43 RRBs participated in focused discussion on business performance, upgrading digital technology services, and fostering business growth in MSME clusters
Union Finance Minister emphasizes active outreach by RRB branches in MSME clusters to ensure credit to small and micro enterprises
RRBs must devise suitable MSME products aligning with cluster activities and leverage their personal and local connect to increase banking penetration, exhorts FM
The meeting, with all 43 present RRBs, focused on business performance, upgrading digital technology services, and fostering business growth in MSME clusters.
Given the crucial role of RRBs in supporting the rural economy, the Union Finance Minister urged RRBs – with the active support of their Sponsor Banks – to also 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. RRBs were also directed to increase their share in ground-level agriculture credit disbursement.
During a presentation in the review meeting, Smt. Sitharaman has 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. RRBs have recorded the highest ever consolidated net profit of ₹7,571 crore in FY 2023-24. The Gross Non-Performing Assets (GNPA) ratio of 6.1% is the lowest in the previous 10 years.
During the review meeting, the Union Finance Minister 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.
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.
Smt. Sitharaman exhorted all the RRBs to devise suitable MSME products aligning with their cluster activities and leverage personal and local connect to increase banking penetration. SIDBI was directed to assist RRBs in exploring co-lending/risk-sharing models and extending refinance for the MSME portfolio.
Smt. Sitharaman 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.
Related posts:
The Nifty PSU Bank index climbs 1.5% following Finance Minister Sitharaman’s review meeting with the heads of public sector banks.
Framework for Recognition of Self-Regulatory Organizations (SROs) in Financial Markets – Invitation of applications
Did you incorrectly claim a deduction on your ITR? The Income Tax Department requires employees to correct the mistake and pay any outstanding tax, or face potential penalties.
Torrent Pharma Seeks $3 Billion to Acquire KKR’s Stake in JB Chemicals
8 Reasons Why the Old Tax Regime Remains Attractive for Many Taxpayers
STEPS TO FILE INCOME TAX RETURN