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FM to soon review performance of regional rural banks

July 07, 2023

FM to soon review performance of regional rural banks
Finance Minister Nirmala Sitharaman is likely to meet heads of Regional Rural Banks (RRBs) and review their performance soon, sources said. RRBs play an important role in financial inclusion and serving the credit needs of the rural economy.

According to sources, the finance minister would review the progress with regard to the issuance of Kisan Credit Card (KCC) to farm and allied sectors by RRBs.
 
With an aim to provide the benefits of KCC loans to a maximum number of farmers, a special KCC saturation drive was launched under Atma Nirbhar Bharat Abhiyan to cover 2.5 crore farmers under KCC with a credit boost of ₹2 lakh crore.
 
She is also expected to review the capital position of some of the weak RRBs, sources added.
 
The need for technology upgradation of RRBs, strategies for NPA reduction, IT initiatives, improving financial inclusion, enhancing credit delivery to rural areas, and support being given by sponsor banks to the RRBs are other issues that may be discussed in the meeting, it added.
 
These banks were formed under the RRB Act, 1976 with the objective to provide credit and other facilities to small farmers, agricultural labourers, and artisans in rural areas.
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