Finance Minister P. Chidambaram has asked the banks to cut interest rates, aggressively expand their operations and extend credit to vital sectors to revive the engine of economic growth. Briefing the media after his review meeting in New Delhi, with the Chief Executives of Public Sector Banks and Financial institutions, Chidambaram urged the banks to lower the EMIs of loans to encourage sale of consumer durables to restart the engine of manufacturing.

The Finance Minister announced rescheduling of farm loans in drought affected states. Credit will be provided farmers for fodder and maintain their cattle. Assistance will also be given to raise alternate crops. 11.5 crore Kissan debit cards are being replaced by Debit – cum – ATM card.

Chidambaram also announced that procedures will be revised for easy sanction of education loans to students. Strict action will be taken against Branch managers, who deny loans to eligible students.

He asked the banks to focus on sectors crying for credit and also identify issues hampering investment. He said reviving investment is the key to churning the engine of economic growth. He asked the Industrial houses to bring forward implementation of their projects to accelerate economic growth.

Pointing out that 11 lakh crore lies as cash in the hands of people , Chidambaram asked the Banks to mobilise savings. He said, the banks have been advised to double the number of 63000 ATM's in the country and also to convert them into cash accepting machines as well.