Agartala: Union Home Minister Amit Shah on Saturday urged regulatory bodies in the banking sector to formulate a new financial policy tailored to the Northeast region with relaxed parameters. Speaking at the North East Bankers’ Conclave in Agartala, Shah emphasized the need for a unique approach for the region, stating, “Banks generally operate on principles such as growth potential, risk assessment, and profitability. However, for the Northeast, banks and venture capital organizations must adopt a different perspective. Risk should be treated as a secondary factor, and investments in the region should be seen as a national duty. I admit we have been late in unlocking the potential of this region.”
The Union Home Minister assigned the task of developing the new financial policy to the Reserve Bank of India (RBI), the National Bank for Agriculture and Rural Development (NABARD), and the State Bank of India (SBI).
“The financial policy parameters applied across the country do not align with the unique requirements of the Northeast. This region cannot be generalized with the rest of India. RBI, NABARD, and SBI must take necessary steps to craft a separate financial policy exclusively for the Northeast,” Shah said.
Highlighting the region’s growing strategic importance, Shah stated, “The Northeast will soon become a gateway to South East Asia, providing access to the global market. Historically, challenges such as low population, limited consumption, and high transportation costs have hindered manufacturing in states like Tripura. However, with the operationalization of the Bangladesh route, the Northeast will gain direct access to international markets. Additionally, the region is equipped with proper education and services to provide manpower to interested manufacturing firms.”
Shah also pointed to improved security conditions in the region, attributing it to a series of peace accords. “There has been an 86 percent decline in deaths due to insurgent activities in the Northeast, and overall violence has reduced by 71 percent. Over 10,000 armed rebels have laid down arms and joined mainstream society,” he added.
DoNER Minister Jyotiraditya Scindia, speaking at the event, noted significant progress in the banking sector and entrepreneurship in the region over the last decade. “In the past 10 years, the Northeast has witnessed a nearly 50 percent increase in bank branches, rising from 3,330 to 5,182. Furthermore, 100 venture capital startups have been sponsored by the North Eastern Development Finance Corporation Limited (NEDFI). Under the leadership of Prime Minister Narendra Modi, we are leaving no stone unturned to ensure the region’s development,” Scindia said.
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