One bank branch in all villages by 2012: Pranab

The finance minister said Centre is committed to opening banks in each of the country's 72,000 villages.

In accordance with the Centre’s policy to open more banks in rural areas,a target has been set to open at least one bank branch in each of the 72,000 villages in the country by 2012,Union Finance Minister Pranab Mukherjee said today.

The minister was speaking at the inauguration function of the 1,574th branch of the United bank of India at Miriti village in the Bolpur sub-division of Birbhum district.

“The target is tough to meet,but the bank authorities have taken the initiative to reach the goal,” Mukherjee said and appealed to villagers,who were present in strength,to repay loans in time.

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He reminded farmers that if they repay loans in time,they will have to pay only five per cent interest,whereas the normal rate is seven per cent.

Mukherjee handed over loan sanction letters and financial assistance to some village students.

When asked about high inflation,the finance minister said,”We have taken some measures like changing the REPO rate to check inflation. However,the prices of vegetables have gone up purely because of a gap between demand and supply.”

While assuring that a solution would be found soon to arrest spiralling prices,Mukherjee said he had written letters to all the state chief ministers asking them to maintain supply according to the demand.

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