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Union Finance Minister Nirmala Sitharaman chaired a review meeting with 43 Regional Rural Banks (RRBs) on August 19, 2024. The meeting focused on enhancing business performance, upgrading digital technology services, and supporting MSME clusters, aiming to strengthen the role of RRBs in the rural economy.
Regional Rural Banks: Emphasis on Rural Credit Disbursement
The Finance Minister emphasized the importance of RRBs prioritizing the clear identification of beneficiaries when approving loans under schemes such as PM Vishwakarma and PM Surya Ghar Muft Bijli Yojana. She also directed them to increase their share in ground-level agriculture credit, underlining the importance of supporting rural communities through targeted financial services.
Record Financial Performance and Technological Advancement
Smt. Sitharaman applauded the significant improvement in Regional Rural Banks’ financial performance, with a record net profit of ₹7,571 crore in FY 2023-24 and the lowest GNPA ratio in a decade. She highlighted the need for RRBs to maintain momentum and continue upgrading their technology stacks to stay competitive, particularly in regions with challenging physical connectivity.
Strengthening MSME Outreach
The Finance Minister emphasized the importance of RRBs’ outreach in MSME clusters, urging them to devise suitable MSME products that align with local cluster activities. She directed SIDBI to assist RRBs in exploring co-lending and risk-sharing models, enhancing credit access for small and micro enterprises in sectors with high growth potential.
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