Kohima: Nagaland has formed a state-level committee to tackle roadblocks in credit access and enforce security interests. The group follows a July 3 meeting held by the State Level Bankers Committee for the quarter ending March 2026 and the North East Bankers Conclave 2.0. Officials want better loan terms. They must finish their report within 90 days.
The Finance Commissioner chairs the board. Members include staff from the Law and Justice Department, IDAN, and the SLBC. Bankers from SBI, Bank of Baroda, Nagaland Rural Bank, Nagaland State Cooperative Bank, UCO Bank, Canara Bank, Axis Bank, HDFC Bank, and ICICI Bank occupy seats. NABARD, SIDBI, and RBI Kohima act as special invitees. An Under Secretary from the Finance Department serves as Member Secretary.
The panel must review the SARFAESI Act of 2002 alongside Article 371(A). They are also studying a key court precedent, the "Supreme Court judgment in North Eastern Development Finance Corporation Ltd. v. M/s L. Doulo Builders and Suppliers Co. Pvt. Ltd." They will design a credit guarantee fund and push for at least 50 percent of incremental credit to go toward productive loans rather than personal salary-backed lending.
The committee intends to use the Chief Minister's Micro Finance Initiative as a model for loan facilitation. They will define how the state government handles banking business and report back to the cabinet. Any proposed security instruments must meet strict fiscal rules.
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