Kerala - Kozhikode

Isaac launches KSFE’s Pravasi Bandhu Chit Fund

Kozhikode: The ‘Pravasi Bandhu Chit Fund’ of Kerala State Financial Enterprises (KSFE) was inaugurated by Finance Minister T. M. Thomas Isaac here on Saturday.

The scheme, largely aimed at the relatives of non-resident Keralites (NoRKs), aims at achieving Rs.45 crore as investment through chits. “I am sure the scheme will achieve more than twice the targeted amount,” said the Minister.

Mr. Isaac who said that the breakdown of the private sector banks globally has resulted in boosting the credibility of the government-controlled public sector financial enterprises, also said that the constructive initiatives like that of KSFE can do a great job in stabilising the economy at a time of the crisis. “Public sector undertakings have a vital role to play at the moment,” he said.

With the global recession slowly beginning to show its rub-offs on the Indian economy, the Central government should focus on raising investment in infrastructure and social welfare schemes instead of limiting its bailout measures to increasing the liquidity, he said. “As a State, Kerala also will have repercussions on the economic front and we have to effectively negotiate it,” he said.

Mr. Isaac said the State government had decided to give special stress on infrastructure development and other social welfare schemes as it went through the recession.

“The Central government should give additional aid to the States, which wants to focus on the infrastructure development and on strengthening the public sector initiatives as it negotiate the economic slump,” he said.

Observing that the global recession had resulted in enhancing the credibility of those banks and financial enterprises which were under the government control, he said the public sector initiatives like KSFE could play a major role in winning the confidence of the people for the banking and other financial sectors at a time of rampant financial fraudulence and economic slow down.

Criticizing the Reserve Bank of India’s guidelines and the government policies, which restrict Non-Resident Indians from directly putting their money in the KSFE chit funds, Mr. Isaac said it was quite strange and unjust that the Indian government was so sceptical about the constructive initiatives of the poor people of Kerala who were working very hard abroad to feed their family back home.

“The authority’s reasons for not allowing the direct NRI investment to the KSFE chit funds are inane and unconvincing,” he said.

He urged the relatives of the NRIs to take the Central government’s restrictions as a challenge and support the KSFE’s initiative by making use of the chit fund to script a success story of the public sector financial enterprise of the State and by patronising the scheme in all possible ways.

Corporation Mayor M. Bhaskaran presided and famous Kathakali Aashaan Guru Chemancheri Kunhiraman Nair was feted and draped a ‘ponnada’ by Mr. Isaac during the function.

© Copyright 2000 - 2009 The Hindu