The RBI Governor, Dr D. Subbarao, on Wednesday ruled out giving any special relaxation to the West Bengal government for borrowing through the ways and means advances (WMA). “No exception will be made in respect to ways and means advances (WMA) to any one State,” Dr Subbarao told reporters following a meeting with the Chief Minister, Ms Mamata Banerjee, at the Writers' Buildings here today. West Bengal is one of the most indebted States in the country, with an accumulated debt of over Rs 2 lakh crore. Replying to a query regarding the State's financial health, he said, “I am told by the State Chief Minister and the Finance Minister that efforts are being made to improve the situation. RBI will extend all possible support with available instruments under its disposal.” According to the RBI Governor, West Bengal's credit-deposit ratio which stands at 62 per cent is much below the national average of 74 per cent. The State government, he said, should take steps to increase the demand for loans from the agriculture and manufacturing sectors.Schemes for increasing tax revenue from small and medium enterprises (SMEs) should also be taken up by the State Government. For this necessary help should be provided to the six-lakh-odd SMEs of the State, he added. Talking about recapitalisation of the three regional rural banks (RRBs) in the state, Dr. Subbarao said: “We have requested the chief minister to provide Rs 83 crore recapitalisation support for the three regional rural banks in the state. Subsequently, the Centre will provide an additional Rs 235 crore.” According to Dr Subbarao, because of lack of infrastructure in different parts of the State, only about 4000 villages (with more than 2000 population) have been vested with banking facilities. This he said is much below the target of 7,486 villages that had to be vested by March 2012.
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