Ranchi, June 21: Panchayat bhavans across the state could give a fillip to the National Rural Employment Guarantee Scheme (NREGS) — aimed at ensuring jobs to villagers.

The panchayat bhavans in Jharkhand are ready but lying unused as panchayat elections have not been held for three decades. Housing banks in these buildings will guarantee for smooth payment of wages to labourers under the NREGS, officials said at a seminar today.

Addressing the gathering at the discussion, “Financial Inclusion of Jharkhand: A Movement”, organised by RBI, development commissioner A.K. Singh argued that the success of NREGS also depends upon the co-operation of the banks.

Most banks have not expanded to the panchayat level and post offices are not capable of handling the banking business efficiently.

“Union rural development minister Raghuvansh Prasad Singh has already certified that our panchayat bhavan buildings are the best in the country. If the banks even set up their extension counters in these buildings, the face of Jharkhand will change. The banks, too, will be benefited, as the poor villagers will gradually learn to keep their savings in the banks,” he added.

Singh said expansion of banks was also necessary because Jharkhand will be paying Rs 2,400 crore as wages to labourers under NREGS. Another Rs 1,600 crore will be spent on material costs. This apart, the Centre has agreed to provide an additional Rs 2,000 crore for NREGS.

Citing examples, he said that over 60 bank branches in the state have not lent a single penny for the past few years. He asked the bankers what actions have been taken against such managers.

A majority of banks released advances equivalent to subsidy amounts. The RBI directives were being flouted blatantly.

“I understand that non-recovery of loan amounts is one of your biggest problems. Special debt recovery officers will soon be appointed in all the districts. In Ranchi, the officer will be assuming charge within a week. The state government will bear 50 per cent of the expenses incurred running these debt recovery offices and the balance 50 per cent will be shared by the banks,” Singh added.