Rs 11 lakh crore priority sector lending target achievable: Arun Jaitley

Finance minister Arun Jaitley on Monday said that banking sector must invest in long-term assets to improve the capital formation in agriculture sector.

“Investments in financial technology over the past few years have brought in efficiency, speed and transparency in the rural financial ecosystem,” he said adding that the credit flow target of Rs 11 lakh crore for 2018-19 is achievable and would contribute to the momentum towards doubling of farmers’ income by 2022.

Jaitley was addressing the board of agriculture development bank Nabard.

Rajeev Kumar, secretary, department of financial services highlighted the necessity of financial inclusion and adoption of technologies to make use of the opportunities arising out of higher GDP growth.

Kumar observed that banking system should concentrate on geographical areas like north-east, east and central India where the formal credit can give a fillip to growth potential these areas offer.

Harsh Kumar Bhanwala, chairman, NABARD said that the Rs 5,000 crore micro irrigation fund which aims to promote water conserving and productivity enhancing technologies will be operationalised shortly.