Business News | Nirmala Sitharaman Reviews Performance of 10 RRBs of Southern Region

Bengaluru (Karnataka) [India], November 9 (ANI): Union Finance and Corporate Minister Nirmala Sitharaman on Saturday reviewed the performance of 10 Regional Rural Banks (RRBs) of the Southern Region in Bengaluru.

The Union Finance Minister reviewed the performance of RRBs of Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Kerala and UT of Puducherry, the Ministry of Finance stated in a post on social media platform X.

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The meeting was also attended by Union Minister of State for Finance Pankaj Chaudhary, the Department of Financial Services (DFS) secretary, senior officials from the DFS, officials from the state governments, representatives of SIDBI, NABARD, stakeholders of RRBs, and sponsor banks.The Finance Minister has been reviewing the performance of RRBs across the country due to their crucial role in supporting the rural economy.

In August, during a meeting with RRBs in Delhi, the Union Finance Minister urged RRBs and their sponsor banks to put greater thrust on the clear identification of beneficiaries while sanctioning loans under various schemes such as PM Vishwakarma and PM Surya Ghar Muft Bijli Yojana.

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RRBs, during the meeting, were also directed to increase their share in ground-level agriculture credit disbursement.

During a presentation in the review meeting, Sitharaman appreciated the RRBs for the improvement in their financial performance and technology upgrades ever since the regular review was initiated in 2022 and has also urged the rural banks to continue the momentum in the future.

Sitharaman underlined that all RRBs must have their own up-to-date technology stack to stay relevant and noted that digital banking services like mobile banking will be a boon for regions with relatively challenging physical connectivity (like North Eastern states and hilly regions).

The sponsor banks have a significant role in these endeavours by providing technical assistance, sharing best practices, and ensuring that RRBs have access to the resources they need to succeed.

During the meeting, the Union Finance Minister emphasised active outreach by the RRB branches located in MSME clusters to ensure credit to small and micro enterprises in areas like textile, handicrafts, wooden furniture, clay pots, jute handicrafts, leather, food processing, dairy farming, packing materials etc. that hold immense potential for increasing the loan portfolio for RRBs.

Sitharaman exhorted all the RRBs to devise suitable MSME products aligning with their cluster activities and leverage personal and local connections to increase banking penetration. SIDBI was directed to assist RRBs in exploring co-lending/risk-sharing models and extending refinance for the MSME portfolio.

She also asked Sponsor Banks and RRBs to recognise the challenges that lie ahead and to continue focusing on maintaining asset quality, expanding digital services, and ensuring robust corporate governance. (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)