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Nagaland

After proxy voting, now there’s proxy SBI accounts

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By EMN Updated: Nov 03, 2014 1:14 am
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Naga businessmen meet SBI officials

EMN
DIMAPUR, NOVEMBER 2

The illegal activity of non-Naga persons availing loans from major banks such as the State Bank of India (SBI), under Naga names or local particulars, is contributing even more to the troubles of Naga entrepreneurs who try but are often sidelines by the banks from availing loans. This practice – called “proxy account” – was one of the issues raised by an organization with officials of the State bank of India in Dimapur recently. Business Association of the Nagas (BAN) met with officials of the State Bank of India on October 21, in Dimapur “to bridge and understand both the concerns of the bank and the entrepreneurs.”
During the meeting, the BAN leaders raised concerns about ‘proxy accounts’ (non-local persons holding an account in the name of a Naga person or under Naga names). The organizations leaders reminded the bank that money was being borrowed by non-Naga individuals under Naga names. They do not repay the money to the bank. ‘Proxy accounts’ is one reasons why there was backlog in loan recovery and why Naga entrepreneurs are facing tremendous difficult in procuring loans from the bank.
Assistant general manager of the regional branch, BK Shrivasta, said that the main problem for financing was “creation of co-lateral.” Nonetheless he said there were many schemes the bank offers that do not require “co-lateral.”
Another issue he broached was that there was a ‘huge backlog’ in terms of loan repayment. This, in turn, makes it difficult for genuine entrepreneurs to procure loans from the bank, Shrivasta told the Ban leaders.
RMSE Manager TAP Paul also spoke during the meeting,. He said that Naga entrepreneurs often approach the SBI for loans even though they do not have an account with the bank. In such cases, the bank finds it ‘extremely difficult’ to extend loans. He requested Naga entrepreneurs to open up current account with the SBI.
“The meeting concluded with both sides agreeing to have more such meetings, BAN also assured that it would give it fullest support in assisting the bank in identifying genuine Naga entrepreneurs, the SBI officials further agreed to consider favorably those entrepreneurs seeking loan who are members of BAN,” a press release on Sunday from the association informed.

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By EMN Updated: Nov 03, 2014 1:14:22 am