Sponsor banks-RRBs told to recognize challenges ahead
Finance Minister Nirmal Sitharaman has underlined importance of providing digital services of Internet Banking, Mobile Banking and UPI to customers of Rural Regional Banks (RRBs) and directed these RRBs to complete onboarding of these services on priority by end of December 2024 http://finmin.nic.in.
Sitharaman, also the corporate affairs minister, further urged RRBs to promote these services amongst their customers to increase their usage with help of respective sponsor banks https://www.bseindia.com/.
She stressed the need for sponsor banks and Regional Rural Banks (RRBs) to recognise the challenges that lie ahead, and maintain asset quality, expand digital services and ensuring robust corporate governance https://www.nseindia.com/.
Continuously focus on these areas, said Sitharaman as she chaired a meeting to review the performance of eight RRBs of the Eastern Region covering the four states of Bihar, Jharkhand, Odisha and West Bengal in Patna on 29 Nov.
Sitharaman directed RRBs to increase their share in ground level agriculture credit disbursement with special focus on allied agriculture activities like dairy, animal husbandry, fisheries among others https://digitalinasia.com/.
She directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region https://sbi.com.in/.
The Minister emphasised the importance of accelerating technology upgradation in RRBs the region to enhance efficiency and service delivery.
She also noted improvement in financial parameters of these RRBs. Consolidated CRAR has improved from 7.8% in FY 2022 to 9.4% in FY 2024 and Gross Non-Performing Assets (GNPA) have improved from 25% in FY 2022 to 15% in FY 2024.
RRBs in Eastern Region have posted consolidated profit of Rs 625 crore during FY 2024 against net loss of Rs.690 crore in FY 2023.
She highlighted huge potential of furthering financial inclusion in the region and urged sponsor banks in coordination with RRBs to saturate beneficiaries under Financial Inclusion schemes of Government of India viz. Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), etc.
Further, she stressed on the potential of One District One Product (ODOP) programme to increase self-employment in the region https://www.digitalasiahub.org/.
She urged state government to extend support to banks for increasing credit flow to women Self Help Groups and to join hands with NABARD and SIDBI to evolve them into enterprises. Financial Institutions were further directed to provide support for training and marketing linkages. Fiinews.com
