve credit disbursement during the current quarter and surpass the ACP targets. He directed the departments of Agriculture, Animal husbandry, Fisheries and other Govt sponsored scheme implementing departments to discuss the matter with the banks and see that ACP target is achieved. 
Reviewing the performance under SGSY scheme it was reported by Convener that out of 81 applications received in current year, banks had sanctioned 48 loans, returned 26 cases and 7 cases are pending. Hon’ble Administrator directed Director, Rural Development to furnish the position. The Director informed that over 100 applications are pending with him for want of information. Hon’ble Administrator noted this high incidence of pendency and rejection of applications with concern, as this is an important scheme of Govt. of India. He told bankers and Govt officials to be more proactive in their role and advised all efforts should be made to get the requisite information and reduce the level of rejection to minimal. Hon’ble Administrator also advised Controlling offices of banks to examine the reasons for rejection or returning of applications.
The progress under PMEGP scheme was reviewed and LKVIB representative informed that 54 applications selected by the Task force will be forwarded to Banks immediately. He informed that the delay was on account of the fact that many schemes suggested were in the negative list of the KVIB. Hon,ble Administrator directed LKVIB to solve these problems and expedite implementation of the programme 
In this connection, SBI representative told that they will open branch in Agathy and Androth before March 2010. Regarding opening of new ATMs the banks replied that they require more time and Hon’ble Administrator directed banks to provide ATM in remaining Islands before Dec. 2010.
Summing up the proceedings the Hon’ble Administrator expressed displeasure over low CD ratio of banks. He directed banks to take immediate remedial action so that the CD ratio can be improved from the present level to at least 25% in coming year He said his main area of concern are the poorest of the poor and uplifting them through the micro credit route is the priority and want all banks and all agencies to involve in this process more proactively. 
The meeting came to close with vote of thanks by Sri K.T. George, Chief Manager, State Bank of India.
100% financial inclusion - Union Territory of Lakshadweep

The Union Territory of Lakshadweep attains the second position among the Union Territories in the country to be 100% financially included. This indeed adds a new feather in the crown of the administration. In the glittering and spectacular function held at Kavaratti to mark 62nd Independence Day Celebrations Hon’ Administrator, Thiru B V Selvaraj I A S, has announced the 100% Financial Inclusion of the Union Territory of Lakshadweep and the certificate to the effect has been handed over to the Regional Director, Reserve Bank of India, Kerala and Lakshadweep Sri S Ramaswamy.

Financial Inclusion is the delivery of the Banking / Financial services to all people in a fair, transparent and equitable manner at affordable cost. This programme aims for the upliftment of economic and social standards of life of the poor and downtrodden. The campaign for opening of No Frills Account ie.,Account with Zero Balance, and bringing all islands in Union Territory of Lakhadweep under 100% Financial Inclusion was started by the Lead Bank, Syndicate Bank, in the month of October 2007. All the Banks in the islands of Kavaratti, Minicoy, Androth, Amini, Agathi, Kalpeni, Kiltan, Kadamath and Chetlat through their systematic approach and effort have made possible that one member of each house hold has opened at least one Bank account.

The Lead Bank informs that this milestone has been achieved by both the Banks viz., Syndicate Bank and State Bank of India, only through the sincere support extended by the Hon’ Administrator and his team of officials of Lakshadweep Administration and Peoples Representatives under the able guidance of Reserve Bank of India.
New website launched
New website launched glittering ceremony on 13th August 2008.
Regional MSME Care Centres

For quick redressal of grievances of MSMEs, consolidated information for all the banks in Union Territory of Lakshadweep is provided below:

1. Syndicate Bank, Regional Office, Pioneer Towers, First Floor, Shanmugam Road, Ernakulam - 682031

Contact Person: Sri S Ramachandran, Deputy General Manager Phone: 0484-2367063 Mobile 9495007777 e-mail

2. State Bank of India, Local Head Office, S.S. Kovil Road, Thiruvananthapuram - 695001

Contact Person: The Asst. General Manager (SME)

Phone: 0471-2323075 0471-2323076 e-mail

SLBC Road map for providing banking facilities with a population of over 2000 as per 2001 Census.

1.Name of SLBC Convener Bank: Syndicate Bank
2.Name of the State : Union Territory of Lakshadweep Islands
3.No. of Districts in the State : One
4.No. of Villages with population
of over 2000 which are unbanked : NIL

Note: In the Union Territory of Lakshadweep, bank braches are functioning in all the inhabited Islands, except Bitra Island, which is having a population of 267 as per 2001 census.

Minutes of 42nd UTLBC meeting held on 25/05/2010 at Kavaratti

The 42nd Meeting of UTLBC was convened on 25.05.2010 in the Conference Hall of Govt. Secretariat; Kavaratti under the Presidentship of  Hon’ble Administrator Sri J.K. Dadoo IAS., Smt.B.Bhamathi, Addl Secretary, (UT), Ministry of Home Affairs, New Delhi also participated in the meeting as a Special Guest of Honour. The other dignatories who attended the meeting included Sri.A.Jalaludeen Koya, President cum Chief Councilor of Dist Panchayat, Sri R.P.Pal I.A.S, Collector and Dev Commissioner, Sri.Marnya Ete IAS, MD, LDCL, Smt Suma Varma, Regional Director of RBI, Kerala and UTL, Sri M.S.G.Nair, DGM, NABARD Sri R.K. Moria DGM, RBI, Sri L Rajan AGM SBI, Sri P.P.M.Ashraf, Chief Manager, Syndicate Bank, and other Senior officials of banks and Heads of various Departments.

At the outset the Hon’ble Administrator welcomed Smt B.Bhamathi, Addl Secretary, (UT), Ministry of Home Affairs, New Delhi and thanked her for sparing her time.  Retracing the decisions  taken in the last meeting , the Administrator indicated there  are four major issues which are of concern and needs to addressed  by the bankers and the departments in right  earnest   and these were :-

·        Creation of public awareness about various deposit and loan schemes of Banks to the desired level. Hon’ble Administrator noted that the Lead Bank has brought out literature in Malayalam about various schemes of Banks and has been able to reach the same to almost one third of the total households in the Islands. Priority should be given to ensure coverage of the remaining households without any delay.

·        Top priority should be accorded for credit linking the remaining 350 active SHGs.

·        Syndicate Bank should explore the possibility of identifying an Expert in Micro Finance whose services should be utilized for identifying the micro enterprises opportunities suitable for local poor based on the local conditions and also impart   training to the local branch mangers. 

·        The Hon’ble Administrator observed that the Credit Deposit Ratio continues to be very low and concerted efforts should be directed towards increasing the same.

Smt. Suma Varma, RD, RBI, Kerala and Lakshadweep pointed out that the fragile ecosystem and unique social fabric of the Islands are to be preserved and the targets and achievements should be viewed in a perspective that will be different to that of mainland. She observed that the achievement under credit plan 2009-10 was 94 % even though with some sectoral imbalances. She suggested that the planning process should be realistic and also considering the special features of the Islands , banks should dovetail their plan with that of  the Administration. She added that financial counselling and literacy is of great importance and said that the RBI has brought out literature on the these aspects and will provide same for supplying to the school children of Lakshadweep.

Sri.M.S.G.Nair, DGM, NABARD in his address indicated that that there is need for increasing the credit flow in the UTL. During 2009-10, of total credit disbursement of Rs.17.28 cr, only Rs.5.76 cr was under priority sector. There is a need for stepping up the flow of credit to priority sector. Investment in priority sector has to be stepped up so as to increase capital formation leading to increased demand for credit. He added that as already indicated there is need for creating public awareness about banks/ governments schemes. Line department should associate with the banks for identifying potential borrowers. Sri Nair also indicated that the administration should make use of the NABARD’s  RIDF for creation of infrastructure.  He added that formation of Federation of SHGs can to some extent alleviate problem of SHG product marketing and NABARD can extend guidance and support in federating the SHGs.

Minutes of 42nd UTLBC meeting held on 25/05/2010 at Kavaratti .. contd.

Participating in the deliberation, Smt B.Bhamathi, Addl Secretary, (UT) Ministry of Home Affairs said that to address the problem of faster transportation Administration should look into the possibility of having some PPP/BOT models to acquire and operate faster vessels connecting mainland and various islands. Reacting to the issue relating to SHGs she added that the Kudumbhasree Model  is functioning very well in Kerala and some exposure visits  to  the officials of the Dept. of Women and Child Development  to the districts of Kerala  especially Malapuram can give better insights in approaching problems /issues of the SHGs in the island. She opined that NABARD can also consider sample visits of  SHGs to do situational analysis, to find out the needs of the SHGs.  She also indicated that NABARD may consider preparing a shelf of projects specially suited to the island as a part of technical support to the Administration. She also added that the issue of settling the unemployed undereducated youth of the island who are out of the productive system also needs to be addressed.


Shri R K Moria expressed the need for setting up of Rural and Self Employment Training Institute (RSETI) and Financial Literacy and Credit Counselling Centres. (FLCC) for creation of awareness and skill development of the islanders. Intervening in the discussion Honorable Administrator indicated that pending a solution relating to the issue of locating RSETI, in suitable premises, the Lead Bank should utilse the infrastructure available with the Administrative Training Institute for conduct of skill development training for the islanders at Kavaratti. 


Shri R P Pal, Collector & Dev Commissioner indicated that credit linkage of the SHGs should be an ongoing process and not to be carried out on a sporadic basis. The possibility of extending long duration vocational /employment oriented training programmes in mainland for the youth of the island should also be explored and imparted.


Janab A Jalaludeen Koya, President cum Chief Councellor, Dist Panchayat   UTL, in his address said that the only possible areas of employment for the locals are in fisheries and coconut sectors. There is large scale unemployment in the islands which needs to be addressed. The medium of SHGs is proving to be very useful in creating self employment opportunities, however there is the problem of marketing their products. He also added that the issue of lean season unemployment of fishermen needs to be addressed.  


Shri L M Ganesan, AGM , RBI  appreciated the efforts of the banks in the Islands in increasing the credit flow and also stressed the need for continuing the efforts to increase the C D ratio as hitherto. Emphasis should be on achieving the sub targets under Annual Credit Plan.


The review of the implementation of the SGSY programme was done by the Director, Rural Development. The issue relating to rejection of 38 applications came up for discussion and the Honourable Administrator directed that the reasons for rejection should be examined by the Rural Dev Dept and the bank officials and all possible efforts should be made to cover these applicants under the scheme. 


Review of the PMEG programme was carried by Executive officer LKVIB. He informed the house that due the activity of fishing coming under negative list, the rate of rejection was high.


Director Women and Child Development informed that there are over 380 SHGs of which of 56 groups have been credit linked. There is need for imparting skill upgradation training to the SHG members and also the problem of  marketing of their products. Hon’ble Administrator directed that the outlets of LDCL in Kochi Airport and two Delhi Haat outlets in New Delhi should be used for exhibiting SHG products and marketing. The outlet in Agathi Airport is expected to be completed soon and same should also be used for marketing SHG products. Also setting up of outlets in all vessels plying between islands and mainland should  be taken up.


Minutes of 42nd UTLBC meeting held on 25/05/2010 at Kavaratti .. continued

While reviewing the performance of the Fisheries sector, Hon’ble Administrator directed that Fisheries department in consultation with NABARD should come out with some income generating programmes for the fishermen to keep them employed in the lean season.


Administrator appreciated the efforts taken by the Animal Husbandry Department in attaining self sufficiency in the poultry sector. Director Animal Husbandry informed the house that the department is planning to establish Poultry units with 1000 birds under RKVY programme.Administrator directed that the possibility of implementing the scheme with credit support from the banks should be explored.


While reviewing the ST Development schemes, Director Tribal Affairs informed the house that UTL is a notified Tribal area and all programmes of all departments are for tribal welfare. As regards applications relating to National Schedule Tribe Finance and Development Corporation (NSTFDC), it was clarified to the house that only LDCL is eligible to draw refinance from the NSTFDC. Accordingly all applications relating to this scheme have been transferred to LDCL for necessary action. MD, LDCL informed the house that there is no pendency in such cases.


Annual credit Plan for the year 2010-11 was presented to the house. The plan envisages an outlay of Rs.25.82 cr comprising of PSA Rs. 12.96 cr (Agri Rs. 3.79 cr, NFS – Rs 0.74 cr Other PSA Rs. 8.43 cr) and Non PSA sector Rs. 12.86 cr. Although it is an ambitious plan compared to the last year achievement, the Plan was approved keeping in view the need to boost credit flow and increasing the CD ratio.  


On the issue of appointing BC in Bitra, Sri. L Rajan, AGM, SBI indicated that the issue has not been sorted out due to non execution of the agreement by the identified BC. He indicated that the remuneration sought by the BC was beyond the parameters prescribed by RBI. Hon’ble Administrator directed the RCS to discuss matter with the bank and come up with amicable and implementable solution quickly.


Sri. Rajan also informed the house that the bank was not able to increase the priority sector advances due to certain specific legal issues relating to title of property. He also added that the survey for opening of branches in Androth and Agathi has been completed and the branches would be opened by the year end.


The meeting ended with vote of thanks.



The 43rd    UTLBC meeting of Union Territory of Lakshadweep was convened on 19.02.2011 at   Secretariat Conference Hall with Dr.N.Vasantha Kumar IAS , Collector cum Development Commissioner  on chair. The meeting started at 10.45 a.m. 

 The other members present in the meeting were Adv. Sri. M. Hamdullah Sayeed , Hon’ble Member of Parliament, Janab A. Jalaludin Koya , President cum Chief Councillor, District Panchayat U. T. of Lakshadweep, Sri Anil K Sharma, General Manager  Reserve Bank of India, Thiruvananthapuram, Sri. G C Mishra General Manager Syndicate Bank Corporate office, Bangalore , Sri G J Raju  Dy General Manager Reserve Bank of India, Thiruvananthapuram,Sri S Ramachandran  Dy.General Manager Syndicate Bank Regional Office Ernakulam,  Sri V N A Nair, Dy General Manager NABARD,  Regional Office Thiruvananthapuram,                 Sri V S Menon Asst. General Manager NABARD Ernakulam,  Sri K M Kurian Regional Manager State Bank of India Ernakulam, Sri Gopalakrishna Chief Manager, UCO Bank Zonal Office Ernakulam and  Representatives from various departments of Lakshadweep Administration. 

At the outset Collector cum Development Commissioner   expressed satisfaction over the various awareness programmes conducted by the Lead Bank in popularizing the bank schemes and informed that bank has distributed the booklets in Malayalam detailing various schemes of the bank as a part of awareness creation to all the  households in the Island and to Administration officials. 

Regarding the low CD ratio and ways for increasing CD ratio, suggestions were elicited from the members.  Hon’ble Member of Parliament  Sri. M. Hamdullah Sayeed enquired the various  purposes for which bank finance can be made available. He opined that the activities like fishing boat, poultry, bye products of coconut like coir mats, handicraft, coconut oil extraction, tuna canning can be given thrust  for financing.



DC also observed that the  Mas-min produced in Minicoy was of  high quality  compared to that of other  Islands . The practice of drying the fish on platforms instead of sand was the main reason for high quality in Minicoy. CDC further suggested that the processing methods of Minicoy could be adopted by other Islands also for more demand creation. 


Referring to the Housing segment, CDC informed that there was much demand for housing loans for BPL families. He suggested that housing loans upto Rs.1.00 lakh repayable in 5-10 years could be made available by the banks. 


Further, CDC enquired about financing safety equipments for fishermen like GPS, each costing around Rs.20,000/-. He observed that at present the loading and unloading work of diesel barrels, aircraft fuel etc. are done manually. He requested bankers to find out methods of financing such activities for mechanical unloading. General Manager, Syndicate Bank promised to finance any viable proposal  sponsored to banks.  


Coming to the issues with agriculture, CDC pointed out that about 50% of the coconuts germinate and get wasted. To avoid germination, moisture-free building to store the coconut can be constructed. He also enquired about any germination prevention technique is available. It was suggested to gather information  from Coconut Board. DGM, NABARD informed that scheme for rural godowns was available with subsidy. CDC opined that service oriented subsidy linked bakery units were viable at islands which could be started in all islands.

 Regarding setting up RSETTI, General Manager, Syndicate Bank  informed that RSETTI could be started  in the island and training can be imparted to the unemployed youth provided adequate land is allotted. Stay and Boarding expenses will be borne by the bank.  CDC informed that  the Adminstration has  allotted 400 sq.mts of land space in ITI plot at Kavaratti  for the purpose of setting up of RSETTI.

Regarding preparation of scheme by NABARD, AGM NABARD informed that poultry scheme already prepared and given to SBI. Other schemes like rabbit, male buffalo rearing etc. are under preparation.  Animal Husbandry Department official  informed that animal husbandry schemes were not viable in the Island due to scarcity of fodder and water. He also informed that there was no demand for rabbit meat. Goat rearing is being done by  homestead farming.

 Regarding opening of more ATMs, Hon. Member of Parliament requested that ATMs may be opened in all islands. Dy.General Manager, Syndicate Bank informed that ATMs will be opened in Ameni, Kadmat and Kalpeni before June 2011.

 Regarding the SGSY scheme, DGM RBI told that application sponsorship was not adequate and as per guidelines the sponsorship of application should be 150% of the target taking into consideration rejection of few applications. He pointed that out of 147 nos. of applications  sanctioned,  65 nos  were pending disbursement which had to be disbursed without delay. Branch Manager, Kavaratti informed that the applications were sanctioned in principle and disbursement was pending for want of requirements like quotation / licences etc. DGM , RBI  further suggested that in case of rejection of applications, the matter should be informed to the line department before returning the application. A copy of the letter sent to the applicant should  also be marked to the line department. Director, Planning & Statistics told that such issues can be sorted out at Island Level Committee meetings to speed up sanction and disbursement.

 General Manager, RBI suggested to include details of No frill accounts, BC, Smart Cards etc. in the background notes. Deputy General Manager, RBI raised the issue of defunct SHGs and asked to collect information on defunct SHGs. He suggested to form a Sub Committee for revival of SHGs which will report to UTLBC. 



CDC suggested to explore the possibility of extending Jewel Loans at Kavaratti. Branch Manager Syndicate Bank informed that demand for gold loans were less and gold loans can be sanctioned to the needy persons. 

Deputy General Manager RBI enquired the status of appointment of BC by State Bank of , Regional Manager , SBI  informed that the condition of  security deposit of Rs.5.00 lakh towards equipment cost was waived by the bank and the only  problem was  the high remuneration demanded by BC. CDC informed that administration was even ready to provide the deposit of Rs.5.00 lakh in case SBI was ready to start by BC by March 2011. He further suggested that a decent salary shall be fixed and to inform the administration so that advertisement can be given in

local newspaper calling for BC. SBI agreed that the entire process will be completed within 2 months and the matter will be informed. CDC suggested that individuals can be appointed on part time basis.

 AGM NABARD reviewed the sector wise achievement under the Annual Credit Plan for 2010-11. He observed that the achievement under PSA as on 31.12.2010 was 43.7 % of the annual target, - 31.6% under  Agriculture,  57.5% under SSI- and 47.9 % under Other PSA. The achievement under Total Credit was 61.4 % as on 31.12.2010. The PLP for 2011-12 was also launched.  


The Annual Credit Plan for 2011-12 was presented by AGM, NABARD which was approved by the House. The Annual Credit Plan for 2011-12 envisages an allocation of  R 14.25 crore   under Priority Sector , of which R 4.35 crore is  for Agriculture,  R 0.77crore for Non Farm Sector, R 9.13 crore for Other PSA. Allocation of   R 12.86 crore is under non priority sector. The total credit target comes to   R 29.25 crore.

 The meeting came to an end by 12.30 p.m with vote of thanks by Sri K.M.Kurian, Regional Manager , SBI., Ernakulam.


The 44th UTLBC meeting of Union Territory of Lakshadweep was convened on 30.05.2011 at Secretariat Conference Hall, Kavaratti with Dr.N.Vasantha Kumar IAS, Collector & Development Commissioner on chair. The meeting started at      10.30 a.m.

         Sri.T.K Ahmed Haji Chairperson Village Dweep Panchayat Kavaratti,                  Sri.P.Srinivasan, Lead District officer, Reserve Bank of India, Thiruvananthapuram, Sri. V.S.Balachandran, Dy General Manager NABARD, Regional Office Thiruvananthapuram, Sri S Ramachandran Deputy General Manager Syndicate Bank, Regional Office Ernakulam, Sri K M Kurian Regional Manager State Bank of India Ernakulam and  Representatives from various departments of Lakshadweep Administration were present.  The list of participants is attached. 

 After welcome of the guests and other representatives, the Minutes of the 43rd meeting of UTLBC were adopted without amendments.

 The key note address was delivered by Sri S Ramachandran Deputy General Manager Syndicate Bank, Regional Office Ernakulam.

 Key note  Address by Sri S Ramachandran, Dy General Manager Syndicate Bank  Regional Office, Ernakulam

Sri S Ramachandran, Dy General Manager Syndicate Bank highlighted the significant role played by the banks in the economic development of the Island and in serving the people of the Island for the last four decades. During the year 2010-11, banks disbursed R23.22 Cr. against a total credit target of  R 25.81 Cr. forming 89.94% of the target. Under PSA, the disbursement was  R 8.22 Cr against a target of  R 12.95 Cr. forming 63.64%. The disbursement under PSA was 42.7 % more than that of previous year. 

 The CD ratio had increased from 7.42 as on 31.03.2010 to 8.13 as on 31.03.2011. The total credit outstanding had increased from  R 31.87 Cr as on 31.03.2010 to   R 43.01 Cr. as on 31.03.2011 with an  increase  of  R 11.14 Cr. i.e. 34.95% growth; year-on year basis.
 For ensuring smooth implementation of Government sponsored schemes, Dy.General Manager urged the implementing Agencies to increase the sponsorship of applications and to forward applications uniformly throughout the year.

 Syndicate Bank had taken several initiatives as a part of awareness creation such as distribution of booklets on deposit and credit schemes to all families, Line departments, SHG orientation programmes. Island to Island visit of Special Marketing team consisting of two officers and one clerk to reach out, each household was undertaken for popularizing GCC, KCC, canvassing No Frill Accounts, RD etc. under Financial Inclusion Campaign. As a result of all the above activities, banks could open 266 GCC, 328 KCC and 1842 No Frill accounts, during the year 2010-11.

He also brought to the notice of the house that the Chairman and Managing Director of Syndicate Bank had visited Kavaratti, Agatti and Kadmat Islands during the month of February 2011.   During his visit, CMD declared 0.50% concession in the rate of interest on all Priority Sector Loans except DRI subject to Base Rate norms. He also announced 50% reduction in remittance charges in Lakshadweep to help the people of the Island .




Dy General Manager requested all banks to strive hard to achieve all sectoral targets under Annual Credit Plan during 2011-12 to attain uniform growth in all areas with special focus on SHG, JLG, Fishermen, agriculturists and other weaker section of the society. Dy General Manager concluded the address requesting the continued co operation of all agencies like NABARD, RBI, various departments, Lakshadweep Administration and People’s representatives in attaining the goal of total development of Lakshadweep Islands .

 The follow up action on the decisions of the 43rd meeting was reviewed item wise.

 1) Suggestion of Hon’ble Member of Parliament, Sri M Hamdulla Sayeed for financing various activities suitable to the Island ,

 Chairman, Collector and Development Commissioner had suggested that loans at concessional rate may be considered for those engaged in glass painting. Lead Bank had already contacted those engaged in glass painting and agreed to finance those activities.

                                                                                                                ( Action- All Banks)

  2) Financing of Fisheries Co operatives for procuring mother vessels for deep sea fishing

           Banks informed that they had not received any application from Co Operatives. CDC enquired the Director of Fisheries about the action taken by the department. It was informed that the department was yet to discuss the matter with the Fisheries Co operatives. The Director, Fisheries informed that a scheme with back ended subsidy would be prepared within one month for implementation by banks for financing deep sea fishing.

                                                                                                          (Action- Fisheries Dept.)

 3) Adoption of practices of Mas-min production followed in Minicoy

Director, Fisheries dept. informed that the other islands were still following the same practices. Collector cum Development Commissioner remarked that high quality Mas-min fetches about 30-40% more price. Banks informed that the processing activity could be financed individually or by forming JLGs. Director, Fisheries Dept agreed to prepare a scheme within one month for financing groups of farmers.   CDC asked the Dept. of Fisheries to do some demonstration on hygienic way of Mas-min process.  2/3 Plat forms to be constructed in each fish landing area.  CDC also desired to explore the availability of any mechanical device for Mas-min processing, which can be adopted.  The driers, similar to Copra drying can be tried for smoking of mas consulting the expertise from Coconut Development Board or similar Institutions.     

                                                                                  (Action- Fisheries Dept/ Lead Bank)




4) Providing housing loans  upto  R 1.00 lakh for poor families

             Banks informed that they had not received applications under the scheme. Director Rural Development informed that people preferred to avail loans from Service Co Operative banks since those banks lent housing loans on production of ownership certificate only whereas banks need some other documents also. CDC enquired the requirements for sanction of   housing loans by banks. CDC also informed the house that the system of approval of plan of the building was not in force in Lakshadweep . It was informed by banks that documents such as original title Deeds. Encumbrance certificate, ownership certificate, income certificate, plan and estimate are required for sanction of housing loan. CDC suggested that people shall be sensitized about the details of documents required to be produced for housing loan which would in turn create demand for housing loans. CDC asked the Banks to exam whether the legal procedures can be avoided to simplify the procedures for Housing Loan.  To a clarification from CDC the Bank representatives informed that the Banks can give the loans within seven days of receipt of application.  CDC asked to exam setting up of Facilitation Centers.  

                                                                                                         (Action- All banks)
 5) Financing  mechanization of loading, unloading  activities

 The issue was dropped since the contractors were not interested in availing the loans since the investment cost comes to  R 10-12 lakhs which according to them was not profitable compared to the expected returns.

 6) Storing of coconuts in moisture free godowns, to prevent germination

Director, Industries informed that generally people of the Island were not interested in storing the coconuts in godowns since the practice is store the coconuts in their places. The matter need to be pursued with Coconut Board for information on germination prevention technique.  

                                                                                     (Action-  Industries Dept.)
 7) Setting up of RSETTI at Kavaratti

Dy General Manager Syndicate Bank informed that bank was very keen on starting the RSETTI and that process would be initiated soon after taking physical possession of the land allotted. CDC advised to take up the matter with the Principal ITI for taking physical possession and for completion of other formalities.

                                                                      (Action: LDO, Kavaratti )



8) Preparation of schemes by AGM, NABARD

 The two schemes – Male Buffalo calf rearing and Rabbit rearing prepared by NABARD for implementation by banks in Lakshadweep was found not ideal for Island since the Islanders do not prefer to eat rabbit meat and due to non availability of grass for calf rearing. Other schemes suitable to Island shall be thought of.           

                                                                                                        (Action- NABARD)

 9) Request for opening of ATMs in all Islands by Hon Member of Parliament

             Dy General Manager Syndicate Bank informed that ATMs at Kalpeni and Kadmat have been installed and only cabling work was pending. The contractors had problems in getting ship tickets to carry out the cabling in spite of repeated efforts.  CDC asked Director of Port, Shipping & Aviation to take action to provide tickets to them.  In case of Amini branch, it was informed that branch was going to be shifted and that ATM would be housed in the new branch premises which would take about 3 months.

                                                               (Action-Syndicate Bank/ Dir.(P,S&A))

 10) Exploring possibility of extending jewel loans

 It was decided that for appraisal of Jewels for extending jewel loans, jewel appraisers could be appointed at Islands like Andrott , Kadmat and Minicoy after imparting necessary training for appraisal of jewels.  CDC directed to give vide publicity through Lakshadweep Times.

                                                                              ( Action- All Banks/ Dir (I&PR))

 11) Appointment of BC at Bitra by SBI

 Regional Manager, SBI Ernakulam informed that though it was agreed to start BC by March 2011, it could not be materialized due to the issue of remuneration payable to BC. He further informed that remuneration of  R 2000.00 can only be paid whereas BC is demanding more. CDC informed that SBI can utilize the interest on  R 5.00 lakh deposit to be given by the Administration for payment of remuneration to BC. CDC made it clear that norms applicable to other places should not be applied at Bitra and that SBI had obligation to operationalise the BC at Bitra even if it was a loss proposition, as a part of Bank’s CSR activity.  Since the matter was a long pending issue, CDC wanted the matter to be resolved in a definite time frame. CDC also agreed to provide internet connection, web camera, and computer. CDC suggested that transfer of funds should take place online. Regional Manager, SBI promised to complete the process at the earliest after taking up the matter at appropriate level.

                                                                                                                 (Action- SBI)



Minutes of the Meeting to review the progress  in implementation  of  Recommendations of Working Group on improvement of Banking Services in the Union Territory of Lakshadweep held on 08.11.2011 at Kavaratti.


The meeting started at 11.00 a.m. at Secretariat Conference Hall, Kavaratti. Shri Amar Nath IAS, Hon’ble Administrator , U T of Lakshadweep presided over the meeting.


Other dignitaries present were Shri S Ramachandran, DGM Syndicate bank Regional Office Ernakulam, Shri. A K Mattu , DGM RBI Thiruvananthapuram,  Shri V S Menon  Asst General Manager NABARD Ernakulam, Shri. P Srinivasan LDO , RBI Thiruvananthapuram and Heads of various Departments of UTL Administration.


In his Presidential Speech, Hon’ble Administrator remarked that U T of Lakshadweep is peculiar in many ways and some potentials available in the mainland are lacking in  Lakshadweep .                  A shelf of bankable projects needs to be identified and suitable schemes prepared for development of the Islands . Banks and Government departments shall jointly initiate necessary action to encourage people to take up those projects. He also suggested that the action points on the recommendations of the RBI Group shall be expressed in terms of monitorable indicators to assess whether real progress is made or not while reviewing the same.


In this connection, Shri A K Mattu , DGM Reserve Bank of endorsing the views expressed by the Hon’ble Administrator mentioned that Fishing , Agriculture and Tourism has been identified as potentials areas in Lakshadweep and bankable projects under these sectors can be promoted. He added that many tourists are willing to come to the Island but accommodation is the limiting factor.


Shri S Ramachandran, DGM Syndicate Bank informed the House the action taken by Syndicate Bank , the Lead Bank for ensuring 100 % coverage of farmers under KCC by 30.09.2011as per the instructions from the Ministry of Finance. He explained that 12 officers were deputed from Mainland who visited all the households in all  9 islands and distributed simplified applications for Kisan Credit Card.  The filled up applications were collected back through Agricultural Department/ Village Panchayats/SDO and Kisan Credit cards were sanctioned in all the eligible cases.

Following this, the review of the progress made in the implementations of recommendations of the working Group of RBI was conducted.


Recommendation Sl No1



 The Banks and the UTL administration have to jointly make earnest efforts on improving the CD Ratio through greater exploitation of the potential in the Fishing, Agriculture and Tourism sectors, going up the value chain and improving the entrepreneurial technique and management skills of the Island population.


Joint efforts taken by the Banks and UTL Administration were reviewed. As a result of the various promotional activities undertaken by the Lead bank, the CD ratio has increased from 7.40 as on 31.3.2010 to 9.71 as on 31.10.2011. As regards to  routing of Government payments through account,  Director Planning Dept explained that the list containing the names of the beneficiaries has been forwarded to the banks for opening their bank accounts for facilitating payment through their accounts.



Recommendation Sl No2



Union Territory Level Bankers’ Committee (UTLBC) meetings as also other developmental meetings involving the bankers, developmental institutions and the UTL administration line departments should be convened at regular periodic intervals



Director ,Planning Dept. suggested that  any issue related to implementation of programmes can be sorted out at Island Level Committee meetings.



Recommendation Sl No3 and 4



Taking into account the Island-wise per branch population and also the fact that there is limited Island movement of people for transacting banking business in view of poor inter-island transport facilities, opening an additional bank branch each in the Island of Androth (population 10727), Minicoy (9495), Agatti (7009) and Amini (7353) could be considered.



The new branches in the above Islands may preferably be opened by another bank (other than Syndicate Bank which already has the predominant presence) which would help bring greater variety in banking services to the Island population and also generate an element of competition between the banks thereby benefiting the customers. 



Chief Manager, SBI RO Ernakulam informed that man power shortage is the main problem in opening the branches and promised that adequate action will be taken by the bank in this regard within a year.  With regard to starting of BC at Bitra island, he informed that a suitable person has been identified from the Bitra Island by the UTL Administration  through newspaper publication and the selected person  can be appointed after imparting one day’s training at Kochi by the Service Provider.





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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