Kohima: Nagaland’s government has formed a state-level committee to fix credit flow and enforce security interests. The move follows decisions from the March 2026 State Level Bankers’ Committee and the North East Bankers’ Conclave 2.0. The finance commissioner chairs the panel. It includes the Law and Justice Department, the Investment and Development Authority of Nagaland, the SLBC, and nine banks. Special invitees include officials from NABARD, SIDBI, and the RBI in Kohima.
The team must test the SARFAESI Act, 2002 against the protections of Article 371(A). They will evaluate legal precedents, specifically the 2025 Supreme Court ruling in North Eastern Development Finance Corporation Ltd. v. M/s L. Doulo Builders and Suppliers Co. Pvt. Ltd. The goal is to craft a security instrument that keeps local laws intact while letting banks operate. The panel will decide if the state needs a legislative resolution or a simple protocol to make these rules stick.
Work includes boosting lending through the Chief Minister’s Micro Finance Initiative model. The committee plans to design a State Credit Guarantee Fund to cover default risks. They aim to force banks to move past personal loans. They want a new rule requiring that at least 50% of incremental credit goes to productive sectors. The committee must also propose ways to tie government business to bank performance.
"The committee may co-opt members, invite special invitees and constitute sub-groups on legal and credit mobilisation issues." The panel has exactly 90 days to finish its report for the government. They must clear all major changes with the state Cabinet before they take effect.
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