Kohima, 2nd October 2026 (Nokinketer News): The Nagaland Government has constituted a State Level Committee on SARFAESI and Credit Mobilisation to address legal issues surrounding security interests and strengthen credit flow in the State.
The committee was constituted by the Governor of Nagaland following a decision of the State Level Bankers’ Committee (SLBC) at its meeting held on July 3, 2026, and as a follow-up to the North East Bankers’ Conclave (NEBC) 2.0.
The committee will be chaired by the Finance Commissioner, Government of Nagaland, with representatives from the Law & Justice Department, Investment & Development Authority of Nagaland (IDAN) and SLBC as members. Senior representatives of SBI, Bank of Baroda, Nagaland Rural Bank, Nagaland State Cooperative Bank, UCO Bank, Canara Bank, Axis Bank, HDFC Bank and ICICI Bank will also be part of the committee.
The Under Secretary, General Branch, Finance Department, will serve as Member Secretary, while representatives of NABARD, SIDBI and RBI, Kohima, will participate as special invitees.
The committee has been assigned two broad areas of work: security interest and the SARFAESI Act, 2002, and credit mobilisation.
On security interest, the panel will examine the legal position relating to the creation and enforcement of security interests in Nagaland under the SARFAESI Act, particularly in the context of Article 371(A) of the Constitution and the Supreme Court judgment in North Eastern Development Finance Corporation Ltd. v. M/s L. Doulo Builders and Suppliers Co. Pvt. Ltd.
It will examine the feasibility of an Article 371(A)-compatible statutory security instrument and alternative collateral arrangements, including guarantee cover and cash-flow assessment. In consultation with the Law & Justice Department, it will determine the appropriate legal or administrative mechanism required to implement the recommended framework.
The committee will also seek concurrence from SLBC member banks on the acceptance of the recommended documentation as valid security and credit-enablement documentation across the State.
On credit mobilisation, the panel will work towards improving loan facilitation through sponsorship, application readiness, guarantee arrangements and last-mile follow-up under credit-linked schemes, using the Chief Minister’s Micro Finance Initiative (CMMFI) as a working model.
It will also recommend a State Credit Guarantee Fund, including its corpus, coverage and operational terms, for consideration by the Cabinet after financial and contingent-liability assessment.
The committee will further examine a proposed productive-credit sub-target of at least 50 percent of incremental credit as an SLBC performance indicator, aimed at ensuring greater flow of credit towards productive sectors.
The panel has been given 90 days to submit its report to the State Government, with recommendations requiring approval to be placed before the competent authorities.
